2. PURITY “PURITY IN EVERY DROP ”
A Group Presentation by:
Bhanita Gohain
Prerna Sharma
Sunny Singh
Debayan Ghosh
Pradip Karmakar
3. OVERVIEW
• Water is a essential part of human races to survive
• As per the World Health Organisation report every year 4 lacs
people are dying due to consumption of unpackaged water, either
they cannot afford packaged water or there is lack of spreading
awareness.
• The areas mostly affected are rural and semi-rural areas.
• Our company DEBDIP SAGOSI Pvt Ltd., established on 1st February
2016,will introduce “PURITY” packaged water, for the betterment
of the society with very low price and better quality to cover up
the affected areas.
• It will be a Packaged drinking water with double purification
process and will be affordable for every single people.
4. VISION
• Our vision is to be the dominant player in the local water
business. Also, we must expand and be a leader in the premium
beverage category
5. MISSION
• We are in the business to serve the customer. He is the most important
person, the only one who pays, deserves the best quality and
presentation for the price he is paying. We must have world class
quality, at the lowest production and distribution cost. This will make us
an unbeatable leader, and we will have satisfied loyal customers.
6. OBJECTIVE
To create strong distribution network.
Good brand awareness and brand positioning
To construct easy availability of product in all over India in low
cost.
This company tried to enhance the Hygiene factor. Mineral
water is extracted after proper experimentation and removing all
impurities. So hygiene factor is kept in mind while designing the
product.
7. GOALS
• A major, diversified, transitional, integrated consumer product manufacturing
company, with National Leadership and a strong environment conscience, playing a
national role in safe water and Agro based drinks.
• To provide the highest quality product, keeping in mind all aspects including
freshness, purity and safety, and making it easily available to the consumer at a very
affordable price.
• To achieve international standards of excellence in all aspects of energy and
diversified business with focus on consumer delight through value and services
of product and cost reduction.
9. SEGMENTING
Demographic segmentation. Our product is a low cost product which will definitely support all income
group people but basically we are concentrating on middle income and lower income, all age group
people, more convenient for nuclear families.
Geographical segmentation .The main motive to launch this product is to reach out remote areas, rural
or semirural areas where people don’t have access to freshwater supply. To provide them with best
water which would be affordable for the people residing in rural and semirural areas.
Behavioural segmentation. Our product is an affordable one which would appeal to masses in large for
daily usage in large quantity for people who are not that brand conscious. They would definitely try out
this product for once which would give them the same usage and quality rather than the branded one
bisleri, kingfisher etc.
Psychographic segmentation. This product is suitable for the people who are more price sensitive and
not brand conscious
10. TARGETING
• Our target market is the low and middle income group
people residing in rural and semirural areas.
• We will also target some commercial markets too like
railway stations, Bus stands, some of the retailers, etc.
11. POSITIONING
We will position our brand in the minds of our
customers as “PURITY IN EVERY DROP” which would
mean that we are producing a low cost product without
compromising with the quality of the product.
12. SWOT ANALYSIS
STRENGTHS-
*Good brand awareness and brand positioning.
*Available in different packs like cups, 500 ml, 1 lit, 1.2 lit,
2 lit, 5 lit and 20 lit
*Focus on customer orientation through low price strategy.
*Product differentiation by introducing patented break way seal cap.
13. SWOT ANALYSIS
WEAKNESS-
*Lack of brand loyalty as MNC's are entering the market like Nestlé’s Pure life, Pepsi's Aquafina.
*Lack of Global Awareness in brand.
*Lack of proper advertising to create brand awareness.
*Market coverage is not fully utilized
14. SWOT ANALYSIS
OPPURTUNITIES-
*Indian bottled water industry is still at growth stage.
*Influence of tourists and expatriates.
*Unreliable municipal water quality.
*People are becoming health conscious
15. SWOT ANALYSIS
THREATS-*Numbers of players like Kinley and other local players are present in the market have
already captured the market.
*Tough competition from MNC's like Coke & Pepsi.
*Fluctuation in sales due to seasonality.
*Local manufacturers who refill used bottle Hampers the image of the industry.
*Water filters and soft drink industry is a major threat to industry.
*Coke and Pepsi are already having strong distribution network in bottle water industry with their
own fleet of trucks & vans.
16. SWOT ANALYSIS ACTIVITY SHEET
Strengths
Good brand awareness positioning
Low price strategy
Best quality
Focus on customer needs
Suitable for all income groups
Weaknesses
No quick recognition for new entrant
Global mnc’s like bisleri would give tough competition
Lack of aggressive advertising
Brand loyalty of customers towards global brands
Opportunities
Indian water bottle industry still at growth
Influence of tourists and expatriates
Unreliable municipal water quality
People are conscious to health and hygiene
Threats
Number of global and local players in the market
Global players have a huge market share
Fluctuations in sales due to seasonality
Tough completion from MNC like coke pepsi
21. MARKETING STRATEGIES
*SELECTING THE TARGET MARKETS
When the selection of the target market is over an important part of the marketing strategy of the
firm is already determined, defined and expressed. The target market is the low income and the
middle income group people residing in rural and semirural areas who don’t have access to
freshwater supply.
*ASSEMBLING THE MARKETING MIX
Assembling the marketing mix means assembling the four P¶s of marketing in the right
combination. We will try to put the best quality product at low cost. We will evaluate expenditures at
different levels of mix on each elements to find out the best effective way to make profit.
*ADVERTISING CAMPAIGN
While designing an advertising campaign we have to focus on the areas where people do not take
the use of water seriously. We will provide samples and also awareness about how a packaged water
is different from usual drinking water.
22. MARKETING MIX
*PRODUCT
The main product of the company is the mineral water by the name of PURITY Mineral water. PURITY
has become a perfect synonym of the mineral water for the Indian consumers. The main challenge our
company or any other player in this mineral water industry is that there is no scope of invention and
innovation in the product, which can be added as the additional benefits of the product. It is just water
after all. This is what the Indian customers think of the bottled water.
*PRICE
In India, where the majority of the population comprise of the middle-income group and lower
income groups it is not hard to understand that pricing is one of the most important factor in the
buying decisions. PURITY will meet the expectations of the consumers in terms of pricing the product
and also making the product available in variations of liters, making PURTIY both convenient and
affordable. Its product will be available at a very reasonable price.
23. MARKETING MIX
*PLACE
To make the product available to the target consumers a good distribution network has to be there to
support the good quality of the product. Here in the case of the mineral water industry the distribution
network is the important factor in being competitive and the catch lies in making water available to
maximum number of places in the country mainly focused on rural and semirural areas where access
to pure water is still a major hindrance for many.
*PROMOTION
To reach the customers with our product, will be done through different mediums of advertisings,
sales promotions, sponsoring events, personal selling and public relations.
24. PACKAGING
*Our Packaging will be little different from that of our Competitors like Bisleri,
Aquafina, etc.
*The body of the bottle will be double layered plastic to keep the temperature of the
water inside stable for a long duration.
*We will be printing health tips and purification of the water process on each bottle
to spread some awareness.
25. CHANNELS OF DISTRIBUTION
*MANUFACTURER-CONSUMER(DIRECT SELLING)
All the stocks will be directly transported to the targeted and segmented areas without including any
intermediaries in between. This will also lower the cost and profit can be maximized. This is the
simplest and shortest type of distribution channels.
*MANUFACTURER-RETAILER-CONSUMER
This will be done by selling to one or more retailers who sell to consumers. We will also target the big
retailers such as Super markets, etc. It will also help in controlling the distribution channel.
*MANUFACTURER-WHOLESALER-RETAILER-CONSUMER
We will also try to use traditional or normal channels. This will be the most suitable type for us as our
finance will be limited and we have just only one product line.
26. CHANNELS OF DISTRIBUTION
*MANUFACTURER-AGENT-RETAILER-CONSUMER
As we are concentrating on geographical factor so we will also use this type of distribution channels.
*MANUFACTURER-AGENT-WHOLESALER-RETAILER-CONSUMER
Total stock will be handed over to the agents and then the distribution will be done in highly wide
areas of the targeted areas.
27. CONTINGENCY PLAN
*In case the product fails in the market we will try to come out with the same
product again with different alternatives and addition to its composition.
*We will also be repositioning our product to different segmented market and the
selected categories of family.
*We will use the same fixed facilities as we already have to keep the production
stable without any chaos in organization.
28. BUSINESS ESTABLISHMENT
As per Bank rule 80% of the project is given by Bank & 20% is self-investment.
Our project is under MSME scheme (Ministry of Micro Small & Medium Enterprise), as per MSME
our project is a Small Enterprise (25 lack – 5 cr.) & our interest rate will be 11.85. We are taking
loan from ALLHABAD BANK.
Share Allocation
29. SHARE CAPITAL
Liabilities Amt. Assets Amt.
Capital 7,00,000 Land 9,00,000
Building 15,00,000
Machinery 5,00,000
Bank Loan 28,00,000 Furniture 2,00,000
Bank 4,00,000
35,00,000 35,00,000
30. COST OF PRODUCTION
Cost Heads
Cost per 1ltr.
Bottles (Rs)
Cost per
500ml
Bottles
(Rs)
Cost per
5ltr.
Bottles
(Rs)
Cost per
20ltr.
Bottles
(Rs)
Cap + Bottles 2.00 1.25 4.75 12
Cost of Water 0.16 0.08 0.8 3.2
Treatment Cost 0.1 0.05 0.5 2
Labour Cost 0.15 0.075 0.75 0.75
Carton Cost 0.5 0.25 2.5 0
Transportation
Cost
0.25 0.125 1.25 3
Label Cost 0.15 0.075 0.75 2
Others (Advt.) 0.25 0.125 1.25 2.5
Total Cost 3.56 2.03 12.55 25.45
End Market Price 10.00 5.00 35.00 70.00
31. OTHER FINANCIAL DETAILS
Size of Bottles
Total no of Bottles Price Amount
500ml
1,60,000 1.25 200000
1ltr.
2,10,000 2 420000
5ltr.
35000 4.75 166250
20ltr.
1,00,000 12 1200000
Total
19,86,250
Purchase of Raw Materials ( Plastic Bottles)