1. BLUE DROPS
TABLE OF CONTENTS
1. Background
2. Market Scenario
3. Product/Service Selection
4. Operations Strategy
5. Product development
6. Process Design
7. Facilities Location
8. Facilities Layout
9. Capacity Planning
10. Demand forecasting
11. Scheduling & Resource Planning
12. Aggregate Production Planning
13. JIT Manufacturing
14. Supply Chain Management
15. Purchasing & Supply Management
16. Inventory Planning & Control
17. Total Quality Management
18. Statistically Quality Control
19. Maintenance Management
20. Continuous Improvement
21. 5 Years Projected Balance Sheet
2. BLUE DROPS
Background
• It was in 2008 that Blue Drops set up a bottling plant for
manufacturing and marketing its mineral water.
• In 2008-09 the brand “Blue drops” launched mineral water.
It is a mineral water company formed by six friends- Rajnikant
Mishra, Karishma jaiswal, Rachana kadam, Vivek chaurasia, Atika
Dalwai and Tausifa Pardesi.
The tag line of blue water is – “purity in every drop”
3. BLUE DROPS
Market Scenario
BIue Drops values its customers & therefore has developed 8 unique
pack sizes to suit the need of every individual. We are present in 250ml
cups, 250ml bottles, 500ml, 1L, 1.5L, 2L which are the non-returnable
packs & 5L, 20L which are the returnable packs.
Blue Dropshas been no 1 in capturing Indian market by providing best
quality over a period of long time. None of the water products in line
are able to compete with Blue Drops and thus BLUE Drops stand unique
in the market. Blue Drop’s commitment is to offer every Indian pure &
clean drinking water. Blue Drops water is put through multiple stages of
purification, ozonized& finally packed for consumption. Rigorous R&D
& stringent quality controls are done to make Blue Drops a market
leader in the bottled water segment. You can be rest assured that you
are drinking safe & pure water when you consume Blue Drops. Blue
Drops is free of impurities &100% safe. Enjoy the Purity of every drop!
4. BLUE DROPS
Product/Service Selection
We have selected this product on the basis of the budget
available to us.
India is the tenth largest bottled water consumer in the world.
In 2008 the industry had an estimated turnover of Rs. 10 billion
(Rs. 1500 crores).
It is one of the fastest growing industries despite of a huge
competition.
The below table shows the growth in the package water industry.
Year Growth rate
1996-97 3-4%
1997-00 10%
2000-02 30%
2002-04 45%
2004-12 60%
5. BLUE DROPS
Operations Strategy
A company should have a clear mission , vision and
values
VISION
The Aqua Green Revolution began with an ambitious dream:
An India in which every person has uninterrupted access to
scientifically purified and fortified drinking water, irrespective
of geographical barriers or economic limitations.
MISSION
The Aqua Green Revolution urges us to innovate continuously,
to provide every Indian access to scientifically purified and
fortified drinking water that is readily available and easily
affordable; and to support initiatives that rejuvenate the
Earth's natural sources of pristine drinking water.
Values
Trust: Build trust in every single individual who interacts with
the brand.
Innovation: Approach innovation not as a can-do, but as a
must-do.
Seamlessness: Integrate smaller goals seamlessly to achieve the
larger objective.
Commitment: Sow the seeds of commitment at every step
towards the goal.
6. BLUE DROPS
Product
Types of products
Blue Drops values their customers & therefore have
developed 8 unique pack sizes to suit the need of every
individual. They presently have 250ml cups, 250ml
bottles, 500ml, 1L and 2L which are the non-returnable
packs & 5L, 20L which are the returnable packs.
Labeling
Labeling plays a very important role. Blue Dropstakes
good care about the labeling as it tries to create and
come up with an exciting and attractive label as it will
attract the customers; also labeling plays an important
role as it gives a lot of information about the product;
like what are the contents of a bottle how is it made
what does it consist etc. Also labeling gives a lot of
information about the product i.e the price of the
product; manufacturing date; expiry date etc.
PRICE
Price plays as very important role as it is the only P which helps in getting
revenue:
7. BLUE DROPS
Firstly one can explain the factors which affect the pricing
decision i.e.
- Price is directly related to
1. Demand
2. Competition
3. Break-even Point.
Secondly, if there is a novel product or almost no competition, one can
Go for higher price in the beginning, make good profits to face
Competition and innovations at a later date.
- However if you are entering a competitive market your entry price should be low
to ensure big volumes to earn reasonable profits.
- Buy Huge quantity at cheap rate, after confirming demand and sell at
cheap price, make them addictive, then gradually increase price
BRAND PACKAGINGS PRICE (in Rs.)
Per bottle
BLUE DROPS
20 litre 90
5 litre 40
1 litre 15
500 ml 10
8. BLUE DROPS
PLACE
BLUE DROPS has a specific distribution channel which they follow:
Distribution Channel
Promotion
Positioning : Pure And Healthy
Target audience : Health and hygiene conscious people
Personality : Guardian, Authoritative, Reliable
9. BLUE DROPS
Punch Line : “Purity In Every Drop”
To keep our company humming with profitable work, it’s vital to advertise our
services. Our company is going to require the maximum exposure we can afford.
This constant exposure will alert potential customers who we are and where we
are when they need a sign. By positioning OUR name at their fingertips and even
literally displaying it in front of their eyes, they’ll call US for identification products
and services.
There are all types of promotion. They range from direct mail, word of mouth,
advertising in newspapers and telephone directories to radio and T.V. spots, cold
calls and telemarketing. Whatever the medium, consider the cost. Advertising will
usually is an expense that remains in your budget.
Blue Drops follows different promotion strategies and uses different ways to
promote their product like
Advertisements
Advertisements are paid and and electronic way of communication i.e to convey
the message to the customers, Blue Drops comes up with different and attractive
advertisements on televisions and cinema halls to attract customers today
advertisements really attract the customers and by looking at the attractive
advertisement people buy the product more.
Direct Mail
Direct mail is an avenue of promotion that targets a definite audience with a
specific letter,brochure, or offer. Different potential customer groups have
10. BLUE DROPS
various needs that can be “bull’s-eyed” with a distinct service or product. For
instance, we can draft a personalized letter tohotels, gyms, canteensand a
different message to offices. In hotels where consumption of water is more as
compare to the office so we can give them additional discount and better services
compare to the office. In the case of the office where we there is less
consumption of water and less availability of space we can promote our 5-litre jar,
10 litres jar and 20 litre jars.
The brochure or letter should contain information about our product, which we
want to target and which is different and better than other product. In case of
bottled water we can differentiate our product than other through the quality of
water, price, packaging, service that is very important.
In a country like India where religion and festival play an important role in one’s
life, we can send post cards or greeting cards to not only our own customer but
also to the prospective customer.
Product Development
“Blue Drops Pvt. Ltd.”
12. BLUE DROPS
Process Design
The process for production is divided in two parts: the water treatment
plant (WTP) and Filler system.
Blue Drops Mineral Water contains minerals such as magnesium
sulphate andpotassium bicarbonate which are essential minerals for
healthy living. They not only maintainthe pH balance of the body but
also help in keeping you fit and energetic at all times. BLUE DROPS
manufacturers its own products and has its own manufacturing unit
which includes various machines, the whole manufacturing process is
carried on by BLUE DROPS at its plant. The whole manufacturing
process is divided into different parts and it consists of different
activities like water purification treatment, blowing of the bottles, filling
of the bottles, packing of the bottles etc.The manufacturing process of
BLUE DROPS is carried on in different parts:
Storing Of Water
The water is taken from the boring well and then is stored in huge
tanks, BLUE DROPS has 6 tanks of 50,000 litres each, and water is first
taken from the boring well and stored in these tanks.
14. BLUE DROPS
6 STAGES OF WATER TREATMENT PLANT:
1. OZONATION
2. FILTERATION
3. CARBON FILTERATION
4. RESERVE OSMOSIS SYSTEM
5. MICRO FILTERATION
6. OZONE TREATMENT
1) OZONATION:
The process of ozonation ensures that the water remains free
from bacteria, so that the water can have a longer life and the
machine used for this process of ozonation is called ozonator.
2) FILTERATION:
The process of filteration removes suspended particles
from the water by sand filteration.
3) CARBON FILTERATION:
The stage of carbon filteration removes bad odour and colour
from water and purifies it.
15. BLUE DROPS
4) REVERSE OSMOSIS SYSTEM:
This stage of reserve osmosis system controls all the dissolves
solid particles and it converts hard water into soft water.
5) MICRO FILTERATION:
Under this stage of micro filteration additional safety measures
are taked to guarantee purity of water. In this stage addition of
mineral magnesium sulphate and potassium bicarbonate is
processed.
6) OZONE TREATMENT:
The ozone treatment increases the shelf life of water. To ensure
mineral water is held safe free from contamination, ultraviolet
treatment and ozonisation process is carried out. Ozone is unstable
trivalent oxygen, a very powerful bactericide with no side effect, as it
disintegrates into oxygen within couple of hours. Sterilization effect of
ozonised water continues even after water is packaged, thereby
ensuring safety of Mineral Water up to its final packing. To ensure high
quality of packing materials, components like caps and bottles are
manufactured in-house from resins of quality suppliers.
16. BLUE DROPS
Good Manufacturing Practices are stringently followed at all times.
Processing is religiously monitored at every stage. Testing source water,
processing parameters, microbial quality, packaging material integrity
and finally, shelf life studies, forms an integral part of quality and safety
assurance plan.
BLOWING PROCESS:
A small tube like plastic which is known as ‘PRE-FORM’ is blown with the help
of a machine called SIDEL which has a temperature of about 80 to 90 degree
Celsius, when this PRE-FORM is put into the SIDEL machine it is blown up by its
heat and turns out into a bottle in a specific shape according to the mould plates
available in the SIDEL machines which gives the bottles a specific shape
PRE-FORM
17. BLUE DROPS
BLOWING PART
The SIDEL machine is only used for blowing the empty bottles. So the SIDEL
machine only helps in the blowing of the bottle according to mould plates available
in it which give it a perfect shape .
SIDEL
18. BLUE DROPS
FILLING PART
Once the empty bottles are made and blown up the water is filled into it. The
machine used for filling the water in the blown bottle is called Dynathronic. The
speed of this Dynathronic machine is that in one minute 110 bottles can be filled.
There are 7 stages to the filling process; they are:
1) The bottle is sterilized with air pressure
2) Then the bottle is filled with water
3) The bottle is sealed with a cap
4) Labeling of the bottle takes place
5) All mandatory information such as marking the batch number,
manufacturing date, expiry date and MRP.
6) Inspection of the bottle such as checking, sealing, printing and filling.
7) Lastly the bottle is packed.
19. BLUE DROPS
Facilities Location
A quick look at Blue Drops manufacturing reach indicates that it is represented
across the country – North accounts for 35% of sales for the industry, West
accounts for 30%,South 20% and the East 15%.In order to be available in untapped
areas Blue Drops has setup 16 plants located all over the country - three-fourths of
which are company owned. The balance are run by franchisees. Blue Drops has 5
plants in the North, 5 in the West- two of which were setup in the last year at
Ahemdabad and Surat, 4 in the South and 2 in the East. The company has bottling
units located in Chennai, Bangalore, Goa, Calcutta, Mumbai, Delhi, Jaipur, Uttar
Pradesh, Punjab, Indore and Nepal. The new plants are being setup in states like
Kerala, Orissa, Bihar and North Eastern States, which hitherto have been
unexplored by the company. It is also changing its production strategy and shifting
to a 10-hr production schedule with sudden increase in demand planned to be met
by additionalproduction.
Blue DropshasplannedtoexpanditoperationsbyinvestingRs60crore
intheupgradation of facilities. The 120-bottles per minute (BPM) capacity of the
16 units across the country will be increased to 240 BPM. Conscious of the
environmental implications of its PET bottles, the company is to setup recycling
plants at Delhi and Chennai, each with an outlay of Rs.50m. These will process
500 kg of PET per hour. The processed material will be an input for polyester yarn
manufacturers. In centers other than Delhi and Chennai, the company will set up
crushing units to crush the used PET bottles. The company's expansion plans will
see its water bottling capacity go up from the present 400 million litres to 500
million litres. Blue Drops Pvt. Ltd. (BDPL) is planning to invest Rs 200 crore to
increase its bottling capacity and double its turnover. The expansion will also
increase the number of company's bottling plants from 16 at present, to 25. The
company will set up all the new plants as green field plants. It doesn’t have any
intentions to acquire any existing plants.
20. BLUE DROPS
Facilities Layout
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SECURITY CABIN
21. BLUE DROPS
Capacity Planning
Steps involved in Capacity Planning :-
Forecast Future demands, including the likely impact of
technology , competition and other events.
Translate this forecast into actual physical capacity
requirement.
Generate alternative capacity plans to meet the
requirement
Analyze and compare the economic effects of the
alternative plans
Identify and compare the risks and strategic effects of the
alternative plans
22. BLUE DROPS
Demand Forecasting
Today the demand of bottled water is increasing at a much
higher rate that of carbonated soft drinks. The market size of
bottled water too is expected to surpass the size of soft drinks
market in near future. The existing players too are set to
expand their distribution network to have their presence across
the country.The market is also expected to undergo a major
consolidation phase.
23. BLUE DROPS
Scheduling & Resource Planning
We required different types of machineries such
Ozonator for killing the bacteria
Sand filteration to remove suspended particles
RO system is use to convert hard water into soft water
Mineral magnesium and potassium bicarbonate are used
for water purification
Carbon filteration machine for removing bad odour and
colour
Mould Plates for moulding the bottles in proper shape
Sidel for blowing the empty bottles
Dynathronic for filling the water
24. BLUE DROPS
JIT Manufacturing
Jit (Just In Time) is an approach that seeks to eliminate all
sources of waste in production activities by providing
right part at the right palce at the right time.
Three concepts of JIT are:-
Elimination of waste and variability
“Push” versus “Pull” system
Manufacturing cycle time (or “throughput” time)
25. BLUE DROPS
Supply Chain Management
CUSTOMERS
The supply chain management of blue drops is from
bottling plant to stockiest, stockiest to distributors and
from distributors to customers.
