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CHAPTER –1 INTRODUCTION

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1.1

INTRODUCTION OF THE PROJECT

 Project Title : “Comparative analysis of packaged drinking water of Kingfisher with other market players”  Name of the Organization: UNITED BREWERIES GROUP (UB GROUP)  Name of the Company : KINGFISHER LIMITED  Manufactured & Marketed By: ICEBERG FOODS LIMITED  Project Head & Supervisor: Mr. Mangesh Arnalkar (Regional Sales Manager)  Project Duration: 7th June 2010 to 30th July 2010

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The study was made to improve the Kingfisher’s market potential in the Pune market in retail segment, and for this I had undertaken the above mentioned project. During my summer training at Kingfisher IBF LTD., I completed the project in corporate sale and market share of packaged drinking water product of Kingfisher IBF LTD. And the focusing areas of my study were as follows:-

 A detailed study, consisting of product variety, corporate sale etc. of packaged drinking water of KINGFISHER IBF LTD.  An observational study packaged drinking water industry and market share of KINGFISHER IBF’s products.  A detail understanding of all the competitive brands of KINGFISHER IBF’s packaged drinking water.  Assessing the brand awareness of Kingfisher in Packaged Drinking Water segment.  Finding out the basis on which, dealers and customers, prefer buying Packaged Drinking Water. My project was to support sales promotion for ICEBERG FOODS LIMITED. It was carried out in PUNE city. The place is heavily industrialized, but most of the people were not aware of our product. Main work of the project was to cover all the retailers and approaching them personally. It was done because of unawareness of the product’s characteristics. Going to retailers and asking them to keep our product in front. So that people can try that. Different markets were covered and firstly, survey was done that where our product is in less demand. My work was to emphasize on those work which can spread information very fast. So it was only retailer who works as bottle neck in whole distribution channel. My work was to handle them and convincing them going personally. According to survey I gave time to those places where penetration was more.

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As we see it, research in advertising and marketing is very crucial in understanding, speculating on, and ultimately determining the position of the product in the consumer's mind. It is like a homework task that a good advertising/marketing/sales person would always carry out before (and after) implementing the said product's advertising/marketing strategy. By collecting data with the help of research methods, the researcher can manage to understand the consumer, what he wants, when he wants it, and how he wants it. Research methodologies, more or less, aim to reveal consumers’ different perceptions of the product, in large part about the way it is advertised. The researcher wants to know how effective the advertisement is on his listeners, where the strategy falls short, and where it can improve. Ultimately, it can be said that the most important task of advertising/marketing research is to increase the sales of the product. This requires a well developed marketing plan, a good know-how of the prospective consumer, and most of all an effective and rational research methodology.

Although this study is conducted at small level (only some part of Pune) yet the findings and suggestions of it will help the management of the organization i.e. Kingfisher Packaged Drinking Water, in better way to understand the detail study of areas covering all the aspects of retail as well as corporate sale of Kingfisher PDW and it will also consist the detail understanding of the competitive brands of PDW. The study will also help the organization in making decision regarding promotional schemes and also identified the hidden opportunity in the certain other area other than retail sale. So that, the retail consumer may find the product more attractive.

In my first part, a report is made on a detailed study, comprising the product variety of the packaged drinking water, the aspects of corporate sale of packaged drinking water. The product variety of the water is necessarily to be understood before moving into the market so that one could discuss the plus points of the drinking water over the competitors’ drinking water. The study is done by surveying the different retail outlets, hotels, restaurants corporate offices located at Pune and nearby. The study is then tabulated, analyzed and result extracted.

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In the second part, an observational study is conducted in respect of market share of corporate sale of KINGFISHER IBS’s products. This will reflect my views and measures. It also includes the visits of the places where others competitor’s similar products were installed to get their performance feedback and identified the hidden opportunities to sell KINGFISHER IBF’s products. The study is then tabulated, analyzed and the result extracted.

In the third part, method adopted for competitors analysis involved surveying and observational study of all the competitive brands of KINGFISHER IBF’s packaged drinking water such as Aquafina, Bisleri, Oxyrich, Kinley etc. followed by the comparison of same. To conducting the observational study, a large data has been collected while visiting the various outlets, restaurants, corporate offices by way of discussions. The data collected has further been enhanced with sub categories such as, consumption-wise requirement. The data obtained, are tabulated, analyzed and result and recommendation are worked out.

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1.2 COMPANY PROFILE

ICEBERG FOODS LIMITED

Iceberg Foods Ltd. is a twelve years old company in the industry and they are one of the leading company having all India rights for manufacturing & marketing packaged Drinking water with a brand name “Kingfisher” trademark owned by famous “UB”group & “RC Cola” trademark owned by “Royal Crown Cola” which third largest selling soft drink brand in the world with a presence in almost all the countries of the world.

They are one of those few brands that have got ISI certification and are committed to supply pure and hygienic water. Their packaged drinking water is manufactured under perfect hygienic conditions as per ISI Standards and they have been consistent in supplying Quality product to all the customers.

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We have one of the best distribution infrastructures in the business to provide timely services to all our vendors. Their product comes in a wide range of packages like 200ml, 250ml, 500 ml, 1ltr, 2 ltr, 5 liters, 20 liters & 600ml & 1.5 liters Soda.

Their packaged drinking water is bottled in fully automatic plant with reverse osmosis, organization & ultra filtration process. Along with latest pesticides removal system through activated carbon filtration process as per EU norms.

They process water with the most modern, high tech equipment sodium filtration resulting in not only healthy but also sweeter packaged drinking water. Their packaged drinking water is manufactured under a very strict in house quality control system, ensuring that what we drink is what nature intended.

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Company Name: Country/Territory:

Iceberg Foods Pvt. Ltd., India 117, Corporate Avenue, Sonawala Lane, Goregaon (E) Mumbai – 400 063.

Address:

Ph :40030271/72/73 E-mail : ibflmum@rediffmail.com

Products/Services We Offer:

Kingfisher packages, drinking water, soda and rc colas

Business Type:

Manufacturer / Supplier

Industry Type:

FMCG, Foods & Beverages

Geographic Markets: No. of Employees: Annual Sales Range (USD): Year Established: M.D.

Worldwide 11 - 50 People US$1 Million - US$2.5 Million 1998 Mr. Umesh mallaya

Legal Representative/CEO:

Mr. Kishore Agrawal

Table 1.2.1 – Iceberg foods Ltd profile

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Fig 1.2.1 – Packed drinking water

Product

Quantity available

Natural Spring Water

200ml, 500ml, 1ltr

Packaged Drinking Water

200ml, 500ml,1ltr, 2ltrs, 5ltrs, 20ltrs

Soda

300ml, 600ml & 2ltrs

R C Cola

300ml, 600ml & 2ltrs Soda

Table 1.2.2 Product Range 9


PARENT COMPANY

UNITED BREWERIES GROUP (UB GROUP)

Fig 1.2.2 – UB group logo

United Breweries Group, based in Bangalore, is the world's 2nd largest brewer and the largest in India. The company markets most of its beer under the Kingfisher brand and has also launched Kingfisher Premium Packaged Drinking Water & soda, in India. The group is headed by Dr. Vijay Mallya who is also a member of the Indian Parliament. United Breweries now has a near-monopoly over the Indian brewing market, thanks to its recent takeover of the rival Shaw-Wallace company. The group owns the Mendocino Brewing Company in the United States and the group now is eying to show its mere presence in packaged Drinking Water as well.

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Mission

The group Mission Statement embodies these objectives:

• To assess the company’s image in view of retails, booking counter agent, and consumer. • To list competitors operating in the market. • To be the preferred employer wherever we operate • To recognize the value of our human assets. • To be the partner of choice for customers, suppliers. • To greater information about competing company’s performance and marketing Efforts in Pune city. • Make recommendation about marketing efforts for promoting sales “Kingfisher” Packaged drinking water & soda in retail & bulk segment in Pune city.

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Achievements

• The largest selling Beer in India. • Commands a 29% market share in the country. • 6 bottles of Kingfisher are sold every second in India. • Available in 52 countries across the globe. • Won the World's best Lite Lager Award at the Stockholm Beer Festival in 1994-95. • Won the Bronze Award at the 'Australian International Beer Awards' in the "International Packaged Beer Section for the year 2000." • First Prize in the International Beer Awards organised by the New Zealand Hop Marketing Board. • First Prize for the label work category at the Asian Grand Prix Cyrel 2000 Label award. • Gold Medal at the World Beer Championship held in Chicago in 1997. • World's Best Lite Lager Award at the Stockholm Beer Festival in 1995.

ABOUT KINGFISHER LTD “The King of Good Times” is India’s best-selling beer, and from Mumbai to Delhi, the locals guzzle through millions of bottles annually. But although the brand commands up to 29% of its domestic market, unless you’ve visited India or are a part-time connoisseur of curries, you may not have recognized Kingfisher’s qualities as the perfect accompaniment to a chicken Vindaloo.

The Beer brands manufactured and marketed by United Breweries Ltd. have always been recognized for their international quality. That's Beer at its best for the discerning consumer!

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1.3 FUNCTIONAL AREA OF THE PROJECT

Industry type – FMCG / Food & Beverages Functional area of working – Sales & Marketing

There are many areas of marketing to work in like Design, Advertising, Promotions, Consumer awareness; Product awareness etc. and these all area are originated through the MARKETING MIX which consists of 4 P’s i.e.

PRODUCT- under this decision taken are: •

The product itself (design, quality, packaging etc)

The diversification of the existing Product

PRICE - under this decisions taken are : •

Setting Prices

Discounts

Credit rules

PLACE - under this decisions taken are : •

The best way to sell the products to the customers (Channels of Distribution) 13


The transport system

PROMOTION - under this decisions taken are: •

Advertising

Sales Promotion

Public Relations

My Functional area consisted of analysis of all the above areas of Kingfisher’s Packaged Drinking Water in respect to the other market players. Thus, my focus was to know the market share of kingfisher’s packaged drinking water in various regions of Pune city along with the market share of other leading brands like Oxyrich, Kinley etc.

This area of work was more or less similar to, doing a market research for the company. In other words, we can say that my area of function and study was a part of Company’s Market research Department.

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CHAPTER –2 PROJECT DETAILS

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2.1

LITERATURE REVIEW 2.1.1 INTRODUCTION: WATER INDUSTRY

The tradition of bottled water and mineral water is not very old. Even in western countries the practice of bottled drinking water started only in 1950s. Since ancient time people have used water from mineral springs, especially hot springs, for bathing due to its supposed therapeutic value for rheumatism, arthritis, skin diseases, and various other ailments. Depending on the temperature of the water, the location, the altitude, and the climate at the spring, it could be used to cure different ailments.

This started the trend of using mineral water for drinking purposes in order to exploit its therapeutic value. Since mid1970s large quantities of bottled water from mineral springs in France and other European countries began to be exported. The concept of bottled water is relatively successful in western countries due to greater health consciousness.

The international standards regarding bottled water are so stringent that for a particular brand of water to be certified as bottled water, in most countries, multiple levels of approvals are required. For example, in the United States, the EPA (Environment Protection Agency) regulates public water systems. The FDA of US has also set standards for bottled water.

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World Bottled Water Market 

Annually consumption

189billion liter

Estimated sales

$ 200 billion

Consumption growth

7 % per year

Fig 2.1.1 – Growth of Bottled Water industry in the world

Government Parameters for Water Industry The government has laid certain parameters for the water industry. They are as follows, 1) There should be a good water table in the plant area, where extraction will be done. 2) The processed water should be recycled through, water harvesting techniques.

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3) The processes are reviewed by government agencies from time to time and issued certification thereafter.

Fig: 2.1.2- Growth in Demand in India

2.1.2 HISTORY OF MINERAL WATER POPULARITY OF MINERAL WATER: The tradition of bottled water and mineral water is not very old. Even in western countries the practice of bottled drinking water started in 1950s. The trend of having mineral water gained grounds in the market. Since ancient time people have used water from mineral springs, especially hot springs, for bathing due to its supposed therapeutic value for rheumatism, arthritis, skin diseases, and various other ailments. Depending on the temperature of the water, the location, the altitude, and the climate at the spring, it can be used to cure different ailments. This started the trend of using mineral water for drinking purpose to exploit the therapeutic value of the water. This trend started gaining momentum in mid 1970s and since then large quantities of bottled water from 18


mineral springs in France and other European countries are exported every year.

The concept of bottled has been quite prevalent in western countries due to greater health consciousness and higher awareness about health and hygiene. The international standards regarding bottled water are so stringent that for a particular brand of water to be certified as bottled water it has to get approvals on four levels: federal, state, trade association and individual company levels.

In United States, the bottled water industry is regulated on four levels: federal (by the U.S. Food and Drug Administration as a food product), state, industry association, and individual company. EPA (Environment Protection Agency) regulates public water systems. FDA regulates bottled water that crosses state lines.

SOME OF THE STANDARDS GOVERNING THE BOTTLED WATER INDUSTRY ARE:

 Water is classified as bottled water or drinking water, if it meets all applicable federal and state standards, is sealed in a sanitary container and is sold for human consumption.  Bottled water cannot contain sweeteners or chemical additives (other than flavours, extracts or essences) and must be calorie-free and sugar-free.  Flavours, extracts and essences -- derived from spice or fruit -- can be added to bottled water, but these additions must comprise less than one percent by weight of the final product.  Beverages containing more than the one-percent-by-weight flavour limit are classified as soft drinks, not bottled water.  Bottled water may be sodium-free or contain "very low" amounts of sodium.  Tap water uses Chlorine as disinfectant bottled water uses Ozone as a disinfectant.  Bottled water should not contain chlorine. 19


2.1.3

HOW IS BOTTLED WATER DIFFERENT FROM TAP WATER?

Consistent quality and taste are two of the principal differences between bottled water and tap water. While bottled water originates from protected sources - largely from underground aquifers and springs - tap water comes mostly from rivers and lakes.

Another factor to consider is the distance tap water must travel and what it goes through before it reaches the tap. In compliance with international regulations, bottled water is sealed and packaged in sanitary containers. If a bottled water product is found to be substandard, it can be recalled. This can't happen in case of tap water.

According to regulations in the US, when bottled water is source from a community water system the product label must state so clearly. However, if the water is subject to distillation, deionization or reverse osmosis, it can be categorized that way, and does not have to state on its label that it is from a community water system or from a municipal source.

Processing methods such as reverse osmosis remove most chemical and microbiological contaminants.

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2.1.4 TYPES OF BOTTLE DRINKING WATER

1. Mineral Water: Bottled water containing not less than 250 parts per million total dissolved solids may be labeled as mineral water. Mineral water is distinguished from other types of bottled water by its constant level and relative proportions of mineral and trace elements at the point of emergence from the source. No minerals can be added to this product. 2. Purified water Water that has been produced by distillation, de-ionization, reverse osmosis or other suitable processes. 3. Spring water: Bottled water derived from an underground formation from which water flows naturally to the surface of the earth. Spring water must be collected only at the spring or through a borehole tapping the underground formation finding the spring. 4. Artesian Water/ Artesian Well Water An artesian aquifer is a confined aquifer containing groundwater that will flow upwards out of a well without the need for pumping. An aquifer provides the water for an artesian well. An aquifer is a layer of soft rock, like limestone or sandstone that absorbs water from an inlet path. Porous stone is crushed between impermeable rocks or clay. This keeps the pressure high, so when the water finds a hole, it overcomes gravity and goes up instead of down.

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5. Distilled Water Purified water is water from any source that is physically processed to remove impurities. Distilled water and deionized water have been the most common forms of purified water, but water can also be purified by other processes including reverse osmosis, carbon filtration, micro porous filtration, ultra filtration, ultraviolet oxidation, or electro dialysis. In recent decades, a combination of the above processes have come into use to produce water of such high purity that its trace contaminants are measured in parts per billion or parts per trillion. Purified water has many uses, including in science and engineering laboratories and industries, and is produced in a range of purities. 6. Sparkling Water A sparkling water is plain water into which carbon dioxide gas has been dissolved, and is the major and defining component of most "soft drinks". The process of dissolving carbon dioxide gas is called carbonation. It results in the formation of carbonic acid (which has the chemical formula H2CO3). 7. Well Water Water well is an artificial excavation or structure put down by any method such as digging, driving, boring, or drilling for the purposes of withdrawing water from underground aquifers Well water may be drawn via an electric submersible pump or a mechanical pump, from a source below the surface of the earth. Alternatively, it could be drawn up using containers, such as buckets that are raised mechanically, or by hand. Although not essential, usually a storage tank with a pressure of 40-60 psi is also added to the system, so the pump does not need to operate constantly. Wells can vary greatly in depth, water volume and water quality. Well

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water typically contains more minerals in solution than surface water and may require treatment to soften the water by removing minerals such as arsenic, iron and manganese.

2.1.3

MANUFACTURING PROCESS

Purification Process Purity and safety are two major factors taken care in sourcing and processing of Kingfisher water. Underground spring is carefully selected based on its portability and pathogen free water. Great care goes in tapping this source. Only water below 25 meters is tapped. This is to avoid any surface contamination to percolate and mix with underground water source. Area surrounding the water collection tube at the surface is protected and kept clean.

Processing and Quality Assurance The casing tube itself is protected with stainless steel mesh to give a preliminary filtration to the water. Ultra filtration gives water reduction in turbidity and adds sparkle activated carbon purifier to remove color and odour in water

Reverse osmosis membrane has porosity of less than 0.01 micron the process renders water free o microorganisms and also reduces dissolved solids

To ensure Kingfisher packaged drinking water is held safe free from contaminations, 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.

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Sterilization effect of ozonised water continues even after water is packaged, thereby ensuring safety of Kingfisher 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.

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.

Quality checking: Quality is checked by sampling method as a batched test at every stage of beer manufacturing even quality of bottle is also checked before actually using. Production: 70,000 to 80,000 bottles per day.

2.1.4

COMPETITORS OF KINGFISHER IN INDIA

The bottled water industry effectively competes with both the water-purifiers as well as the soft drinks industry. The water purifier industry (primarily the Aqua Guard brand of the Eureka Forbes) is credited to have done the spadework for creating the safety and health consciousness in water consumption, and is a serious competitor in the household and institutional consumption market, whereas the soft drinks industry is a strong competitor in the retail consumption market.

COCA COLA

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The company had entered the business in May 2000 through its extending its soda water brand, Kinley. The company has tied up with Kothari Beverages, of Yes brand of mineral water, for manufacturing Kinley bottled water at Yes' facilities. The brand is available in pack sizes of 500 ml, 1-litre, 1.5-litre, 2-litre, 5-litre, 20-litre and 25-litre. With the growing market, Coca-Cola is planning to scale up its bottling capacity, up from the 15 existing plants. Coca Cola has identified 10 to 15 sites for additional plants for setting up a combination of company-owned plants, franchisee operations and contract packers.

PEPSI CO.

The company entered the bottled water business in September 1999 under the Aquafina brand. The company began by targeting its product towards the youth with a 750-ml pack. It now retails in conventional retail pack sizes of 500-ml and 1-litre bottles. The brand has the strong backing of a distribution channel of 60,000 outlet and the refrigerators at Pepsi’s retail Outlets, which stock its cold drinks. Though the company is present only in selected market as of now, it has plans of increasing share in the market by expanding its SKUs portfolio as well as its distribution reach. Sources say PepsiCo India has been investing in additional capacity at its plants in Bangalore and Chennai for the bulk water foray.

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BAILLEY

The brand is a product of Parle Agro, the company that launched Frooti (mango drink in tetra packs). Bailley is credited with creating a new segment of 330ml SKU (the right quantity to quench the thirst of an adult!) in the market. NESTLE

Multinational Nestle has already started making forays into the bottled water industry with its brand Pure Life. Nestle is a big player in the mineral water market internationally, with brands like Perrier and San Pellegrino in its stable. Nestle has set-up two bottling plants in Mumbai and New Delhi, to service the markets in these regions. It plans initially to tap only the huge market for bottled water in large cities and towns.

OXYRICH

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Dhariwal Industries Ltd - Food & Beverages division has one of the most modern and comprehensive packaged drinking water facilities spread across India. The facilities are fully integrated with in house facilities for manufacturing of Performs, Closures/Caps and Bottle Blowing. The labels and cartons are also made in the group companies to ensure total control on quality and processes. Oxyrich (300% more oxygen) is clear, smooth, pure water with a refreshing boost of extra Oxygen.

BISLERI

Mineral Water under the name 'Bisleri' was first introduced in Mumbai in glass bottles in two varieties - bubbly & still in 1965 by Bisleri Ltd., a company of Italian origin. This company was started by Signor Felice Bisleri who first brought the idea of selling bottled water in India. Parle bought over Bisleri (India) Ltd. In 1969 & started bottling Mineral water in glass bottles under the brand name 'Bisleri'. Later Parle switched over to PVC non-returnable bottles & finally advanced to PET containers. LOCAL PLAYERS IN MARKET ďƒ˜ Kate aqua ďƒ˜ Sumeru 27


 Saiganga  Real aqua  Kelvino  Oxygen  Oxyblue  Aviva  Sagar

Cap cost Bottle cost Treatment cost Label cost Carton cost Transportation cost Others Total cost (excluding labour, marketing & tax) Selling cost

Rs 0.25 Rs 1.5 - Rs 2.5 Rs 0.1 - Rs 0.25 Rs 1.5 - Rs 0.25 Rs 0.50 Rs 1.0 - 0.25 Rs 0.50 Rs 2.85 - 4.25 Rs 10 – 12

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Table 2.1.1 - Cost of producing 1 liter branded bottled drinking water

Fig 2.1.3 - Cost of producing 1 liter branded bottled drinking water

2.1 OBJECTIVES OF THE STUDY

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Primary – •

To do a comparative analysis of Kingfisher’s Packaged Drinking Water with other market players in Pune region.

Secondary – 

To study market share of Packaged Drinking Water of Kingfisher.

To know all competitive brands of Kingfisher’s Packaged Drinking Water.

To assess the brand awareness of Kingfisher in Packaged Drinking Water segment.

To find out on which basis, dealers and customers, prefer buying Packaged Drinking Water.

2.3 METHODOLOGY ADOPTED

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The success of any event heavily depends upon the way chosen for its execution. This includes ensures of some basic question to the specific focus on constraints as well. In other words they can call the methodology as the backbone of any research. It also includes research or study method. Thus when they talk of methodology they not only talk of methodology they not talk of methods but also consider the logic behind the methods they use in the context of their study objective and explain way use are using them so that study results are capable of being evaluated logically. •

Research Design – Descriptive The Descriptive research is used as the study includes surveys and fact finding enquiries related to packaged drinking water industry. The major purpose of Descriptive research is description of the state of affairs as it exists at present.

Research Approach – General Survey In this case, a general survey to gain knowledge about the market, commonly known as the pilot survey was and undertaken where particularly information was gathered with respect to the brands, people’s / consumers’ perception so that it serves as a foundation to prepare the questionnaire for collecting primary data and that it helps in deciding other methods to be adopted which may be useful in gathering the necessary information.

Research Problem for the present study – Analyzing the market of Kingfisher’s package drinking water and soda in Pune city.

Data source > Primary data - Questionnaire - Personal interview (structured/unstructured)

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> Secondary data - Internet - Files/document - Manual of the organization - Books & Project reports •

Data representation technique - Bar graphs & Pie charts

Total sample size – 50

Type of sampling – Non- Probability

Sample Area – Pune region

Sample unit – Retailers, Hotels/Restaurants & MNCs

Respondents – Owners of the shops, salesmen, purchase or food & beverages managers of different hotels/restaurants/MNCs

Data Analyzing Instrument – All the data has been analyzed by applying Hypothesis testing method using ANOVA test.

Hypothesis Set: Null Hypothesis (H0): There is no significant difference between the attributes - Brand, availability, packaging, quality & price in Kingfisher Packaged Drinking water and others Alternate Hypothesis (H1): There is a significant difference between the attributes - Brand, availability, packaging, quality & price in Kingfisher Packaged Drinking water and others

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CHAPTER –3 DATA TABULATION, ANALYSIS AND RESULT

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ANOVA: Single factor

Groups

Count

Sum

Average

Variance

Brand

50.000

193.000

3.860

2.327

Availability

50.000

82.000

1.640

0.970

Packaging

50.000

100.000

2.000

0.531

Quality

50.000

209.000

4.180

0.518

Price

50.000

168.000

3.360

0.725

3.1 TABULATION

Table 3.1.1 – ANOVA TABLE

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3.2 DATA ANALYSIS 3.2.1 MARKET ANALYSIS M.G Road Sr.no

Brand

No of respondent

Percentage

1

Aquafina

09

16

2

Oxyrich

12

20

3

Bisleri

10

16

4

Kinley

08

14

5

Kingfisher

07

12

6

Kate aqua

06

10

7

Sumeru

01

2

8

Other

07

11

TOTAL

60

100

Table 3.2.1 – Market Share at MG road

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11%

15%

2%

Aquafine Oxyrich

10%

Bisleri Kinley

20%

Kingfisher

12%

Kate Aqua Sumeru Others 14%

16%

Fig 3.2.1 – MG Road market share M G Road is the situated in the heart of the city. Here oxyrich is the market leader with 20% market share. After that Bisleri with 16% and Aquafina and Kinley with 15% and 14% respectively. In this area kingfisher is on fifth position with 12% market share and the local players occupy the remaining market share. Market Summary Total Out-Let Visited

60

Kingfisher Presence

7

Good Presence of Kingfisher

5

Not Present

53

Table 3.2.2 - MG Road market Summary Pune Railway Station Road Sr.no

Brand

No of respondent

Percentage

1

Aquafina

05

10

2

Oxyrich

14

25

3

Bisleri

06

12

36


4

Kinley

09

16

5

Kingfisher

08

15

6

Kate aqua

04

8

7

Sumeru

03

5

8

Other

05

9

TOTAL

54

100

Table 3.2.3 – Market Share at Station road

9%

10%

5%

Aquafine Oxyrich

8%

Bisleri 25%

Kinley Kingfisher

15%

Kate Aqua Sumeru Others 16%

12%

Fig 3.2.2 – Pune Railway station market share It is one of the busiest place of Pune, and oxyrich is market leader with 25% followed by kingfisher & Bislery with 16%, 15% & 12 % respectively and other local player together occupy 22 % market share .

Kinley,

Here kingfisher is

at third position. Market Summary

Total Out-Let Visited

54

Kingfisher Presence

8

Good Presence of Kingfisher

7 37


Not Present

46

Table 3.2.4 – Pune Railway station market Summary

Satara Road Sr.no

Brand

No of respondent

Percentage

1

Aquafina

13

22

2

Oxyrich

10

17

3

Bisleri

07

12

4

Kinley

12

20

5

Kingfisher

07

12

6

Kate aqua

03

5

7

Sumeru

02

4

8

Other

04

8

TOTAL

58

100

Table 3.2.5 – Market Share at Satara road

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8% 4% 5%

22%

Aquafine Oxyrich Bisleri

12%

Kinley Kingfisher Kate Aqua

17%

Sumeru Others

20% 12%

Fig 3.2.3 – satara road market share According to the survey Aquafina is the market leader with 22% market share, Kinley with 20% and 0xyrich is with 17% market presence. In this area Bislery and kingfisher captures equal market share with 12% where as other players occupied 17% market share.

Market Summary Total Out-Let Visited

58

Kingfisher Presence

7

Good Presence of kingfisher

5

Not Present

51

Table 3.2.6 – satara road market summary Kothrud Sr.no

Brand

No of respondent

Percentage

1

Aquafina

10

16

2

Oxyrich

11

20

39


3

Bisleri

09

15

4

Kinley

12

21

5

Kingfisher

09

14

6

Kate aqua

03

4

7

Sumeru

02

3

8

Other

04

7

TOTAL

60

100

Table 3.2.7 – Market Share at Kothrud

3% 4%

7%

16% Aquafine Oxyrich Bisleri

14%

Kinley 20%

Kingfisher Kate Aqua Sumeru Others

21% 15%

Fig 3.2.4 – kothrud market share In this area Kinley is the market leader with 21% market share, oxyrich with 20% and Aquafina is with 16% market presence. Bisleri and kingfisher covers 15% and 14% market share where as other player’s occupies 14% market share.

Market Summary

40


Total Out-Let Visited

60

Kingfisher Presence

9

Good Presence of kingfisher

8

Not Present

51

Table 3.2.8 – kothrud market share

F C Road & J M Road Sr.no

Brand

No of respondent

Percentage

1

Aquafina

10

18

2

Oxyrich

11

19

3

Bisleri

07

13

4

Kinley

12

21

5

Kingfisher

08

14

6

Kate aqua

02

4

7

Sumeru

03

5

8

Other

05

6

TOTAL

58

100

Table 3.2.9 – Market Share at FC & JM road

41


5%

6%

18% Aquafine

4%

Oxyrich Bisleri

14%

Kinley Kingfisher

19%

Kate Aqua Sumeru Others

21%

13%

Fig 3.2.5 – F C road & J M Road market share Kinley holds the market with 21%, oxyrich with 19% and Aquafina is with 18% market share. Bisleri and kingfisher covers 14% and 13% market share where as other player’s occupies 15% market share.

Market Summary

Total Out-Let Visited

58

Kingfisher Presence

8

Good Presence of kingfisher

7

Not Present

50

Table 3.2.10 – F C road & J M Road market summary

Peth Area Sr.no

Brand

No of respondent

Percentage 42


1

Aquafina

06

10

2

Oxyrich

05

9

3

Bisleri

06

12

4

Kinley

07

13

5

Kingfisher

10

17

6

Kate aqua

07

13

7

Sumeru

05

8

8

Other

10

18

TOTAL

56

100

Table 3.2.11 – Market Share at Peth Area

10%

18%

Aquafine

9%

Oxyrich Bisleri

8% 12%

Kinley Kingfisher Kate Aqua

13%

Sumeru 13%

Others

17%

Fig 3.2.6 – Peth Area market share In this area local players are the market leader with 39% market share; kingfisher holds second position with 17%. Later the major players like Kinley, Bisleri, oxyrich and Aquafina holds a bit market share with 13%, 12%, 9% and 10% respectively.

43


Market Summary

Total Out-Let Visited

56

Kingfisher Presence

10

Good Presence of kingfisher

9

Not Present

46

Table 3.2.12 – Peth Area market summary

Pune Airport Area Sr.no

Brand

No of respondent

Percentage

1

Aquafina

02

11

2

Oxyrich

15

17

3

Bisleri

04

15

4

Kinley

03

14

5

Kingfisher

07

23

6

Kate aqua

01

7

7

Sumeru

01

5

8

Other

02

8

TOTAL

25

100

44


Table 3.2.13 – Market Share at Airport area

8%

11%

5%

Aquafine

7%

Oxyrich 17%

Bisleri Kinley Kingfisher Kate Aqua

23%

Sumeru

15%

Others

14%

Fig 3.2.7 – Pune Airport Area market share Kingfisher is the market leader in this area with 23% market share because the company has corporate tie up with all airlines for packaged drinking water. After kingfisher, oxyrich holds second position with 17 % market share. For third place the fight is between Bisleri and Kinley as they occupy 15% and 14% share. Aquafina holds 11% market presence with followed by 20% market share by local players. Market Summary Total Out-Let Visited

25

Kingfisher Presence

7

Good Presence of kingfisher

6

Not Present

18

Tab 3.2.14 – Pune Airport Area market summary Pimpri Chinchwad Area Sr.no

Brand

No of respondent

Percentage 45


1

Aquafina

08

14

2

Oxyrich

10

17

3

Bisleri

07

12

4

Kinley

09

16

5

Kingfisher

05

9

6

Kate aqua

08

14

7

Sumeru

04

7

8

Other

06

11

TOTAL

56

100

Table 3.2.15 – Market Share at Pimpri chinchwad area

11%

14% Aquafine

7%

Oxyrich Bisleri 17%

14%

Kinley Kingfisher Kate Aqua Sumeru

9%

12%

Others

16%

Fig 3.2.8 – Pimpri Chinchwad Area market share In this area oxyrich is the market leader with 17% market share, second position is occupied with Kinley with 16% for third position there is a fight between a cold player kate aqua and Aquafina they both have equal share with 14%. Kingfisher’s market share is 9% in this area followed by other players. 46


Market Summary

Total Out-Let Visited

56

Kingfisher Presence

5

Good Presence of Kingfisher

4

Not Present

50

Table 3.2.16 – Pimpri Chinchwad Area market Summary

Fig 3.2.9 – Awareness of Brands of Mineral Water Interpretation - Awareness of kingfisher mineral water is lesser in comparison of other famous brands like kinley, oxyrich, bisleri in the retail market

47


Fig 3.2.10 – Availability of Mineral water Interpretation - Due to distribution channel Kinley is very easily available in market whereas kingfisher is little bit difficult to find

Fig 3.2.11 – Packaging of Mineral water Interpretation - Most of retailers think that the product packaging can attract more customers and in this oxyrich is the leader and kingfisher have to more concentrate on this part promotion.

48


Fig 3.2.12 – Quality of Mineral water Interpretation - As per Quality concern, oxyrich is leader in this sector so instead of higher price customers don’t hesitate to buy the product

Fig 3.2.13 – Price Comparison of Mineral water Interpretation - Instead of highest price oxyrich is the most selling product because retailers get maximum margin. 49


ANOVAs test has been applied on the following data with the help of Ms Excel.

HYPOTHESIS TESTING Hypothesis Set: Null Hypothesis (H0): There is no significant difference between the attributes - Brand, availability, packaging, quality & price in Kingfisher Packaged Drinking water and others Alternate Hypothesis (H1): There is a significant difference between the attributes - Brand, availability, packaging, quality & price in Kingfisher Packaged Drinking water and others

ANOVA TABLE

50


ANOVA:Single factor SUMMARY Groups

Count

Sum

Average

Variance

Brand

50.000

193.000

3.860

2.327

Availability

50.000

82.000

1.640

0.970

Packaging

50.000

100.000

2.000

0.531

Quality

50.000

209.000

4.180

0.518

Price

50.000

168.000

3.360

0.725

Source of Variation

SS

Df

MS

F-Cal

F Table

Between Groups

255.544

4.000

63.886

63.001

2.408

Within Groups

248.440

245.000

1.014

Total

503.984

249.000

ANOVA

Table 3.2.17 – Single factor ANOVA test

 Calculated Value - 63.001  Table value - 2.408 51


DECISION: As calculated value is greater than table value, i.e. 63.001 > 2.408

Thus, the Null Hypothesis is Incorrect and, the Alternative Hypothesis is Accepted

3.3 RESULT Therefore there is significant difference in the attributes . Quality and then Brand are the most preferred attributes for buying the packaged drinking water.

52


Fig 3.3.1 – Selection of mineral water

CHAPTER – 4 FINDINGS 53


OBSERVATIONS & FINDINGS

1. Most of Mineral Water’s consumers use Oxyrich, Bisleri, Kinley and Aquafina because these are branded ones and are trustworthy. 2. Consumers use Kingfisher’s Mineral Water because of its brand name of UB group and its rational price. 54


3. Kingfisher is fifth largest selling brand in Pune city after Oxyrich, Bisleri, Kinley and Aquafina. 4. The market share of kingfisher Mineral Water is very less but growing. 5. There is around 60% of positive market potential for Kingfisher Mineral Water due to low price and good brand image. 6. Kingfisher’s Mineral water is lacking behind because of its quality and packaging. 7. Very less number of distributers is there in Pune region for kingfisher’s Mineral water. 8. 84% of the retailers say due to the bad service provided by Kingfisher they get demotivated to continue it. 9. The company does not provide as many schemes as provided by its competitors to the dealer and retailers. 10. It was found that among all the areas covered, there were some areas in which the schemes were not regular.

CHAPTER –5 CONCLUSIONS, LIMITATIONS & RECOMMENDATION &SUGGESTIONS. 55


56


CONCLUSION

Since Kingfisher’s Mineral water is new in Pune market so it will take some time to capture the market.

There is a huge competition in the market in this field.

Need to spend money on sales promotion to attract more and more customers and retailers.

It has modified its packaging of bottles so now retailers as well as consumers are giving more response than it was earlier.

Kingfisher has good supply chain and availability of staff and team.

Profit margin of the retailers by selling of Kingfisher product is more than the other brand of the Packaged Drinking Water Company in the market.

Kingfisher should give new offers to retailer as well as dealers so that they would ready to keep stock of Kingfisher Packaged Drinking Water.

Since Kingfisher is popular by name of KING OF BEER in the market so most of the high class families are not responding to the product.

57


5.1 RECOMMENDATIONS & SUGGESTIONS

On the basis of this study, the following suggestions have been made to make the Future Option more effective: -

Quality of Plastic for Packaging must be improved.

Packaging should be standardized & made attractive.

The Hollow Cavity at the base should be more to provide extra support for the bottle to withstand.

Intense Marketing and promotions activities are required to Pune region for Customer awareness to show its mere presence in the market in the Mineral Water & Soda Segment.

• After sale services should be improved. •

Regular visit should be maintained for proper supply.

More schemes should be launched by the company and organization.

One week credit facility or one bill due system should be introduced.

Sales promotion tools such as key chains, pens, banners, racks, note pads, stickers should be given to the retailers.

58


Counters outside hospitals, cinema halls, at bus stands & at the tourists areas should be given special consideration.

Regular checks should be made to see that the salesman introduces the schemes regularly, properly and on time to the retailers, which are introduced by the company.

The Salesman should at least visit once in a weak to those retailers which doesn’t stock Kingfisher, with some new offers and schemes to increase the market share.

Should not depend much on distributors as they doesn’t introduce schemes, doesn’t provide proper service and supply.

The retailers which purchase same quantity should be given same schemes in order to remove biasness.

The company representative like the area sales manager should visit once in 2 months to the present retail customers for the overall satisfaction of the retailer and to check performance of the product.

The company should invest in promoting the brand name Kingfisher to make it a WORD OF MOUTH, which ultimately helps in Brand Management.

Salesman should wish the retailers as they visit the outlets for supply in order to maintain good customer relation.

Regular meetings should be arranged with the company staff in order to know the practical problems faced by them and should be resolved suitably.

59


5.2 LIMITATIONS Any research or study always has some limitations under which this has to be undertaken. This one too was not an exception. These limitations are poised by the environment some external and some inherent. This study has been conducted with utmost consideration to the adequacy of data and quality of information, though as mention earlier the reliance on the sources cannot be minimized to zero in context of precision. The limitation can be enlisted as here under:-

1. The perception level of the respondents. 2. Availability of documents as sources of secondary information. 3. Reliability of information collected from various public information sources such as magazines and website. 4. Sometimes respondents were not willing to fill the questionnaire. 5. Sometimes the required persons were not available at their place. 6. Very often the respondents do not express their true feelings, in such case their habit, preference, practice, cannot be assessed correctly. 7. Some of the respondents refuse to give the important information best known to them. However in spite of these limitations all efforts have been put to make the report correct, genuine, and fulfilling the objectives of the reports.

60


Bibliography

61


BIBLIOGRAPHY • Kothari C. R. – Research methodology, New Age International Publishers 2nd revised edition, year-2008, Chp – 1(Pg 1-20), Chp – 3(Pg 35-39), Chp - 4(Pg 58-61), Chp – 6(Pg 96-105), Chp – 11(Pg 256-264). • Kotler Philip - Marketing Management Millennium Edition, 10th edition By Pearson Custom Publishing.

WEBLIOGRAPHY •

COMPANY PROFILE http://www.theubgroup.com/ http://en.wikipedia.org/wiki/Kingfisher http://www.kingfisherworld.com/corporate/Board1.aspx http://www.kingfisherworld.com/corporate/premium.aspx http://www.kingfisherworld.com/corporate/corporate_responsibilities.aspx

LITERATURE REVIEW http://www.filestube.com/k/kingfisher+ppt http://www.hotfrog.in/Companies/Iceberg-Foods http://www.mouthshut.com/review/KingFisher-tlqrpppqsm.html http://www.kingfisherworld.com/corporate/newreports/pg1.htm http://www.indianexporters.com/iceberg-foods-ltd.-com-555578236.html 62


http://www.thehindubusinessline.com/2007/07/27/stories/2007072750190900.htm http://www.clickindia.com/search.php?q=kingfisher+Premium+Packaged+Drinking+Water http://www.consumercomplaints.in/complaints/kingfisher-premium-packaged-drinking-waterc55926.html http://www.hotfrog.in/Companies/ICEBERG-FOODS_1682628/Kingfisher-Packaged-DrinkingWater-Soda-70125

Appendices

63


ICEBERG FOODS LIMITED

QUESTIONARIES

Name……………………………………………… Add………………………………………………... Nature of business………………………………….

1. Which Brands of mineral water you keep in your store? Sr. No 1 2 3 4 5 6 7 8

Brands Aquafina Oxyrich Bisleri Kinley Kingfisher Kate aqua Sumeru Others(Name It)

Tick Mark

2. Out of those brands which brand you sell more?

64


Sr. No

Brands

1 2 3 4 5 6 7 8

Aquafina Oxyrich Bisleri Kinley Kingfisher Kate aqua Sumeru Others

Response

3. On which basis that brand sells more? Brand Availability Packaging Quality Price

4. Which package size’s sells is more? A.

200ml

B. 500ml

C.

1 Ltr

D. 2 Ltr

E.

5 Ltr

F. 20 Ltr

5. How many boxes of Packaged Drinking water you sell per week? a. 5-15 boxes

b. 15- 25 boxes 65


c. 25-35 boxes

d. 35- Above

6. Are you satisfied with the margin given by the company?

Yes -

No -

7. Which brand gives you more margin? Sr. No 1 2 3 4 5 6 7 8

Brands Aquafina Oxyrich Bisleri Kinley Kingfisher Kate aqua Sumeru Others

Response

8. Do you keep Kingfisher Mineral Water in your store? a. Yes

b. No

9. If Yes then What is the response of Kingfisher Mineral water in the market? a.

Fair

b. Average c. Good d. Very good e. Excellent 10. Do you get the order on time from your dealer? a. Yes

b. No

11. What kind of service you get from company? 66


a. Regular visit of Sales Executive b. On Time Delivery c. Credit period d. All of the above 12. Which Brand do you think is the Competitor of the Kingfisher Mineral Water?

Sr. No 1 2 3 4 5 6 7 8

Brands Aquafina Oxyrich Bisleri Kinley Kingfisher Kate aqua Sumeru Others

Response

13. On which ground they compete with Kingfisher Mineral Water? a. Margin b. Service c. Credit period d. Packing

14. What changes would you like to see in our Brand? More Margin Good Packing Increase MRP Increase Credit period Service

67


Thanks for your Co-operation

Date:Place: -

Signature

68


QUOTATION PROVIDED BY THE COMPANY Sr.

Per Bottle Quantity.

Carton containing.

Selling price Rs

MRP

►►Natural spring water 1. 2.

200ml water 500 ml water

48 (bottles) 24 (bottles)

280 185

10 15

3..

1Ltr.

12 (bottles)

185

25

water

► ►Packaged Drinking water 4.

200ml. water

48 (bottles)

190

05

5. 6. 7. 8. 9.

500ml. 1ltr. 2ltr. 5ltr. 20 ltr

20 12 09 01 01

120 85 120 38 35

10 15 22 50 70

Water Water Water Water Water

(bottles) (bottles) (bottles) jar jar

►► Royal Crown Cola 10 11. 12.

300ML. RC COLA 600 ML. RC COLA 2 LTR. RC COLA

24 (bottles) 24 (bottles) 24 (bottles)

Free 2 bottle Free 1 bottle Free 1 bottle

260 380 360

12 20 50

320 520

15 25

►► R. C. Cola ( Apple Juice) 13. 14.

300 ML APPLE JUCE 600 ML APPLE JUCE

24 (bottles) 24 (bottles)

Free 1 bottle ……………….

►► Power Soda 15. 16. 17.

300ml 600ml 2ltr

soda Soda Soda

24 (bottles) 24 (bottles) 09 (bottles)

165 220 200

10 12 30

69


Report on kingfisher packaged drinking water