Business School of DelhiTABLE OF CONTENTS CONTENTS PAGE NO 1. 2. 3. 4. 5. 6. 7. 8. 9. Table of contents History of bottled water industry in India Why bottled water started? Players in bottled water industry Rail Neer Distribution Way to increase market share Future planning Competitors 1 2 2 3 4 9 10 11 12 13 14 15 16 10. Findings 11. Conclusion 12. Recommendations 13. Bibliography Marketing Project Page 1 Parle bought over Bisleri (India) Ltd.bubbly and still in 1965 This company was started by Signor Felice who first brought the idea of selling bottled water in India.even though the businesses Marketing Project Page 2 . the country's financial capital. presently 40 plants are operational and few more will be ready for operations over the next few months. Why Bottled Water Started? Millions of people. Chauhan has started expanding Bisleri operations substantially and the turnover has multiplied more than 20 times over a period of 10 years and the average growth rate has been around 40% over this period. Bisleri command a 60% market share of the organized market. Presently it has 8 plants and 11 franchisees all over India. joint managing director of Parle Agro. suffer from inadequate or no tap water supply. Currently. “We plan to increase manufacturing plants for Bailley from 29 to 60. Ramesh J. Even some parts of Mumbai. So bottled water is much in demand by residents . The city's Virar suburb gets 45 minutes. Bailley has a national presence in 5 lakh retail outlets across the country. Since 1995 Mr. Later Parle switched over to PVC non. Mineral bottled water were in glass bottles in two varieties . both in rural and urban India.returnable bottles and finally advanced to PET containers.Business School of Delhi History of Bottled water in India Mineral bottled water in India under the name 'Bisleri' was first introduced in Mumbai by Bisleri Ltd. In 1969 and started bottling Mineral water in glass bottles under the brand name 'Bisleri'.” informed Nadia Chauhan.. get a mere two hours of daily water supply. a company of Italian origin in 1965. Players in Bottled Water Industry Coca cola Pepsi Nestle Mount Everest Manikchand Kingfisher Mohan Meakins SKN Breweries Indian Railways Marketing Project Page 3 . Peter Gleick of the Pacific Institute writes in its World Water report. "In many parts of the world. the failure of governments to provide basic water services has opened the door to private companies and vendors filling a critical need.Business School of Delhi profiting from the sales are thriving from access to public water sources." writes. Bottled water fills a void created by government failure to address basic services. "In these regions. albeit at a very high cost to consumers." The institute reasons that governments should tap into spending on commercial water by consumers to secure funds to provide safe water at fraction of the cost. tap water is not available or safe to drink. a branded packaged drinking water for the rail commuters. High quality product can only be ensured when production is in-house under full control and supervision of IRCTC. Completely automatic plant and no manual handling of product water at any stage. Rail Neer is processed. This is located in West Delhi. mtr. purified and bottled at state-of-art plants.Business School of Delhi Rail Neer Introduction: To enhance passenger amenities. Establishment May 2003 Project cost Rs.Northern Railway's Wireless Station Area Page 4 Marketing Project . The purpose was to supply safe drinking water to important Rajdhani and Shatabdi trains originating from New Delhi and Nizammuddin. the IRCTC launched Rail Neer. 10 crores Factory area 7000 sq. Production Capacity 102000 bottles/day Source of Water Ground Water Address:. IRCTC stands for quality and has a key role in ensuring service and product of the highest quality for the rail passenger as well as visitor to any railway premises. Plant is provided with solar evaporation pits. Rail Neer Plants: Nangloi (Delhi): This is the first plant set up by IRCTC in 2003. This is to avoid RO reject to surrounding land and hence comply with state Pollution control norms. 06115-232557 Marketing Project Page 5 . mtr. Nangloi Bus Depot. South of RPF Barracks Khagaul. This is located near Patna in Bihar. Production Capacity 102000 bottles/day Source of Water Ground Water Address Rail Neer Plant. The purpose was to supply safe drinking water to trains and stations in state of Bihar and Howrah and Sealdah stations in West Bengal. Fax.06115-232557. . and 75 Fax: 25949773 Danapur (Patna): This is the second plant set up by IRCTC in 2004. 10 crores Factory area 10000 sq. 74. Nangloi.Business School of Delhi Opp. Establishment March 2004 Project cost Rs. Danapur Patna – 801105 Ph. Loco Colony. Delhi-110041 Tel: 25949772. 603 101 Ph-044-28363725 Marketing Project Page 6 .Business School of Delhi Palur (Chennai): This is the latest (third) plant set up by IRCTC in 2010. The plant is being setup on area of 4500 sq. The purpose is to supply safe drinking water to trains and stations in state of Tamil nadu and Banglore in Karnataka. mtrs. mtr. Establishment Operational Project cost Rs. The waste water discharge from Water treatment plant has been reduced to 10%. Palur Railway Station Chengalpattu – Kanchipuram Main Road Palur Village. Kanchipuram District Pin . Production Capacity 180000 bottles/day Source of Water Ground Water Address Rail Neer Plant.) Factory area 9000 sq. This is located near Chennai in Tamil Nadu. 20 crores (Approx. The building is constructed in such a manner that there is no need of artificial lighting during day time. This is achieved by incorporating concepts of Secondary RO in the Water treatment scheme. Chengalpattu Taluk. Business School of Delhi Manufacturing process: Water drawn from bore wells is stored in an underground reservoir and pumped to the treatment plant designed. Stage 1 & 2 – Stage 1 removes dust.Impurities with size more than 0.UV-light causes change in the genetic material of microorganisms and thus prevents them from reproducing. The plant technology employs 8 purification processes capable of yielding water quality conforming to BIS standard IS 14543-2004. engineered and installed by M/s ION Exchange (India) Ltd. Activated Carbon Filter. dead microbes. the market leaders in the field of water treatment with well over 37 years of experience. (All competitors use it to enhances membrane life) Marble chip filter.. Reverse Osmosis (membrane 0.0001 micron) –All dissolved impurities are removed. suspended particles and pyrogenic species are filtered out through Ultra Filtration membranes.To boost “pH”. Marketing Project Page 7 .2 micron are filtered out. Ultra Violet Sterilizer Unit.Hardness of water is removed by ion exchange resin. Ultra Filtration Unit (0. Two stage Micron Filters (first membrane 1 micron followed by 0. Anti-scaling agent not used. Exclusive process adopted by Rail Neer.001 micron membrane)–Colloidal. odour/colour and stage 2 is for removing pesticides. Auto Softener Unit (ASF) .2 micron) . Automatic Bottle Blowing Machine: Rail Neer bottles are manufactured with automatic blowing machine (Make –M/s Sidel India Ltd) at plant with high grade resin performs. Automatic Rinsing Filling & Capping Machine: Bottle blown at blowing machine travels through air conveyer to automatic Rinsing Filling & Capping machine (Make-M/s HiMech) where bottles are rinsed in inverted position by very high pressure jet and water is completely drained out as bottle is inverted then it get filled with the help of nozzle and passed to capper where the same get capped. Preforms are made only with HUSKY or Krosmafi machine.Business School of Delhi Ozonizing Unit. The temperature of filling area is kept at 20 degree centigrade and this area is completely enclosed and restricted area and no one except filling operator is allowed to enter the area. The nascent oxygen is powerful oxidising agent and kills the microbes.Water comes in contact with ozone gas for final disinfection from the microorganisms. Marketing Project Page 8 . Garbeta. Rail Neer is also supplied to PMO.New Delhi. Mathura. Bandel. 3. Agra Cantt. 9. Guwahati. SN Location of CFA Stations where Rail Neer is supplied (Declared „Mandatory‟) 1.Ghaziabad. . Delhi. Hajipur.Business School of Delhi Distribution The Rail Neer is being distributed to various Railway stations through selected CFA‟s (carry and forwarding agencies) under supervision of IRCTC. Jodhpur. Nizammuddin. 6. Delhi. Jharkhand. Etawa. Assam. . Durgapur. Sarai Rohila. 12. 4.P. Ranchi. Kathgodam. Punjab.Jaipur. 2. Saharanpur.Berhampur. Rajasthan.Jammu.Ambala. Kalka. Puri. Tatanagar.Ludhiana. Subzi Mandi. Jammu. Rourkella. Bihar. Cuttack.Patna. Chandigarh. West Bengal. Muzaffarpur. Kurukshetra. MEA canteen and Railway Board. Bhatinda Amritsar. All Rajdhani & Shatabdi trains originating Delhi have been declared mandatory for Rail Neer.Howrah. Urrisa. 7. Tundla. U. Haryana. Jullundhar. Sakur Basti. Kishan Ganj. UttarakhandDehradun. Danapur. Delhi Cantt. Khurda 11. Haridwar. Phulera. Bikaner. Yamuna Nagar. 10. Adra. Bhubneswar. Darbangha. Bankura. Further some mail/express trains are also declared mandatory for pick-up of Rail Neer. Hatia. Bishnupur. Ajmer.Tinsukia. Malda. Purulia and Santhali Marketing Project Page 9 . Rajendra Nagar. Alwar.Dhanbad. 8. 5. Jhansi. Bareilly. Pathankot. By giving more incentives to retailers. Share of voice – The firm‟s proportion of total promotional expenditures in the market. – By improving product quality. Promotion. for e.Business School of Delhi Way to increase market share 1.The product attributes can be changed to provide more value to the customers.Add new distribution channels or increases the intensity of distribution in each channel. Marketing Project Page 10 . Distribution.If the price elasticity of demand is elastic (that is >1).Increasing advertising expenditures can increase market share. From these drivers we see that market share can be increased by changing the variables of the marketing mix. 2. Thus.g. share of voice can be increased by increasing advertising expenditures. 3. The market share of a product can be modeled as: Share of market= share of preference*share of voice*share of distribution According to this model there are three drivers of market share Share of preference – Can be increased through product. Share of distribution – can be increased through more intensive distribution. unless competitors respond with similar increases. a decrease in price will increase sales revenue. This tactic may not succeed if competitors are willing and able to meet any price cut. pricing and promotional changes. Price. Product. By increasing the Market area of Rail Neer. Durante. The third plant of 15000 cases per day or 1. Maharastra. Ahmedabad.This will take care of requirement of PDW in trains originating from Chennai and Banglore. Ministry of Railways has decided to set up six packaged drinking water plants under PPP mode. b) In order to meet further demand of PDW on IR. IRCTC would be able to strengthen its supply logistic at all important Railway Stations. Estimated Cost: Rs. Bhubneswar/Cuttack and Hyderabad. Shatabdi. At present the two regular plants at Nangloi and Danapur are able to cater less than 5% of the demand. Some of the locations identified are Bhopal/Nagpur.000 sq. c) To increase bottling capacity. it is proposed to setup more plants involving private organisations on PPP model. Garb Roth and other Mail/Express trains across India. Key parameters of the proposed plant are: Area: 20.6 lakh bottles per day operational at Palur (75 kms from Chennai Central station in Tamil Nadu). Rajdhani. mtrs. The Joint Marketing Project Page 11 . IRCTC is in process of setting up Joint Venture with participation from Private Industry. 20 cr. This is situated near GIP Lake in Additional MIDC area located about 70 kms from Mumbai Central station. a fourth plant has been planned at Ambernath. a) To meet the demand of PDW in western part of the country or say for Trains originating from Mumbai area stations. Installed Capacity: 17000 cases (Two lakh bottles) per day with Provision to upgrade to 25000 cases (Three lakh bottles).Business School of Delhi Future Planning There is huge requirement of packaged Drinking on IR. After fructification of all these plants. Business School of Delhi Venture firm will set up more Packaged Drinking Water Plants across the country. are at Nagpur and Hyderabad. Competitors Mount Kailas Iceling Bisleri Mc. Dowell‟s Aquafina Sudh Marketing Project Page 12 . Two potential sites identified. 1 packaged drinking water bottler for supply on Railway premises. Aim of IRCTC is to be known as No. Business School of Delhi Findings No advertisement No Promotional activities Less profit margin to vendors as compared to other brands Due to the government intervention it is lesser known brands Marketing Project Page 13 . Business School of Delhi Conclusion After study about Rail Neer & its market share. IRCTC should take some action about Promotional activities & market area. Marketing Project Page 14 . we can say that Rail Neer is a lesser known brand despite of government support. We should create awareness and run advertisement to support the brand. Government intervention should lower. Marketing Project Page 15 .Business School of Delhi Recommendation To start promotion activities To sell the product in the open market The company should curtail its profit margin & should give more profit to the vendors so that they would sell Rail Neer more in comparison to other products. com/water/water16.com/introrail_neer.irctc.html Marketing Project Page 16 .com/rail_neer.irctc.Business School of Delhi Bibliography Book: Marketing Management -Philip Kotler Websites: www.html www.gits4u.htm www.