Safe Drinking Water Market For Rural India Marketing Essay


Safe imbibing H2O market for rural India is an upcoming market which is supposed to hold high market potency. Intervention in this sector started with authorities strategies, NGOs coders and now public-private partnership manner has been attracted an light as docket or motion. In malice of lower demand for safe imbibing H2O in rural countries presently, the market is expected to turn really quickly.

Not earlier excessively long, in the pre-liberalization epoch, the bottled H2O market in India was a miniscule market providing to merely the upper strata of society e.g. travelers and conference meetings in five star hotels. Even today in comparing to the planetary scenario, the Indian market is a really little one. For illustration, the per capita ingestion of mineral H2O in India is a mere 0.5-liter compared to 111 liters in Europe and 45-liter in USA. ( India Today, 2006 )

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But over the last 10 old ages, it has witnessed enormous growing. The alteration is really much evident. Once a merchandise found chiefly at railroads Stationss, mineral H2O today occupies a topographic point on the shelf in most superstores, grocers. From a mere 60 towns in the twelvemonth 1997, it is predicted that mineral H2O is today available in more than 1000 towns and metropoliss across India. With a compounded one-year growing rate of stopping point to 30 % over the last decennary, the mineral H2O market has witnessed a big growing in footings of volumes. Indians are non yet imbibing mineral H2O as a healthy replacement for soft drinks or hot drinks, as do consumers in developed states. Rather they are making so as a replacement for their mostly insecure tap H2O. Not surprisingly, the Indian industry, at about US $ 76.9m, is minuscular compared to, for case, the US $ 3.4bn US market. But the market has been ( Business India Intelligence, 1998 ) . The market is extremely competitory with the entry of MNC ‘s like PepsiCo and Coke. There are a batch of trade names available in the market, each with its ain announced distinction.

The Indian market shows a complete duopoly every bit far as bottled mineral H2O is concerned. The biggest market portion is enjoyed by Bisleri at 50 % , Bailley at 40 % and the remainder 10 % is shared by others. Therefore it would really hard to aim a niche society or section of the society for KPCI Pvt. Ltd.

The ground for increased demand of bottled mineral H2O is non straight related to the people ‘s pursuit of a healthy life style. The Southern Cross of the job lies elsewhere. Arsenic ( As ) taint of natural beginning in groundwater has been envisaged as a worldwide job. Exploitation of groundwater contaminated with arsenic within the delta plains in West Bengal has caused inauspicious wellness effects among the population within a span of 8A± 10 old ages. The beginnings of arsenous anhydride in natural H2O are a map of the local geology, hydrology and geochemical features of the aquifers. ( Gunnar et al. 1997 ) . This has created an kernel for companies to put more and more in the mineral H2O industry. The tumult and concern about insecure imbibing H2O has lead mineral H2O companies to include an over-arching symbol and specify the procedure of fabrication and the termination day of the month as a method of precaution. Every company is required to follow with this norm, otherwise can be tried in the tribunal of jurisprudence. ( Branwell, 2004 )

Purpose of Research:

The intent of the research is to research the packaged H2O industry as the research worker has huge involvement in the field and an purpose to do a calling in the field. The companies which were antecedently associated with this industry have grown tremendously ; some of the companies have migrated from little graduated table to big graduated table in this field. The research would learn the research worker how to analyse different markets with mention to market entry schemes. India has 29 provinces all-together and about every province has different civilization, hence people populating in different provinces have different picks. Researching different metropoliss of different provinces would be a challenge in itself for this research survey and therefore the research worker is traveling to concentrate on the province of Chattisgarh in cardinal India. Through this research the research worker would wish to larn concern enlargement standards for little concerns. This research would besides assist in future ventures for the research worker because every concern demands to spread out to demo its growing in the sector whether it be market wise or merchandise wise, therefore larning about concern enlargements would be of great aid for the research worker ‘s future calling.

The market demand for packaged imbibing H2O is turning quickly, the current growing of the industry is 20-25 % per annum and it is expected to turn at 40 % per annum in the extroverted old ages. Harmonizing to the Central Ground Water Authority, ( India ) more than 60 per centum of the state ‘s groundwater resources are already being tapped. The H2O scarceness in the city reaches crisis proportions every summer. For the multimillion dollar packaged H2O industry, though, this state of affairs is what rings in the net incomes. Over the last several old ages, water-starved population have paid about $ 10 million ( INR 500 million ) to private H2O companies for 3.7 billion liters of drinkable H2O each month to augment the unequal supply of proper imbibing H2O, in the metropolis of Chennai merely. To cipher how much money has been raked in as net incomes by packaged H2O companies would desire any enterpriser to put in this trade. ( Indiaresource, 2002 ) .

To critically analyze and choose the most appropriate market for KPCI Pvt. limited for its packaged H2O division enlargement in Chattisgarh, the needed research aims have been set up as follows:

To research the demand for packaged H2O in the Indian market

To place standards needed for a little house to vie among larger transnational participants in the Indian packaged H2O market and measure how growing patterns need to germinate in such a diverse and traditional market

To choose the best market for KPCI Pvt Limited and its packaged H2O division enlargement

To measure different market entry schemes for the house in these markets

To analyze different enlargement theories and follow the most suited for the instance survey house


Organizations look for growing and the globalised markets provide houses with countless chances to develop a model and enter different markets with different civilizations and ways of advancing and selling goods and services. Customers have started to see that there are goods that are much more advanced in engineering, quality or attraction than they had seen earlier. They want to alter to these merchandises which would do them multi-national clients buying from multi-national companies ( Varley, 2006 ) . A company that calls itself an MNC has succeeded in come ining a market, capturing its market portion and made a net income in the procedure. It has achieved the much needed presence in another state that a globalised universe compels it to.

This research, nevertheless is on a more widely known and available resource that has been transformed into a merchandise because of its scarceness in useable signifiers. The resource being spoken approximately is H2O. Once available free of cost and in copiousness, this resource has been capable to many factors and is near to being rare and nonextant. Industrial wastewaters, extended belowground H2O development, deforestation and natural catastrophes have made it near to impossible for adult male to make up one’s mind between conserving H2O or dressed ore on development.

This has given rise to a new sector across the modern universe – Packaged Drinking Water. This market is one of the most profitable concerns for many pudding stones that operate trans-nationally and besides for local sellers to transform merchandising of H2O on a big graduated table within the boundaries they can afford to run.

In order to pull off a merchandise, a selling director needs to consistently develop the assorted elements of marketing plan such as, branding, cleavage, positioning, new merchandise development, distribution, advertisement, gross revenues direction and market research. With promotion in engineering, consumer aspirations for alteration or up step of theoretical account and intense competition, the creative activity of new merchandises has become an avenue for growing in India. However, fortuitously India is still to confront a state of affairs of excessively many well good trade names in bundle H2O industry seeking to trail a smattering of consumers. The sheer size of the Indian market and a consistent economic development has opened up new views for establishing new trade names of merchandises. An analysis of the new merchandise developments since the early 1890ss reveals that these merchandises have been outgrowths of technological developments in the West or betterments over bing merchandises in countries of design, manner, substance and packaging. ( Majumder, 2007 )

India with its immense population, offers a immense market capacity. The branded bottled H2O is the fastest turning merchandise in the drink sector. As a consequence many companies are either present or competing for a topographic point which in bend will merely increase the competition. Furthermore, with the addition in stiff competition, the latest displacement in consumer inclination has been towards premium quality section. Palanithurai and Ragupathy ( 2008 ) , remarks that increasing rate in ground-water pollution has induced more and more people to devour bottled H2O. It is now estimated that the ingestion rate is traveling to increase at a rapid rate of 30 % -35 % per annum in India. The highest market portion is presently enjoyed by the Parle Bisleri trade name, nevertheless multinationals like Coke and Pepsi have besides been really successful at inching out many little companies. KPCI Pvt. Ltd. Need to really wary of these factors and need to establish their ain trade name in a mode that would assist it to gain a market portion and non acquire edged out by bigger companies. It is besides a remarkable ground why a lone province has been chosen to market the merchandise at first and judgment by the response and the gross generated the company can decide/alter its schemes to perforate into subsequent markets.

Bottled H2O is now treated with the latest engineerings and is available in a assortment of little, medium and big battalions. It is available in largely urban countries foremost ; nevertheless, the industry has successfully penetrated into the rural market section every bit good and can now be found at every nook and corner of the state, particularly the public conveyance countries like airdromes and railroad Stationss. The market for packaged H2O bases at a whooping INR 8 billion – INR 10 billion and the packaged market industry histories for at least 5 % -6 % of the drink industry. Regulated by the Bureau of Indian Standards enfranchisement, every company needs to secure a licence to get down the trade. However, due to absence of any rigorous governmental ordinance, boulder clay late, it enabled the burgeoning of several little companies with a short term net income policy. These companies took the advantage of a flourishing market and did non put in quality equipment to keep a low cost of production and besides enhance net income. However, studies of specious H2O supply from many clients have brought this sector under authorities prevue. ( Pangare et al. 2006 ) .

An of import factor which needs to be discussed here in idiom to the bottled H2O industry is that the internationalization of environmental costs in economic activities has led to the outgrowth of the environment saving industry. Turning environmental consciousness, increasing environmental ordinances and criterions, and the thrust to increase resource efficiency has lead to the development of pollution suspension engineering and equipment. Therefore houses bring forthing traditional merchandises, runing from technology goods to fabrics to nutrient industry have been projecting an environment friendly image to capture the market niche of environmentally witting consumers. Industry estimates during the mid-1990s had predicted a growing of this industry to US $ 600bn by 2010. ( Sawhney, 2004 ) Judging by this treatment, it is apparent that KPCI Pvt. Ltd. Have to do a strong consideration of the environmental factors and besides the quality of the merchandise to make and prolong in the market. Shiva ( 2002 ) agrees with Sawhney ( 2004 ) and concludes hat the effects of bottled H2O extend beyond monetary value hikings and insecure H2O. Environmental waste is one of the major costs incurred by the bottled H2O industry. In the 1970s, 300million gallons of bottled H2O were sold in non-renewable plastic H2O containers. By 1998, this figure had grown to 6 billion. Given that the said study quotation marks figures a decennary back, it can be justified by stating that the figure of containers have increased exponentially.

The 2nd factor which KPCI needs to take into history is the monetary value war. Major nutrient and drink companies like PepsiCo, Bisleri International, Coca-Cola and Tata Tea continue to offer their 1-litre packaged H2O trade names between INR and INR, despite a recent consumer tribunal diktat non to monetary value them above INR since it is an “ unjust trade pattern ” . Despite the diktat, PepsiCo ‘s Aquafina is available for Rs.14.75, while Coca-Cola ‘s Kinley and Bisleri International ‘s Bisleri are both priced at Rs.13. Tata Tea ‘s Himalayan trade name ( under its subordinate Mount Everest ) comes for Rs.20 ( Business Standard, 2009 ) . This spot of information should non merely assist KPCI to find its merchandise monetary value, nevertheless, it would besides function as a cautiousness that citing a high-price might set down them in problem with the Government norms.

Furthermore, bulk of the bottling plantsA are dependent on groundwater. They create immense waterA emphasis in the countries where they operate because groundwater is besides the chief beginning – in most topographic points the merely beginning – of imbibing H2O in India. Private companies in India can syphon out, exhaust and export groundwater free because the groundwater jurisprudence in the state is antediluvian and non in melody with the worlds of modern capitalist societies. The bing jurisprudence says that “ the individual who owns the land owns the groundwater beneath ” . This means that, theoretically, a individual can purchase one square metre of land and take all the groundwater of the environing countries and the jurisprudence of land can non object to it. This jurisprudence is the nucleus of the struggle between the community and the companies and the major ground for doing the concern of bottled H2O in the state extremely moneymaking. ( Frontline, 2006 ) .

Having said as much, the packaged H2O industry in India is non without its portion of unfavorable judgment. Manufacturers merely extract inexpensive groundwater from the works site, ‘purify ‘ it, bottle it and sell it. Consumers are paying through their olfactory organs for this ‘pure ‘ and ‘clean ‘ imbibing H2O. The ‘corporate duty ‘ of supplying healthy imbibing H2O ( evidently at a monetary value more expensive than milk ) has been sacrificed for a profit-maximising exercising. The exercising ensures that the makers use the cheapest inputs – to a great extent contaminated groundwater in this instance – and a inexpensive technological operation that can non acquire rid of the toxicant nowadays in the natural H2O. ( India Environmental Portal, 2003 ) .

Companies need to be wary of these socioeconomic factors before one should put up a works. ( Gleick, 2004 ) . The writer argues that though bottled H2O costs more than pure tap H2O supplied by municipalities in India, it has been found that consumers are ready to pass more for bottled mineral H2O. However, one word of cautiousness for any new entrant to the market is trade name value. As has been reported earlier, current governmental norms are going stricter by the twenty-four hours and any dip in quality would ensue in loss of drastic market portion. This necessitates finding of cardinal market factors for KPCI Pvt Ltd. Determining where a merchandise lies in the merchandise life rhythm will assist find the most appropriate market entry scheme for a house competing for success in a given market. This designation phase is normally termed most hard in Indian markets as the demand for a merchandise or service varies from clip to clip and sometimes even seasonal or as by and large termed “ Periodic Demand ” ( Chan, 2007 ) . For case, packaged imbibing H2O or bottled H2O poses a greater demand during summer if temperature were a standards and less in winter whereas regionally measuring, the demand for bottled imbibing H2O is lesser in rural countries and higher in urban countries where distinction between clean and unhealthy H2O is done in a acute manner.A

The merchandise life rhythm has four stages which are: A

1. First stage – The creative activity and debut of a new merchandise that is deemed to be strategically fit for a given market.

2. Second stage – This is besides called the growing stage where the clients get accustomed to the merchandise or service and get down to appreciate or notice on it.

3. Third phase – Industry gross revenues starts making a stage of saturation.A Pressure from rivals additions and net incomes by and large decline as promotional attempts addition and monetary values are reduced to pull concern and retain market portion. Customers are satisfied with their current trade names, and might see a switch to another trade name as a hazard to their purchasing forms.

4. Fourth phase-This phase is besides called the diminution phase. New merchandises replace bing merchandises based on newer engineerings and newer likes of the consumer ( Chan, 2007 ) .

A merchandise that enters the market ever goes through these stages before going disused or undergoing a transmutation irrespective of how many old ages it has survived in the market.

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