Project on catch

2
SUMMER INTERNSHIP PROJECT REPORT
ON
“MARKETING STRATEGIES OF DS DRINKS &
BEVERAGES PVT. LTD.”
FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT
FOR THE AWARD OF
MBA IN RETAIL MANAGEMENT
UNDER THE GUIDANCEOF UNDER THE SUPERVISION OF:
Mr. RAJESH SARAO
SUBMITTED BY:
ROHIT SINGH
ROLL NO.- 17028
(Batch: July 2014-16)
(UNIVERSITY INSTITUTE OF APPLIED MANAGEMENT AND SCIENCES)

3
INTERNSHIP REPORT ON
MARKETING STARATEGIES
OF DS DRINKS &
BEVERAGES PVT. LTD.
PROJECT GUIDE: SUBMITTED BY:
Mr. RAJESH SARAO ROHIT SINGH
(COMPANY GUIDE) MBA Sem-II

4
COMPANY CERTIFICATE TO
WHOM IT MAY CONCERN
This is to certify that Mr.Rohit Singh, a student of UNIVERSITY
INSTITUTE OF APPLIED MANAGEMENT SCIENCES, PUNJAB
UNIVERSITY CHANDIGARH undertook a project on “Marketing
Strategies of DS Group” at Dharampal Satyapal Ltd from 1ST June to July
15th, 2015.
Mr. Rohit Singh has successfully completed the project under the guidance of
Mr. Rajesh Sarao. He is a sincere and hard- working student with pleasant
manner.
We wish all success in his future endeavours.
Signature with date
Name
Designation
Company name

5
CERTIFICATE TO ORIGIN
This is to certify that Mr. Rohit Singh, a student of MBA in Retail
Management (2014-16), UNIVERSITY INSTITUTE OF APPLIED
MANAGEMENT SCIENCES, PUNJAB UNIVERSITY , CHANDIGARH
has worked in Dharampal Satyapal Group under the able guidance and
supervision of Mr. Rajesh Sarao (AGM), Catch Beverages Raison.
The period for which he was on training was 7 weeks starting from 1st June to
15th July’ 15. This summer internship report has the requisite standard for the
partial fulfilment of the Post Graduate Degree. To the best of our, knowledge
no part of this report has been reproduced from any other report and the
contents are based on the original research.
Signature Signature
(Faculty Guide) (Student)

6
ACKNOWLEDGEMENT
I express my sincere gratitude to my industry guide Mr. Rajesh Rao (AGM),
Catch Beverages Raison, for his able guidance continuous support and
cooperation throughout my project, without which the present work would not
have been possible.
I would also like to thank the entire team of the Dharampal Satyapal Ltd. For
their constant support and help for the successful completion of the project.
Signature
(Student)

7
TABLE OF CONTENTS
Chapter No. Topic
1. Dharmapal and Satyapal group
1.1 Company Profile
1.2 Stirring Saga of An Enterprise
1.3 Mission Vision Statements
1.4 About The Plant
1.5 Company Hierarchy
2. Introduction To Mineral Water Industry
2.1 Bottled Water Industry In India
2.2 Govt. Failure To Address Basic Services
2.3 Water Resources Over Exploited
2.4 Bottled water? How Safe?
2.5 Growing Prospective Of Packaged drinking Water Industry
3. Processing methods, Manufacturing process and Product
. preparation
3.1 Processing methods
3.2 Manufacturing Process
3.3 Product Preparation
4. Research
4.1 Research Methodology
4.2 Research Process

8
4.3 Need and Importance Of Study
4.4 Data Presentation, Analysis & Interpretation
5. Major Competitors And Market Share
6. Target market And Major Segments
7 Marketing Strategies
7.1 Product Range
7.2 Pricing Strategy
7.3 Promotion Strategies
7.4 Distribution Channel
8. Reasons For Company’s Lack Of Interest In
Mineral water Industry
8.1 SWOT Analysis
8.2 BCG Matrix
8.3 PEST Analysis
9. Conclusion
10. Appendix
11. Bibliography

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EXECUTIVE SUMMARY
Need for the study
 To identify the difference between mineral and packeted drinking
water.
 To study the market of catch on big scale in FMCG.
 To compare various parameters of marketing strategies, manufacturing
process, technology adopted production policy, advertising,
collaboration, export scenario, future prospect and government
policies.
 To study the level of customer satisfaction.
 To study customer buying behavior and factors which influence the
purchase decision process.
 To study consumer preferences.
 To study the consumer trend in the beverage sector.
Objective of the study
Every organization has to achieve its organization goals. For this it is very
essential for an organization to know about the view of consumers and their
competitive products. This survey research may be also aimed as to estimate
potential buyer for the product. The objective of the study is as under:-
 To identify the difference between market performance of catch
beverages.
 To compare various parameters of marketing strategies, manufacturing
process, technology adopted production policy, advertising, export
scenario, future prospect and government policies.
 To study customer buying behavior and factors which influence the
purchase decision process.
 To know how the company has been successful in encountering the
aggressive marketing strategies of competitors.

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SCHEDULE
The complete project was of 6 weeks. The project has been divided into 2
stages with approximate time period allotted to each stage. Both the stages
along with their approximate timelines are as follows:
STAGE 1 (APPROX 3 WEEKS)
The study of company’s working profile, previous history and its current
position. Under this phase the store and inventory were visited and how raw
material and finished goods moves in and out of the plant was studied.
STAGE 2 (APPROX 3 WEEKS)
The study of the overall working of the management of the company. Under
this stage both the production units were visited daily for better understanding
of production processes and operating plans prepared to study the analysis of
the products. This phase also constituted of various surveys that was done to
study the marketing strategies of the plant.
SCOPE OF THE STUDY
To study the market attractiveness toward beverage industry and to study the
marketing stratergies of catch.
LIMITATIONS
In spite of my continued efforts to make the project as accurate and wide in
scope as possible, certain limitations are becoming evident while
implementing the project. These limitations cannot be removed and have to be
accepted as permanent constraints in implementing the project.
Some limitations, which have been identified, by me are:
1. Generalizations and calculated assumptions had to be made in some areas
while analyzing the market, due to non-availability of complete information.
2. The segment wise and product wise study of the various product segments
and units of the company have been excluded from the scope of the project
due to data and time constraints.

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1. THE DHARAMPAL SATYAPAL GROUP
1.1 COMPANY PROFILE
Dharampal Satyapal Group (DS Group) is more than Rs. 5000 crores
diversified conglomerate, which is committed towards high quality products &
credited with several innovations over last seven decades. The sagacity to
weave its business around consumer needs has conferred DS Group with a
distinct value. Efficient capital structure, cutting edge technology, operational
discipline and a widespread distribution network, have together attributed to
enhance ‘Brand DS’, and enabled the organization to deliver continued growth
in all areas of operation. The Group has consolidated its position into
diversified sectors like FMCG, Packaging, Hospitality, Rubber thread, Cement
and other businesses.
Beginning its journey with Tobacco, DS Group successfully ventured into the
arena of Foods & Beverages, alluring the consumers with a wide range of
beverages, spices, and ready-to-eat snacks under the brand ‘Catch’. While
‘Catch’ Natural Spring Water and its variants continue getting great response
from consumers, ‘Catch’ Salt & Pepper tabletop dispensers hold their
supremacy as India’s first tottery table top dispensers. Catch Spices
excessively continues to be connoisseurs’ favorites.
In the Mouth Freshener Category, non-tobacco, Rajnigandha rules the market
as the world’s largest selling premium pan masala. ‘Pass Pass’ has created a
new product category all-together as India’s first ever branded ‘all natural’
non supari assorted mouth freshener. Taking forward the Indian tradition of
eating and serving mouth freshener softer meals, Rajnigandha, the premium
mouth freshener brand, has introduced a mild new flavour, “Meetha Mazaa-
the Indian Mouth freshener”. Reinforcing the emphasis on the quality at all
levels,Meetha Mazaa is revitalizing.
Recognizing the immense potential in the Hospitality Segment, DS Group
forayed into this segment with “The Manu Maharani’ at Nainital, in 2001. The
Group acquired the Airport Hotel at Kolkata. The hotel is currently being
revamped and renovated and will soon emerge as an International standard
destination with Five Star Hotel, a budget hotel & large Convention Centre, in
addition to a sprawling Commercial area. The five star hotel building projects
have also commenced in Guwahati and Jaipur. In addition to the above
ventures, land has been acquired in cities like Udaipur, Shimla, Mussorie,
Corbett Park, Manali and Goa with plans to set up hotels & resorts. With a
boom in tourism sector, the group is all set to emerge as one of the leading
players in the hospitality segment.
Further pursuing its quest for diversification, DS Group has launched colossal
projects in the Packaging sector. DS Canpac Ltd., an ecofriendly revolutionary
packaging technology, was launched in India in association with Canpac – a
leading Switzerland based packaging major. A state-of-the-art plant at Noida

12
offers packaging solutions to the FMCG marketers as well as exporters of food
products. The group has also commissioned an ultra modern Flexible
Packaging Unit in Bonda.
A heat resistant latex Rubber thread plant has been set up at Agartala to
produce international quality rubber threads. Latex rubber threads are made
from natural rubber applying the most sophisticated European technology.
Following close behind is a first-of-its kind Steel sheets plant coming up soon
in the North East to produce cold rolled sheets, CRCA and galvanized steel
sheets.
In line with its vision of diversification, DS Group has entered the fast
growing Cement Industry. The Project is located at the Khliehriatsub division
of District Jaintia Hills in Meghalaya. The capacity of the upcoming plant will
be approximately 1 million tons Per Annum and will have a captive power
plant based on coal. This will be one of the largest investments on new
projects, by the Group.
As a significant step in Infrastructure Sector, DS Group has signed a MOA
with state Govt. of Meghalaya to set up a 240 MW Thermal Power Plant,
based on coal.
The group has manufacturing units in Noida, Delhi, Baroitwala in HP, Kullu,
Assam and Tripura. DS Group boasts of World Class Facilities spread across
the length and breadth of the country, to execute its manufacturing processes
with full adherence to international standards of quality. Every stage of
manufacturing is monitored with utmost care and attention.
The company also has a widespread distribution network supported by dealers
and retailers. The group constantly upgrades its strength through dealer
network expansion, up -gradation of production facilities and bringing greater
consumer orientation, while maintaining its commitments to high quality,
innovation and consumer value carried forward in all its diversification
endeavours.
DS Group constantly nurtures its responsibility as a committed corporate
citizen, by regarding Corporate Social Responsibility as an integral part of its
Business Objectives. The Company has been working in Assam and Tripura,
on a wide range of CSR programmes ranging from education to health and
making tribal and ethnic communities self reliant. Under the CSR initiatives
the group is renovating local schools, setting up a State level College
anddeveloping heritage properties and construction of an eco lodge to
beowned and run by the tribal community. While DS Group pursues
leadership in its business spheres; it simultaneously endeavors to promote
common welfare through multidimensional activities to work towards an all
round development of the society.

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International Alliances
DS Group collaborated with the Switzerland based packaging technology
major, CANPAC International AG, to bring a never-before packaging
revolution in Asia. CANPAC is a convenient, eco friendly, corrosion free
packaging for ready to serve packs.
DS Group joined hands with Wallner, Germany to introduce electronically
beaten silver foil in India. The collaboration brought in the process of
electronically beating silver between a special paper, in hygienically
controlled dust free atmosphere and thus making DS Group the only producer
of 100 % pure & vegetarian Silver foil in the country.
1.2 The Stirring Saga of an Enterprise
In the early 20th century, when trade and commerce had not witnessed the
advent of brands and marketing warfare in India, Shri Dharampalji – the
founder of DS Group, set up a small perfumery shopin Chandni Chowk, Delhi
in the year 1929. The urge to create abusiness around consumer tastes and
preferences led Dharampalji to innovate quality products. His sagacity
revolutionized the market ofchewing tobacco and the shop in Chandni Chowk
became renowned not only in Delhi but even amongst the connoisseurs of
tobacco inother parts of India and the world. Blending modernity, technology
and tradition, Dharampalji’s son Satyapalji brought the dawn of a new era an
era that saw a revolution. Satyapalji inherited qualities of high virtues,
innovation and aspiration for being the best in the business.
His in-depth knowledge of perfumes honoured him the title of “Sugandhi”
(perfumer). He is credited with blending tobacco with various exquisite
fragrances. He is also known for bringing the element of quality and research
hitherto unknown in this category. Under the able stewardship of Satyapalji,
the nation’s first ever-branded chewing tobacco BABA was launched in 1964
which became an instant success and widely popular in its category. And what
followed later was anarray of premium brands like Tulsi and a host of others
which have established their leadership in their own category and created
newmarkets in its wake. Continuing the fervour of innovation and quality, the
Group set new benchmarks in Foods & Beverages. Innovative tabletop
sprinklers changed the way Indian households had been enjoying salt and
spices. Be it Catch spices or Catch Beverages, today Catch stands for
international quality and convenience. Mouthfresheners like Rajnigandha and
Pass Pass created new offerings and established new categories. The Group
has also ventured into a rapidly growing hospitality sector with extensive five
star properties in thelarger cities and boutique & heritage properties at tourist
destinations.
The Group has also successfully ventured into Packaging, Rubber Thread,
Steel in the last few years. Since the launch of BABA, the Group has never
looked back, reaching for milestones year after year.
Thus, evolving from a single product to multiple brands, DS has successfully
woven over eight decades legend of innovation andenterprise. And the quest
for innovation continues

14
Establishing Benchmarks with Innovations First -
1. First to offer saffron flavoured chewing tobacco in the world.
2. First to launch branded chewing tobacco in India in metal
packaging
3. First and only chewing tobacco company in India to get ISO
9001:2000 certification
4. First to introduce various kinds of spices in one-time use
Packaging
5. First to launch free flowing salt in revolutionary table top rotary
Dispensers in India
6. First to introduce 100 per cent biodegradable, composite cans packs
which are pilfer proof, rust proof and leak proof using brine and
through vaccum evaporation process for food products
7. First to introduce electronically beaten finest malleable silver
Foils in India.
8. First in India to bottle natural spring water which has been
Awarded NSF certification from FDA, US: a hallmark of quality
And purity
9. First to introduce soda processed with natural spring water
10. First to introduce zero calorie tonic water
11. First to launch 100% herbal mouth freshener - Pass Pass
1.3 MISSION & VISION STATEMENTS
MISSION
To achieve excellence in all our endeavour’s to create sustainable value for our
stakeholders & the community at large.
VISION
To be a leading quality and innovation driven global conglomerate.
We all are leaders in our area of responsibility, with a deep commitment to
deliver results. We are determined to be the best at doing what matters most.

15
People are our most important asset. We add value through result driven
training, and we encourage & reward excellence. We have superior
understanding of consumer needs and develop products to fulfil them better.
We work together on the principle of mutual trust & transparency in a
boundary less organization. We are intellectually honest in advocating
proposals, includes recognizing risks.
Continuous innovations in products & processes are the basic of our success.
We are committed to the achievements of business success with integrity. We
are honest with consumers, with business partners and with each other.
1.4 ABOUT PLANT
This plant is situated in the beautiful valley of kullu manali,being surrounded
by a beautiful environment brings extra charm to the plant. The plant is
situated in Raison near the bank of river beas, it is 20 km from Kullu airport
and is 30 km from Manali. This plant has begun its working in 1999 since then
its providing significant role in the market share of the DS group.
This plant has two units which constitute around 100 sq m of area. Mr Salfraaz
Husaain is the unit head of this plant. Unit- 1 is related to the water segment
and Unit-2 is related to the beverage segment. Catch beverages and water
comes in 250ml, 500ml, 1000ml and in 1500ml packings.
The plant has been divided into two units
Unit -1 comprise of water segment whose main product is catch natural
mineral water and rohtang mineral water, catch is the main product of this
unit which is being sold in north india, as catch is being targeted for high class
hence Delhi NCR constitute its main market. Where as rohtang is being
restricted inside Himachal Pradesh.
Unit- 2 comprises of Catch Club soda (sparkling water and premium black
soda), catch cola, catch lemon, Catch orange, classic tonic water and
Ginger Ale. This unit also produces Catch Diet flavoured Water (lemon n
lime, Peach, Black Currant and Green Apple) this is a growing segment of
catch. This segment can be threat for the established ones in future due to its
taste and flavour and various health issue which this plant provides as the
management says.

16
1.5 The hierarchy of catchCompany is as follows.
This plant has around 250 employees. As being in the hilly area it is providing
employment to the people which is certainly helping them to improve their
living and providing them an alternate career option too
Unit head
Assistance
general manager
deputymanager
Executives
Supervisor
Workers

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2. INTRODUCTIONTO THE BOTTLED WATER INDUSTRY
OF INDIA
2.1 Bottled Water Industry in India
The Indian packaged water business is estimated at around Rs 2,500 crore with a
growth rate of close to 35 per cent. While India ranks in the top 10 largest
bottled water consumers in the world, its per capita per annum consumption of
bottled water is estimated to be five litres which is comparatively lower than the
global average of 24 litres. Today it is one of India's fastest growing industrial
sectors. Between 1999 and 2004, the Indian bottled water market grew at a
compound annual growth rate (CAGR) of 25 per cent - the highest in the world.
With over a thousand bottled water producers, the Indian bottled water industry
is big by even international standards. There are more than 200 brands, nearly 80
per cent of which are local. Most of the small-scale producers sell non-branded
products and serve small markets. In fact,
making bottled water is today a cottage industry in the country. Leave alone the
metros, where a bottled-water manufacturer can be found even in a one-room
shop, in every medium and small city and even some prosperous rural areas
there are bottled water manufacturers.
In Mumbai analysIS show that the consumer, product, channel trends, key
growth areas, target groups and the overall market influences of aqua vita (which
some social activists and even film-makers contend will trigger off the next war
between the haves and the have-nots).
Bottled water or the packaged water category, estimated to be over Rs 1,500
crore (not including the other smaller regional brands, which according to the
Bureau of Indian Standards are more than 1,800 in number), is "witnessing an
unprecedented amount of action."
In other words, domestic companies Parley, United Breweries, Tata’s, DS Foods
and multinationals PepsiCo and Coca-Cola, the world's largest aerated drinks
maker, are all "battling for leadership" in the rapidly growing packaged water
market in India. As things stand, food and beverages (not to speak of tobacco)
account for the largest consumption categories (40%) in India, which has
emerged as one of the fastest growing economies in the world with about 8%

18
annual GDP growth.
Bisleri (the current market leader) was the first-of-its-kind packaged water brand
in the country when it was launched in 1967. It has now made a foray into
packaged natural spring water, a category which has been witnessing
exponential growth, in double digit figures, over the past couple of years. It must
also be noted that India was the first market outside the US to have PepsiCo's
Aquafina launched in 1999 when the market was just beginning to grow.
Coca-Cola's $4.1 bn global acquisition of the US-based vitamin water brand
Glaceau (formally known as Energy Brands Inc) to expand its non-carbonated
beverage line made headlines, even as the Tata group which agreed to sell its
30% stake to Coke by the year end, had cash registers ringing with its
acquisition of mineral water brand, Himalayan. few years back, Tata Tea
acquired the Mount Everest Mineral Water Company that manufactures the
Himalayan brand of spring water ( a 44% stake for Rs 210 crore), making it the
largest acquisition of a packaged water firm in the domestic market.
In India, the per capita bottled water consumption is still quite low - less than
five litres a year as compared to the global average of 24 litres. However, the
total annual bottled water consumption has risen rapidly in recent times - tripling
between 1999 and 2004 - from about 1.5 billion litres to five billion litres.
It must also be noted that the rise of the Indian bottled water industry
commenced with the economic liberalisation process in 1991. “The market was
virtually stagnant until 1991, when the demand for bottled water was less than
two million cases a year. Since 1991-1992, it has not looked back, and the
demand in 2004-05 was a staggering 82 million cases."
Bottled water is sold in a variety of packages: pouches and glasses, 330 ml
bottles, 500 ml bottles, 1 & 5-litre bottles and even 20-50-litre bulk water packs.

19
The bottled water business is divided broadly into three segments in terms of
cost:
1.Premium natural mineral water,
2.Natural mineral water and
3.Packaged drinking water.
Premium natural mineral water includes such imported brands as Evian, San
Pellegrino and Perrier, which are priced between Rs 90 and Rs150 a litre.
Natural mineral water brands like Himalayan and the indigenous Catch brand
owned by DS Foods Ltd are priced around Rs 20 a litre.
Packaged drinking water is the biggest segment and includes brands such as
Parle Bisleri, Coca-Cola's Kinley and PepsiCo's Aquafina which are priced in
the range of Rs15-20 a litre.
Bottled water is sold in a variety of packages: pouches and glasses, 330 ml
bottles, 500 ml bottles, 1 & 5-litre bottles and even 20-50-litre bulk water
packs.
2.2 Government failure to address basic services
Millions of people, both in rural and urban India, suffer from inadequate or
no tap water supply. Even some parts of Mumbai, the country's financial
capital, get a mere two hours of daily water supply. The city's Virar suburb
gets 45 minutes. So bottled water is much in demand by residents - even
though the businesses profiting from the sales are thriving from access to
public water sources.
Bottled water fills a void created by government failure to address basic
services, Peter Gleick of the Pacific Institute writes in its World Water report.
"In many parts of the world, tap water is not available or safe to drink," writes
. "In these regions, the failure of governments to provide basic water services
has opened the door to private companies and vendors filling a critical need,
albeit at a very high cost to consumers." The institute reasons that
governments should tap into spending on commercial water by consumers

20
to secure funds to provide safe water at fraction of the cost.
Gigi Kellett, US national director of the Think Outside the Bottle campaign,
argues that demand for bottled water is due to industry creating "a market by
casting doubt on the quality of tap water, when in fact bottled water is subject
to far less scrutiny and often comes from the same source".
2.3 Water resources over-exploited
The majority of the bottling plants are dependent on groundwater. They create
huge water stress in the areas where they operate because groundwater is also
the main source - in most places the only source - of drinking water in
India.This has created huge conflict between the community and the bottling
plants.
Private companies in India can siphon out, exhaust and export groundwater
free because the groundwater law in the country is archaic and not in tune with
the realities of modern capitalist societies. The existing law says that "the
person who owns the land owns the groundwater beneath". This means that,
theoretically, a person can buy one square metre of land and take all the
groundwater of the surrounding areas and the law of land cannot object to it.
This law is the core of the conflict between the community and the companies
and the major reason for making the business of bottled water in the country
highly lucrative.
Take for instance the case of Coca-Cola's bottling plant in drought-prone
Kala Dera near Jaipur. Coca-Cola gets its water free except for a tiny cess (for
discharging the wastewater) it pays to the State Pollution Control Board - a
little over Rs.50,000 a year during 2010-12 and Rs.2,42,460 in 2013. It
extracts half a million litres of water every day - at a cost of 14 paise per 1,000
litres. So, a Rs.20 per litre Kinley water has a raw material cost of just 0.02-
0.03 paisa. (It takes about two to three litres of groundwater to make one litre
of bottled water.)
On April 7, more than 1,500 villagers defied a police cordon and marched to
Coca-Cola's bottling plant in Mehdiganj village, Varanasi, in Uttar Pradesh
state, demanding that the company immediately shut down its bottling plant.
In January, the New Delhi-based Energy and Resources Institute
(TERI) advised Coca-Cola to shut a bottling plant in the drought-stricken state
of Rajasthan. India's Ministry of Water Resources has ranked 80% of ground
water resources in Rajasthan as "over- exploited" and nearly 34% resources
as "dark/ critical", the gravest ranking across the country.

21
2.4 Bottled Water: How Safe?
The bottled water industry has spent billions over the past decade to sell you
on the idea that bottled water is better than tap water. Well the short answer is
they are both unhealthy. One of the most ironic parts of the bottled water
tragedy is that the water bottling industry gets the water free, filters it, bottles
it and sells it back to us at 1,900% profit. The ironic part is that tap water is
legislated to be 7.0 pH neutral. They first dump a TON of chlorine in the
water to kill off all the bad bacteria, this makes it highly acidic.
In India around 100 companies sell an estimated 424 million litres of bottled
water valued at around Rs 200 crore in the country annually . Most bottlers
claim that their water is 100 per cent bacteria-free and contains minerals
that make it tastier and healthier. But is the water in these bottles really safe to
drink? Do they conform to international or national standards?
To find out, the Ahmadabad-based Consumer Education and Research Society
(CERS), an independent non-profit institution with a sophisticated product-
testing laboratory, recently carried out a detailed study on 13 major brands of
bottled water available in the country. The national brands -- Bisleri (separate
samples were taken from their units in Bangalore, Ghaziabad, Calcutta and
Baroda) and Bailley (Mumbai and Surat) -- were selected on the basis of their
dominant position in the overall market. Bisil (Mehsana), Golden Eagle
(Chennai), Aquaspa (Mumbai),Saiganga (Ahmednagar), Nirantar (Thane),
Trupthi (Chennai) and Yes (Nadiad) were included because of their regional
popularity. To conform to international standards for such testing, 21 bottles
of each brand were tested in the CERS laboratory against "analytical" and
"sensory" parameters as well as for "microbiological" contamination. To
ensure fairness, the results were sent to the individual companies for their
comments.
So how safe is bottled water? Not that safe, says the CERS survey. As many
as 10 of the 13 brands had foreign floating objects in clear violation of norms.
None of the brands tested was free from bacteria although the consolation is
that they were not of the harmful kind. Two of the big brands contained toxic
heavy metals much higher than permitted levels. The term "mineral water" is
misleading because our laws do not stipulate the minimum mineral content
level required for water to be labelled as such. All this from a sector that is
flourishing because of the public fear that water supplied by civic bodies is
impure.

22
2.5 Growing Prospects for Packaged Drinking Water Industry
Water everywhere, not a CLEAN drop to drink! Who would have thought that
there will be a day when sanitation of available water would be more of a
concern than availability of water itself? Hygiene is of great concern to
everyone today, and this is evident with the surging rise in the consumption of
packaged/bottled water. India has 16 percent of the world's population, 2.5
percent of the land mass and 4 percent of the world's water resources. These
limited water resources are depleting rapidly while the demands on them are
increasing. Drinking water supplies in many parts of India are intermittent.
Transmission and distribution networks for water are generally old and badly
maintained, and as a result, are deteriorating. India is one of the biggest and
most attractive water markets in the world. The boom time for Indian bottled
water industry is to continue- more so because the economics are sound, the
bottom line is fat and the Indian government hardly cares for what happens to
the nation's water resources. Corporate control over water and water
distribution in India is growing rapidly: the packaged water business is worth
$250 million, and it's growing at a huge 40-50% annually. Around 1,200
bottling plants and 100 brands of packaged water across the country are
battling over the market, overdrawing groundwater, and robbing local
communities of their water resources and livelihoods. Most multi-national
(MNC) companies view India as the next big market with a lot of potential and
growth possibility. Several MNCs are waiting in the wings to expand a $ 287
billion global water market into India. There is a huge market being exploited
by the packaged water industry, and it's growing at 40% per annum. With over
a thousand bottled water producers, the Indian bottled water industry is big by
even international standards. There are more than 200 brands, nearly 80 per
cent of which are local. Most of the small-scale producers sell non-branded
products and serve small markets. In fact, making bottled water is today a
cottage industry in the country. There is investment worthy mid-cap
companies in this segment. From being confined to the uppermost echelons of
society, packaged water has now become a commonplace commodity and
almost a necessity in metros. After witnessing historic growth in recent years,
it has become a Rs 3,000-crore industry, one that is slated to only post healthy
growth rates to become a Rs 10,000-crore business in just three years, The
bulk water industry, or water in 12-, 20- and 25-litre packages, has also
witnessed a parallel growth of Rs 700-1,000 crore. Basically, the market can
be divided into two segments — the retail consumer market where the pack
sizes are 500 ml, one litre, 1.2/1.5/2-litre and five-litre, and the household and
institutional market, where the pack size is usually are 20- or 25-litre. The
Bureau of Indian Standards (BIS) is the governing authority on all quality and
production regulations related to natural mineral water as well as packaged
drinking water. The all-India market for packaged water is between $145
million (Rs. 8 billion) and $21 million (Rs. 10 billion) and is growing at the
rate of nearly 40 per cent per annum. Even though it accounts for only 5
percent of the total beverage market in India, branded bottled water is the
fastest growing industry in the beverage sector. While the single largest share
in the mineral water market might still belong to an Indian brand -- Parle's $52

23
million (Rs. 2.5 billion) Bisleri brand has a 40 percent share -- multi-national
corporations are not far behind. Nestle and Danone are vying to purchase
Bisleri, and Pepsi's Aquafina and Coke's Kinley brands have been extremely
successful in edging out many of the small and medium players to buy-outs
and exclusive licensing deals. In less than two years since its launch, Aquafina
has cornered 11 percent of the market and Kinley has almost a third of the
market. News reports indicate that other MNCs like Unilever are also eying
the market. DEMAND OF WATER WOULD NEVER GO DOWN… &
WATER WOULD NEVER BE OUT OF BUSINESS.

24
3. PROCESSING METHODS , MANUFACTURING
PROCESS AND PRODUCT PREPARATION
3.1 PROCESSING METHODS
Water Treatment Plant
Introduction:
The plant receives water from the catchment. It is a natural spring
source. The water is rich in natural mineral. So it is used without any chemical
treatment. This water is first treated and then used for beverage preparation.
Need to treat water:
Water is treated to remove-
 Colloidal and suspended particles
 Undesirable odour, taste and color
 Reduction in alkalinity to desired level
 Micro organisms
Common Impurities in Water:
 Suspended solids- Includes all matter suspended in water that is large
enough to be retained on a filter with a given porosity.
 Alkalinity- Indicates the quantifiable quantities of carbonates, bi
carbonates and hydroxides in water.
 Total hardness- Indicates the quantifiable quantities of calcium and
magnesium.
 Total dissolved solids- Indicates total content of dissolved solids in
water.
Effect of Contaminated Water on Product:
 Contaminants present a danger to taste, aroma and appearance of
beverage.
 Physical discrepancies in water as turbidity, colour, odour, taste can
have an almost immediate effect on beverage flavour or appearance.

25
Even when present in small amounts, there remains a danger to product
shelf life.
 Turbidity or small levels of colloidal matter can cause foaming
problem either at the filler or while the beverage is being filled or later
when the bottle can is opened by the consumer.
 Micro organisms like yeast affect taste & odour and can cause
sediment or floc to develop.
 Organic matter affects beverage sensory characters and shortens the
shelf life. Chemicals and minerals affect adversely the taste of
beverage. High alkalinity can quickly neutralize and delicate acidity of
the beverage.
Water Treatment Plant Testing
It includes various tests under physical and chemical parameters. These tests
are-
 Physical Parameters
 Odour
 Taste
 Turbidity
 Appearance
 Chemical Parameters
 Calcium hardness
 Sulphate
 Total Hardness
 Total and Partial Alkanity
 Chloride
Use of Product Water
 Syrup making
 Beverage preparation
 Filler for cleaning and flushing
 Water coolers
 Bottle washer

26
Fig. : Flowchart showing Process of Water Treatment
Sand Filter
Micron filter 1
(5 micron)
Micron filter 2
(3 micron)
(
Micron filter 3
(1micron)
Micron filter 4
(0.5micron)
Carbon filter
Micron filter 5
(0.2micron)
Used in production area
Receiving Raw Water

27
3.2 MANUFACTURING PROCESS
Most soft drinks are made at local bottling and canning companies.
Brand name franchise companies grant licenses to bottlers to mix the soft
drinks in strict accordance to their secret formulas and their required
manufacturing procedures.
 Clarifying the Water
The quality of water is crucial to the success of a soft drink. Impurities,
such as suspended particles, organic matter and bacteria, may degrade taste
and colours. They are generally removed through the traditional process of a
series of coagulation, filtration and chlorination. Coagulation involves mixing
a gelatinous precipitate, or floc (ferric sulphate or aluminium sulphate) into the
water. The floc absorbs suspended particles, making them larger and more
easily trapped by filters. During the clarification process, alkalinity must be
adjusted with an addition of lime to reach the desired pH level.
 Filtering
The clarified water is poured through a sand filter to remove fine particles of
floc. The water passes through a layer of sand and courser beds of gravel to
capture the particles.. Next, an activated carbon filter dechlorinates the water
and removes residual organic matter, much like the sand filter.
 Mixing the ingredients
The dissolved sugar and flavor concentrates are pumped into the
dosing station in a predetermined sequence according to their compatibility.
The ingredients are conveyed into batch tanks where they are carefully mixed,
too much agitation can cause unwanted aeration.
The water and syrup are carefully combined by sophisticated
machines, called proportioners, which regulate the flow rates and ratios of the
liquids. The vessels are pressurized with carbon dioxide to prevent aeration of
the mixture.
 Carbonation of beverage
Carbonation is generally added to the finished product, though it may
be mixed into the water at an earlier stage. The temperature of the liquid must
be carefully controlled since carbon dioxide solubility increases as the liquid

28
temperature decreases. Many carbonators are equipped with their own cooling
systems. The amount of carbon dioxide pressure used depends on the type of
soft drink. For instance, fruit drinks require far less carbonation than mixer
drinks, such as tonics, which are meant to be diluted with other liquids. The
beverage is slightly over-pressured with carbon dioxide to facilitate the
movement into storage tanks and ultimately to the filler machine
 Filling and Packaging
The finished product is transferred into PET bottles or cans at
extremely high flow rates. The containers are immediately sealed with
pressure-resistant closures, either tinplate or plastic closures with corrugated
edges, twist offs. Because soft drinks are generally cooled during the
manufacturing process, they must be brought to room temperature before
labeling to prevent condensation from ruining the labels. Labels are then
affixed to bottles to provide information about the brand, ingredients, shelf life
and safe use of the product. Most labels are made of a plastic film. Finally
bottles are packed into cases.
 Quality control
Soft drink manufacturers adhere to strict water quality standards for
allowable dissolved solids, alkalinity, chlorides, sulfates, iron and aluminum.
Microbiological and other testing occur regularly. The National Soft Drink
Association and other agencies set standards for regulating the quality of sugar
and other ingredients. If soft drinks are produced with low quality sugar,
particles in the beverage will spoil it, creating floc. To prevent such spoilage,
sugar must be carefully handled in dry, sanitized environments
It is crucial for soft drink manufacturers to inspect raw materials before they
are mixed with other ingredients because preservatives may not kill all
bacteria. All tanks, pumps and containers are thoroughly sterilized and
continuously monitored. Soft drink manufacturers also recommend specific
storage conditions to retailers to insure that the beverages do not spoil. The
shelf life of soft drinks is generally at least 6 months.

29
3.3 PRODUCT PREPARATION
It includes three types of product preparation-
 Sugar based product preparation process
 Diet product (sugar free) preparation process
 Soda making preparation process
Fig. : Flowchartshowing Sugar based Prepared Products
Recieving of raw
material
Storage in cold
room
Invert sugar
transfer into syrup
tank
Ingredients
weighing
according to
recipe
Mix the
ingredients in
seperate container
Filter & transfer
into syrup tank
Mixing
Desired volume
make up & final
mixing
Syrup ready
Beverage
Water
CO2
Syrup
R.O
SYSTEM

30
Fig. : Flowchart showing preparation of Sugar Free
Products
Recieving of raw
material
Storage in cold
room
Ingredients
weighing
according to
recipe
Mix the
ingredients in
seperate container
Filter & transfer
into syrup tank
Mixing
Desired volume
make up & final
mixing
Syrup ready
Sugar free
Beverage
Water
CO2
Syrup
R.O
SYSTEM

31
Fig. : Flowchart showing Soda Making Process
Soda
Water CO2
R.O
SYSTEM

32
4.1 RESEARCH METHODOLOGY
Primary research objective
To determine the factors influencing the consumer decision while buying
mineral water.
Secondary research objective
 To determine the product attributes influencing purchase decision of
mineral water brands.
 To determine the reasons for consuming various mineral water brands.
 To determine the most preferred SKU (quantity) in mineral water
category.
 To determine the most preferred channel in the mineral water category.
Data which research plans to generate
 Factors influencing the choice of mineral water over other beverages.
 Factors influencing choice of a particular mineral water brand.
Value of Information to Management
This report aims to generate information on various factors influencing
consumer decision while purchasing a mineral water. Companies can utilise
this information for identifying the awareness levels of their respective brands
in the mineral water category. Also companies can evaluate their positioning
and promotion strategies based on the factors influencing the choice of a
particular mineral water brand. Companies can also utilise the factors
influencing the choice of SKU for managing their portfolio of different SKUs
in the mineral water category. The information on factors influencing the
choice of a channel can be used to focus on the growing channels and also in
managing existing channels. This report also contains broad based trends on
consumer profile, awareness levels, usage patterns and mineral water category
as a whole which can be utilised to make inferences about the future.

33
Research Methodology Used
Information sources
Information has been sourced from namely newspapers, trade journals,
industry portals and through access to many databases on net.
Sampling:
It denotes the number of elements to be included in the study. The sample size
chosen is 82. The Questionnaire has been personally filled by the customers in
hand to get feedback on the criticalities.
MMeeaassuurreemmeenntt aanndd SSccaalliinngg PPrroocceedduurreess
We have used Itemized rating scales like Likert scale in order to rate the choices
for purchase considerations. Also, we have used rank order method wherein,
consumer is asked to rank the products.
Data Collection
The data used in the research is of two types Primary Data and Secondary Data
mentioned as follows:
a. Primary Data:
Primary data has been collected through interviews and survey method. The
data is collected from the customer point of view, and has been checked for
the privacy of the respondents or confidentiality has been maintained
wherever required.
b. Secondary data:
Secondary data will be collected from documentary and multiple sources such as:
 Internet articles and web references
 Internal data of the company
 Various trade journals

34
4.2 ResearchProcess :
Data Analysis Procedure
The analysis methods include the following:
Historical Trend Analysis, Judgmental Forecasting and Cause and Effect Analysis.
Usage of SPSS software has been made for the purpose of drawing tables, analyze the
data, graphs etc to depict the picture of the study under consideration.
4.3 Need and importance of the study
Catch is a very well known brand and has a reputation for its quality products. Yet,
the catch beverages are not able to generate the revenue as they should. This may be
due to reasons such as less promotion, high cost, hard competition, or any other
Identifying the Problem
Devloping Approach
Research Design
Data
Collection
Data
Analaysis
Report

35
factor. The investment on promotional schemes has been increasing tremendously
because it has become the most important factor in driving up the sales volume and
trial of new products. These huge investments in trade promotions need to be
effective. Relatively small improvements in promotion effectiveness can significantly
impact performance, and by truly understanding the drivers and market impact of
promotions, consumer products manufacturers can achieve major competitive
advantages.

36
4.4 DATA PRESENTATION, ANALYSIS AND
INTERPRETATION
Q 1) Are you aware of any of these following Mineral water Brands?
A) Bisleri B) Kinley C) Catch D) Aquafina E) All
Response ofthe respondents:
Interpretation:
The graphical representation shows that out of 82 respondents
 76% were aware of all the brands
 9% were aware of bisleri
 5% aware of only kinley
 7% aware of only Catch
 4% aware of Aquafina
A B C D E
7 4 6 3 62
8.64%
4.94%
7.41%
3.70%
75.31%
Popularity of Brand
Bislery
Kinley
Catch
Aquafina
All brands

37
Q 2) Are you a consumer ofa Mineral water? A) Yes B) No
Response :
Graphical Representation:
Interpretation:
The graphical representation of the table shows that out of 82 respondents
 96% were consumer of mineral water
 4% were not consumer of mineral water
Q 3) From where did you come to knowabout these mineral water brands?
A) TV ads B) Print media C) Shop keeper
Response of the respondents
Consumers of
mineral water
96%
non-
consumers
4%
consumers& non cosumers
A B
79 3
A B C
67 7 8

38
Interpretation:
The graphical representation of the table shows that out of 82 respondents
 82% come to know about these brands through TV ads
 8.5% through Print Media
 9.5% through Shopkeeper
Q 4) Have you seen the TVadvertisement of mineral water?
A) Yes B) No
Response :
81.71%
8.53% 9.76%
Informationmedium
TV 81.71%
Print Media 8.53%
Shopkeeper 9.76%
94%
6%
TV ad
Yes 94%
No 6%
A B
77 5

39
Interpretation:
 94% seen the TV ad of mineral water
 6% haven’t seen the ad.
Q 5) What do you see in the ad which influence you to buy the product?
A) Price B) Quantity C) Quality D) Brand E) Other factor
Response:
Interpretation
 36.58% were influenced to buy the product on the Price factor
 4.87% were on Quantity factor
 20.73% were on Quality
 19.53% were on brand
 18.29% on other factors.
36.58%
4.87%
20.73%
19.51% 18.29%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
Price Quqantity Quality Brand other factors
A B C D E
30 4 17 16 15

40
20.73%
25.60%
17.01% 18.29% 18.29%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
Brand price Quality Packaging Quantity
Percentage response
Q 6) Rank the following according to the importance you give to them while
purchasing Mineral water.
Brand Price
Quality Packaging
Quantity
Response as ranked first:
Interpretation: The graphical representation shows that out of 82 respondents
 21% give importance to the brand of Mineral water while purchaising.
 26% for price & 17% go for quality
 18% each go for packaging & quantity
Q 7) when do you consume the Mineral water?
A) When you are out of station B) During the journey
C) Rarely D) Daily E) Never
Brand Price Quality Packaging Quantity
17 21 14 15 15

41
Response:
Interpretations: The graphical representation shows that out of 82 respondents
 43% use when they are out of station
 26% on journey
 18% rarely consume
 10% consume daily
 Rest never consumed
Q 8) Do you knowthe difference between mineral water and packaged drinking
water?
Yes No
When out
of station
During
journey
Rarely Daily Never
35 21 15 8 3
42.68%
25.60%
18.29%
9.76%
3.66%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
out of station Journey rarely daily never
Responce

42
Response:
Interpretation
More than 60% of people do not know the difference between packaged &mineral
water.
Q 9) Does price ofa particular Mineral water brand makes you to shift to
others?
Yes No can’t say
Response:
64.63%
35.37%
No 64.63%
Yes 35.37%
Yes No
29 53
Yes No Can’t say
39 31 12

43
Interpretation
 47% change their demand for a brand if they find price to be more than what
they want to pay
 38% do not find price as a factor to change to other brand
 15% can’t say.
Q 10) You prefer only one brand Y/N
Brand keeps on changing If change, why?
A) Price constraints B) Brand doesn’t matter
C) Non availability of a particular brand
D) New product launched/experiment E) Others
Response :
47.56%
37.80%
14.63%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
Yes No Can't say
A B C D E
21 12 19 5 8

44
Interpretation
 21% are loyal towards their brand
 Rest all change their brands from time to time. Out of which 26% change due
to price and 23% due to non-availability of the brand which they want.
0
0.5
1
Brand loyal
Brand shifts
AxisTitle
Brand loyal Brand shifts
Price 25.60%
Brand 14.63%
non availability 23.17%
Experiment 14.63%
Others 20.73% 9.75%
Series 1
Chart TitlePercentageresponce

45
RESPONSE FOR SOFT DRINKS QUESTIONAIRE
Q1) Do you drink soft drinks? Y/N
Response:
Interpretation: As per the response obtained by conducting the questionnaire
survey 95.12% of respondents consume soft drinks
Q2) If YES, Which soft drink ?
A) Carbonated B) Fruit C) Flavoured Water D) Energy Drink
Response:
YES
NO
YES NO
78 4
A B C D
45 22 11 4

46
Interpretation The graphical representation shows that out of 82 respondents
 54.87% of the total respondents prefer drinking carbonated drinks
 26.82% of the total respondents prefer drinking Fruit Drink
 13.41% of the respondents drink Flavoured Water
 14.63% of the respondents drink Energy Drinks
Q3) Which soft drink do you like the most?
A) Coca cola B) Pepsi C) Catch D) Blue
Response:
54.87%
26.82%
13.41%
14.63%
soft drinks
Carbonated
Fruit
Flavoured Water
Energy drink
A B C D
37 28 13 4

47
Interpretation: Out of 82 respondents
 45% prefer drinking Coca cola
 34% prefer drinking Pepsi
 16% prefer drinking Catch beverages
 And only 5% prefer drinking Blue
Q4) Do you know Catch is available in many Flavours? Y/N
If Yes What are they ?
Response:
Graphical
Representation:
45%
34%
16%
5%
Soft drinks
Coca cola Pepsi Catch Blue
70%
30%
YES NO
8%
27%
65%
names of products
All
Some
None
YES NO
57 25

48
Interpretation: Out of 82 respondents
 70% were aware that catch is available in many flavours while
 30% were not
 Whereas only 8% of the respondents were able to name them clearly
and 65% of them didn’t even knew names of Catch beverages
Q6) Is CATCH a healthy drink? Y/N
Response:
Interpretation: according to the survey 76% of the respondents assume
catch as a healthy product whereas 24% of them do not.
Q7) Is catch readily available in market? Y/N
Response:
76%
24%
Is catch a healthy drink ?
YES
NO
YES NO
62 20
YES NO
78 4

49
Interpretation :
 95% of the respondents said that Catch was available readily in market
Q8) Do you think advertising influence you to drink catch drinks? Y/N
Response:
Q9) Would you visit another store if you do not find CATCH Drinks at
your store? Y/N
Response:
95%
5%
YES
NO
yes
Yes No
82 0
Yes No
27 55

50
Interpretation:
 Only 33% of the respondents would like to visit another store if they
did not find Catch products whereas 67% of them would not.
Q10) What is your opinion of the brand?
A) Excellent B) Good C) Fair D) Poor
Response:
Graphical representation:
33%
67%
yes
no
22%
51%
24%
3%
Excellent
Good
Fair
Poor
Excellent Good Fair Poor
18 42 20 2

51
Interpretation: The graphical representation shows that out of 82
respondents
 22% of the respondents consider catch beverages to be Excellent
 51% of the respondents consider Catch beverages to be Good
 24% of the respondents consider Catch beverages to be Fair
 And only 3% of the respondents consider Catch beverages to be Poor
Other Evaluations: Total respondents =82
Response
Very
important
Important Least
important
Not
important at
all
Value for
money
63 16 3
Creative
Advertisement
60 21
Healthiness 77 5
Good Quality 74 8
Packaging 70 10 2
Taste 69 13
Refreshing
Attribute
67 11 4
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
not important at all
Least inportant
Important
Very important

52
QUESTIONAIRE
This questionnaire is a part of market survey, the aim of the
study is to analyse the strategies adoptedby DS Drinks Pvt.
Ltd. Any information provided would be used only for
academic purpose and kept confidential.
Name :- Occupation :-
Age :- Place :-
Tick mark the appropriate option for the questions given
below:-
Q 1) Are you aware of any of these following Mineral water Brands?
A) Bisleri B) Kinley C) Catch D) Aquafina
E) All
Q 2) Are you a consumer of a Mineral water?
A) Yes B) No
Q 3) From where did you come to know about these mineral water
brands?
A) TV ads B) Print media C) Internet
D) Others
Q 4) Have you seenthe TV advertisement of Mineral water?
A) Yes B) No
Q 5) What do you see in the ad which influence you to buy the product?
A) Price B) Quantity C) Quality
D) Brand E) Other factor
Q 6) Rank the following (1 to 5) according to the importance you give to
them while purchasing Mineral water.
A) Brand B) Price C) Quality D) Packaging
E) Quantity
Q 7) When do you consume Mineral water?

53
A) When you are out of station B) During the journey
C) Rarely D) Daily E) Never
Q 8) Do you know the difference between mineral water and packaged
drinking water?
Yes No
Q 9) Does price of a particular Mineral water brand makes you to shift to
others?
Yes No can’t say
Q 10) Do you prefer only one brand? Y/N If NO, why?
A) Price constraints B) Brand doesn’t matter
C) Non availability of a particular brand
D) New product launched/experiment E) Others
QUESTIONAIRE FOR SOFT DRINKS:
1) Do you drink soft Drinks - Y/N
2) If YES, which soft drink?
A) Carbonated B) Fruit C) Flavoured water
D) Energy Drink
3) Which Soft Drink do you like the most?
A) Coca cola B) Pepsi C) Catch
D)Blue
4) Do you know Catch is available in many flavours? Y/N
5) If yes what are they:-
6) Is Catch a healthy Drink? Y/N
7) Is Catch readily available in market? Y/N
8) Do you think advertising influence you to drink Catch drinks? Y/N

54
9) Would you visit another store if you do not find Catch drinks at your
store? Y/N
10) What is your opinion of the Brand?
A) Excellent B) Good C) Fair
D) Poor
Tick mark and evaluate the following
Very
important Important
Least
Important
Not
Important at
all
Value for money
Creative
Advertising
Healthiness
Good Quality
Packaging
Taste
Refreshing
Attribute

55
5. Major Competitors
The categories of bottled water in India are Packaged Natural Mineral Water
and Packaged Drinking Water .Bottled water industry, colloquially called, the
mineral water industry, is a symbol of new life style emerging in India. The
packaged drinking water in India, which is estimated at Rs.850 crores with
over 200 brands floating in the market, most of which have restricted
territorial distribution. This is a growing market in India as quality
consciousness among the consumers is on the rise. The bottled water market is
growing at a rapid rate of around 20%.At this growth rate, the Rs 7000million
per year market is estimated to overtake the soft drinks market soon.
Multinationals, Coca-Cola, Pepsi, Nestle and others are trying to grab a
significant share of the market. There are more than 180 brands in the
unorganized sector. The small players account for nearly 19% of the total
market. The per capita consumption of bottled water in India is less than half a
litre per year, compared to 111 litres in France and 45 litres in the US.
Major Players with their brands include Parle Export which introduced Bisleri
in India 25 years ago, Parle Agro with Bailley, Godrej Foods with its Golden
Valley, Coca-Cola with Kinley, PepsiCo with Aquafina, Nestle India with
Perrier, Mohan Meakins and SKN Breweries entered the market with Golden
Eagle and Penguin mineral water, respectively. Nonetheless, Bisleri and
Bailley, both of Parle Origin, enjoy about 50% market share and has become
almost generic with the product. The premium bottled water market in India
has brands like Evian, San Pelligrino, Perrier.
Bisleri, which pioneered the packaged drinking water business in India,
catering to consumers need to have hygienic drinking water while on the move
or even at home, is literally changing its colours and going for a makeover.
The brand that was till now marketed as packaged drinking water will now be
available in a natural avatar. The natural water segment, which accounts for
about 5% of the total bottled water segment, is expected to grow by leaps and
founds as health awareness and disposable incomes rise. The bottled water
industry is worth Rs. 1,000 crore in India and is growing at 40% per annum. It
is projected to reach Rs. 5,000 crore by 2010. Thus any entrepreneur may go
into this field, will be successful which is attracting various people into this
industry thus adding to the competition.

56
Market share-
Bisleri Of Parley Leads the Market with 40% of the Market shares Bisleri’s
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. Presently the
Company Has 8 plants & 11 franchisees all over India. Overwhelming
popularity of 'Bisleri' & the fact that they pioneered bottled water in India, has
made them synonymous to Mineral water & a household name.
Kinley Of Coca Cola International Acquires 20-25% of Market Share
Followed by Aquafina of Pepsico Ltd. All the other Brands enjoy 20-25% of
Market Share In which catch’s Market Share Are estimated to be about 7%
only.
Bisleri (40%)
Kinley (20-
25%)
Aquafina
(10%)
others (20-
25%)
CATCH(7%)

57
Target market and major Segments
TARGET MARKET
When the marketing strategy is developed, one has to determine with which
customer group this would be most effective. For example, a "better value for
the money" may be more appealing to the "family" consumer group while a
"wider distribution" would be more attractive to consumers who travel.
Remember that different market strategies may appeal to different target
markets. Therefore, the collected data ahs to be applied to choose the
combinations that will work best.
The market is defined by different segments. Some examples are:
 Geographic: Specialize products to customers who live in certain
neighbour hoods or regions, or under particular climates.
 Demographic: Direct advertising to families, retired people, or to the
occupation of consumers.
 Psychographic: Target promotion to the opinions or attitudes of the
customers (political or religious, for example).
 Product benefits: marketing should be aimed to emphasize the
benefits of the product or service that would appeal to consumers who
buy for this reason in particular (low cost or easy access).
 Previous customers: those groups of people should be identified and
promoted who have purchased the product before.
The company has very different brand messages for each of their brands. This
helps the customers in clearly identifying each brand from the other. When
company talk of Catch, it’s clearly indicating food and beverages, and not
about tobacco or paan masala or for that matter paan masala containing
tobacco. When it comes to Pass Pass, one’s dealing with an Indian natural
herbal mouth freshener that has no supari, it’s a grandmother’s recipe. A
mouth freshener is completely different from a Rajnigandha. It cannot be the
same. Rajnigandha has supari while Pass Pass has no supari. So consumers
should know exactly what they are consuming. It is a very clear distinction on
the basis of content of the product, price points and value that one can derive.
This is what we mean by brand building—holistic communication. Still one
may say that water is available everywhere in India. Why should anybody buy
water then? Because in India, we all are becoming health conscious and when
you are bothered about your well-being, you should not look at Rs 12, you
should look at Rs 25. So it is up to you whether you want to invest for that
good health. Moreover, company is targeting a different audience altogether
with Catch water. The company is targeting embassies; five-star hotels, resorts
and clubs where it matters to be health conscious and people are ready to pay
the price to be healthy. So it is a niche that the company is looking at. Catch
Clear is in great demand and so is Club Soda. These brands are doing well in
the niche segment we had targeted. So target market for these brands is the
young and health-conscious people who are moving up with a global
perspective.

58
Catch’s target market has basically been the upper segment. Basically the
“high class society“ the elite group of people. It has created its own segment
of consumers which are concerned with quality of the product rather than its
price unlike the buying behavior of the Indian consumers. The company has
never compromised with quality of its products and plans to provide the best
quality. Catch brand has always been known for its quality products and BAIS
has also approved it making “Catch” as the only mineral water industry to be
able to match the American standards of quality whereas many major players
like Major Players like Parle Agro with Bailley, Godrej Foods with its Golden
Valley, Nestle India with Perrier, Mohan Meakins and SKN with Golden
Eagle and Penguin mineral water, respectively etc have not been able to do so.
During my work at the Mineral water unit of this Company I was surprised by
the efforts that the company put into maintenance of its quality standards.
Each bottled passed through various quality checks to be precise with the
quality of their products. Thus when one is buying a product of catch he can
be rest assured that he is buying Quality product as the company never
compromises with the Quality.
Major segments are basically those people those who consume the products
offered by the company regularly and those areas where demand is higher than
the other area .Use of mineral water gradually increase in India due so
shortage of pure hygienic water and also increase the knowledge of water
because pathogenic micro organisms, which are main reason of stomach
problem. On this reason a part of the society stored so use safe drinking water
i.e. mineral water. There is increase full life, major of the working group has
to take travel from one place to another place, by this time they are now
habituate to use mineral water. Major of the tourists are only habituated to take
safe drinking waters. Packed bottled mineral water is the only main resources
in our country to safe drinking water. On that base, it can be concluded that
scope of mineral water will be much more increased in the future. As
suggested by our market research also 42.68 %of people that consume mineral
water are people living out of station thus being the major segment of
consumers followed by people who travel regularly.

59
7. Marketing Strategy AND Market positioning
7.1 Product range
Total range of products offered by the company includes-
 Catch Natural mineral water and Rohtang mineral water
 Catch soda (Sparkling Water and Premium black soda)
 Catch diet flavoured water in lemon n lime, peach , black current
and green apple flavor
 Catch spring soft drink in Cola, orange, lemon flavour, Classic tonic
water and Ginger Ale
And company offers their products in different bottle sizes which include:
 100ml (72 packed plastic glass per pack)
 200 ml (24 bottles per pack)
 25 Litre Jar
7.2 Pricing Strategy
In any food business, in order to be competitive, one have to be reasonably
priced. No consumer will pay you for the extra fillers. All the world-class
packaging and quality that the company is providing is value addition to the
money the consumer pays. But the consumer will not compensate for these
extra efforts that you take. When company sells water, they are just not
selling bottles for storing in the fridge. The company is starting a new concept
in India to crush and throw used bottles and cans.
Low cost product
Catch has introduced a new mineral water product in the market named
“Rohtang”. This product has been placed at low price (15 Rs) to compete with
other players like Bisleri, Kinley and Aquafina etc in this segment the price of
catch mineral water has also been brought down to Rs20 to be able to increase
the sale of the product. As discussed earlier also is this report that catch brand
is focused on providing quality product and has main focus on the elite group
of the society hence it never competes on price.

60
7.3 Promotion strategies
The company isn’t spending a lot on promotion of the mineral water industry.
Company is not that much interested to sell catch mineral water as compared
to the Tobacco products which has been promoted heavily, the company has
been mostly promoting “pass pass” whose commercials was seen all through
the ongoing Asia cup and also during the half time breaks and pre & post
match shows during the soccer world cup whereas TV commercials of catch
mineral waters are rarely on air and one may say are seen once in a blue moon.
Trade promotion-
Catch gives incentives to retailers by offering them free samples and good
margin by this way retailers push their products in the market and for this
reason its seen most often in the market and this aids to the good sale in
market because as the experts say “Jo dikhta hai who bikta hai” means
product which is seen more in the market is sold more.
Other than TV commercials and trade promotion various promotion strategies
of the company includes –
 Sponsorships with different colleges and school cafes and sponsors
their sports events and other extra curriculum activities to increase the
brand awareness.
 Free samples are being given in various trade fairs in Himachal, Delhi
and NCR region and banners etc are put up during various festivals
etc.
 Free gifts are also being given under various schemes of this group
which are very popular among household women and children’s.
 Buy two get one free offers
 Coupons
 Special sale prices
 Rebates
 Give-aways

61
7.4 Distribution Channel
Catch company makes two type of selling-
Direct selling- In direct selling the company transports their products directly
to the shopkeepers by means of their own transport company owns 18 trucks
for this purpose. In this type of selling the profit margins are more as no
margin is to be given to the distributors.
The company mainly uses direct selling to sell its product to various hotel
chains, restaurants and embassies.
Indirect selling-They have their whole sellers and agencies to cover all areas,
the profit margins lessen due to this but practically it is very difficult for the
company to cover the entire region on their own so the company through its
whole sellers and distributors ensures that their product is widely available to
the customers.
Facilitating the product by infrastructure-
For providing their product in good manner the company has provided
infrastructure these includes-
 Vizi coolers
 Freezers
 Display racks
Advertisement-
 Print media
 Pos material
 TV commercials
 Billboards and holdings
The company has not been so much involved in selling it through TV
commercials as the company is not that much interested in selling its product
yet hence mostly advertising it via. Putting up big Billboards and holdings
mostly during fairs and festivals.
Pos material means point of sales material this includes posters and stickers
display in stores and different areas.

62
8. Reasons for lack of interest in mineral water industry-
The packaged drinking water industry is growing and there are huge
investment opportunities in this segment. But still company is not investing
that heavily in this segment and one realises somewhat layback nature of the
company in this segment. The reasons behind these are companies policies and
ability to foresee the future it’s sort of scenario planning. Unlike any other
company the DS group has never issued IPO’s hence no external funds are
available to the company one may understand the reasons for this attitude by
applying the basic management concepts of product life cycle and BCG matrix
SATURATION
MATURITY
DECLINE
GROWTH
INITIAL PHASE

63
Product life cycle-
The reason why the company is yet not that much interested in investing in its
mineral water industry quite yet can be explained by the product life cycle
concept. The company is flourishing and doing well in its tobacco industry
and also in its rubber industry. Both the companies are in their maturity phase
and would soon reach its saturation stage where companies profits would
become stable here the companies market shares might remain stable but there
would be no growth stage which would lead to reduction in profits and the
company will reach its decline stage. Like death is inevitable for every living
being likewise Product life cycle is also a inevitable part of every companies
life. Hence as we have seen earlier in the BCG matrix the company may then
sell off its tobacco or rubber business and invest in the other sectors like
mineral water industry. This is all a part of companies policy and planning for
the future if the company was to run for a long period.
It allows company to focus and invest properly in one sector as it’s really
difficult and risky also for a company to invest heavily into all of its business.
The market for mineral water industry is also developing in India as Indian
consumers are becoming more rational in their approach towards are product
and is also becoming more smart and educated. People are now becoming
more conscious about their health hence the market for catch mineral water
will only grow in the future.
8.1 Swot Analysis of the company-
Strengths-
 Brand famous for its Quality products.
 Recognised by American First in India to bottle natural spring water
which has been awarded NSF certification from FDA, US : a hallmark
of quality and purity.
 First to introduce soda processed with natural spring water
 Company provides zero calorie tonic water
 The only company to sell flavoured mineral water
 Mineral water has a natural sweetener and has zero calories

64
Weakness-
 Losses due to transport expenses.
 Less market for mineral water industry at the operating area i.e.
Himachal Pradesh
 Company not that much interested in selling the product yet.
 Un-experienced management and unskilled labour
 Unavailability of other raw materials other than “water”
 Company brand not known to people yet in mineral water industry
(unlike catch masala and Pass- pass)
 Not much efforts put into advertisement
 There is no classification called natural spring water; so, everybody
calls it mineral water.
Opportunities-
 Huge opportunities in Mineral water industry.
 Lesser competition or say lesser or nil Cut throat competition
 Company is still new therefore huge growth opportunities
 Very less company sell mineral water hence huge growth opportunities
for company in this segment.
 Railway, as according to a estimate railways ordered 15,000 cases (of
12 bottles each) a day in 2012
Threats-
 Tata is an emerging threat in packaged mineral water industry with its
purchase of “Himalaya” mineral water plant.
 Bisleri enjoys the highest market share and is planning to increase it by
introducing flavoured mineral water.
 Aggressive selling by Coke and Pepsi
 Many companies have realised the market potential and are entering
into this business
 Local companies are posing a huge threat as they are selling their
product at prices lesser than the market price
 Govt policies and change in taxation and other policies

65
8.2 BCG Matrix for the company
Stars
 Rajnigandha
 Tulsi
 Pass pass
 Catch soda
Question marks
 Catch mineral water
 Catch cola
 Catch orange
 Catch lemon
Cash Cows
 Catch masala
 Classic tonic water
 Catch diet flavoured water
(lemon n lime, Peach, Black
Currant, Green Apple)
Dogs
 Catch spring ginger Ale

66
8. PEST ANALYSIS OF CATCH BEVERAGES
There are four variables, which we will discuss in our report, they are:
POLITICAL VARIABLES
Political variables Strongly
Effected ()
Some what
Effected ()
No
Effect
( )
Some what
Uneffected
()
Strongly
Unaffected
( )
Effects of
government
regulations &
deregulations
Yes
Effect of
environmental
protection laws if
any
Yes
Import and export
regulations
NE
Effect of changing
political conditions
NE
Conclusion Of Political Analysis:
As far as the above table is concerned it could be seen that there are very little
chances of “political variables” to effect the catch’s production and selling
behavior.
In “political variables” most of the things are related to Governmental
activities. So, they don’t leave any good or bad impact in the Industry of catch.
And there are some exceptional things like: “environmental protection laws”
they some what effect the industry of Catch. From last four-five years
Government has become conscious about the environment. But after making
the adjustments in plants and applying the proper waste management system
the chances of being affected by the “protection laws” are going to be
diminished.
So “political conditions” over all leave neutral effects on catch’s industry.

67
ECONOMICAL VARIABLES
Economical Variables Strongly
Effected

Some what
Effected

No Effect
 
Some what
Effected

Strongly
Effected
 
Do soaring interest rates
make business task any
harder
YES
Any effect due to
inflation
NE
Conclusion of Economical Analysis :
As observed “economical variables” highly affects the Catch’s resolution.
Economic factors are those factors which effect the production of any
industry. Inflation rate is also not a strong variable for affecting any country’s
production point of view. Inflation may increase cost of production but in case
of FMCG products it does not effect that much as it’s a essential product if
one is thirsty he has to consume water and has no alternate choice.
SOCIAL VARIABLES
Social variables Strongly
Effected

Some what
Effected

No
Effect
 
Some what
Effected

Strongly
Effected
 
Effects of advertisement
of Catch on Public
popularity
YES
Does Catch’s contribution
affect charity
organizations
YES
Has rising consciousness
of natural resources in
people effected your
“save environment
activities.
YES

68
CONCLUSION OF SOCIAL ANALYSIS
DS Group constantly nurtures its responsibility as a committed corporate
citizen, by regarding Corporate Social Responsibility as an integral part of
its Business Objectives.
The Company has been working in Assam and Tripura, on a wide range of
CSR programmers ranging from education to health and making tribal and
ethnic communities self reliant. Under the CSR initiatives the group is
renovating local schools, setting up a State level College and developing
heritage properties and construction of an eco lodge to be owned and run by
the tribal community.
While DS Group pursues leadership in its business spheres; it simultaneously
endeavors to promote common welfare through multidimensional activities to
work towards an all round development of the society
In its constant effort towards building trust among its audience, the Group
works strongly on the principles of integrity, dedication, resourcefulness and
commitment. A wide array of skills and substantial depth of experience has
not only led the Group to maintain its leadership in its traditional businesses
but has also resulted in gradually gaining market in its relatively nascent
forays.
TECHNOLOGICAL VARIABLES
Technological
variables
Strongly
Effected

Some what
Effected

No
Effect
 
Some what
Effected

Strongly
Effected
 
Have business
innovations effectively
promoted your
business
YES
Has the government’s
regulations ever
hindered in importing
technical equipment
YES
Does catch help in
promoting paperless
environment
YES

69
Conclusion Of Technological Analysis
Of course business innovation leaves highly good impacts in the business of
Catch. As catch use more advance technology in its production process. It will
resulted in increment of their production through out the country.
As far as the “governmental hindrances” are concerned the impacts highly
bad on catch’s production. Ever year when budget in announced government
taxes rates always shoot up. This approach of government decreases the profit
margin of Catch.
As the catch helping in promoting “paperless environment” .it impacts good,
because computers are the basic need of any person now a days. And though
it’s a big industry so it is promoting the trend of paperless environment. And it
is giving way to other industries to come to new technologies and into a new
world of business. Through computers catch can increase the efficiency of its
business and can have up –to-date data about their productions.

70
9. Conclusion
Catch company has never wanted to target masses. Catch spring water is the
only natural spring water available in the market (other than himalya) and .
The production takes place in Manali, which raises the logistics cost. We are
looking for more resources. Catch is not bothered about the market share as
Catch doesn’t perceive other mineral water players in the market as its
competitors. Most people do not understand the difference between spring
water and mineral water. The issue Catch is facing in the segment is that even
the government does not acknowledge spring water as a separate category.
This is why Catch is not permitted to write the words ‘spring water’ on the
bottles. But Company is happy with the response it has got so far. The demand
for Catch spring water comes from people who value the product and these
constitute mainly institutional sales from hotels and high commissions.
The company has world-class packaging units and has adopted world class
technology from Canpac International AG, Switzerland, this increases the
shelf life. Thus world-class technology is the key to enter the food and
beverages. In coming years the demand of packaged drinking water will be
increased very rapidly, so there is a huge scope for company to prosper in
coming years.

71
10. Appendices
Economics and the law
The majority of the bottling plants - whether they produce bottled water or soft
drinks - are dependent on groundwater. They create huge water stress in the
areas where they operate because groundwater is also the main source - in
most places the only source - of drinking water in India. This has created huge
conflict between the community and the bottling plants.
Private companies in India can siphon out, exhaust and export groundwater
free because the groundwater law in the country is archaic and not in tune with
the realities of modern capitalist societies.
The existing law says that "the person who owns the land owns the
groundwater beneath". This means that, theoretically, a person can buy one
square metre of land and take all the groundwater of the surrounding areas and
the law of land cannot object to it. This law is the core of the conflict between
the community and the companies and the major reason for making the
business of bottled water in the country highly lucrative.
Take for instance the case of Coca-Cola's bottling plant in drought-prone Kala
Dera near Jaipur. Coca-Cola gets its water free except for a tiny cess (for
discharging the wastewater) it pays to the State Pollution Control Board - a
little over Rs.5,000 a year during 2000-02 and Rs.24,246 in 2003. It extracts
half a million litres of water every day - at a cost of 14 paise per 1,000 litres.
So, a Rs.10 per litre Kinley water has a raw material cost of just 0.02-0.03
paise. (It takes about two to three litres of groundwater to make one litre of
bottled water.)
However, water is not that cheap in the United States, home to Coca-Cola and
PepsiCo. The average cost of industrial water in the U.S. was Rs.21 per 1,000
litres in the late 1990s. It was Rs.90/1,000 litres in the United Kingdom and
Rs.76/1,000 litres in Canada.
Treatment and purification accounts for the next major cost. Even with the
state-of-the-art treatment system with reverse osmosis and membranes, the
cost of treatment is a maximum of 25 paise a litre (Rs.0.25/litre). Therefore,
the cost of producing 1 litre of packaged drinking water in India, without
including the labour cost, is just Rs.0.25. In a nutshell, in manufacturing
bottled water, the major costs are not in the production of treated and purified
water but in the packaging and marketing of it.
The cost of a bottle, along with the cap and the carton, is the single biggest
cost - between Rs.2.50 and Rs.3.75 for a one-litre bottle. For water sold in big
plastic jars (20-50 litres), which are also reused, or in pouches, this cost is
much lower. It is precisely owing to this that companies sell water at even

72
Re.1 a litre in a 20-50 litre jar and still make profits. Labour and establishment
and marketing costs are highly variable and depend on the location and size of
companies. Informal discussions with industry members reveal that the gross
profit of this industry can be as much as between 25 and 50 per cent.
Huge real costs
The reason that companies do not have to bear the cost of the main raw
material - water - has made this industry highly profitable. But the real cost of
the industry is huge.
The cost of fast-depleting groundwater is incalculable and so is the cost of
disposal of plastic bottles and pouches. These are hidden costs that society and
the environment pay and will pay in the future. The sale of bottled water is
therefore not environmentally sound by any stretch of the imagination.
There are much cleaner ways to access clean and healthy water and for this we
will have to rethink our water paradigm.
Groundwater is the cleanest and cheapest source for all, but we have over-
extracted and polluted it with natural contaminants, agro-chemicals and
industrial waste. We will have to recharge and revive our groundwater bodies
and for this the existing archaic law must change.
Our surface water bodies are in a deplorable condition. We dump our sewage
and industrial waste in rivers and ponds, try to clean them in massive
centralised treatment plants and then supply the water to urban households - to
be discharged again as wastewater into the same water body. This vicious
cycle must be cut and stopped. The cost of dirty water is just too great for
society to bear. Bottled water and domestic treatment systems are a cheap as
well as fill-and-forget solution for 30 per cent of the population, but in doing
so we have not left any solution for the 70 per cent of the poor and the
marginalised.
Kala Dera Aater Contoversy
Kala Dera, in Rajasthan, was declared a drought area by the Indian
Government in September, following this year’s failed monsoons. But the
situation has been worsened by Coca-Cola’s operations in the region. Their
controversial bottling plant draws on the same groundwater sources as those
used by the local community and farmers, with recent data revealing that
groundwater levels plummeted by 5.83 meters in just one year between May
2007 and May 2008 – a huge drop never before witnessed in Kala Dera. Coca-
Cola’s use of the groundwater reaches its peak in the summer months, exactly
when water shortages in the community are at their worst.

73
‘The Coca-Cola Company is denying our fundamental human right to water
by continuing to extract groundwater from a rapidly falling aquifer. Every
drop of water that Coca-Cola extracts is water taken away from the children,
women and men who are unable to meet their basic water needs, leave alone
the farmers who are seeing their crops fail,’ explains Mahesh Yogi of the Kala
Dera Sangharsh Samiti, a local community group that has been opposing the
plant since 2002. ‘Coca-Cola has contributed significantly to the falling water
tables and they must shut down and leave Kala Dera.’
Last year a Coca-Cola-funded study confirmed the concerns being raised by
the community, showing that the company was a significant contributor to the
water crisis. But Coke has refused to follow the study’s recommendations: to
relocate the plant or bring in water from outside the area to meet its needs.
Cost Of Producing One Bottle Of Mineral water

74
11. BIBLIOGRAPHY
 www.DSgroup.com
 www.ask.com
 www.google.com
 The Financial Express
 www.YahooFinance.com
Companies Old records And Files

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