Group No -:52

110451 - Md.Zohair Zobairi

110571 – Ashok Pandey

Class :-PGCBM 21

Subject – Product and Brand Management

Name of the Faculty – Prof. Sanjay Patro

Name of the Study Center-PATNA

INTRODUCTION

Globally more than one billion people lack access to safe drinking water nearly all of them in

the developing countries, including India. Nearly a third of the world’s population worldwide live in water-stressed areas. This figure is expected to rise to two-third of the population by

2025. According to a 2007 United Nations report, half of the world's hospital beds are occupied

by patients suffering from water-borne diseases. Almost 80 per cent of diseases in developing

countries are associated with water, causing some 3 million early deaths, according to a 2009

UNESCO report. In India alone, 380,000 children die each year from diarrhea, according to

UNICEF. In India, such diseases cause more than 1.5 times the deaths caused by Aids and

double the deaths caused by road accidents. It is reported that groundwater in one-third of

India’s 600 districts is not fit for drinking as the concentration of fluoride, iron, salinity and arsenic exceeds the tolerance levels. With increasing number of people becoming conscious of

the risks of drinking contaminated water, the demand for water purifiers is rising rapidly. In the

past few years, Indian water purifier industry has witnessed an exponential growth of more

than 22% CAGR. The market for water purifiers is estimated to be around Rs. 3,000 crore by

2012 and 6000 crore by 2015. It is a high-growth market attracting a lot of new players. There

are close to 50 organized companies and 500 unorganized firms making purifiers. Indian water

purifier market is set for tough competition with leading consumer durable firms, including

Godrej, Panasonic and LG gearing up to take on incumbents such as Hindustan Unilever (HUL),

Kent RO, Tata Chemicals and Eureka Forbes.

INDUSTRY PROFILE

In the last decade and more, the country has undergone many changes and one of the

important ones is that people have become health conscious. Water purifier are one of the

most used kitchen utilities .Available in India . Water purification methods include the

mechanized version as well as the age old and time-tested water purification tablets. the Water

purification process includes removing contaminants from the raw water source. Some of the

home remedies for water purification are boiling or the use of the household charcoal filter. But

these do not ensure the required standard of water purification thus a proper treatment is

mandatory. That’s where the water purifiers for home step in treatment of water by ozone also provide certain levels of purity.

India Water Purifier Market has tremendous growth potential

With increasing number of people becoming conscious of the risks of drinking contaminated

water, the demand for water purifiers is rising rapidly. In the past few years, Indian water

purifier industry has witnessed an exponential growth of 22% CAGR. The total water purification

market, including industrial, municipal and households, is pegged at around Rs 10,000 crore.

However, the share of household water purifiers in this is minimal.According to TechSci Research,

the water purifier industry sales grew dramatically during FY’10 as compared to previous fiscals due to improving demand and expanding production capacity. In 2011, the organised water

purifier market stood at INR1,600 Crore. Given the increasing awareness, and largely untapped

market potential, the sector is expected to grow at a CAGR of more than 20 percent till 2016.

RO water purifier is the largest segment accounting for 42 percent of the market in 2011, while

offline water purifiers contributed for about 20 percent of the market. However, by 2016,

offline water purifier segment is expected to grow at a very rapid pace and increase its share to

about 38 percent of the total market and is a key focus area for water purifier manufacturers,

due to the large target customer base it offers, is expected to continue its rapid growth.

The Indian market has very high growth potential which is more evident from the fact that

global majors such as Philips and Hindustan Lever, LG have stepped in and are looking to

increase their share of the market.

Company Profile

The TATA Group

The Tata group comprises over 100 operating companies in seven business sectors:

communications and information technology, engineering, materials, services, energy,

consumer products and chemicals. The group has operations in more than 80 countries across

six continents, and its companies export products and services to 85 countries.

The total revenue of Tata companies, taken together, was $83.3 billion (around Rs3,796.75

billion) in 2010-11, with 58 per cent of this coming from business outside India. Tata companies

employ over 425,000 people worldwide. The Tata name has been respected in India for more

than 140 years for its adherence to strong values and business ethics.

Every Tata company or enterprise operates independently. Each of these companies has its

own board of directors and shareholders, to whom it is answerable. There are 31 publicly listed

Tata enterprises and they have a combined market capitalisation of about $80.61 billion (as on

July 12, 2012), and a shareholder base of 3.6 million. The major Tata companies are Tata Steel,

Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Global

Beverages, Tata Teleservices, Titan, Tata Communications and Indian Hotels.

Tata Steel is among the top ten steelmakers, and Tata Motors is among the top five commercial

vehicle manufacturers, in the world. TCS is a leading global software company, with delivery

centres in the US, UK, Hungary, Brazil, Uruguay and China, besides India. Tata Global Beverages

is the second-largest player in tea in the world. Tata Chemicals is the world’s second-largest

manufacturer of soda ash and Tata Communications is one of the world’s largest wholesale

voice carriers.

In tandem with the increasing international footprint of Tata companies, the Tata brand is also

gaining international recognition. Brand Finance, a UK-based consultancy firm, valued the Tata

brand at $15.75 billion in 2011 and ranked it 41st among the world's 100 most valuable

brands. BusinessWeekmagazine ranked Tata 17th among the '50 Most Innovative Companies'

list and the Reputation Institute, USA, in 2009 rated it 11th on its list of the world's most

reputable companies.

Founded by Jamsetji Tata in 1868, Tata’s early years were inspired by the spirit of nationalism. It pioneered several industries of national importance in India: steel, power, hospitality and

airlines. In more recent times, its pioneering spirit has been showcased by companies such as

TCS, India’s first software company, and Tata Motors, which made India’s first indigenously developed car, the Indica, in 1998 and recently unveiled the world’s lowest-cost car, the Tata

Nano.

Tata companies have always believed in returning wealth to the society they serve. Two-thirds

of the equity of Tata Sons, the Tata promoter holding company, is held by philanthropic trusts

that have created national institutions for science and technology, medical research, social

studies and the performing arts. The trusts also provide aid and assistance to non-government

organisations working in the areas of education, healthcare and livelihoods. Tata companies

also extend social welfare activities to communities around their industrial units. The combined

development-related expenditure of the trusts and the companies amounts to around 3 per

cent of the group's net profits in 2011.

Going forward, Tata is focusing on new technologies and innovation to drive its business in

India and internationally. The Nano car is one example, as is the Eka supercomputer (developed

by another Tata company), which in 2008 was ranked the world’s fourth fastest. Anchored in India and wedded to traditional values and strong ethics, Tata companies are building

multinational businesses that will achieve growth through excellence and innovation, while

balancing the interests of shareholders, employees and civil society.

Tata Chemicals

Tata Chemicals (TCL) is the second largest producer of soda ash in the world. It is India's market

leader in the branded and iodised salt segment as well as in urea and phosphatic fertilisers.

Established in 1939 at Mithapur in the Indian state of Gujarat, TCL has, over the last few years,

invested in increasing its stake in the global soda ash business. It has acquired UK-based Brunner

Mond group and American company General Chemical Industrial Products Inc, making the

conglomerate the second largest soda ash producer in the world.

The company also makes food additives and fertilisers and has a varied user industry base

comprising glass, paper, textiles, food additives, petroleum, refining, chemicals, dyes, pesticides,

direct farm application, etc. It exports to markets in Europe, Africa, South East Asia and the Middle

East.

Areas of business Chemicals: The range of chemicals produced at the company‟s integrated complex at

Mithapur includes soda ash, caustic soda, salt, cement, sodium bicarbonate, bromine and

bromine based compounds and gypsum.

Fertilisers: The company manufactures nitrogenous fertilisers at the Babrala plant. The

company‟s plant at Haldia produces phosphatic fertilisers like di-ammonium phosphate, NPK

complexes and single super phosphate.

Food additives: TCL‟s food additives business has two premium products: branded salt and sodium bicarbonate. TCL manufactures four varieties of salt, iodised salt, crystalline salt,

vacuum salt and pure salt, and has over 40 per cent market share in the branded salt segment

in India.

Agri-services: The company has set up a network of Tata Kisan Sansars (or Tata farmer

centres) in the northern Indian states of Uttar Pradesh, Punjab, Haryana and Uttaranchal. The

centres are one-stop resource centres for farmers

Joint ventures, subsidiaries, associates

Tata Chemicals Europe (the former Brunner Mond group, acquired in 2006): The UK-

based company is Europe's second largest soda ash business.

Tata Chemicals North America (the former General Chemical Industrial Products Inc

acquired in 2008): US-based soda ash manufacturer.

Khet Se Agriproduce India: A 50:50 joint venture set up in 2007 with Total Produce,

Ireland, the third largest fruits and vegetable distribution company in the world, to start a

fruits and vegetables distribution business in India.

Indo Maroc Phosphore SA: An equal partnership with Chambal Fertilisers and global

phosphate major, OCP of Morocco; set up in 2005.

Vaada Swach Paani Ka, Vishwas TATA Ka

BackGround of Product Development :

The Tata Swach is an innovative product from the house of Tatas which uses eco friendly raw

material and technology to provide portable water at a very economic price which in itself is a

service to society.

TATA Swach has been an instance of collaboration between various Tata Group

companies. It was an idea that originated with TCS and was subsequently picked up by Tata

Chemicals and a joint team of both the companies improved & perfected the technology and

made the product meet USEPA standards.

When the product was ready, the team realized that no off-the-shelf production

machine or process was available to mass manufacture such a product. The team discovered

that another Tata Group company, Titan Industries (makers of watches & other precision

instruments) had expertise in supplying automation solutions by using its precision engineering

capability arising out of watch manufacturing. Titan developed the special assembly presses to

undertake mass production.

Thereafter, as TATA Swach readied launch, help was sought from Tata Business

Support Solutions and Tata Teleservices Ltd to provide call center and toll-free number

facilities, as part of after-sales-service backbone for the product.

About Product:-

Swach (which means 'clean' in Hindi) has been developed jointly by the Tata Group's companies

.The Swach water purifier is based on a concept developed by the TCS Innovation Labs – the

Tata Research Development and Design Centre (TRDDC). Amongst several benefits of Tata

Swach,.the fact that it needs no electricity, no boiling and no running water are of huge

advantage as India has approximately 400 million people who are not having a supply of

electricity and running water. The Tata Swach meets U.S. Environmental Protection Agency

standards It's cheaper than boiling water, cheaper than bottled water, and 2.5 times less

expensive than Hindustan Unilever's low-cost Pureit filter, according to data provided by the

companies. Considering the low price of Swach, many are already calling it the Tata Nano of

water purifiers. With the introduction of this economic water purifier the company hopes to

save the lives of millions of people who die because of water borne diseases.

Tata Swach is an offline household water purification system which uses natural materials and

cutting edge nanotechnology to deliver safe and affordable drinking water. Few Feature and

Benefits of Tata Swach

Unique and innovative -:

Does not require electricity or running water, thus making it feasible for use in both

urban and rural areas.

Contains no harmful chemicals such as chlorine, iodine or bromine.

Contains the innovative Tata Swach bulb that uses adnaced TSRF technology to destroy

harmful bacteria and viruses in water and makes it safe to drink.

Includes a unique Fuse system that prompts the user well in advance that it is time to

replace the bulb. The bulb shuts down automatically once its purification power is

exhausted.

Each bulb purifies 3,000 litres of safe drinking water.

Health concerns

The Tata Swach purifier has been designed to tackle one of India's biggest social and

technological challenges – the need for safe drinking water. In India, water-borne diseases

cause more than 1.5 times the deaths caused by Aids and double the deaths caused by road

accidents. With much of India's population lacking access to safe drinking water or the

resources to source it, the delivery of safe, convenient and affordable water has been a critical

challenge that Tata Swach aims to fill.

Affordable and safe

The vision for Tata Swach is to reduce the incidence of water-borne diseases by making safe

drinking water affordable to millions. The key component of the TATA Swach® water purifier is

its cartridge.Built around a bulb-like water purifier made of natural rice husk ash and nano-

silver particles, Tata Swach is designed for convenience and affordability. the TATA Swach®

Bulb™. This bulb runs on its unique advanced TSRF technology, around which 14 patents have been filed so far. The Tata Swach ® Bulb purifies upto 3000 liters of water and like an electric

bulb, it fuses after its power expires and prevents water from passing once its purifying capacity

is exhausted. TATA Swach® is the world’s lowest cost purifier, providing safe drinking water at

12 paise per liter. It is not only effective against water borne bacteria and virus, but also meets

the USEPA performance norms for bacteria.

A unique feature in the TATA Swach bulb is the TATA Swach Fuse- The TATA Swach bulb is

packed with a purification medium which has the capability to kill bacteria & disease causing

organisms. In the process of killing, the purification power of the admixture gets consumed and

after around 3000 liters, this gets completely exhausted, rendering the bulb ineffective.

However, impure (bacteria laden) water & pure water may both appear “clear” & almost similar to the naked eye. It was thus important that the user is made aware when the purification

capacity of the admixture gets exhausted so as to ensure that the user replaces the Tata Swach

bulb in time and thereby protects herself from drinking impure water. To achieve this, a unique

fuse is incorporated which functions as auto-shut-off technique which actually stops the water

flow when the purifying capacity gets exhausted. The fuse also has the ability to indicate

remaining life and consumed life of the cartridge, thereby giving the user enough warning &

lead-time for procurement.

Clearly, with the launch of Tata Swach, a new category has been created in the water

purification market in India. Also, since its launch Tata Swach has been applauded for the

innovation in product at various platforms, both globally and in India. Gold Medal Award at

the ‘Asian Innovation Awards’ presented by Wall Street Journal and the ‘Sniff Award for New

product innovation’ are few such awards.

Competitive analysis of “Tata Swach

What is Competitive Analysis?

Competitive Analysis is a process of gathering and analyzing information about competitors, their

practices, products, strengths and weaknesses and business trends in order to assess our position in the

market and improve company‟s products and marketing strategies.

Water Purifier companies in India

Hindustan Unilever, India’s largest FMCG company was the first to enter the low-cost,

economical solution for water purification with it’s Pureit at Rs.1,200/-. The filter with a

breakthrough 'Germkill™ technology' has been running a campaign called ‘One Crore Safety Challenge’ for the last two 2 years and is claimed to be unbeaten. There are four different variants under the Pureit brand priced between Rs.6,900/- and Rs.1,000/-.

Eureka Forbes part of the Shapoorji Pallonji Group, a Rs. 3 billion ($260 Million) Corporation

was the first to introduce domestic water purifiers in India in 1982. The name Aquaguard that

has become synonymous with water purifiers. The company has over 25 offerings using

different technologies – UF, RO, UV. In 2008, it entered the off-line, storage purifier segment

with AquaSure Amrit priced at Rs. 1,990/- (now Rs.2,250). Price segments range from

Aquaguard Total Sensa at Rs.17,990/- at the top of the line to Aquasure Xtra at Rs.1,490/-.

Usha Shriram Brita is a 50:50 joint venture between Usha Shriram Enterprises Pvt Ltd. and

BRITA GmbH of Germany, a world leader in household table-top water filter systems. BRITA, a

40 year old company in the business has a formidable 85% market share worldwide in table-top

water filtration systems. Usha Brita was the first company in India to launch in 1997 - a table

top storage water purifier using ion exchange technology which does not require either

electricity or running water and gives absolutely safe potable water. Today it boasts of the

country’s largest water purifier product range - Storage, RO, UV, Jug filter and Water

dispensers. Usha Brita has 13 different product variants ranging from Rs.15,999/- at the top of

the line. The lowest in the range is Waterguard Spring SF introduced in 2009 at Rs. 1,499/-.

Ion Exchange (India) Limited, Asia's largest water management company is perhaps the oldest

player, having been in the water purifier sector for over four decades. It has at least 10 different

offerings for the health concerns of the discerning Indian. Technology includes solar, RO,

magnetized water, resin and Heptapure technology, a unique 6-stage purification process. It

has a strong presence in industrial water treatment category. For the low-income households

the company has Suraksha Zero-B, an on-tap purifier that has been in the market for close to

two decades and is widely used. In 2008, it entered the low-cost storage purifier space with

Zero B Suraksha Plus that uses a four stage purification process and a unique magnetized water

technology. It was introduced at a price of Rs.1,890/- per unit, now at Rs.2,090/-.

Kent Healthcare Products started operations in Noida in 1999. It pioneered the Reverse

Osmosis technology in India. Products include Air purifiers, Water purifiers Vegetable and Fruit

purifier, water softener and automatic water pressure boosting system. Kent range of water

purifiers come at price points starting from Rs.50,000 (Kent Elite) at the top and Rs.1,250 at the

bottom end of the line. In 2010 it came up with Kent Gold Optima with Hollow Fiber Ultra

Filtration Membrane (UF Membrane) promising a 10 ltr storage and 4000 ltr life of purification,

priced at Rs.1,250/-.

Addition to these there are other consumer durable firms, including Godrej, Panasonic, LG,

Philips Whirlpool, Hi-tech, Jaipan, Kenstar, Maharaja Whiteline, Orpat and several other

firms who recently entered into the Indian market.

Feature Comparison

Tata Swach is the best option, in terms of safety, convenience and affordability.

Key features Tata Swach Others

Price Start @499 to 999 Min price Start@1200 and above

Cost per Litter 12p 35p

Capacity 3000 liters purified water 1500 liters purified water

Removes harmful Viruses yes yes

Removes harmful Bacteria yes yes

Removes harmful Parasites(causes

amoebiasis, diarrhoea, etc)

Yes Yes

End-of-life indicator Yes Yes

Advanced Auto Switch-off Yes Yes

Great taste Yes Yes

Improves clarity Yes Yes

Removes odour Yes Yes

Doesn't need electricity Yes Yes

Doesn't need continuous tap water Yes Yes

Doesn‟t need plumbing Yes Yes

Doesn't need an expensive Yes Yes