sip project chandan

8/3/2019 SIP Project Chandan

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Summer Internship Project Report

On

Market Potential of Water

Treatment Products in Schools &Institutes

Undertaken at

Submitted in partial fulfillment of the requirements of

Post Graduate Program by:

Chandan Kumar

PGDM- 12 Sec A

Roll no:


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IILM Graduate School of Management

Greater Noida


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ACKNOWLEDGEMENT

As a part of curriculum at IILM GSM,Greater Noida, the Summer Internship Program

aims at overall development of the students by providing them an opportunity to gain

corporate exposure and space to apply their theoretical knowledge in practice in a mutually

beneficial manner. No summer internship can be successful without the support of the people

who keep themselves closely involved with the student undergoing the program. The wealth

of knowledge and guidance shared and provided to us by these professionals is invaluable.

First of all, I would like to thank my project company guide at Earth Water Group, Delhi,

Mr.________, and Senior SEO for his selfless support and encouragement during my entire

training program.

My sincere regards to Ms. Shivani Kapur, Director Octan Media, Gurgaon, for allowing

me to do this project for this company. I Express my gratitude to my project faculty guide

Prof. Soumitro Chakraborty, IILM CMS, Greater Noida for his able guidance and

unflinching support throughout my project.

I would also like to extend my gratefulness to all the present employees of Earth Water

Group, Delhi, for their patience and co-operation and have made my research a rewarding

and meaningful experience.

This project would not have been possible without the untiring support provided by my family

and friends. I would like to extend my gratitude to these people.

Chandan Kumar


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EXECUTIVE SUMMARY

Someone once said- A goal is a dream with a deadline

When one has a dream to grow big; one needs a partner who not only shares this dream; but

also has the passion to put thought into action to help one to achieve his dream. The world has

become a global village. The market is growing at an electrifying pace and the competition is

also growing in perfect correlation with it. Welcome to the modern business environment.Dynamic, deep-seated forces are shifting outlooks, shaping expectations and driving

opportunities across the consumer landscape, in every corner of the globe. It has now become

more important to not just manage an organization but to achieve corporate excellence

simultaneously as the future belongs to learning and performing organizations. As every

business concern irrespective of its size, nature, and age needs an adequate level of marketing

to carry out business operations and survive. As the Industry is growing, absorbing new

technology, the new concepts are emerging which is trying to establish its foothold in India.

The project report titled Market potential of water treatment Products in School and

Institutes deals with the Consumer Research Survey in the Schools & Institutes and

basically emphasizes on developing a market entry strategy for ergo products in this segment

through generating a consumer Interest. This project gives you a deep knowledge about the

market trends, growth rate, opportunities & threats and the knowledge about the major players

in the water treatment industry.

Talking about the size & growth of this market then, the water treatment market is vast,

varied, and growing worldwide because the earth is obviously not becoming less polluted, not

to mention the reality that crowded and unsanitary living conditions can be found


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everywhere," says Bernie Galing, SBI Energy analyst and author of the industry study. "The

market for water treatment products is also not saturated. Comparatively few people own a

water treatment product so the potential market remains large. Being able to develop

appropriate marketing messages and product offers could help penetrate this market further,

particularly as the economy strengthens.

In a country like India, where water scarcity is growing by the day, there are too many issues

relating to water. This has meant that there are dime a dozen firms that are trying to make the

best of the situation. With a membership of about 31 firms, the industry is estimated to be

worth Rs 1,300 crore to Rs 1,400 crore for the domestic sector and Rs 8,000-10,000 crore in

the industrial sector. The industry is trying to build a consensus on the standards for water

treatment products under an umbrella body WQA India.

Keeping this background in view, an attempt is made to examine:

The performance of water treatment Products.

To understand the market entry strategy for the same in Schools & Institutes.

To study the growth rates in this segment & identifying the opportunities, risks &

threats associated in this segment, and,

Competitor Mapping, Customer Mapping & SWOT analysis.


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INTRODUCTION

Earth Water Group has been formed to address key issues facing the world today -Infrastructure Development, Quality of Water, Water Conservation and Environmental

Protection. With decreasing water quality & rising cost of fresh water, the Group strives to

provide technological and business innovation in the area of water management to bridge the

gap between supply and demand of water. Armed with a rich technical capability and a proven

track record, the Group is a market leader and innovator in most of its activities.

To integrate it all, we are into the business of Water and Waste water management, water

components, engineering consultancy knowledge and marketing solution provider. We know

our business well and so we are one of the most respected groups in the domain. We are a

vibrant group thriving towards excellence in all the fields we indulge and meet the expectation

of our shareholders as well as stakeholders.

Our Vision

To be a leader in its chosen field.

To become a respected & an admired group.

To ensure profitable growth.

To meet and exceed customer expectation.

To provide an environment conducive to employee development.

To be socially responsible.

It consists of four companies, which has been established to help for achieving the aim ofthe group.

Group Companies

EA Water Pvt. Ltd.


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Everything About Water is India's only knowledge solutions provider in Water,

Environment and Building sector. In most of its activities, it has been a market leader &

innovator with many of the products never ever been attempted earlier anywhere in the

world with the start of fresh trends and newer markets. EA Water is the only ISO 9001:

2000 certified company in the publication and events sector in India, reflecting its

commitment to quality and customer service.

Aventura Components Pvt. Ltd.

A leader in the Indian water industry, Aventura provides highly efficient range of water

treatment components- FRP vessels, RO housing, dosing pumps, electro chlorination

system, multiport valves, distribution systems, high pressure pumps, hydro pneumatic tanks

and accessories, hpn tank ultrasonic level sensors, RO membranes, filter cartridges, filter

media, RO anti-scalant, cation exchange resin, RO controller and instruments.

Fontus Water Ltd.

Established in the year 2000, Fontus Water Ltd offers complete water & wastewater

treatment solutions to the buildings and industrial sector. As a part of the Earth Water

Group, Fontus Water is Indias only integrated water solutions company in water and

wastewater and is one of the few ISO 9001: 2000 certified companies in this segment in the

country.

In the Water & Wastewater market, Earth Water services & solutions cover:

Project Products Services

Deolalikar Consultants Pvt. Ltd.

Deolalikar Consultants Pvt Ltd (DCPL) is Indias leading MEP consultancy firm servingthe construction sector for over 4 decades. Under the able leadership of Mr. S.G. Deolalikar,

the founder, DCPL young & vibrant team of engineers have created lasting impressions

with latest and unique features in major projects across the country. Be it Residential


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Apartments, Group Housing, Office Complexes, Institutions, Hotels, Hospitals, SEZs,

Metro Rail, Mega Shopping Malls or Multiplexes, DCPL has been instrumental in carrying

out path breaking engineering excellence.

Earth Water Group was started firstly for providing information regarding water related

problems. Everything about water was the first venture of the group and it provided

information to the people by starting their own magazines. By looking at the customers need

and the market demand they started a new company AVENTURA, which manufactures the

different components. Then after sometime they started FONTUS, which manufactures

different plants for water treatment and looking at the need of the services of the segment theystarted a DCPL, Which is in plumbing related services

Fontus water ltd

Established in the year 2000, Fontus Water Ltd offers complete water & wastewater treatment

solutions to the buildings and industrial sector. As a part of the Earth Water Group, Fontus

Water is Indias only integrated water solutions company in water and wastewater and is one

of the few ISO 9001: 2000 certified companies in this segment in the country.

Even though its recommendations are taken for granted by its customers, it follows high levelsof ethics and delivers as per promises. Fontus always strives to provide optimal workable and

cost effective solutions for varied customer needs with the ultimate aim of providing effective

operations of their water systems.


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Even though its recommendations are taken for granted by its customers, it follows high levels

of ethics and delivers as per promises. Fontus always strives to provide optimal workable and

cost effective solutions for varied customer needs with the ultimate aim of providing effective

operations of their water systems.

Function of fontus

Fontus Water provides total management of water and wastewater services for Industrial,

Buildings and Government/ Municipal clients. It also designs the technological solutions and

builds what is required for these services. Thus, Fontus Water conserves water resources.

Treating Water to make the most of it

Safe Water:Protecting People, Property & Processes

Water is the core to keeping the business functioning. With many years of

experience in Water and Wastewater treatment, fontus help people to make

Water use safer and pure in order to protect their people, Property and

processes.

Reliable Water:


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Uninterrupted, Constant Pressure Water at all times

Efficient & Productive Water:

Saving Fresh Water through Recycling

Water Treatment Cooling Water Treatment Reverse Osmosis Filtration Softening

Ultraviolet Demineralization Other Disinfection Systems

Waste Water Treatment Extended Aeration Submerged Aerobic Fixed Film

Reactor (SAFF) Moving Bed Bio-Reactor (MBBR) Sequential Batch Reactor (SBR)

Membrane Bio-Reactor (MBR) Sewage Treatment Plant with

Ultra Filtration Base Other Biological Treatment System

Consumables & SparesChemicals for:

Boiler Water Treatment Cooling Water Treatment Potable & Raw Water Treatment RO Additives Effluent Treatment

Consumables: Resins Media Spares

Services

Operation & Maintenance Annual Maintenance Service On-call Diagnostic & Troubleshooting

Process Optimization Retrofit & Services Quick Service & Customer Support Water Audits for water saving and


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Training Personnel optimization

ERGO RO

Industry Study

The economic outlook for India is positive. A growth rate of above 6.9% was achieved by the

Indian economy during the year 2004-05 and it reached 8.4% in 2005-06 (ending March

2006). Growth in the Indian economy has steadily increased since 1979. In fact, the Indian

economy has posted an excellent average GDP growth of 8.5% since 2003. Many factors arebehind this robust performance of the Indian economy. High growth rates in industry &

service sector and a benign world economic environment provided a backdrop conducive to

growth of the Indian economy.


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The Indian water sector consists of both a drinking water/bottled water segment and a

wastewater treatment equipment segment. Both are growing at a relatively high pace due to

increasing health concerns and a scarcity of clean water.

The Water Sector

Market size indicators

The overall water market is growing at 15-20 percent annually, with the industrial and

drinking water segments demonstrating even higher growth rates. According to a recent

government assessment, the water requirement for industrial use will increase from the current

30 billion cubic meters to 120 b. cu. m by 2025. The bottled water market is growing at 55

percent annually.

Overview of the sector

In the absence of reliable data, industry sources estimate that the total Indian water market is

worth more than $1 billion consisting of approximately one-third for water provisioning,

one-third for municipal water treatment and one-third for industrial water treatment. The

bottled water market is expected to reach more than $200 million in 2005.

Several factors have contributed to the growth in the water sector. These factors have created

potentially large future requirements for drinking water and water purification. A growing

population has increased the demand for drinking water and rapid urbanization has required

increasing sewage treatment. Many industries have adopted water-recycling systems due toscarcity of water. Growing public concern, media pressure and renewed legislation have made

industries install water treatment equipment. The Indian economy has witnessed some of the


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highest growth rates in the world. This growth has led to increased water usage, especially in

the food, textile, pharmaceutical, chemical and power industries.

Wastewater

India has a big lack of sewage and wastewater management plants. In the cities there is

produced ca. 29.000 mil. Litres of wastewater, but there is only management capacity for ca.

6000 mil. Litres. More than 300 cities with 100.000 and above citizens are without sewers

completely, and the same goes for 467 cities with populations between 50.000 and 100.000

citizens.

In general the existing installations are in a bad shape and are used wrongly and are inefficient

due to poor and lacking maintenance.

India has 231 wastewater plants for municipal use and another 38 are being built. In the

industrial sector there exists 88 plants for wastewater management. The 88 plants treat

wastewater from ca. 10.000 factories and have a capacity of 540 mil. litres a day.

The sewer system, in the places they are present, are in seriously bad condition and need

maintenance, replacement in addition to a great expansion to keep up with the pace of the

growing urbanization.

Drinking water

In the drinking water segment, growth has been fuelled by increased health consciousness,

coupled with deteriorating water quality.

In the bottled water segment, dozens of brands have flooded the market. A large number of

reverse osmosis plants have been established in the last two years. Multinationals have made

large investments in this segment, as have several Indian liquor and beverage companies.


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Water treatment

The water treatment market is moving gradually from chemical treatment and

demineralization plants to membrane technology. However, several large user segments such

as refineries and power plants continue to use demineralization technology. Zero discharge

systems and wastewater recycling are becoming increasingly popular in India.

The Indian water treatment equipment industry is reasonably well established and cost-

competitive; it is estimated that the equipment made locally in India is about 30 percent

cheaper than imported equivalents due to high import duty. However, Indian firms have

limited capabilities in design/technology of water treatment plants. Therefore, there exists a

distinct opportunity for foreign companies to offer technical consultancy services through the

contractual and/or joint venture route.

The segment is highly fragmented and unorganized. There is a mix of large companies, both

foreign and Indian, medium-sized companies and more than 500 small companies.

Trade

Industry sources estimate that imports constitute approximately $100 million of the $600

million market for municipal and industrial water treatment equipment. Such equipment

includes both equipment components and instrumentation. Complete packaged treatment

plants are not price-competitive and their imports are estimated at $11 million per annum.

Imports of bottled water are made mainly by service industries such as hotels and resorts, and

are estimated at no more than $500,000.

Consumers

Municipal water and wastewater treatment and industrial in-process and wastewater treatment

operators constitute the two major buyer groups for the wastewater treatment segment. At the

state level, development corporations are the chief promoters of common effluent treatment


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plants and are responsible for developing infrastructure for industrial estates. Resource

constraints and the small sized operations in India have resulted in a consistent demand for

packaged treatment units for isolated businesses and common effluent treatment plants for

clusters continue to be promising business opportunities. The principal end users in the water

market are the municipal authorities and the Public Health Departments. The major industries

connected with the water sector include cement, chemicals, fertilizers, food & beverage,

paper, pharmaceuticals, power, refineries, sugar, tanneries and textiles. End user commercial

establishments include hospitals, hotels and housing developments.

INDUSTRY ANALYSIS

Every year 42 crores 40 lacs liters of mineral water is being produced in the world by the

mineral water industry. The yearly per capita figure of mineral water consumption in India is

0.5 liters, which is very less in comparison to other countries like USA, which has the rate 140

liters per capita yearly. Looking at these figures, there are tremendous growth prospects for

the mineral water industry in India. As per the market research, the demand for pure drinking

water will go on increasing.

The economic outlook for India is positive. A growth rate of above 6. 9% was achieved

by the Indian economy during the year 2004-05 and it reached 8.4% in 2005-06 (ending

March 2006). Growth in the Indian economy has steadily increased since 1979. In fact,

the Indian economy has posted an excellent average GDP growth of 8.5% since 2003.

Many factors are behind this robust performance of the Indian economy. High growth

rates in industry & service sector and a benign world economic environment provided a

backdrop conducive to growth of the Indian economy. The current gap between treated and

untreated urban wastewater is big enough. And this is growing with every passing year.From

March 2002, the Ministry of Health, Govt. of India has announced new bottled water

standards. Almost all bottled water plants shall be based on reverse osmosis technology.


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Studies conducted by health authorities show that 10 percent of urban water source in

India is contaminated and 80 percent of human diseases are water borne. Rising

population, along with unplanned industrial growth has led to natural resources being

polluted.

Previously, DM plants were installed to provide feed water for kidney dialysis plants

in hospitals all over India. Recently, The Journal of Indian Medical Association

recommends the use of RO water for all kidney dialysis units.

When RO water is used in poultry farms for the raising of chickens, it is found that

growth time was reduced by 15% and the life span and survival rate was increased

significantly.

When RO water is used for laundry purposes, less detergent is required to wash

clothes. RO water helped to preserve color fastness, brightness, and softness of the

material.

Restaurants can install RO plants and serve complimentary mineral water to theircustomers. This will help in the growth of their business to a great extent.

If RO water is used in green houses to feed plants, it will reduce the growth time, less

fertilizer is required. The fertility of the ground will be improved and the soil quality is

preserved and does not deteriorate over a period of time.

In Metal plating industries, RO water improves the quality of plating, saving precious

energy.


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Organization Structure

Managing

Financ Marketin Sale Supply Engineeri

Deputy General

DGMSDGMS

Regional SalesManager

Nort East West Sout

Zonal Sales

Manager

Area Sales

Manager

Area Sales

Manager

Senior Territory

Sales Manager

Senior Territory

Sales Manager

Territory Sales

Manager (Project)

Territory Sales

Manager (Retail)


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WORK DONE DURING THEPROJECT

Methodology Used for the Project: This projectfollowed a simple & systematic methodology. I have followed a phase by phaseapproach to complete this project.

Phase 1: Overviewofthecompany:- In the 1st phase I wasinformed about the whole business of FONTUS. I received complete knowledgeabout the details of the business and how it is done at FONTUS by Mr.Romilesh. After joining the company on 4thmay 2011, I spent 3 days in thefactory and also went through some websites to find out more about this

particular business, as it was going to determine the future course of action. Theright understanding of the products was as important as the entire project itself.The project guide Mr. Romilesh was a big help to me in determining this step.He not only explained the in and out of the business but also the problems thatthey had been facing so far. I realized that less brand awareness is the main

problem along with the problems defined by Mr. Romilesh. So I decided thatthere will be three parts in my project pertaining to the three main parts thatexists in any business i.e.

Target customer analysis

Competitors analysis

Business from the target customer

Phase 2: Problem Definition

Management Decision Problem:a.

How to maintain the leadership in the market that is becoming congested bysmall players?

b. How to capture new market segments and what are the needs and expectationsof these segments


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Marketing Decision Problem:a. What are the different segments of the market and what are their needs?

b. What are the actions going around in the market and how the competitorcompanies are working to get an edge over Earth and water group?

c. What are the main benefits provided by the competitor companies to offertheir franchisee?

d. In a market where almost all the companies are offering same products whatmore can be done to maintain the status of market leader?

e. Is there a need for enhancing the existing communication strategy of thecompany?

The problem definition stage helped me clearly understand the expectation of thecompany from the project and the direction in which one needs to move toachieve those expectations.

Diagram:-The Process of Problem

Definition

Phase 3: Developing an Approach to the Problem:-


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Once the problems faced by the company were identified the next step included

the development of the approach to the problem, i.e. defining the research

problems and presenting them in a form which may be helpful in the process ofmarket research. In this step proper statement of problem was set up which is

Develop brand awareness and enquiry generation.

Phase 4: Research Design Formulation:-Market research involves lot of effort and time, so it is always best to be veryclear as to what has to be done and how it has to be done and this was decided inthe third step of the project. From the understanding of the project I decided togo for a survey research in the educational institution first to get a better idea ofthe market.

In this step following decisions were taken:1. Information should be obtained from from schools andcolleges operating in Delhi & NCR.

2. Time allotted:-02 months

3. Budget:- Stipened for trainees

PHASE 5: SURVEY PLAN :-

1. Data of schools and colleges were provided to me for enquirygeneration of

ERGO RO.

2. Questionnaire was prepared by the company members andthey asked me to

check that.

3. I decided to go for the schools which have more than 500students.


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4. We divided the schools in different regions of Delhi i.e. South,West, East and

North.

5. Then I started my work by visiting every school which wasrelevant for the

Project.

Phase 6: AnalysisIn this phase the first job that was done was coding the data collected from themarket survey in an excel sheet so that it can be analyzed and meaningful resultscan be draw from them. Due to summer vacation small sample size of theschools were collected so, no quantitative analysis was done just the important

outcomes were analyzed in the report. Then I suggested to move towardscolleges and I started to work on colleges. The coded data from the prospectiveschools survey was used to analyze which are the factors that mainly affect the

buying behavior of the schools. I also tried to study what are the reasons thatprevent or defer the customer behavior in this segment. After everything wasanalyzed the results were taken into consideration and I tried to present feasiblesolutions to the problems that exist.

OBJECTIVES OF THE PROJECTUNDERSTANDING OF MARKET SIZE (VALUE AND VOLUME)

As per the result of my survey I found the volume of each educational institute is on anaverage approximately 1000litre,i.e. somewhere it is more than 1000 and somewhere below1000 so we can take it as an average of 1000litre.

For 1000litre water ergo RO of 100litre/hr would be sufficient. So we can take value as 1 ergoRO of 100litre/hr/school.

UNDERSTAND THE BUYING PROCESS AND VARIOUS INFLUENCERS

Schools and colleges are the segment where people involved in the buying process are veryeducated and knowledgefull and they examine each and every aspect of the product thenfinally take decision.

In the Buying process of water treatment plant customer went under following procedure:-

Firstly the customer takes full knowledge about the product.

Then he enquires about the product through the internet or any other relevant sources.


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After that they compare all the products, i.e. success of the product, price of the product and

after sell service etc.

After comparing their every objective they finally give the order for the product.INFLUENCERS

In any buying process there are certain things that influence the buyer. In the case of watertreatment plant influencers are:-

4 PSProduct quality:- Product quality is the main thing that attracts the buyer. If product hascertain quality that is better than his competitors product then certainly it will give an edge tothat product over their competitors.

Price:- Price is the very influencing factor in any buying process. In this segment also price is

the major influencer but it should be always considered that price matters only then whenproduct quality should be good.

Promotion:- Promotion of a product creates brand awareness about the company and productand it creates a positive attitude of customer.

Place: - Place is also a major influencer. Marketing channel through which it reach to thecustomer also effect the customer.

After sell service: - This is the very influencing factor, where a company can take advantageover others. Many companies promises a lot but dont fulfill their promises and this is themain service that make reputation and image of the product in the customers mind.

Referral: - Referral is, sugessions given by a third person who is the user of the product or

who has very good knowledge about the product or anybody else. If any third party showstrust on any product then it automatically create a positive impact on the customers mind.

IDENTIFY AND EVALUATE OPPORTUNITY AREA

In this segment most of the customers are already using RO and their service providers try togive better service to them because they know the potentiality of this segment. So, theopportunity areas are there where customers:

1. Dont having RO - If the customer dont having RO plant and according to their usage ofwater if RO plant would be beneficial for them then a good follow up plan may create goodopportunity area for the product.

2. Are opening any new branch: - If any school or college is going to open a new branch then

customers can be attracted by negotiating in price or giving better offerings.3. Are not satisfied: - If customer is not satisfied from their current dealer then it could be abetter opportunity are. This could create very potential market for the company because thecustomer may work a good referral.

UNDERSTAND THE RISK AND THREATS IN THE MARKET LANDSCAPE


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As I found in my survey risks and threats in the market of this segment are:

Emerging of various new players in the market.

New entrants offer their product at very low prices. Big players in this segment offer various line extension of their product in this

segment.

MAP THE COMPETITION SPACE AND THEIR BUSINESS STRATEGY

EXISTING PLAYERS IN THIS SEGMENT

The main existing players in this segment are

-Eurekaforbes

-Hi-Tech

COMPETITOR MAPPING AND SWOT ANALYSIS

EUREKAFORBES

Eureka Forbes Limited (EFL) is the leader in domestic and industrial water purification multi-

product, Multi-channel Corporation, part of the Shapoorji Pallonji Group. About 7,000

employees are working in the company. EFL is the Leader in domestic and industrial Water

Purification Systems, Vacuum Cleaners, and Air Purifiers & Security Solutions. EFL is the

Pioneers in Direct selling - Asia's Largest Direct Sales Organization. About 6,000 strong

Direct Sales Force touches 1.50 million Indian homes, adding 1,500 customers daily.

Customer family now numbers over 6 million enduring relationships as friends for life. The

Operations of this company is going on 125 cities & 400 towns across India.

MARKETING MIX OF EUREKAFORBES

PRODUCT PRICE

a) Easily nationwide.b) Easy to available handle.c) Multiple products launched for each

product type.

a) Product price range divided intofour segments to target differentaudiences.

b) Low cost of maintenance andconsumable.

c) Best prices offered when compared

to other competitors.PROMOTION PLACE

a) Active subscription immediately.b) Right time installation of products.c) Properly repair services against

a) Urban educated India that cares fortheir family.

b) Areas prone to diseases.


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paid AMCs.d) Service during contract period.

c) Strategically chosen locations forcatching the eye of potentialconsumers.

d) Various stalls near market placesand food bazaars.

Figure: Marketing Mix

SWOT ANALYSIS

HI-TECH

Hi-Tech is the first company dealing with RO systems to be I.S.O.: 9001 2000 certified in2003 for its Quality Management System and Product Design, Manufacturing, Installation andAfter sales Service of Commercial & Industrial R.O. water treatment plants and DomesticR.O. water purifiers by TUV Rhineland Germany. HI-TECH is certified by C.S.P.O.Gandhinagar ,NSIC, as well and have also achieved the NSIC-CRISIL Rating for HighestPerformance Capability with Moderate Financial Strength rating SE 1B.

SWOT ANALYSIS

PROJECT THE ENVIRONMENT POLICY REGULATORY OVERVIEW


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The water purification and treatment industry in India, under siege from cheap imports ofwater treatment products from China, is working to set standards for the water treatmentindustry in the country as a safeguard against 'spurious' products. This is being done through a

certification process. Hence, for the first time the industry has put its head together to come upwith a solution.

In a country like India, where water scarcity is growing by the day, there are too many issuesrelating to water. This has meant that there are dime a dozen firms that are trying to make thebest of the situation. Now there is a clamour for proper standards.

With a membership of about 31 firms, the industry is estimated to be worth Rs 1,300 crore toRs 1,400 crore for the domestic sector and Rs 8,000-10,000 crore in the industrial sector. Theindustry is trying to build a consensus on the standards for water treatment products under anumbrella body WQA India.

WQA or Water Quality Assurance is a not-for-profit international trade association

representing residential, commercial, industrial and small community water treatmentindustry. WQA works with organizations representing different aspects of water industryworldwide. Ithas over 2,400 members from 80 countries around the world.Water has many more challenges here in India than in the West or in countries like Singapore.The standards are directly proportional to the cost of water purification. Till now, the waterpurification industry in India concentrated on bacterial contamination. But, what about theviruses and other parasites that water may harbor?

Hence, there has been a long-felt need for standards to ensure all purifiers meet all standards.Now there is growing awareness for the need to fine-tune biological contaminants.

But, affordability is a factor. We need to build consensus on the minimum standards forpurification," noted an industry player. The members are presently looking to form an Indian

arm of WQA in India, which will be an independent not for profit organization which willestablish standards and generally fund technologies for water purification. This is expected tocut the cost of developing technologies.

The industry has to work towards a quality which is best for India.

DETAILS OF MAJOR CUSTOMERS AND UPCOMOING PROJECTS

As per my survey the major customers out of 100 educational institutes in which I havesurveyed are:

G.D GOENKA SCHOOL, VASANT KUNJ: - Currently they are using water dispensers andwere impressed with the presentation and it was really very beneficial for them, because theirstrength is 2600 students.

MATA GUJRI PUBLIC SCHOOL, GREATER KAILASH: - Currently they are using waterof gurudwara and dont have their own source of drinking water.

INMANTEC COLLEGE, GHAZIABAD: - Using small aqua guard right now and was veryinterested from the presentation and wanted to talk to director and finalize the deal.


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MAHATMA GANDHI MISSION COLLEGE, NOIDA: -Using water dispenser right now butthey have taken RO system twice but after sometime system has chocked, but they didnt getproper after sell service.

IMS, GHAZIABAD: - They have RO plant but they are opening a new branch.

GYAN BHARTI COLLEGE, MEERUT RAOAD: - Using water dispenser right now.

UPCOMING PROJECT

IMS, GHAZIABAD

MARKET ENTRY STRATEGY WITH PRODUCT PRICE AND PROMOTION

DEVELOP MARKET ENTRY STRATEGY FOR ERGO RO

The single objective that H20 Industries faces is to position itself as the premier serviceprovider of portable deionization equipment, quickly developing market penetration.

MAJOR PROBLEMS FACED During the project I found that, In schools and colleges people are not aware about the

earth water group and they thought this is any new company and so they give verycasual response.

Educational institute who thought themselves as a brand want to give good services totheir students and they think that a new unknown brand is not suitable for their image.

Due to perception of being a local brand customers want maximum benefits from theproduct in the minimum amount.

MARKET ENTRY STRATEGY WITH PRODUCT, PRICE AND PROMOTION

The group should promote themselves through various campaigns in schools andcolleges.

The group should also advertise themselves in newspaper and TV, so the customerpercept it as a brand.

Company should offer some discount offers and schemes to the customer.

Company should provide its product at some major sanitary shop.

APPROACHES IN TERMS OF 4PS

MICHAEL PORTER 5 FORCES MODELMICHAEL PORTER 5 FORCES MODEL


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Michael Porter has identified five forces that determine the intrinsic long-run attractiveness of

a market or market segment: Industry competitors, Potential entrants, Substitutes, buyers, and

suppliers. The threats these forces pose are as follows:

THREAT OF COMPETITORS- For most industries, the intensity of competitive rivalry isthe major determinant of the competitiveness of the industry.


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Sustainable competitive advantage through innovation

Competition between online and offline companies.

Level of advertising expense Powerful competitive strategy

The visibility of proprietary items on the Web used by a company which can intensifycompetitive pressures on their rivals.

Earth Water group has a threat from these competitors-

1. Hi tech

2. Eureka forbes

3. Kent

THREAT OF NEW ENTRANTS- Profitable markets that yield high returns will attract new

firms. This results in many new entrants, which eventually will decrease profitability for all

firms in the industry. A new entrant can easily enter into this market by taking care o

following points.

Access to distribution

Customer loyalty to established brands

Absolute cost

Industry profitability; the more profitable the industry the more attractive it will be to

new competitors

THREAT OF SUBSTITUTE PRODUCTS-The existence of products outside of the realmof the common product boundaries increases the propensity of customers to switch toalternatives:

Buyer propensity to substitute

Relative price performance of substitute

Buyer switching costs Perceived level of product differentiation

Number of substitute products available in the market

Ease of substitution.

Quality depreciation


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Fontus has a threat from these competitors because they have substitute products of EWG.

1. HI TECH

2. Eurekaforbes

THREAT OF BUYERS GROWING BARGAINING POWER-The bargaining power of

customers is also described as the market of outputs: the ability of customers to put the firm

under pressure, which also affects the customer's sensitivity to price changes.

Degree of dependency upon existing channels of distribution

Buyer volume

Buyer switching costs relative to firm switching costs

Buyer information availability

Availability of existing substitute products

Buyer price sensitivity

Differential advantage (uniqueness) of industry products

Fontus has threat from all schools and colleges because many new entrants are also coming in

this segment and Eurekaforbes and Hi-tech has better reputation than Fontus.

THREAT OF SUPPLIERS GROWING BARGAINING POWER-The bargaining powerof suppliers is also described as the market of inputs. Suppliers of raw materials, components,labor, and services (such as expertise) to the firm can be a source of power over the firm,when there are few substitutes. Suppliers may refuse to work with the firm, or, e.g., chargeexcessively high prices for unique resources.

Supplier switching costs relative to firm switching costs

Degree of differentiation of inputs

Impact of inputs on cost or differentiation

Presence of substitute inputs

Strength of distribution channel

Supplier concentration to firm concentration ratio


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Employee solidarity (e.g. labor unions)

Supplier competition

Fontus doesnt have bargaining power of suppliers because there is no monopoly in

educational institutes market.

TARGET AUDIENCE

For better understanding of target audiences and approach segmentation, targeting and

positioning are the best suited method.

SEGMENTATION, TARGETING AND POSITIONING

For a planed approach to the customer and sincere effort segmentation targeting and

positioning are very necessary.

SEGMENTATION: All the schools and colleges should divided in different segments for

identification of major customers.

Following points should be considered while segmenting these schools and colleges.

Which have atleast 500 students.

Which dont have an RO.

Which have self source of water supply.

Where any new projects are coming.

TARGETING: Following points should be considered while targeting the customer:

Where any new project is coming.

Which dont have an RO and are not satisfied. Who want to change their existing supplier.


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POSITIONING: The Company needs better positioning. Because there is less brand

awareness about the company in this segment. So the company needs to promote its product in

a better way.

The company can promote its product in various ways.

Through newspapers

Through famous magazines

Through banners and posters

Through TV and Radio

It will give a better positioning to the company.


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sip project chandan

Documents