Project Report

On
Aava Packaged Natural Mineral Water

Sheelpe Enterprises:
2, China Garden, Netaji Marg,
Mithakhali Circle, Ahmedabad-380006.
Phone : +91-79-26401000/2286027
Fax : +91-79-26405700
Email : info@aavawater.com

Submitted To NRIBA
Prof. Belur Baxi

Submitted By : Yogesh. J. Yadav

S.Y.B.B.A. C
Roll No : 213
N.R.I.B.A
2012 2013

N.R. INSTITUTE OF BUSINESS ADMINISTRATION

GLS Campus , Mardia plaza Lane, Off, C.G. Road, Ellis bridge, Ahmedabad-380006. Phone- 643037

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N.R. INSTITUTE OF BUSINESS ADMINISTRATION

GLS Campus , Mardia plaza Lane, Off, C.G. Road, Ellis bridge, Ahmedabad-380006. Phone- 643037

CERTIFICATE
This is to certify that the report on the visit to Aava Natural Mineral Water (A Unit

of Sheelpe Enterprise) is submitted by Mr. YOGESH. J. YADAV to N.R.

Institute of Business Administration , Affiliated to the Gujarat University, in the
partial fulfillment of the requirements for the completion of Practical Studies in the
area of Marketing / At the Semester- 4 of the second year of the B.B.A. Program for the year
2012-2013.

________________

Director
Date :

_________________

Prof. in charge
/ / 2013

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Acknowledgement
I am highly thankful to the management and staff of Aava Natural Mineral
Water. I am especially thankful to Dr. BELUR BAXI for helping me in my Practical
Studies . In addition to allowing me to visit the company and study the Organization, they
provided me with many details which were very useful in preparing this report.
I take this opportunity to thank our Director , Dr. AVANI DESAI , Professor-inCharge Dr. BELUR BAXI for their encouragement and the office staff for providing us all
the facilities for making our visit more learning oriented.

DATE

(Signature)

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INDEX

Sr. No

Ch. 1
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
1.10
1.11
1.12

Ch 2
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10

Topic

Pg no

Title Page
Certificate
Acknowledgement

I
II
III

Introduction

Pg 5

Company Profile

Pg 6 13

Name of the Company

Location of Works and Registered Office
Main Business and Product Range
Form of the Organization
A brief History
Mission and Vision
Business Philosophy
Financial Information
Special Achievements
Existing Management Group (Management Chart)
Difference between Packaged Drinking Water and Natural
Mineral Water
Certifications

Marketing and Production

Organization of Marketing Department
Product Planning
Market Segmentation
Pricing
Channels of Distribution
Sales Promotion, Public Relations, Personal Selling
Advertising
Marketing Scenario
International Marketing
SWOT Analysis Report

6
6
7
7
8
9
10
10
11
11
12 - 13
13

Pg 14 - 32
14
14 22
23
23 - 24
24 - 25
25-26
26
27
28
28 29

Ch 3

Findings

Pg 30

Ch 4

Suggestions

Pg 31

Conclusion

Pg 32

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INTRODUCTION

As a part of the course curriculum , the second year (Semester 4) BBA student
are required to prepare the project report. The objective behind preparing this project report is
to relate the management subject taught in the class room to their practical application.

The preparation of this project report is based on finding notes during the
industrial visit , information received from return and published documents and refining by
company executives. The scope of the project report is limited to an analysis of the company
in light of its different departments and lying emphasis on any of the department. In spite of
my best efforts, there may be an error omission and commission , which may please be
excused.

Our main purpose for the visit was learn about the production of Natural Mineral
Drinking water by Aava as it is very unique product as compared to the other packaged
drinking water. Moreover we want to know the Marketing strategies of Aava and various
other tiny bit details about the organization. Moreover we want to understand complete
differentiation between Aavas Natural Drinking Water and other Packaged drinking water.

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Chapter 1: Company profile

1.1 Name of the Company :
Aava Packaged Natural Mineral Water ( A unit of Sheelpe Enterprise)

1.2 Location of Works and Registered Office:

Registered Office :

Sheelpe Enterprises:
2, China Garden, Netaji Marg,
Mithakhali Circle, Ahmedabad-380006.
Phone : +91-79-26401000/2286027
Fax : +91-79-26405700
Email : info@aavawater.com

Plant Address :

Aava Natural Mineral Water

Near Hanuman Camp,
Shahibaug Ahmedabad
Phone : +91-79-26401000
Email : info@aavawater.com

1.3 Main Business and Product Range:

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Aava is promoted by Sheelpe Enterprises, which is Ahmedabad based company.

The Aava is engaged in producing Packaged Natural Drinking Water which is quite different
from most of the Packaged Drinking Water, as it is among the few companies in India that
offer pure Natural Packaged Drinking Water originated from the Natural Sources.

Aava offers Packaged Natural Drinking Water across the country in different sizes
and packaging and mainly deals in B2B marketing with some premium companies in India.

1.4 Form of the Organization :

There different forms of organizations are Private Company, Public Ltd
Company, Co-operative Company, Joint Stock Company etc.

Aava is a brand promoted by Sheelpe Enterprise which is a private company and

has sole proprietorship and does not have other source of funds from public. The organization
performs business on their own funds. However Aava is relatively a small Organization to be
a Public Company. There are pros and cons for the Private Enterprise which are as follows:

1.5 History of Organization:

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 History of Packaged Drinking Water in India:

Mineral bottled water in India under the name 'Bisleri' was first introduced in
Mumbai by Bisleri Ltd., a company of Italian origin in 1965. Mineral bottled water were in
glass bottles in two varieties - bubbly and still in 1965 This company was started by Signor
Felice who first brought the idea of selling bottled water in India.
Parle bought over Bisleri (India) Ltd. In 1969 and started bottling Mineral water
in glass bottles under the brand name 'Bisleri'. Later Parle switched over to PVC nonreturnable bottles and finally advanced to PET containers. Since 1995 Mr. Ramesh J.
Chauhan has started expanding Bisleri operations substantially and the turnover has
multiplied more than 20 times over a period of 10 years and the average growth rate has been
around 40% over this period. Presently it have 8 plants and 11 franchisees all over India.
Bisleri command a 60% market share of the organized market.
Currently, Bailey has a national presence in 5 lakhs retail outlets across the
country. We plan to increase manufacturing plants for Bailey from 29 to 60, presently 40
plants are operational and few more will be ready for operations over the next few months,
informed Nadia Chauhan, joint managing director of Parle Agro.

History of Aava Natural Drinking Water

Aava is promoted by Sheelpe Enterprises. Based out of Ahmedabad, India,
Sheelpe launched Aava in October 2005.
It is clear from the launch that Aava entered in bottled water business pretty late,
However the concept of Natural Dinking Water is new thus Aava ha chosen perfect path for
their success, which is instead of going for Packaged Drinking Water, Aava decided to go for
some new adoption. Since 2005 even after late entry in the market, Aava established itself
very well in the market and possess very good Brand image. Within the short span of 2 years
in 2007 the company was valued at Rs 120 crores by Ernst and Young. Moreover within short
period of 4 years Aava achieved 50% Market Share in Aviation Industry.

1.6 Mission and Vision:

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The foremost Vision stated by the Aava is to become on of the most premium
bottled water in India. The brand Aava is to be recognized as most reliable and standard
name in bottled water industry.
The concept of Natural Mineral Water is quite different and mostly people in
India are unaware of it. The packaged drinking water is nothing but processed water sold
in bottle and which does not even resemble the name Mineral Water, However Aava
wants to make people aware of the concept of using Natural Mineral Water rather than
chemically purified Packaged Waters
Vision:
To provide superior water to our consumer

Mission:
To provide the healthy water in order to facilitate people

Slogan:
Water, Water, Everywhere, Not a Drop to Drink (As per Brochure)

Short term goals :

To boost the sales
Creating value for customer :

Long term goals

Make the brand loyalty like Pepsi / Coca Cola
To give the awareness for Natural Mineral Water

1.7 Business Philosophy :

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The Business philosophy of Aava Water is to deliver quality product with

natural element. The company is offering genuine Natural Mineral Water which is
available from the source like Aaravali mountain ranges. Their organization has
emphasized on convenience to the consumers in each and every aspect of the product
like from unique packaging to a superior packaged water.
Moreover the company specially targets other organizations for the bulk
selling rather than focusing much on the individual customer or retail market. Moreover
Aava specially emphasizes on the quality of the water than prices.

1.8 Financial Information :

There is no complete financial information about the company is provided
but some information provided during the communication are described below.

Turnover:
Aavas annual turnover is Rs 15 crores recently.

Net Worth / Valuation :

Aava Waters was valued at Rs 120 crores in 2007, just after 2 years of its presence in
the market. At present company is net worth more than Rs 200 crores.

1.9 Special Achievements :

From amongst 169 multinational participants like DANONE, Nestle, Coca-Cola, Pepsi
and Masafi from 32 countries, Aava won a Silver at the 2007 'bottled water world'

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awards held at a glittering function under the stained-glass multi-domed ceiling of the
heritage Grand Hotel in Mexico City.
A per the Times of India, the $18 billion DANONE is in parleys with the promoters of
Aava to pick up equity stake and setup a joint venture project in India. However no
lights were shed from either party.
The only licensed mineral water in West, South and Central India.
Aava cover Story describing tips on labeling by Journal of Asia Middle East Bottled
Water Association.
Article in Economic Times Bombay (August 27, 2007) describing Aava as Rising
Water Label also specifies that Aava Natural Water has made a mark and international
leaders are interested in it.
Article in DNA Money (July 24, 2007) about expansion of Aava for distribution in Goa
and South India along with increasing sales to different airlines from six airport bases
across the India.

1.10 Existing Management Group:

Chairman & Co founder

Mr. Behram Mehta
Assistant Manager
Mr. Rajesh Padaliya
Creative Department (Heads)
Sajit Surendran and Mehul Choksi

Accounting Department (Heads)

Yamini Gupta and Shekar Pandey

1.11 Difference between Packaged Water & Natural Mineral Water

More often than not, these blue bottles contain water that is processed through
various chemical and other purification processes to make it fit for drinking. Popularly, this
water is known as Packaged Drinking Water.

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On the other hand, Aava Natural Mineral Water is obtained directly from
protected natural sources, thus ensuring that the water is naturally pure. It therefore, need not
to be put through all the chemical and other purification process that Packaged Drinking
Water goes through.
Thus, Aava has brought a Green Revolution to the water world by being 100%
natural.
Let we see the deference :

Packaged Drinking Water (IS:14543)

The raw water could be sourced from anywhere.
1850 licenses issued by B.I.S
This water is rendered potable through various processes such as Reverse Osmosis
(RO)
RO also eliminates the healthy minerals present in water. If the pH level is this demineralized Packaged Drinking Water falls, the water becomes acidic, since it absorbs
carbon dioxide from the atmosphere.
For every liter of water processed through RO, 2 liters more is wasted.
Might taste bitter or less sweeter

Aava Natural Mineral Water (IS:13428)

Aava is obtained directly from protected natural sources.

Only 12 such licenses issued by B.I.S.
Aava is naturally pure and is not put through any chemical processes or Reverse
Osmosis.
Aava is a natural well-balanced healthy drink.
Aava has a unique natural mineral composition that is beneficial to health and is
absolutely safe to drink.
Not a single drop of Aava water is ever wasted.
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 Possess the sweet Taste of Nature.

1.12

Certifications :

ISI : "Bureau of Indian Standards"

quality standard certifying the
water safe for consumption view
certificate

ISO 9001-2000: International

Quality Management System
Standard. view certificate

I.S.O.14001 : Environmental
Management System Standard. view
certificate

H.A.C.C.P : Hazard Analysis and Critical

Control Point. view certificate

Chapter 2 : Marketing and Production

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Marketing of packaged drinking water is very very tough. It is an attempt of

converting commodity into the product or branded product. Present market of packaged
drinking water is full of competitors and hence the market share is divided between many
organizations.
Not only this but in packaged drinking water market natural players as well as
international players are also playing vital role. Various local brands or regional brands are
playing important role. Segmentation of market of packaged drinking water is not easy task at
all but various segments like
-

Travelers
Local Movers
Commercial users, has been made.

2.1 Organization of Marketing Department :

Aava is not a huge organization and therefore nor separate department in
maintained for the marketing and Moreover in B2B trade the scope of marketing is relatively
less and may be even not required.

2.2 Product Planning :

Product planning is the process of creating a product idea and following through
on it until the product is introduced to the market. Additionally, a small company must have
an exit strategy for its product in case the product does not sell. Product planning entails
managing the product throughout its life using various marketing strategies, including
product extensions or improvements, increased distribution, price changes and promotions.

2.2.1 Product Range

Cup cap Bottle 1 liter

Sports Bottle 750 ml
Mini Bottle 200 / 300 ml
Family / Commercial Jar 20 liters
Aava Gold
Dispenser in two sizes

2.2.2 Product Line and Mix :

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1) Cup-cap 1 Liter Bottle :

For the first time in India, the 1L pack comes with an in-built cup with a unique
double-seal. Thus, it makes sharing your water easy without the mess of having to drink from
the same spout.
2) Sports Bottle 750ml :
The 750ml bottle is designed to suit the needs to suit the needs of the fitnessconscious individual on the go. With a double-seal sport-cup thats leak proof, its ideal
for people working-out, as well as for children, to avoid spilling.
This product is also available with a regular twist-cap.
3) Aava Mini Bottle:
The 300ml/200ml bottle is available for you to quench your thirst instantly
without having to carry around the weight of a big bottle. Its convenient size even allows
for it to be stored in small bags. Moreover it is their primary product. Around 80 % of
production is for 200 ml bottles.
4) Family Pack 20 liters Jar :
Aava is also available in 20L Jars so that a glass of refreshing Aava is only as far
as your dispenser is, when you want it. "This pack is also available with a hot/cold water
dispenser"
5) Aava Gold :

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Aava gold is premium bottle packaging which is only designed for the
requirement of specific customer who wants to differentiate from the bottle available in the
market. Moreover the price of the product is remarkably higher.
6) Others :
Aava also distributes two types of dispenser, Normal Dispenser and Hot / Cold
water dispenser. However the company does not manufacture it themselves but buys in bulk
and sells after labeling.

2.2.3 Product Decisions :

Various product decisions are taken at Aava with great care, Company focus
much more on the product management. Various decisions like branding, packaging, brand
extension or development of new product has been considered very important. Decisions
regarding the product, price, promotion and distribution channels are decisions on the
elements of the "marketing mix". It can be argued that product decisions are probably the
most crucial as the product is the very epitome of marketing planning.

2.2.3.1 Branding :
Branding means giving name, design, logo etc In case of Aava while determining
brand name following aspects have played very important role.
-

Name
Colour
Punch Line
Position or Unique Selling Preposition

Name (Brand Name Philosophy) :The word Aava is similar to the word Aqua which means water. There selection of
the name has been made with specific intention to distinguish from other products.
Besides the name is easy to remember and relates to the product.

Colour :-

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Much more emphasis has been given on sky blue colour and green colour with
intention to create image of natural element included in the product, except for the
case of Aava Gold which describes premium product.

Punch Line :Here the punch line is supporting business philosophy as well as line is
distinguishing Aava from competitors product. The punch line used is Natural
Mineral Water. The word natural is used because the water is available from hill
areas of worlds oldest mountain range, The Aaravalis

2.2.3.3 Packaging :
Packaging is considered as most important function of product management.
Most important aspect Convenience in Use has been emphasized in packing of drinking
water. Packing has been made and developed on the basis of usage of product.

Cup cap Bottle 1 liter

Comes with unique cup cap to ensure ease of sharing water.

Sports Bottle with nozzle 750 ml

Sports nozzle for quick access during sports activities.

Aava Mini Bottle 200/300 ml

Small size with adequate quantity for one person.

Family / Commercial Jar 20 liters

Abundant quantity for gatherings and commercial use. (Dispenser if required)

Packaging Differentiation

Product packaging and presentation is one of the main dynamics, which control
the flow of target customers towards the product. Packaging should be in line with the
industrial norms. Packaging may also vary with the understanding of the target market. It
is suggested that the bottles of 0.5 liter and 1.5 liter capacity should be used. Bottles should
be clear. The bottle should give a reflection of light sky blue color, which is considered a
natural symbol of the water. This color also adds a tinge of purity. The water should give a
shiny and a glossy reflection. The opening of the bottle should be large enough to
accommodate outflow and in flow of water. The bottles should be placed in special racks and
strand meant for bottled water at retail outlets, which will be having a unique color and a
unique design. The color and the design will create a positive perception for the new brand.
The wrapper of the bottles provides following information.

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 Certificate mark of the Indian Standards & Quality Control Authority

Water Specification
Expiry Date (Best Before Date)
A brief intro of the company with the address
Website address of the company
Brand Name / Trade Name
Net volume in System International / Metric system

If Innovation was to get a distinct and newer description, the credit would must go
to Aava Natural Mineral Water. It is the first and the only Indian Finalist and Winner of the
Silver Award at the Bottled Water World Awards, held recently in Mexico. On the Aavas
bottle there is information regarding the companys description, Manufacturing Date, Size,
ISO 14001-2004 mark, License Number, Price, etc.

2.2.4 New Product Development :

From past few years Aava has not gone for launching of any New Product in the
market. They have just added a Product Variant by adding Aava Gold to their products, which
is nothing but premium packaging for the Bottle which is supplied to specific limited Hotels.
Besides this they also started the square shaped 300 ml bottles on the requirement of certain
airlines company.

During the communication, it was stated that Aava will be increasing their
product range by launching new product variants as per the required area to target different
markets across the country.

2.2.5 Product Life Cycle Stage :

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At present the Aava water is between introductory and growth stage due to its late
entry in the Bottled water market, Aava has not established completely in the market and let
as have a look on stages of Bottled Drinking Water in India

Introduction Stage :

Here 1990 is select as a base year and from 1990 sales of Bottled water increase
year by year but not that much level up to 2004-05 so this stage covers under introduction
stage of bottled water industry. And after increase awareness among people and also know
about side effect of non purified water people diverse from tap water to bottled water and this
change increase sales of bottled water in market. In this stage firm focus on branding and
patent for maintain right to produce.

Growth Stage :

After 2005-06 bottled water sales increase in market and it shows growing stage
of the industry, because people are now use bottle water for status and for health safety. Now
in 2008 bottled water industry growing at a rate of 38% so it sales increase faster as
compared to past year so we can say that industry came under growth stage. Maintain
existing features and also add new things in product. Here broader audience available for
industry product.

The above table and details shows that at present the Bottled Water Industry is on
the growth stage and it is not too late for Aava to perform business as the demand for Bottled
water is been increasing notably. However there is heavy attack of competitors which
compels Aava to counterfeit but company is not giving any reaction as their product is
different from others.

2.2.6 Production Process :

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Source of Water
(Aaravali and
underground water
sources)Resources

Labeling Material

Packaging / Bottle
Material

Sand Filtration and Dirt

Removal

Filling Water in bottles after

washing

Applying Label and Pressure

heating for sticking.

Various Chemical Tests on the

defined production lot and to
be kept for 48 hours

Sales Team distributes through

their Transport Facilities and
others. (Dispatch)

Retailers

Final Consumers

Production Process in Detail :

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The first step in production process is to acquire necessary raw material for the
product. The source from where the water is obtained, packaging materials, labeling
materials, etc are to be specified. The primary sources of water are Taranga Hills and
the underground reservoirs.

The raw water obtained from natural sources might contain some impurities like sand
and dust, therefore the water goes under the sand filtration in the plant, where it
becomes edible.

The Bottles are manufactured in plant from a plastic vessel and are shaped according
to design, later bottles are washed to remove any impurities during the manufacturing
process.

The Bottles are further passed through the filling machine which is fully automated
and possess capacity of filling around 200 bottles per minute. No Human involvement
takes places until the bottle is filled and cap is attached.

The bottles are then labeled by manually putting labels on them which passes through
the machine providing enough heat to fix label completely around the bottle.

After completion of production of bottles, they are packed in a plastic sheet which is
surrounded and packed as a box, which is a better, affordable and superior method
than corrugated boxes.

Certain samples are taken from the production to ensure various chemicals to test the
reliability of drinking water and are kept for 48 hours before dispatching the lot.

The bottles are dispatched from the factory after the process of testing is completed
and further sent for the distribution, which is performed by Aava itself without
following any distribution channel.

2.2.7 Production Plant :

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Fully Automated and Hygienic Plant :

The Aava water plant is the first of its kind in India; it is a fully automatic,
washable, air-conditioned, hygienic plant.
The plant even adheres to pharmaceutical standards, and uses the Clean Room
technology (class 10,000) within the automatic filling, capping and sealing system
so that Aavas original mineral composition as well as the purity of the air and
water is maintained at all times.
Aava Natural Mineral Water is untouched by human hands at all points.
Aava is also not put through any chemical procedures that can contaminate itsorigi
nal purity.
The companys fully automatic bottling unit currently produced one Lakh bottles
of water of water a day and another 1000 Family-pack 20 liter & smaller jars.
Hi Tech Machine which produce 200 bottle per minute
Filler who fill 9 bottle per Slash
Total per day production is around 300000 per day
Approximately 150 employees at Airport Circle, Ahmedabad Branch.

There are 77 different chemical, microbiological and other tests. Aava does not go
through certain processes that other Packaged drinking water like
Activated Carbon Filtration, Softening and RO purification. The new Osmosis E-Series
Ozone Generators feature a durable flat plate ceramic cell construction that provides stable
ozone output at higher concentrations (from 6 to 10 per cent by weight), while efficiently
producing up to 3 ppd (57g/hr) of ozone.

2.3 Market Segmentation :

The Segmentation is process of creating different target groups in the market for
specific product. However Aava has not gone for any complex segmentation but they have
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created two groups which are organizations and the general public. The main focus of Aava is
to deal with different organizations and cover B2B market. The other less known segments
can be:
-

Geographical (Ahmedabad and other regions)

Educated and Health Conscious people
Income Class

2.4 Pricing :

Changing the product to reflect the product's life cycle is only part of the essence
of a well balanced marketing mix, and so PRICE enters the second important consideration of
the marketing mix. When setting a price on a range for your products, you need to ensure that
you can recoup any overheads, compete with rival companies and charge a price
your customers are willing to pay. To do this you need to fine tune your pricing policy and
you could achieve this in a number of ways.

2.4.1 Factors Considered while setting Prices :

Pricing strategy (skim, penetration, etc.)
Volume discounts and wholesale pricing
Competitors Prices
Government interference
Bundling
Cost of Raw Materials

2.4.2 Pricing Approach

Company has adopted value pricing as it is genuine natural hilly mineral water.
Therefore company is charging certain extra bucks than competitors product which are
mentioned below :
-

Rs 5 extra on 1 liter bottle

Rs 8 extra on 750 ml bottle (extra charge due to nozzle)
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Rs 4 extra on 200 / 300 ml bottle

Value perception is created in the minds of consumers by claiming and proving it

as 100% natural mineral water.

2.5 Channels of Distribution :

It is very important department which excite the function of marketing product
available to the consumer either the help of retailer or directly to the consumer distribution
system basically Indian market depending upon nature of the product or target audience
distribution channel are selected following different channel are used.

2.5.1 Type of Distribution :

Aava is following direct marketing concept in distribution system. Company
directly deals with the distribution and sub distribution and for every customer either
corporate or small Pan houses. Everyone has to directly contact to the sales team of Aava for
placing order as there are no distributors of Aava throughout the country except Udaipur.
Company possess 5 mini trucks and 5 autos/tempos for the delivery of their
product. In case of outside the state delivery, company approaches various Transporters for
the supply of the product

2.5.2 Decisions about Channels

Primary distribution :
Direct to institutes like IIM, Abon India, For season ware, multiplex etc.

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 To the Gujarat Cricket Board, Maharashtra Cricket Council, Gymkhana club,

Mumbai, Indian Cricket Board etc
To various airlines like Air India, Spice jet from 6 remote airports across the India.
To hotels such as Taj Ummed, Marriott, ITC hotels etc

Secondary Distribution :
Company sell direct to retailers and retailers to customers.
Like Pan houses, Bakeries, General stores etc.

2.6 Sales Promotions, Public Relations and Personal Selling :

2.6.1 Sales Promotion :

The company is not providing any kind of sales promotion.

2.6.2 Public Relations Tools and Decisions

Company is making an attempt to create a positive image in the mind of
consumers by various social activities, sponsoring various public events like Marathons,
Cyclothon, Vibrant Gujarat etc.
Company is not offering any kind of gift, discount or any other type of sales
promotion for attracting customers

2.6.3 Sales Force Management

The company has associated certain employees to the sales department which is
responsible for the process of sales of the product. No separate stream is created for sales
purpose. The order placed in the company are further processed and operated by the Sales
team of the Aava.

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2.7 Advertisement :
Advertising is one of the component of integrated marketing which is playing
very important role in creating awareness about the product. Aava is convenient product in
category of packaged drinking water across all the competitors in the market. However
company is lacking in aggressive advertisement. Recently there is no marketing
communication through any media from Aava
The company attempts to capture B2B market to a greater extent as compared
to other markets. Hence company has not gone for any type of advertisement. Company
believes in word to word mouth publicity.

2.8 Marketing Scenario :

The overall packaged bottled water in India is estimated to touch the Rs 10,000
crores mark in the 2012-13 fiscal, growing at a compound annual growth rate (CAGR) of
19%, says a new report by Ikon Marketing Consultants. Presently, this market is estimated at
Rs 8,000 crores, and could touch Rs15,000 crores by 2015, the report adds. While Bisleri
continues as the top brand with a 36% share among national players, Coca-Cola's Kinley
follows with 25% share, followed by Aquafina at 15%. Other smaller brands include Parle
Agro's Bailey, Kingfisher and McDowells No. 1, according to the report. The global bottled
Page | 26

water market, which saw an increase of 40-45% over the past five years, is currently valued
at close to US$ 85-90 billion, the report adds.
The domestic market is split between three sets of players -- national brands
with a pan India presence worth around Rs 4,000 crores, local brands manufactured by
registered plants but restricted to regions estimated to have a combined turnover of Rs 2,400
crores and unorganized local brands estimated at Rs 1,600 crores. The report estimates that
there are over 2,500 brands in this category, of which over three-fourths are local. The nontraditional category, or bulk packs, (with over 5 liter capacity) is growing rapidly, and has a
current share of over 40% share. "The rising trend of bulk water consumption in homes and
institutional segments will pave the way for bulk water packs to acquire half of the total
bottled water market within next four-five years," the report adds. According to a nationallevel study, 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 rural areas there are bottled water manufacturers, 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 liters which is comparatively
lower than the global average of 24 liters. 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. The total annual bottled water
consumption in India had tripled to 5 billion liters in 2004 from 1.5 billion liters in
1999. Global consumption of bottled water was nearing 200 billion liters in 2006
Bottled water is sold in a variety of packages: pouches and glasses, 330 ml
bottles, 500 ml bottles, one and 5-litre bottles and even 20-50-litre bulk water packs. The
bottled water business is divided broadly into three segments in terms of cost: premium
natural mineral water, natural mineral water and packaged drinking water. Premium natural
mineral water includes such imported brands as Evian, San Pellegrino and Perrier
which are priced between Rs 90 and Rs110 a liter. Natural mineral water brands like
Himalayan and the indigenous Catch brand owned by DS Foods Ltd are priced around Rs 20
a liter. 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 Rs15-18
a liter.

2.9 International Marketing :

There is no marketing and distribution of Aava beyond the country and is a
National Brand only. However it has got attraction of many multinational giants which might
be interested in dealing with Aava.

2.10 SWOT Analysis Report :

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STRENGTH
Adopting Concept of Natural Mineral Water
Unique Packaging and Design
Premium Brand image
Less Competition (in terms of Natural Mineral Water)

WEAKNESS
Lack of promotion, advertising,
Lack Of Distribution Channel
Lack of proper positioning
No Formal Organization Structure
Poor Customer Relationship Management

OPPORTUNITY
Untapped Market
Change in lifestyle
Increasing Population Growth and literacy rate
Demographical Transformation of India
Awareness on health
Commercialization
Tourism and tourist places
Extraordinary application of product

THREATS
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 Government interferences
Pollution norms
Substitutes
Regional Brands
External Factor Evaluation

Source :

Report on (Micro Analysis of Aava Bottled Water)

Chapter 3 Findings

Natural mineral water is relatively a new concept, hence it requires higher adoption
time as compared to other packaged drinking water products.

Aava product is targeted to upper class or higher class hence pricing is also made
with reference to value positioning.

Aava obtains raw material or water from underground natural water resources which
is created natural and arrived from Aaravali

Aava products is offered in various size but most preferred size is 200 ml bottle
which is supply to various premium customer like G.I.C and M.I.C, sports club.
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company has been very good and reductively cost by packaging whose cost is lower
then corrugated boxes

Company manufactures bottles of all sizes inside the factory hence there is no
transportation cost for bottles. Company followed high standard of quality and
obtained award from different organization

Company is following zero level of distribution system which directly controls over
market. Company following value pricing hence price of the product is little higher
than that price of packaged drinking water

Packaging of water is adjective as well as convenient which is unique selling of the

product.

Product is new concept in market it requires few years for complete adoptability
companys attempt for crating awareness about mineral water is very less, which
requires aggressive campaign.

Chapter 4 Suggestions :

Aava has strength of natural mineral water and packaging style. So, they should focus
on their strength. But they are compete with package water. They have no clear
positioning.

Distribution channel play an important role in this kind of product. But Aava does not
have sufficient distribution network. For selling and marketing Aava should improve
their distribution network and trying to cover other area of Gujarat.

Companys organization structure is very highly decentralized. So that company must

centralize its department and give responsibility to other people. So the manager conc
entrate on making strategies and plans etc.

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Aava is not focusing on promotion as compared to other. They are giving

advertisement in news paper but they are not regularly giving ad in news paper. They
use different news paper every time. There is a lack of faith in peoples mind.

There is lack of Customer Relationship Management. Just like IIM Ahmedabad and
Grand Bhagwati etc many player relationship broken due to improper customer
relationship management. However they were rebuilt again.

Aava is so much concerned about B2B sector that it is not paying much attention on
other sectors.

Tie ups with other organization might work in the favour of Aava as it can increase
the brand and boost the sales of the product.

Aava is creating value perception in the mind of consumers but they need much more
aggressive campaigning as it is tough job to convince the India users.

Conclusion

At the end of this report, I am thankful to the management of Aava waters and
every person of the staff who gave us valuable guidance & immense information for
preparing this report, without which it would have not been possible. Indeed it was a great
pleasure to visit such organization to study in depth the various aspects of business.
Aava waters is not a huge Organization but it has created a positive brand image
and brand value in the market within a short span of time. It is tough time to compete
between other packaged drinking water firms but Aava doesnt seems to compare its product
directly to these brands but only to natural mineral water company like Himalaya waters.
Against which Aava is performing pretty well by acquiring more in B2B business.
The main purpose to visit the organization was to understand the area of
marketing and production. However company is not much into marketing of the product but
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enough knowledge was obtained about production of Natural Mineral Water and differences
of this water from other brands.

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