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Summer Internship Project Report

Market Potential of Water Treatment Products in Schools & Institutes


Undertaken at

On

Submitted in partial fulfillment of the requirements of Post Graduate Program by: Chandan Kumar PGDM- 12 Sec A Roll no:

IILM Graduate School of Management Greater Noida

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

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

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.

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 of the group.

Group Companies EA Water Pvt. Ltd.

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 serving the 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

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 they started 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 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.

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:

Uninterrupted, Constant Pressure Water at all times

Efficient & Productive Water: Saving Fresh Water through Recycling

Water Treatment Cooling Water Treatment Reverse Osmosis Filtration Softening Waste Water Treatment Extended Aeration Submerged Aerobic Fixed Film Reactor (SAFF) Moving Bed Bio-Reactor (MBBR) Sequential Batch Reactor (SBR) Consumables & Spares Chemicals for: Boiler Water Treatment Cooling Water Treatment Potable & Raw Water Treatment RO Additives Effluent Treatment Services Operation & Maintenance Annual Maintenance Service On-call Diagnostic & Troubleshooting

Ultraviolet Demineralization Other Disinfection Systems

Membrane Bio-Reactor (MBR) Sewage Treatment Plant with Ultra Filtration Base Other Biological Treatment System

Consumables: Resins Media Spares

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

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 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 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 to scarcity 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

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.

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 costcompetitive; 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

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.

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 their customers. 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.

Organization Structure

Managing

Financ

Marketin

Sale

Supply

Engineeri

Deputy General

DGMS

DGMS

Regional Sales Manager (Retail + Project)

Nort h Zonal Sales Manager

East

West

Sout h

Area Sales Manager (Project)

Area Sales Manager (Retail)

Senior Territory Sales Manager (Project) Territory Sales Manager (Project)

Senior Territory Sales Manager (Retail) Territory Sales Manager (Retail)

WORK DONE DURING THE PROJECT Methodology Used for the Project:
This project followed a simple & systematic methodology. I have followed a phase by phase approach to complete this project. Phase 1: Overview of the company:- In the 1st phase I was informed about the whole business of FONTUS. I received complete knowledge about the details of the business and how it is done at FONTUS by Mr. Romilesh. After joining the company on 4th may 2011, I spent 3 days in the factory 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. The right 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 that they 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 that there will be three parts in my project pertaining to the three main parts that exists 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 by small players? b. How to capture new market segments and what are the needs and expectations of these segments

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 competitor companies are working to get an edge over Earth and water group? c. What are the main benefits provided by the competitor companies to offer their franchisee? d. In a market where almost all the companies are offering same products what more can be done to maintain the status of market leader? e. Is there a need for enhancing the existing communication strategy of the company? The problem definition stage helped me clearly understand the expectation of the company from the project and the direction in which one needs to move to achieve those expectations.

Diagram:-The Process of Problem Definition

Phase 3: Developing an Approach to the Problem:-

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 of market 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 very clear as to what has to be done and how it has to be done and this was decided in the third step of the project. From the understanding of the project I decided to go for a survey research in the educational institution first to get a better idea of the market. In this step following decisions were taken: 1. Information should be obtained from from schools and colleges 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 enquiry generation of ERGO RO. 2. Questionnaire was prepared by the company members and they asked me to check that. 3. I decided to go for the schools which have more than 500 students.

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 was relevant for the Project.

Phase 6: Analysis
In this phase the first job that was done was coding the data collected from the market survey in an excel sheet so that it can be analyzed and meaningful results can be draw from them. Due to summer vacation small sample size of the schools were collected so, no quantitative analysis was done just the important outcomes were analyzed in the report. Then I suggested to move towards colleges and I started to work on colleges. The coded data from the prospective schools 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 that prevent or defer the customer behavior in this segment. After everything was analyzed the results were taken into consideration and I tried to present feasible solutions to the problems that exist. OBJECTIVES OF THE PROJECT
UNDERSTANDING OF MARKET SIZE (VALUE AND VOLUME) As per the result of my survey I found the volume of each educational institute is on an average approximately 1000litre,i.e. somewhere it is more than 1000 and somewhere below 1000 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 ergo RO 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 very educated and knowledgefull and they examine each and every aspect of the product then finally 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.

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 water treatment plant influencers are:-

4 PS
Product quality:- Product quality is the main thing that attracts the buyer. If product has certain quality that is better than his competitors product then certainly it will give an edge to that 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 when product quality should be good. Promotion:- Promotion of a product creates brand awareness about the company and product and it creates a positive attitude of customer. Place: - Place is also a major influencer. Marketing channel through which it reach to the customer also effect the customer. After sell service: - This is the very influencing factor, where a company can take advantage over others. Many companies promises a lot but dont fulfill their promises and this is the main 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 shows trust 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 to give better service to them because they know the potentiality of this segment. So, the opportunity areas are there where customers: 1. Dont having RO - If the customer dont having RO plant and according to their usage of water if RO plant would be beneficial for them then a good follow up plan may create good opportunity 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 a better opportunity are. This could create very potential market for the company because the customer may work a good referral. UNDERSTAND THE RISK AND THREATS IN THE MARKET LANDSCAPE

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 multiproduct, 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


a) Easily nationwide.

PRICE a) Product price range divided into four segments to target different audiences. b) Low cost of maintenance and consumable. c) Best prices offered when compared to other competitors. PLACE a) Urban educated India that cares for their family. b) Areas prone to diseases.

b) Easy to available handle. c) Multiple products launched for each product type.

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

paid AMCs. d) Service during contract period.

c) Strategically chosen locations for

catching the eye of potential consumers. d) Various stalls near market places and 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 in 2003 for its Quality Management System and Product Design, Manufacturing, Installation and After sales Service of Commercial & Industrial R.O. water treatment plants and Domestic R.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 Highest Performance Capability with Moderate Financial Strength rating SE 1B. SWOT ANALYSIS

PROJECT THE ENVIRONMENT POLICY REGULATORY OVERVIEW

The water purification and treatment industry in India, under siege from cheap imports of water treatment products from China, is working to set standards for the water treatment industry 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 up with a solution. 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. 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 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. WQA or Water Quality Assurance is a not-for-profit international trade association representing residential, commercial, industrial and small community water treatment industry. WQA works with organizations representing different aspects of water industry worldwide. It has 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 water purification industry in India concentrated on bacterial contamination. But, what about the viruses 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 for purification," 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 will establish standards and generally fund technologies for water purification. This is expected to cut 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 have surveyed are: G.D GOENKA SCHOOL, VASANT KUNJ: - Currently they are using water dispensers and were impressed with the presentation and it was really very beneficial for them, because their strength is 2600 students. MATA GUJRI PUBLIC SCHOOL, GREATER KAILASH: - Currently they are using water of gurudwara and dont have their own source of drinking water. INMANTEC COLLEGE, GHAZIABAD: - Using small aqua guard right now and was very interested from the presentation and wanted to talk to director and finalize the deal.

MAHATMA GANDHI MISSION COLLEGE, NOIDA: -Using water dispenser right now but they have taken RO system twice but after sometime system has chocked, but they didnt get proper 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 service provider 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 very casual response. Educational institute who thought themselves as a brand want to give good services to their 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 the product in the minimum amount.

MARKET ENTRY STRATEGY WITH PRODUCT, PRICE AND PROMOTION The group should promote themselves through various campaigns in schools and colleges. The group should also advertise themselves in newspaper and TV, so the customer percept 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 MODEL

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 is the major determinant of the competitiveness of the industry.

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 intensify competitive pressures on their rivals.

Earth Water group has a threat from these competitors1. 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 realm of the common product boundaries increases the propensity of customers to switch to alternatives: 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

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 power of 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., charge excessively 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

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.

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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