a competitor analysis of different water brands in india

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A

PROJECT REPORT ON

A COMPETITOR ANALYSIS OF DIFFERENT BRANDS OF WATER PURIFIER

Submitted By:

SAURAV ROY CHOWDHURY Roll No :-

MBA 2010-12

UNDER THE GUIDANCE OF

Mrs. Jnui Deb Mallick Datta

(Prof. Marketing)

IN PARTIAL FULFILMENT FOR THE AWARD OF THE DEGREE OF

MASTERS OF BUSINESS ADMINISTRATION (MARKETING)

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DECLERATION

I, Saurav Roychowdhury, a student of MBA (2010-12) studying at IILM (International

Institute For Learning in Management), Kolkata, solemnly declare that the project work

titled- ‘A Competitor Analysis Of Different Brands Of Water Purifier” was carried out by

me at Hindustan Unilever Limited; Kolkata, in partial fulfillment of the MBA programme.

This programme was undertaken as a part of academic curriculum according to the

University rules and norms and by no commercial interest and motives.

Place:

Date

Saurav Roy Chowdhury

MBA(049)

2010-12

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ACKNOWLEDGEMENT

I feel great pleasure for the completion of this project. At the very outset I would

express my sincere thanks and deep sense of gratitude to personnel who helped me

during the collection of data and gave me rare and valuable guidance for the

preparation of this report.

I am thankful to Mrs. Pubali Sarkar for giving us such a wonderful opportunity to work

with corporate as a part of our project work and constantly motivating right from the

beginning.

I take this opportunity to express my deep sense of gratitude and appreciation to my project

guide Mrs. Juni Deb Mallick Datta (Prof marketing ) for assistance, motivation, and being a

continual source of encouragement for me.

I would like to thank Mr.Prosenjit Awan, Territory Sales Officer (TSO),HUL” Pure it”

Kolkata, for always helping me right from the beginning of the Project.

I take opportunity to thanks all my friends and also thank all people who directly or indirectly

concerned with this project. I also express my gratitude to my parents who give a constant

support and love throughout my life and career.

Saurav Roy Chowdhury

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EXECUTIVE SUMMARY

Hindustan Unilever Limited is the Indian arm of the Anglo-Dutch Company –

Unilever. Both Unilever and HUL have established themselves well in the Fast

Moving Consumer Goods (FMCG) category. In India, the company offers many

households brands like, Dove, Lifebuoy, Lipton, Lux, Pepsodent, Ponds, Rexona,

Sunsilk, Surf, Vaseline etc. Some of its efforts were also rewarded when four of HUL

brands found place in the ‘Top 10 brands’ list for the year 2008 published in The

Economic Times.

Unilever was a result of the merger between the Dutch margarine company,

Margarine Unie, and the British soap-maker, Lever Brothers, way back in 1930.

For 70 years, Unilever was the undisputed market leader but now faces tough

competition from Proctor & Gamble and Colgate-Palmolive.

HUL is also known for its strong distribution network in India. In order to further

strengthen its distribution, HUL launched a Project SAFE WATER ZONE in 2003 in

Chennai. The idea behind this project was to protect lives to water borne disease

such as typhoid, jaundice and diarrhea. In 2007 water division started national. Now

it presents in all states and already protec

ted 15 million lives.

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TABLE OF CONTENT

Contents COMPANY PROFILE .......................................................................................................... 8

AND .......................................................................................................................................... 8

INTRODUCTION ................................................................................................................. 8

Introduction to HUL ................................................................................................................ 10

Brands for life (Product Line) .................................................................................................. 13

INTRODUCTION TO PROJECT TOPIC............................................................................ 22

Competitive Analysis will help accomplish the following: ..................................................... 23

Product analysis (Pureit) .......................................................................................................... 27

A List of Competitors .............................................................................................................. 31

Why companies analyze competitors....................................................................................... 32

Competitor analysis has several important roles in strategic planning: ................................... 32

Sources of information for competitor analysis ....................................................................... 32

What businesses probably already know their competitors ..................................................... 33

What businesses would really like to know about competitors ............................................... 33

How a Pureit is better than other method of water purifier ..................................................... 34

COST COMPARISON ACROSS PURIFICATION METHODS .......................................... 35

SCOPE AND OBJECTIVE OF THE STUDY ........................................................................ 36

RESEARCH METHODOLOGY............................................................................................. 37

SWOT Analysis ....................................................................................................................... 41

Marketing Mix ......................................................................................................................... 42

DATA ANALYSIS& Interpretation ........................................................................................ 43

CROSS TABULATIONS ........................................................................................................ 56

CONCLUSION ..................................................................................................................... 83

RECOMMENDATIONS .................................................................................................... 85

Limitations Of Study................................................................................................................ 87

ANNEXURE ......................................................................................................................... 88

The Waterpurifier business ...................................................................................................... 93

(http://spoonfeedin.blogspot.in/2008/06/waterpurifier-business.html) ..................... 93

Village Financial Services and HUL tie up to sell Water Purifiers ......................................... 96

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LATEST INNOVATION IN WATER PURIFICATION AROUND THE WORLD............. 97

Forbes India: War for pure water ............................................................................................. 98

BIBLIOGRAPHY ................................................................................................................. 101

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TABLE OF ILLUSTRATION

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COMPANY PROFILE

AND

INTRODUCTION

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Company Profile

Type : Public company BSE:HUL

Industry

: Fast Moving Consumer Goods (FMCG)

Founded : 1933

Headquarter : Mumbai, India

Key people

: Harish Manwani (Chairman),

: Nitin Paranjpe (CEO and Managing

Director)

Products

: Home & Personal Care, Foods, Water

Purifier

Revenue

: Rs 20,869.57 crore (US$ 4.45 billion) (2008-

2009)

Employees : Over 65,000 direct & indirect employees

Parent

: Unilever Plc

Website : www.HUL.co.in

http://en.wikipedia.org/wiki/Types_of_business_entity

http://en.wikipedia.org/wiki/Public

http://en.wikipedia.org/wiki/Bombay_Stock_Exchange

http://en.wikipedia.org/wiki/Industry

http://en.wikipedia.org/wiki/Fast_Moving_Consumer_Goods

http://en.wikipedia.org/wiki/Mumbai

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Harish_Manwani

http://en.wikipedia.org/wiki/Product_(business)

http://en.wikipedia.org/wiki/Revenue

http://en.wikipedia.org/wiki/Indian_rupee

http://en.wikipedia.org/wiki/United_States_dollar

http://en.wikipedia.org/wiki/Employment

http://en.wikipedia.org/wiki/Holding_company

http://en.wikipedia.org/wiki/Unilever

http://en.wikipedia.org/wiki/Website

http://www.hul.co.in/

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Introduction to HUL

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods

Company, touching the lives of two out of three Indians with over 20 distinct categories in

Home & Personal Care Products and Foods & Beverages.

The company‘s Turnover is Rs. 20, 239 crores (for the 15 month period – January 1, 2008 to

March 31, 2010).

HUL is a subsidiary of Unilever, one of the world‘s leading suppliers of fast moving

consumer goods with strong local roots in more than 100 countries across the globe with

annual sales of €40.5 billion in 2008. Unilever has about 52% shareholding in HUL

Hindustan Unilever was recently rated amongst the top four companies globally in the list of

“Global Top Companies” for Leaders‖ by a study sponsored by Hewitt Associates, in

partnership with Fortune magazine and the RBL Group. The company was ranked number

one in the Asia-Pacific region and in India.

The mission that inspires HUL's more than 15,000 employees, including over 1,400

managers, is to ―add vitality to life". The company meets everyday needs for nutrition,

hygiene, and personal care, with brands that help people feel good, look good and get more

out of life. It is a mission HUL shares with its parent company, Unilever, which holds about

52 % of the equity.

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History

HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as

Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg.

Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has employee

strength of over 15,000 employees and contributes for indirect employment of over 52,000

people. The company was renamed in June 2007 to “Hindustan Unilever Limited”.

The Anglo-Dutch company Unilever owns a majority stake (52%) in Hindustan Unilever

Limited. HUL was one of the eight Indian companies to be featured on the Forbes list of

World‘s Most Reputed companies in 2007

Heritage

HUL‘s heritage dates back to 1888, when the first Unilever product, Sunlight, was introduced

in India. Local manufacturing began in the 1930s with the establishment of subsidiary

companies. They merged in 1956 to form Hindustan Lever Limited (The company was

renamed Hindustan Unilever Limited on June 25, 2007).

The company created history when it offered equity to Indian shareholders, becoming the

first foreign subsidiary company to do so. Today, the company has more than three lakh

resident shareholders. HUL‘s brands -- like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair &

Lovely, Sun silk, Clinic, Close-up, Pepsodent, Lakme, Brooke Bond, Kissan, Knorr,

Annapurna, Kwality-Walls - are household names across the country and span many

categories - soaps, detergents, personal products, tea, coffee, branded staples, ice cream and

culinary products.

They are manufactured in over 35 factories, several of them in backward areas of the country.

The operations involve over 2,000 suppliers and associates. HUL's distribution network

covers 6.3 million retail outlets including direct reach to over 1 million.

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Doing Well by Doing Good

HUL believes that an organization‘s worth is also in the service it renders to the community.

HUL focuses on hygiene, nutrition, enhancement of livelihoods, reduction of greenhouse

gases and water footprint. It is also involved in education and rehabilitation of special or

underprivileged children, care for the destitute and HIV-positive, and rural development.

HUL has also responded in case of national calamities / adversities and contributes through

various welfare measures, most recent being the relief and rehabilitation of the people

affected by the Tsunami disaster, in India.

HUL‘s Project Shakti is a rural initiative that targets small villages populated by less than

5000 individuals. Through Shakti, HUL is creating micro-enterprise opportunities for rural

women, thereby improving their livelihood and the standard of living in rural communities.

Shakti also provides health and hygiene education through the Shakti Vani programme.The

program now covers 15 states in India and has over 45,000 women entrepreneurs in its fold,

reaching out to 100,000 villages and directly reaching to over three million rural consumers.

HUL also runs a rural health programme, Lifebuoy Swasthya Chetana. The programme

endeavours to induce adoption of hygienic practices among rural Indians and aims to bring

down the incidence of diarrhoea. It has already touched 120 million people in approximately

50, 676 villages across India.

If Hindustan Unilever straddles the Indian corporate world, it is because of being single-

minded in identifying itself with Indian aspirations and needs in every walk of life.

Unilever products touch the lives of over 2 billion people every day – whether that's through

feeling great because they've got shiny hair and a brilliant smile, keeping their homes fresh

and clean, or by enjoying a great cup of tea, satisfying meal or healthy snack.

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Brands for life (Product Line)

Hindustan Unilever Limited has been the pioneer in the field of Food brand, Home care

brands, personal care brands, water purification systems, Nutrition, Health, Hygiene &

beauty products

The following are the basic products of Hindustan Unilever Ltd., which has always promised

to provide safe and healthy living.

Food Brands.

Home Care Brands.

Personal Care Brands.

Water Purification System.

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Food brands

HUL is one of India‘s leading food companies. Our passion for understanding what people

want and need from their food - and what they love about it - makes our brands a popular

choice.

Brooke Bond 3 Roses

Playful banter, a little mischief, serious conversation… there‘s no time for

young couples like the time spent sharing a cup of 3 Roses.

To keep a relationship going, every young couple needs a little time to talk

Annapurna

Partnering with the mom in nurturing her dreams, Annapurna Atta is

aimed at helping her provide wholesome tasty nutrition to her family.

Annapurna Atta is aimed at helping the homemaker provide wholesome, tasty nutrition

to her family.

Red Label

India‘s favorite cup of tea, the great taste of Red Label brings people closer

together and strengthens relationships.

The brew that bonds.

Brooke Bond Taaza

Brooke Bond Taaza lifts me and unshackles my mind, allowing me to see

and realize possibilities. The great refreshment of Taaza inspires women to

have an identity beyond their homes and to refresh their lives.

Taj - Mahal

http://www.hul.co.in/brands/foodbrands/3Roses.aspx

http://www.hul.co.in/brands/foodbrands/Annapurna.aspx

http://www.hul.co.in/brands/foodbrands/RedLabel.aspx

http://www.hul.co.in/brands/foodbrands/Taaza.aspx

http://www.hul.co.in/brands/foodbrands/TajMahal.aspx

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Brooke Bond Taj Mahal is an exclusive selection of teas for the discerning consumer.

A taste for the finer things in life. Taj Mahal is not just a cup of tea, it is a sensory

experience

Bru

Ek cup Bru aur mood ban jae…

Some moments in life are special and close to the heart. Bru makes

these moments with loved ones even more magical…Its India‟s largest coffee brand that

offers a range of products in Instant coffee, Conventional coffee and premixes....Its rich

aroma and unique blend makes every moment come alive…

Knorr.

Knorr helps families make meal times special, nutritious, tasty and

healthy

Kwality Wall‟s

A good honest scoop of daily pleasure.

. Kwality Wall‟s, the brand with a big heart, offers a range of delightful frozen desserts

that bring smiles to the faces of millions of Indians – kids, teens and adults. We do so

with our very popular brands - Cornetto, Feast, Paddle Pop, Selection & our award

winning parlour concept, Swirl‟s.

http://www.hul.co.in/brands/foodbrands/Bru.aspx

http://www.hul.co.in/brands/foodbrands/Knorr.aspx

http://www.hul.co.in/brands/foodbrands/KwalityWalls.aspx

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Home care brands

HUL has a diverse portfolio of brands offering home care solutions for millions of consumers

across India.

Active Wheel

Active Wheel de "Mehnat se Aazadi" Freedom from painful & tiring

laundry

Active Wheel enables consumers to perform laundry chores, giving “Great Clean”

within less effort.

Cif

Cif- the best cleaner to let you shine.

Cif- The World‟s leading cream cleaner which gives you the power to

deal with the toughest dirt is now in India.

Comfort

The world‘s largest fabric conditioner brand.

For most homemakers, ensuring their family's well-being is of utmost

importance. Every task, whether it‟s preparing a meal or washing the clothes, is an

expression of her love and affection for the family.

Domex

The sheer power of Domex bleach gives you the confidence you need,

eradicating all known germs.

The sheer power of Domex bleach gives you the confidence you need,

eradicating all known germs. With Domex, you can be absolutely certain that the job is

done.

http://www.hul.co.in/brands/homecarebrands/ActiveWheel.aspx

http://www.hul.co.in/brands/homecarebrands/Cif.aspx

http://www.hul.co.in/brands/homecarebrands/Comfort.aspx

http://www.hul.co.in/brands/homecarebrands/Domex.aspx

















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Rin

Rin provides ‗best in class whiteness‘ which is demonstrable.

Clothes talk for us. Rin plays an integral part in enabling us to look

good by providing demonstrably superior whites, giving us the confidence to realize our

ambitions.

Sunlight

Sunlight is a color care brand.

A dash of pink, a splash of yellow, a hint of purple and a bit of

orange. Colours can liven up any wardrobe and can make you look and feel

precious and if there‟s one detergent brand that‟s committed to colour care, it‟s

Sunlight

Surf Excel

Giving your kids the freedom to get dirty and experience life, safe in the

knowledge that Surf Excel will remove those stains.

When children go out to play and get dirty, they don't just collect stains. They

experience life, make friends, share with each other and learn from each other. This

helps them get stronger and get ready for the world outside

Vim

Created in 1885, the Vim brand is still innovating and using the magic

of natural ingredients to create unbeatable results over a hundred

years later.

http://www.hul.co.in/brands/homecarebrands/Rin.aspx

http://www.hul.co.in/brands/homecarebrands/Sunlight.aspx

http://www.hul.co.in/brands/homecarebrands/SurfExcel.aspx

http://www.hul.co.in/brands/homecarebrands/Vim.aspx

















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Personal care brands

Our personal care brands, including Axe, Dove, Lux, Pond's, Rexona and Sunsilk, are

recognized and love by consumers across India. They help consumers to look good and feel

good – and in turn get more out of life.

Aviance

Aviance enables women actualize their unique potential through expert

customized beauty solutions.

The Aviance promise

Aviance believes that no two women are alike. A truly beautiful woman is constantly searching

for ways to express and celebrate her own individuality. Aviance was created to empower this

woman. Encourage her. And help her become all she can be.

Axe

Axe with Best Quality Fragrance.

AXE is a cool, iconic, youth brand available in more than 60 countries.

In India, Axe, which has been launched in 1999, is the largest selling Male Deodorant..

Breeze

Breeze, with the goodness of glycerin gives soft, fragrant and smooth skin.

Breeze makes use of a new revolutionary global technology which

enhances the impact of world class perfumes in a much larger way, apart from bringing

out the goodness of glycerine.

Clear

New Clear with Essential Oils, guarantees Zero dandruff and leaves your

hair feeling fabulous.

New Clear. Zero dandruff, Just fabulous hair

http://www.hul.co.in/brands/personalcarebrands/Aviance.aspx

http://www.hul.co.in/brands/personalcarebrands/Axe.aspx

http://www.hul.co.in/brands/personalcarebrands/Breeze.aspx

http://www.hul.co.in/brands/personalcarebrands/Clear.aspx

















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Clinic Plus

Clinic Plus is India‘s largest selling shampoo and has won the trust the

millions of families across India.

Clinic Plus understands that healthy hair is an important asset which helps your family

progress in life and empowers you.

Closeup

Freshness that brings you Closer.

Closeup is synonymous with „Freshness‟ that gives you the confidence to be close to

someone.

Dove

Dove stands for real beauty. All around the world, Dove is making real

women feel more beautiful!

Since 1993, Indian women have relied on Dove for beautiful skin. Dove is known to be a

keeper of promises and has given real products to women world over.

Fair & Lovely

More than 30 years ago, a unique brand was born. Wrapped within a

humble lavender tube, it went on to become the World‘s No.1 Fairness

cream.

Hamam

Holistic skin care experiences perfected over the ages to deliver healthy,

beautiful skin

Hamam brings alive the wisdom behind time-less skincare rituals in convenient and

contemporary formats

http://www.hul.co.in/brands/personalcarebrands/ClinicPlus.aspx

http://www.hul.co.in/brands/personalcarebrands/Closeup.aspx

http://www.hul.co.in/brands/personalcarebrands/Dove.aspx

http://www.hul.co.in/brands/personalcarebrands/FairAndLovely.aspx

http://www.hul.co.in/brands/personalcarebrands/Hamam.aspx


























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Lakme

Lakme is an ally to the Indian Woman and inspires her to express her

unique beauty and sensuality. Thus, enabling her to realize the potency of

her beauty.

“Lakme is the Indian woman‟s Beauty Sutra” – inspiring expression of her unique

beauty and sensuality

Lifebuoy

Lifebuoy is available in multiple variants in soaps and specialist formats

such as liquid handwash, catering to the entire family.

Lifebuoy, an undisputed market leader for 112 years, has a compelling

vision “to make 5 billion people across the world, feel safe and secure by meeting their

personal care hygiene & health needs

Liril

Awaken, and enliven your senses with a Liril bath.

Over time, Liril has come to be synonymous with the freshness

of limes, active energy and freedom of expression by its symbolic display of the

uninhibited female form.

Lux

Lux believes in passion for beauty. It continues to be a favorite with

generations of users for a sensuous experience of luxury.

Lux stands for the promise of beauty and glamour as one of India's most trusted

personal care brands.

http://www.hul.co.in/brands/personalcarebrands/Lakme.aspx

http://www.hul.co.in/brands/personalcarebrands/Lifebuoy.aspx

http://www.hul.co.in/brands/personalcarebrands/Liril.aspx

http://www.hul.co.in/brands/personalcarebrands/Lux.aspx

















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Pears

Pears – the purest and most gentle way to skincare!

Pears launched in India in 1902, exuberates a long heritage of purity.

It is so pure that you can actually see through it!

Pepsodent

Pepsodent India is committed to improve the overall Oral health of

Indians.

Pepsodent is a 15 year old brand that offers various oral care solutions to specific need

based solutions.

Pond‟s

Get the expert to look after your skin

Pond‟s, has been listening to women‟s needs and desires for 150 years

and this has enabled us to deliver new products customised to their needs. Pond‟s

accompanies them on their journey to enhance the beauty of their skin.

Rexona

Rexona gives you 24 hr protection from sweat and body odour and

therefore the confidence to handle whatever the day has in store.

http://www.hul.co.in/brands/personalcarebrands/Pears.aspx

http://www.hul.co.in/brands/personalcarebrands/Pepsodent.aspx

http://www.hul.co.in/brands/personalcarebrands/Ponds.aspx

http://www.hul.co.in/brands/personalcarebrands/RexonaDeodorants.aspx

















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INTRODUCTION TO PROJECT TOPIC

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INTRODUCTION TO PROJECT TOPIC

India with a population of 120 crores is potentially one of the largest consumer markets in the

world. With urbanization and development of economy tested and interests of people changes

according as the advanced nation.

Marketing of any product depends upon the consumer‘s wants, preferences, and taste. In

market we‘ll consider things very carefully because FMCG is the essential consumer need

purchased by individual to fulfill the need and for refreshment also.

There‘re many ways to consumer awareness & sell water purifier products in the market like

dealers distribution, kiosk (canopy), d2d, cold call(referral, database..) etc.

Applying various tools and techniques every water purifier company like HUL, EURKA

FORBES, TATA, KENT etc. try to capture the market. .

To increase the sales of water purifier products initially, it is very important to conduct a

competitor analysis. Competitive Analysis is a process of gathering and analyzing

information about competitors, their practices, products, strengths and weaknesses and

business trends in order to assess our position in the market and improve company‘s products

and marketing strategies. A Competitive Analysis performed by an unbiased third party is an

invaluable tool because it can help to company for identify ways to attract new customers, as

well as keep the ones you have satisfied with company‘s products. Competitive Analysis

gives to company a realistic view of their competition and the opportunity to identify

improvement in areas like customer services, and marketing claims. It can help to compare

products prior to making their marketing and promotional decisions.

Competitive Analysis will help accomplish the following:

Have a realistic view of company competition.

Foresee market changes and demands.

Identify ways to attract customers from company‘s competitors.

Discover opportunities for improvement in company‘s business practices.

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Water Purifier-Pure it

Pureit is the world‘s most advanced in-home water purifier. Pureit, a breakthrough offering of

Hindustan Unilever (HUL), provides complete protection from all water-borne diseases,

unmatched convenience and affordability.

Pureit‘s unique Germ kill Battery technology kills all harmful viruses and bacteria and

removes parasites and pesticide impurities, giving you water that is "as safe as boiled

water". It assures your family 100% protection from all water-borne diseases like jaundice,

diarrhea, typhoid and cholera. What‘s more, it doesn‘t need gas, electricity or continuous tap

water supply.

Pureit not only renders water micro-biologically safe, but also makes the water clear,

odourless and good-tasting. Pureit does not leave any residual chlorine in the output

water.

The output water from Pureit meets stringent criteria for microbiologically safe drinking

water, from one of the toughest regulatory agencies in the USA, EPA (Environmental

Protection Agency).

The performance of Pureit has also been tested by leading scientific and medical institutions

in India and abroad.

This patented technological breakthrough has been developed by HUL. This state-of –the-art

engineering developed by a team of over 100 Indian and international experts from HUL and

Unilever Research Centers has made Pureit possible at the consumer price of just Rs. 2000.

Pureit runs with a unique ‗Germ kill Battery Kit‘™ that typically lasts for 1500 liters* of

water. The ‗Germ kill Battery Kit‘ is priced at Rs.365. This means consumers will get 4 litres

of water that is ‗as safe as boiled water‘ ™ for just one rupee, which works out to an

extremely affordable 24 paise per litre.

Pureit in-home purification system uses a 4 stage purification process to deliver ―as safe as

boiled water‖ without the use of electricity and pressurized tap water.

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Pureit purifies the input drinking water in four stages, namely;

1. Micro-fiber Mesh - Removes visible dirt

2. Compact Carbon Trap

- Removes remaining dirt, harmful parasites & pesticide

impurities

3. Germ kill Processor – uses 'programmed chlorine release chlorine technology' and its

stored germ kill process targets and kills harmful virus and bacteria

4. Polisher – removes residual chlorine and all disinfectant by-products, giving clear

odourless and great tasting water

5. Battery Life Indicator - Ensures total safety because when the germ kill power is

exhausted, the indicator turns red, warning you to replace the battery

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Some basic facts on water Problems

Infected water causes an estimated 80 percent, of disease in India, according to

the World Health Organization (WHO).

About half the world‘s reported cases of polio, a crippling disease which is

waterborne, occur in India.

Each year, diarrhea kills 500,000 Indian children.

Water is pure at the source which is the municipal treatment plant. It comes to

your house through pipes.

These pipes are very old and have rusted, which may be the cause of

contamination.

Sewage lines are also in contact with underground water pipes.

People also break open pipes at places to have access to water. These open

cracks allow contaminated matter to get inside the water pipes.

With the ever growing problem of safe drinking water faced in India, HUL has come with

a social initiative of providing safe and pure drinking water by means of Pureit, a quality

yet affordable water Pureit.

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Product analysis (Pureit)

Pureit- a water purifier designed and developed to provide ―as safe as Boiled

water‖

Performance

Pureit removes visible dirt, kills all viruses and bacteria, removes parasites and pesticide

impurities giving you water that is ‗as safes as boiled water‘

Additional Features:

Great sensorial – Clear, odour -free water : removes organics, pesticides, suspended

matter (turbidity)

Any time , any where performance : works

- Without electricity

- Without piped water

Convenience – No hassles of boiling, No maintenance costs like plumbing

Cost – Rs. 1/- for every 4 Liters of water

The Technology:

Chlorination of water is a known fact & is used as a world wide phenomenon by

municipal corporations for supply of potable water.

It kills all bacteria and viruses in water.

However chlorine added I n water by these corporation is not done scientifically

especially in third world countries. Hence

the amount of chlorination may be more or

less depending on the quantity of water;

thus again making this water unsafe for

human consumption.

← Frame

← Non woven { polyester cloth filter}

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MICRO FIBRE MASH

Material – Non woven polyester

Removes suspended particulate > 10 micron

Reduces filtration load on CCT

Average flow rate of 5 lit/min

COMPACT CARBON TRAP

Material – intermediate activated

carbon

Binder is used for holding the

carbon granules

Removes particulate impurities <

10 micron

Removes organic load – improves

taste of water

Removes pesticides

Removes cysts

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GERM KILL PROCESSOR

Attached with batching chamber.

Stored germ-kill power target and kill harmful viruses and bacteria

Unique Auto Switch off Technology –

> After the battery life indicator turns fully red, the purifier will begin to

overflow from the battery life indicator on the front side.

> Some water may still pass through the purifier. However, please note that the

purifier has stopped purifying water & the water may no longer be safe for

drinking.

> The purifier has been designed to overflow to indicate that the battery has not

been replaced even after it has turned fully red.

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POLISHER

Made by activated granular carbon and coated by silver.

This design has reduced pressure drop, eliminating the level of fines coming in the

water and reduced wastage of plastics in battery

Removes chlorine and disinfection by-products.

Radial flow design – low pressure drop.

Finally removes all odour, makes water visually clear & gives great tasting water

31

A List of Competitors

The analysis begins with a list of Hindustan Unilever Limited (HUL) of water division Pure

it‘s competitors. Most of the time, such a list is comprised of what company co-considers to

be its chief competitors. However, there may be other companies that indirectly compete with

HUL, ones that offer products or services that are aiming for the same customer capital.

Hindustan Unilever Limited (HUL) of water division Pure its competitors in the market are:

1. Eureka Forbes Limited

2. Philips

3. Whirlpool

4. Kent

5. Usha Brita

6. Alfaa

7. Kenstar

8. Hi-tech

9. Zero B

10. Modi Durant

11. Hemkund

12. Godrej

13. Tata

32

Why companies analyze competitors?

Some businesses think it is best to get on with their own plans and ignore the competition.

Others become obsessed with tracking the actions of competitors (often using underhand or

illegal methods). Many businesses are happy simply to track the competition, copying their

moves and reacting to changes.

Competitor analysis has several important roles in strategic planning:

• To help management understand their competitive advantages/disadvantages relative to

competitors.

• To generate understanding of competitors‘ past, present (and most importantly) future

strategies.

• To provide an informed basis to develop strategies to achieve competitive advantage in the

future.

• To help forecast the returns that may be made from future investments.

Sources of information for competitor analysis How the sources of competitor information can be neatly grouped into three categories:

• Recorded data: this is easily available in published form either internally or externally.

Good examples include competitor annual reports and product brochures;

• Observable data: this has to be actively sought and often assembled from several sources.

A good example is competitor pricing;

• Opportunistic data: to get hold of this kind of data requires a lot of planning and

organization.

33

What businesses probably already know their competitors?

Overall sales and profits

Sales and profits by market

Cost structure

Market shares (revenues and volumes)

Organization structure

Distribution system

Identity / profile of senior management

Advertising strategy and spending

Customer / consumer profile & attitudes

Customer retention levels

What businesses would really like to know about competitors?

Sales and profits by product

Relative costs

Customer satisfaction and service levels

Customer retention levels

Distribution costs

Size and quality of customer databases

Advertising effectiveness

Future investment strategy

34

How a Pureit is better than other method of water purifier:-

Main Feature Pureit Boil

water

Advance

UV inline

Purifier

Advance

Storage

Purifier

Remove/Kills

Viruses

Bacteria

Pesticides

Yes Must boil

water

30-

40minute

Yes No

End off life indicator Yes No Yes No

Auto switch off Yes No Yes No

18 ltr. Water storage

Capacity

Yes Yes No Yes

Manual backup Yes Yes No Yes

Not require Gas Yes No Yes Yes

Not require electricity Yes Yes No Yes

Dual fill Facility

(Manual or Auto fill)

Yes No No No

Better Taste of water

Removes Smell

Yes No Yes No

35

COST COMPARISON ACROSS PURIFICATION METHODS

Cost comparison across purification methods

Method of purification paise/litre

Cost of Pureit water 24

Cost of Pureit water 35

Cost of boiling water 47

Cost of leading UV in-line purifier 64

Cost of 20 litres of leading bottled water

brand

350

Cost of 1 litre of leading bottled water brand 1200

36

SCOPE AND OBJECTIVE OF THE STUDY

This will help us to know the market tends demand and consumption patterns future

prospectus in term of potential growth consumer test and buying behavior for the HUL

product water purifier and the competitive aspect of the product in relation to other products

in the market. At the same time some bottlenecks and loopholes in the entire process could

also be taken into consideration for their solution as well as betterments. In short following

few aspects could be taken care of through this study:-

To identify the attributes those compel the dealers to select the product..

To study about the relationship and association of the household with the company.

To identify the dealer‘s response towards brands they are dealing.

Popularity of company product among customers.

Competitive analysis of the product.

To know about the awareness of drinking water used by various households.

OBJECTIVES:-

The main objective of this project is to find, what are the steps Hindustan Unilever

Ltd. is adapting to be market leader and to differentiate itself from its competitors.

Not, only product but it has to look upon the services and feed back from customers

also. It should do something to give after sales service and collect feed back from the

customers.

Strength, Weakness, Opportunity and Threat.

How to increase productivity of sales in Kiosks

Competitive analysis of ‗PURE IT‘

37

RESEARCH METHODOLOGY

It‘s the way by which we collected data and used it to analysis the available fact for arriving

at a particular results and suggestion. Basically there are two ways of collecting the data

primary & secondary.

RESEARCH DESIGN

It consists of clean statement of the research problem procedures and information processing

and analysis of data collected. It includes hypothesis also.

I have used Descriptive Research which includes survey and fact-finding enquiries of

different kinds. The main characteristics of this method are that the researchers have no

control over the variables; he can only report what has happened or what is happening. The

major purpose of descriptive research is description of the state of affairs as exists as present.

Problem to retailers with their respective FMCG Company.

Taste and preference of retailers and consumers towards the brand.

Strategy of different players in the market.

Different schemes of different brands.

Descriptive research design: - alone with some exploratory research was applied which

descriptive the state of affairs as they subsists. Descriptive research was used in the study of

marketing strategies for the sale of company‘s product also studying about the parameters

which affect the competitiveness of the product.

Analytical research:- in this kind of research researcher uses facts or information which are

already available and analysis these for critical and rational facts of the past and present tends

in the demand and consumption, quality of product, packaging methods, supply and

distribution and analyzed them for critical result and suggestion some recommendation.

38

Sampling methodology: The sampling methodology used is Non Probability sampling

technique-Convenience sampling (A non probability sampling technique that attempts to

obtain a sample of convenient elements. The selection of sampling unit is left primarily to the

interviewer)

Sampling design:

I. Selection of study area: Kolkata II. Selection of Sample size: 100

DATA ANALYSIS

Data become useful only affect they are properly analyzed. Data analysis involves covering‘s

as series of recorded observation i.e. data into descriptive statement and inference about

relationship. This task is helpful in identified the areas where the company each improve

further collected data was analysis by the use of simple statistic tools like percentage and

(univariate analysis) result have been represented by using bar chart columns and pie chart.

DATA COLLECTION

This was done by using:-

A. Primary data. These are the fast hand information as observation in leads to collect

through surveying as interviewing using questionnaire and schedules.

Questionnaire- it can be recognized as a schedule, interview from or measuring instrument is

a formalized set of question for obtaining information from the repaired. It is widely used in

consumer and industrial marketing research analysis.

B. Secondary data – these are the data which are already available in data which are already

available in usable forms various type secondary data used.

Literature from various papers, journals, and magazines. E.g. News and Views

and paper India.

Annual report (previous record of the company.)

Internet surfing.

Other official sources.

39

RESEARCH APPROACH

The research is based initially on an exploratory research & finally followed by descriptive

research.

RESEARCH INSTRUMENTS

The research instrument used in the study was predesigned up to designed questionnaire with

closed ended multiple choice & open-ended questions.

QUESTIONNAIRE

The questionnaire is by far the most common instrument in collecting primary data & the

questionnaire consists of question presented to respondent for their answers. The

questionnaire used a set of open-ended question.

SAMPLE SIZE

Sample size is 100 households

Type of research - Descriptive research (it includes facts findings service)

Statistical tools - Pie charts, bar diagrams etc.

Data collection - Through questionnaire

UNIVERSE

In the data of the sampling, large sample units are preferred to get the accurate outcome of

the research. I took few places from north Kolkata for my survey. Places covered are Dunlop,

Bali, Cossipore, Shyambazar etc.

41

SWOT Analysis

Strength

HUL Brand

Taste of Purified water

Low and mid price range

Better understanding to customer

Weakness

Service facility

Untrained PWE‘s

Less color choices

Threats

Hike in cost of production due to hike in raw material cost

Increasing distribution Cost

Entry of new entrant- Tata Swach etc.

Opportunity

Changing consumer preference

Awareness of people to water borne diseases

Increasing demand for water purifier

42

Marketing Mix

PRODUCT PRICE

a) Easily available nationwide.

b)Easy to handle.

c) Multiple products launched for each product

type.

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.

PROMOTION PLACE

a)Active subscription immediately

b) Right time installation of products

c) Properly repair services against paid AMC‘s.

d) Service during contract period

a) Urban educated India that cares for

their family.

b) Areas prone to diseases.

C) Strategically chosen locations for catching

the eye of potential consumers.

d) Various stalls near market places

LIMITATION OF THE STUDY

Time is the major constraint in the study

My Study is confined to 100 respondents.

Research is done only in some parts of Hyderabad

Respondents Fatigue.

Researcher inexperience.

43

DATA ANALYSIS

&

INTERPRETATION

44

Q1. How do you treat your drinking water?

o Do nothing

o Boiled water

o Use electrical water purifier

o Use non electrical water purifier

Interpretation :-After the survey of 100 households:-

Most of the peoples are using electric water purifiers

This shows that people are more conscious about there health

Only a few portion of the households are not using any kind of water purifiers

45

Q2. Do you know that 80% of the diseases in our country are water bound?

o Yes

o No

o Not aware

Interpretation:- From the survey of 100 persons I found that

75% of the people are aware that most of diseases are mainly due to the water.

17%of the peoples say that it is not because of water there family members gets ill.

8% of the people are not aware about water born diseases

Marketing Implications :-

17% of the people are still not aware of the diseases that are present in impure water. So to

cover that 17% more awareness programes must be created to increase the market share.

No.of People, Yes , 75, 75%

No.of People, No, 17, 17%

No.of People, Not Aware, 8, 8%

Yes No Not Aware

46

Q3. While buying any water purifier what comes to your mind first?

o Price

o Health & Safety

o Both

Interpretation-

After a survey, I found that 75% people preference health and safety in buying water purifier.

Pureit offers an economical way of getting great tasting and 100 % safe drinking

water.

People are more conscious about they health.

They mainly make use of water which is rich in minerals.

Marketing Implication :- Majority of the consumers are not affected by the pricing but more

conscious about the health and safety features. So without bringing any pricing changes it

would be good to enhance the safety and purification features more.

Health & Safety 75%

Price 10%

Both 15%

Buying Preference

47

Q4. Comment on the price of your water purifier?

o Affordable

o High

o Should be Revised

Comments on Prices of water purifiers

Interpretation- After a survey, I found that price of water purifier is Affordable for 53% of

people, The price is high for 30% people.. The water purifier Companies should reduce

there prices in order to increase its market share

Affordable- 53%

High- 30%

Revised - 17%

48

Q5.Do you know that boiled water is not necessarily safe water?

o Yes

o No

Interpretation - After a survey of about 100 house holds, I have found that-

62% says that boil water is safe.

38% of the people have a opinion that boil water is safe only for few hours

This shows that even after boiling water isnot safe for drinking purpose.

Marketing Implications :-

Still more market awareness about the benefits of pure-it has to be done as majority of the

market still relies on tradional method of boiling water and considering them as safe.

62%

38%

Number of people using water purifier

yes no

49

Q6 : What company water purifier you are currently using?

Which Company Frequency Percent

Eureka Forbes 50 50.0

HUL Pure it 14 14.0

Kent 10 10.0

Philips 10 10.0

Whirlpool 7 7.0

Any Other 9 9.0

Total 100 100.0

INTERPRETATION

Out of 100 respondents, the data of people are using water purifier and people are not using

water purifier .Those people are not using water purifier, if they will buy ,they will buy only

this company‘s product like Eureka Forbes,Hul,Kent,Philips,Whirlpool.50% (50),14%

(14),10% (10),10%(10),7% (7),9% (9) of people are using and will use Eureka Forbes, Hul,

Kent, Philips, Whirlpool and any other company‘s water purifier

05

101520253035404550

50

14 10 10 7 9

FREQUENCY EurekaForbes

HULPure it

Kent

Philips

Whirlpool

AnyOther

50

Q7. Criteria considered for Purchase?

1. Brand name

2. Technology

3. Price

INTERPRETATION:-

From the survey of 100 respondents, it is observed that a majority of the sample ie 60% are

more interested about the technology used in purification process. About 25% are affected by

the brand image and 15% are affected by the price.

MARKET IMPLICATION:-

The major competition in the market is based on the technology provided and not price.

However the companies like Eureka Forbes have a strong brand image in water purification

area in the market. So to overcome this, HUL has to provide a better purification method and

also emphasis on brand awareness. Since price is not a major purchasing factor, a price war

would not result in having a greater market share.

0

10

20

30

40

50

60

70

Brandname Technology Price

51

Q8. Is the quality of water provided by Pure-it tastes good, looks clear and

odorless?

TASTE GOOD,ODORLESS

LOOKS CLEAR

FREQUENCY PERCENT

Yes 80 80.0

No 9 9.0

Don't Know 11 11.0

Total 100 100.0

INTERPRETATION

The above data has given the frequency and percentage of respondents about taste of water is

good, odorless, looks clear. Out of 100 respondents, 80 % (80) of people have given their

view ‗YES‘. the taste of water is good, odorless and looks clear.9 % (9) of people have told

‗NO‘, the taste of water is good, odorless and looks clear and 11 % (11) of people have given

their view ‗don‘t know‘ about taste of water.

0

10

20

30

40

50

60

70

80

Yes No Don'tKnow

80

9 11

FREQUENCY

Yes

No

Don'tKnow

52

Q9. What is the price of the water purifier that you are currently using or are planning

to use?

COST FREQUENCY PERCENT

Rs. 1000- Rs. 5,000 37 37.0

Rs. 6,000- Rs. 10,000 27 27.0

Rs. 11,000- Rs. 15,000 20 20.0

More than Rs. 15,000 16 16.0

Total 100 100.0

Interpretation:-

37% of the consumers are using the cheapest purifier available. 27% are using the lower

middle range and 20% are using upper middle range of purifiers, while 16% are using

premium product.

Marketing Implication:-

. HUL has a variety of products at these levels of income but it has to provide more

diversified products to the upper income segment to increase their market share. Most of the

premium users are using Eureka Forbes because of their brand image and are less reluctant to

take a risk in switching over to a new company in that segment.

0

5

10

15

20

25

30

35

40

37

27 20

16

FREQUENCY

Rs. 1000-Rs. 5,000

Rs. 6,000-Rs. 10,000

Rs. 11,000-Rs. 15,000

More thanRs. 15,000

53

Q10. Where do you prefer to buy a water purifier from?

o Retail Outlets

o Franchisee dealers

o Direct Marketing

Interpretation- in the survey I found that people like to purchase water purifier by direct

marketing. In the survey I found that 45% people preferred direct marketing, 35% people

preferred Retails outlets and 20% people preferred Franchisee to purchase the water purifier.

0

5

10

15

20

25

30

35

40

45

Retails Outlets

Direct MarketingFranchisee

35

45

20

Preffered Places to buy

54

Q11. Frequency and Percentage of respondents about what comes your mind first i.e.

Price or Health & Safety or Both

What comes your mind first Frequency Percent

Price 16 16.0

Health & Safety 39 39.0

Both 45 45.0

Total 100 100.0

INTERPRETATION :-

The above data has told, frequency and percentage of respondents about what comes

customers mind first i.e. Price or Health or Both. Out of 100 respondents, 45 % (45) of

respondents have given their view that both that is price as well as health and safety.

Percentage of respondents who are only concern about health and safety was found 39 %

(39).Percentage of respondents who are concern about only price was found 16 % (16).

0

5

10

15

20

25

30

35

40

45

Price Health &

Safety

Both

16

39 45

Frequency

Price

Health &

Safety

Both

55

Q12. Where you did heard about the product?

o TV commercial

o Newspaper print ads

o In shop branding

o Friend‘s references

Interpretation: from that above graph it is clear that most portion of the households purchse

products of Companies by watching TV commercial advertisements. The Companies should

be more focused on TV commercial Advertisements.

MARKETING IMPLICATION :-

Much more emphasis should be given to other media vehicles rather than focusing only on

TV commercials. More awareness is more sales.

0

5

10

15

20

25

30

35

40

Preference

Preference

56

CROSS TABULATIONS

Cross tabulation between „Company and Taste of water

WHICH

COMPANY

Tastes good ,odorless ,looks clear Total

Yes No Don‟t Know

Eureka Forbes 45 1 4 50

Hul 9 2 3 14

Kent 9 1 0 10

Philips 8 1 1 10

Whirlpool 4 2 1 7

Any Other 5 2 2 9

Total 80 9 11 100

Cross tabulation between „Company and Taste of water

57

INTERPRETATION

1. PERCENTAGE WITHIN „COMPANY‟

A. Eureka Forbes : Among the total 50 Eureka Forbes users

The view of Eureka Forbes users toward taste of water is good, odorless and looks

clear was found, Yes – 90 % (45), No- 2% (1), Don‘t know- 8% (4)

B. Hul : Among the total 14 Pure it (Hul) users

The view of Hul users toward taste of water is good, odorless and looks clear was found,

Yes – 64.3 % (9), No- 14.3% (2), Don‘t know- 21.4% (3)

C. Kent : Among the total 10 kent users

The view of Kent users toward taste of water is good, odorless and looks clear was found,

Yes – 90 % (9), No- 10% (1), Don‘t know- 0% (0)

D. Philips Among the total 10 Philis users

The view of Philips users toward taste of water is good, odorless and looks clear was found,

Yes – 80 % (8), No- 10% (10), Don‘t know- 10% (10)

0

5

10

15

20

25

30

35

40

45

50

Eureka

Forbes

Hul kent Philips Whirlpool Any Other

45

9 9 8 4 5

1

2 1 1

2 2

4

3

0 1

1 2

Don‘t Know

No

Yes

58

F. Whirlpool: Among the total 7 Whirlpool users

The view of Whirlpool users toward taste of water is good, odorless and looks clear was

found,

Yes – 51.1 % (4), No- 28.6% (2), Don‘t know- 14.3% (14.3)

G. Any Other: Among the total 9 any other water Purifier users

The view of any other Water purifier users toward taste of water is good, odorless and looks

clear was found, Yes – 55.6 % (5), No- 22.2% (2), Don‘t know- 22.2% (2)

2. PERCENTAGE WITHIN „TASTE OF WATER‟

A. Yes: Among the total 80 respondents for whom the taste of water is good, odorless and looks

clear.

The percentage of Eureka Forbes users, Hul users, kent users, Philips users, whirlpool users

was found 56.3% (45), 11.3% (9), 11.3 % (9), 10 % (8), 5 % (4), 6.3 % (5) respectively.

B. No: Among the total 9 respondents for whom the taste of water is not good, odorless and looks

clear

The percentage of Eureka Forbes users, Hul users, kent users, Philips users, whirlpool users

was found 11.1% (1), 22.2% (2), 11.1% (1), 11.1 % (1), 22.2% (2), 22.2% (2) respectively.

C. Don‟t know : Among the total 11 respondents ,they don‘t know the taste of water is good,

odorless and looks clear .The percentage of Eureka Forbes users, Hul users, kent users, Philips

users, whirlpool users was found 36.3% (4), 27.3% (3), 0 % (0), 9.1 % (1), 9.1 % (1), 18.2 % (2)

respectively.

59

Cross tabulation between „Company and Cost Price of Water Purifier‟

Which

company

Cost

Total

Rs1000-Rs

5000

Rs5000-

Rs10000

Rs 10000-

Rs15000

Above Rs

15000

Eureka

Forbes

22 14 8 6 50

Hul 6 3 4 1 14

Kent 3 3 1 3 10

Philips 3 4 1 2 10

Whirlpool 1 0 3 3 7

Anyother 2 3 3 1 9

Total 37 27 20 16 100

60


INTERPRETATION


A. Eureka Forbes: Among the total 50 respondents

The view of respondents toward cost of water purifier they are using and wants to use was

found,

Rs 1000 to Rs 5000-44 % (22), Rs 6000 to Rs 10000-28 %( 14), Rs 11000 to Rs 15000-16%

(8), Above Rs 15000-12% (6)

B. Hul: Among the total 14 Pure it (Hul) users

0

5

10

15

20

25

30

35

40

45

50

22

6 3 3

1 2

14

3

3 4

0

3

8

4

1 1

3

3

6

1

3 2

3

1

Above Rs 15000

Rs 10000-Rs15000

Rs5000-Rs10000

Rs1000-Rs 5000

61


found,

Rs 1000 to Rs 5000-42.9 % (6), Rs 6000 to Rs 10000-21.3 %( 3), Rs 11000 to Rs 15000-

28.6% (4), Above Rs 15000-7.1% (1)



found,


(1), Above Rs 15000-30% (3)

D: Philips Among the total 10 Philis users


found,

Rs 1000 to Rs 5000-30 % (3), Rs 6000 to Rs 10000-40 %(4), Rs 11000 to Rs 15000-10% (1),

Above Rs 15000-20% (2)

E. Whirlpool: Among the total 7 Whirlpool users


found,

Rs 1000 to Rs 5000-14.3 % (1), Rs 6000 to Rs 10000-0 %(0), Rs 11000 to Rs 15000-42.9%

(3), Above Rs 15000-42.9% (3)

F. Any Other : Among the total 9 any Other water Purifier users


found,

Rs 1000 to Rs 5000- 22.2% (2), Rs 6000 to Rs 10000-33.3 %( 3), Rs 11000 to Rs 15000-

33.3% (3), Above Rs 15000-11.1% (1)

62

2.PERCENTAGE WITHIN „COST‟

A.Rs 1000-Rs 5000: Among the total 37 respondents

The percentage of respondents who are using Eureka Forbes, Hul, Kent, Philips, Whirlpool

and any other company‘s water purifier, the cost of Rs 1000-Rs 5000 was found 59.5

%(22),16.2 % (6),81.1 % (3),81.1% (3),2.7 % (1),5.4% (2) respectively.

B. Rs 5000-Rs 10000: Among the total 27 respondents



%(14),11.1 % (3),11.1 % (3),14.8% (4),0 % (0),11.1% (3) respectively.

C. Rs 10000-Rs 15000: Among the total 20 respondents


and any other company‘s water purifier, the cost of Rs 10000-Rs 15000 was found 40

%(8),20 % (4),5 % (1),5% (1),15 % (3),15% (3) respectively.

D. Above than Rs 15000: Among the total 16 respondents


and any other company‘s water purifier, the cost of above Rs 15000 was found 37.5 %(6),6.3

% (1),18.8 % (3),12.5% (2),18.8 % (3),6.3% (1) respectively.

63

Cross tabulation between „Company and Service after sales‟

Which Company Service after sales

Total

Yes No

Eureka Forbes 30 20 50

Hul 9 5 14

Kent 8 2 10

Philips 7 3 10

Whirlpool 5 2 7

Any Other 5 4 9

Total 64 36 100

64

Cross tabulation between „Company and Service after sales‟

INTERPRETATION

1. PERCENTAGE WITHIN “COMPANY”

A. Eureka Forbes : Among the total 50 Eureka Forbes users

The view of Eureka Forbes users toward service after sales was found, Yes – 60 % (30), No-

40% (20)

B. Hul: Among the total 14 Hul users

The view of Hul users toward service after sales was found, Yes – 64.3% % (9), No- 35.7%

(5)

0

5

10

15

20

25

30

35

40

45

50

EurekaForbes

Hul Kent Philips Whirlpool Any Other

30

9 8 7 5 5

20

5

2 3

2 4

No

Yes

65

C. Kent : Among the total 10 Kent users

The view of Kent users toward service after sales was found, Yes – 80 % (8), No- 20% (2)

D.Phillips: Among the total 10 Phillips users

The view of Phillips users toward service after sales was found, Yes – 70 % (7), No- 30% (3)

D. Whirlpool : Among the total 7 Whirlpool users

The view of Whirlpool users toward service after sales was found, Yes – 71.4% (5), No-

28.6% (2)

E. Any other: Among the total 9 Any other users

The view of any other users toward service after sales was found, Yes – 55.6% (5), No-

44.4% (4)

66

2. PERCENTAGE WITHIN „SERVICE AFTER SALES‟

A. Yes: Among the total 64 respondents for whom services provided by company is good.The

percentage of Eureka Forbes users, Hul users, kent users, Philips users, whirlpool users was found

53.1% (30), 7.8% (9), 12.5 % (8), 10.9 % (7), 7.8 % (5), 7.8 % (5) respectively.

B. No: Among the total 36 respondents for whom services provided by company is not good.The

percentage of Eureka Forbes users, Hul users, kent users, Philips users, whirlpool users was found

44.4% (20), 25.0% (5), 5.6% (2), 8.3 % (3), 5.6% (2), 11.1% (4) respectively.

67

Cross tabulation between „Company and Market Activities‟

Which

company

Market Activities

Total

Road Show Visual

Merchandising

Others


Hul 5 6 3 14

Kent 5 4 1 10

Philips 6 2 2 10

Whirlpool 5 1 1 7

Anyother 6 2 1 9

Total 49 33 18 100

68

Cross tabulation between „Company and Market Activities‟

INTERPRETATION


A. Eureka Forbes : Among the total 50 respondents

The view of respondents toward market activities was found, Road show-44% (22), Visual

Merchandising-36% (18), Others- 20 %( 3)

0

5

10

15

20

25

30

35

40

45

50

Eureka

Forbes

Hul Kent Philips Whirlpool Anyother

22

5 5 6 5 6

18

6 4 2

1 2

10

3

1 2

1

1

Others

Visual Merchandising

Road Show

69

B. Hul : Among the total 14 Pure it (Hul) users

The view of respondents toward market activities was found, Road show-35,7% (5), Visual

Merchandising-42.9% (6), Others- 21.4 %(10)




D. Philips Among the total 10 Philis users




The view of respondents toward market activities was found,

Road show-71.3% (5), Visual Merchandising-14.3% (1), others- 14.3 %( 1)

F. Any Other : Among the total 9 any Other water Purifier users

The view of respondents toward market activities was found, Road show-66.7% (6), Visual

Merchandising-22.2% (2), others- 11.1 %( 1)

2. PERCENTAGE WITHIN „MARKET ACTIVITIES‟

A. Road Show: Among the total 49 respondents, who saw the road show of water Purifiers.The

percentage of road show of Eureka Forbes , Hul , kent , Philips , whirlpool and any other water

purifiers was found 44.9% (22), 10.2% (5), 10.2 % (5), 12.2 % (6), 10.2 % (5), 12.2 % (6)

respectively.

B. Visual Merchandising: Among the total 33 respondents, who saw the visual merchandising of

water Purifiers. The percentage of visual merchandising of Eureka Forbes , Hul , kent , Philips ,

whirlpool and any other water purifiers was found 54.5% (18), 18.2% (6), 12.1 % (4), 6.1 % (2),

3.0 % (1), 6.1 % (2) respectively.

C. Any other: Among the total 18 respondents, who saw the other market activities of

water Purifiers.The percentage of any other market activities of Eureka Forbes , Hul , kent ,

Philips , whirlpool and any other water purifiers was found 56.6% (10), 16.7% (3), 5.6 % (1),

11.1 % (2), 5.6 % (1), 5.6 % (1) respectively

70

Cross tabulation between „Have a water purifier and Cost Price of Water Purifier‟

Have a water

Purifier

Cost Total

Rs1000-Rs

5000

Rs5000-

Rs10000

Rs 10000-

Rs15000

Above Rs

15000

Yes 17 12 8 11 48

No 20 15 12 5 52

Total 37 27 20 16 100

71

Cross tabulation between „Have a water purifier and Cost Price of Water Purifier‟

0

10

20

30

40

50

60

Yes No

Above Rs 15000

Rs 10000-Rs15000

Rs5000-Rs10000

Rs1000-Rs 5000

72

INTERPRETATION

1.PERCENTAGE WITHIN WATER PURIFIER

A.Yes: Among the total 48 respondents have water purifier

The percentage of respondents are using cost of water purifier Rs 1000-Rs 5000 was found

35.4 % (17)


25 % (12)


16.7 % (8)

The percentage of respondents are using cost of water purifier above Rs 15000 was found

22.9 % (11)

B.No: Among the total 52 respondents don‟t have water purifier

The percentage of respondents who wants to buy water purifier from Rs 1000-Rs 5000 (if

they will use water purifier in future) was found 38.5% (20)


they will use water purifier in future) was found 28.8 % (15)


they will use water purifier in future) was found 23.1% (12)

The percentage of respondents who wants to buy water purifier from more than Rs 15000 (if

they will use water purifier in future) was found 9.6 % (5)

2.PERCENTAGE WITHIN COST OF WATER PURIFIER

A. Among the total 37 respondents, view about cost of Rs 1000- Rs 5000 water purifier

73

Yes: The percentage of respondents who are using water Purifier, cost of Rs 1000-Rs 5000

was found 45.9 %( 17)

No: The percentage of respondents who are not using water Purifier, cost of Rs 1000-Rs

5000 was found 54.1% (20)

B. Among the total 27 respondents, view about cost of Rs 5000- Rs 10000 water purifier


was found 44.4 %( 12)

No: The percentage of respondents who are not using the water Purifier, cost of Rs 5000-Rs

10000 was found 55.6 % (15)

C . Among the total 20 respondents, view about cost of Rs 10000- Rs 15000 water

purifier


was found 40 % (8)

No: The percentage of respondents who are not using water Purifier, cost of Rs 10000-Rs

15000 was found 60 % (12)

D. Among the total 20 respondents, view about cost of more than Rs 15000 water

purifier

Yes: The percentage of respondents who are using water Purifier, cost of more than Rs 15000

was found 68.8 % (11)

No: The percentage of respondents who are not using the water Purifier, cost of more than

Rs 15000 water Purifier was found 31.2 % (5)

74


Which

company

Cost

Total

Rs1000-Rs

5000

Rs5000-

Rs10000

Rs 10000-

Rs15000

Above Rs

15000

Eureka

Forbes

22 14 8 6 50

Hul 6 3 4 1 14

Kent 3 3 1 3 10

Philips 3 4 1 2 10

Whirlpool 1 0 3 3 7

Anyother 2 3 3 1 9

Total 37 27 20 16 100

75


0

5

10

15

20

25

30

35

40

45

50

22

6 3 3

1 2

14

3

3 4

0

3

8

4

1 1

3

3

6

1

3 2

3

1

Above Rs 15000

Rs 10000-Rs15000

Rs5000-Rs10000

Rs1000-Rs 5000

76

INTERPRETATION




found,


(8), Above Rs 15000-12% (6)

E. Hul: Among the total 14 Pure it (Hul) users


found,

Rs 1000 to Rs 5000-42.9 % (6), Rs 6000 to Rs 10000-21.3 %( 3), Rs 11000 to Rs 15000-

28.6% (4), Above Rs 15000-7.1% (1)

F. Kent : Among the total 10 kent users


found,


(1), Above Rs 15000-30% (3)



found,

Rs 1000 to Rs 5000-30 % (3), Rs 6000 to Rs 10000-40 %(4), Rs 11000 to Rs 15000-10% (1),

Above Rs 15000-20% (2)

77



found,

Rs 1000 to Rs 5000-14.3 % (1), Rs 6000 to Rs 10000-0 %(0), Rs 11000 to Rs 15000-42.9%

(3), Above Rs 15000-42.9% (3)

G. Any Other : Among the total 9 any Other water Purifier users


found,

Rs 1000 to Rs 5000- 22.2% (2), Rs 6000 to Rs 10000-33.3 %( 3), Rs 11000 to Rs 15000-

33.3% (3), Above Rs 15000-11.1% (1)

2.PERCENTAGE WITHIN „COST‟

A.Rs 1000-Rs 5000:

Among the total 37 respondents



%(22),16.2 % (6),81.1 % (3),81.1% (3),2.7 % (1),5.4% (2) respectively.

B. Rs 5000-Rs 10000:




%(14),11.1 % (3),11.1 % (3),14.8% (4),0 % (0),11.1% (3) respectively.

78

C. Rs 10000-Rs 15000:



and any other company‘s water purifier, the cost of Rs 10000-Rs 15000 was found 40

%(8),20 % (4),5 % (1),5% (1),15 % (3),15% (3) respectively.

DAbove than Rs 15000:



and any other company‘s water purifier, the cost of above Rs 15000 was found 37.5 %(6),6.3

% (1),18.8 % (3),12.5% (2),18.8 % (3),6.3% (1) respectively.

Cross tabulation between „Which Company and Prefer to buy the product‟

Which company Prefer to buy the product

Total

Retail Outlet Franchisee

Dealer

Demo at your

doorstep


Hul 4 2 8 14

Kent 4 4 2 10

Philips 3 5 2 9

Whirlpool 2 4 1 7

Any other 2 5 2 9

Total 30 30 40 100

79

Cross tabulation between „Which Company and Prefer to buy the product‟

INTERPRETATION



The percentage of respondents toward prefer to buy the water purifier from retail outlet was

found 26 %( 13).The percentage of respondents toward prefer to buy the water purifier from

Franchisee Dealer was found 48 %( 24).The percentage of respondents toward prefer to buy

the water purifier from Demo at your door step was found 14 %( 7)

0

5

10

15

20

25

30

35

40

45

50

Eureka

Forbes

Hul Kent Philips Whirlpool Any other

Demo at your doorstep

Franchisee Dealer

Retail Outlet

80

B.Hul: Among the total 14 Pure it (Hul) users


found 35.7 %( 5).The percentage of respondents toward prefer to buy the water purifier from


the water purifier from Demo at your door step was found 7.1 %( 1)

C.Kent : Among the total 10 kent users












found 0 %( 0)

The percentage of respondents toward prefer to buy the water purifier from Franchisee Dealer

was found 57.1 %( 4).The percentage of respondents toward prefer to buy the water purifier

from Demo at your door step was found 42.9 %( 3)

81

F.Any Other : Among the total 9 any Other water Purifier users


found 22.2 % (2).The percentage of respondents toward prefer to buy the water purifier from

Franchisee Dealer was found 55.6 % (5).The percentage of respondents toward prefer to buy

the water purifier from Demo at your door step was found 22.2 % (2)

2. PERCENTAGE WITHIN „PREFER TO BUY THE PRODUCT‟

A.Retail Outlet: Among the total 30 respondents

The percentage of people who prefer to buy the Eureka Forbes water Purifier from Retail

Outlet was found 52% (13).The percentage of people who prefer to buy the Hul water

Purifier from Retail Outlet was found 20 %( 5).The percentage of people who prefer to buy

the Kent water Purifier from Retail Outlet was found 8% (2).The percentage of people who

prefer to buy the Philips water Purifier from Retail Outlet was found 12% (3).The percentage

of people who prefer to buy the whirlpool water Purifier from Retail Outlet was found 0 %(

0).The percentage of people who prefer to buy the any other water Purifier from Retail Outlet

was found 8% (2)

B.Franchisee Dealer: Among the total 30 respondents

The percentage of people who prefer to buy the Eureka Forbes water Purifier from Franchisee

Dealer was found 49%(24).The percentage of people who prefer to buy the Hul water Purifier

from Franchisee Dealer was found 14.3% (7).The percentage of people who prefer to buy the

Kent water Purifier from Franchisee Dealer was found 8.2 % (4) .The percentage of people

who prefer to buy the Philips water Purifier from Franchisee Dealer was found 10.2 %(

5).The percentage of people who prefer to buy the whirlpool water Purifier from Franchisee

Dealer was found 8.2 % (4).The percentage of people who prefer to buy the any other water

Purifier from Franchisee Dealer was found 10.2% (5)

82

C.Demo at your door step: Among the total 40 respondents

The percentage of people who prefer to buy the Eureka Forbes water Purifier from Demo at

your door step was found 43.8% (7).The percentage of people who prefer to buy the Hul

water Purifier from Demo at your door step was found 6.3 % (1).The percentage of people

who prefer to buy the Kent water Purifier from Demo at your door step was found 12.5% (2)

.The percentage of people who prefer to buy the Philips water Purifier from Demo at your

door step was found 6.3 %( 1).The percentage of people who prefer to buy the whirlpool

water Purifier from Demo at your door step was found 18.8 % (3).The percentage of people

who prefer to buy the any other water Purifier from Demo at your door step was found 12.5%

(2)

83

CONCLUSION

84

I had conducted the market survey in the town of Kolkata. I had chosen the product as ‗Pure It‘

because people are very cautious about their health these days and are very particular about their

drinking water. In such a scenario most of the people are using water purifier.

I was very lucky to join this company and learnt so many things, like punctuality, hard work, selling

strategy of company etc. I had met different kinds of people, coming from different religion.

Thus I came to know about the different views of these people and their awareness regarding the

safety benefits of drinking safe and pure water.

After the survey I came to a solution that the people of Kolkata are very much aware of Pure It water

purifier and maximum of them are satisfied with the product. The majority of people I came across

are mostly the users of Eureka Forbes. Clearly showing that they are dominating the market. But

Pure-it is fast catching up with it‘s unique low priced water purification systems. These low priced

technology seems to catch up fast with the consumer but most of them are reluctant to take risk by

leaving Eureka Forbes.

The survey has showed that Eureka Forbes is the market leader closely followed by Pure-it.

Customers have shown a high degree of brand loyalty to Eureka Forbes. However it is seen that the

awareness regarding the product is good. Most of the customers are happy but they have shown a

concern regarding the after sale services specially when replacing the germ kill kit. Due to this

customers are reluctant to buy Pure-it and stick to Eureka Forbes which according to them provides

satisfactory after sales services.

Another problem faced is the lack of visual display of models in retail outlets and lack of brochures.

Due to this prospective customers had difficulty in understanding the product and lack of brochures

added to this problem as customers don‘t tend to remember about the product once they leave the

retail outlet.

85

RECOMMENDATIONS

86

From the survey conducted by me regarding the product Pure-It certain recommendation are

as follows: -

Price structure should be revised.

Customer service is something where more attention must be paid.

All models should be made available on display in retail outlets and brochures should also be provided.

Sales person at the retail outlet must have proper knowledge about the product.

Technological and other aspects should be reconsidered and re-christened

After-sales services must be quick and efficient.

While doing DTH,sales representative should be more precise about the product.

New policies and strategies should be adopted to overcome the competition.

87

Limitations Of Study This survey report is also not free from limitations as usual. However the absence of such

limitation would have improved the quality of report as given :-

> Limited time period restricted to go in for more details the period was very short to

survey such a large area.

> Many respondents were not interested to give the required time for the questionnaire.

> Respondents sometimes act artificially when know their information is noted down.

> There was only some certain hours in a day in the idle hours in which the respondents

was ready to talk.

> This project was done on the basis of questionnaire through survey, so it may possible

here that some of them might have not provided the correct information.

88

ANNEXURE

89

QUESTIONNAIRE FOR PROSPECTIVE CUSTOMER

Name :……………………………………..

Address:--------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------

-----

Phone No.: - ---------------------------

1. How do you treat your water drinking water?

o Do nothing

o Boiled water

o Use electrical water purifier

o Use non electrical water purifier

2. . Do you know that 80% of the diseases in our country are water bound?

o Yes

o No

o Not aware

Q3. While buying any water purifier what comes to your mind first?

o Price

o Health & Safety

o Both

90

Q4. Comment on the price of your water purifier?

o Affordable

o High

o Should be Revised

Q5.Do you know that boiled water is not necessarily safe water?

o Yes

o No

Q6 : What company water purifier you are currently using?

o Eureka Forbes

o Hul Pure-it

o Kent

o Philips

o Whirlpool

o Any Others

91

Q7. Criteria considered for Purchase?

o Brand name

o Technology

o Price

Q8. Is the quality of water provided by Pure-it tastes good, looks clear and

odorless?

o Yes

o No

o Don’t Know

Q9. What is the price of the water purifier that you are currently using or are planning

to use?

o Rs.1000 – 5000

o Rs 6000 – 10,000

o Rs 11,000 – 15,000

o More than 15,000

92

Q10. Where do you prefer to buy a water purifier from?

o Retail Outlets

o Franchisee dealers

o Direct Marketing

Q11. Frequency and Percentage of respondents about what comes your mind first i.e.

Price or Health & Safety or Both

o Price

o Health & Safety

o Both

Q12. Where you did heard about the product?

o TV commercial

o Newspaper print ads

o In shop branding

o Friend‘s references

93

The Waterpurifier business :-

(http://spoonfeedin.blogspot.in/2008/06/waterpurifier-business.html)

Water purifier cos tapping the bottom of the pyramid ( June '25,2008,

Economic Times) Early this month, Eureka Forbes, the market leader for water purifiers in the

country put popular television actress Smriti Irani (Tulsi of Kyunki Saas Bhi

fame) behind its product range - Aquasure. Whether Irani helps counter the buzz

that Hindi film actress Hema Malini and her daughters bring to Kent‘s water

purifier sales is still to be seen.Aquasure talks to the bottom of the pyramid with

a purifier costing Rs 1,800. In comparison, Kent is relatively high-brow at Rs

7,000 for an ultraviolet (UV) purifier and Rs 14,000 for a reverse osmosis (RO)

variant . At sub-Rs 2,000 price point, Aquasure is not the only one tapping the

market. Pureit, consumer goods major Hindustan Unilever‘s maiden entry into

the consumer durables category, is also talking to consumers from a similar

price point. After being around for less than four years, both brands of

chemical-based water purifiers have managed to create a market that now

accounts for 20 per cent of all water purifier sales. Not just that, Aquasure and

Pureit are now estimated to be growing at 100% annually , while the rest of the

Rs 700-crore water purification category is pacing ahead at 19%-20 %. What

are the key drivers? According to S K Palekar, senior VP marketing, Eureka

Forbes the category is largely under-penetrated , even in urban India. ―Only 6%-

7 % of the urban population use electrical water purifiers, while another 12%

boil drinking water,‖ he says. That leaves a whopping 81 per cent of the urban

population who drink water directly from the tap, or purify it using candle water

filters, muslin cloth and other unsafe methods . This is where both HUL and

Eureka Forbes have spotted an opportunity. Existing segments like ultra violet

(UV) purifiers or reverse osmosis (RO) systems, are either not relevant or

simply not affordable to a large percentage of urban users. While UV purifiers

sell upwards of Rs 4,000, RO-based systems are the costliest with prices going

upto Rs 25,000. Vivek Sharma, chief marketing officer, Philips India, estimates

that about two-thirds of the Indian market uses UV products and the rest is

divided between RO and chemical-based purification systems. Sarosh Shetty,

marketing manager - water business, HUL, points out that the opportunity was

waiting to be exploited . ―Eighty percent of all diseases in India is water related

and affects households across income-groups . Our aim is to help provide safe

water anytime, anywhere and make it as affordable as possible,‖ he says.The

other reasons why many urban households did not use the existing purifiers ,

http://spoonfeedin.blogspot.in/2008/06/waterpurifier-business.html

94

according to Palekar is the requirement of running water at a certain pressure or

uninterrupted electricity to perform the purification process. In some areas,

including urban centres, access to either of the two was a problem. Water

shortage is partly one reason why even tap attachments like Zero B have not

taken off, despite a promising start several years back. But company executives

are confident about the prospects of Zero B Suraksha — that prides itself as the

smallest water purifier in the market. ―The Zero B Vision is `One Zero B for

every Home‘ which is to provide a range of pure water solutions across income

segments,‖ says RS Rajan, senior VP - consumer products , Ion Exchange. But

merely developing a product for this segment was not enough. Companies had

to ensure that consumers saw a compelling reason to buy the product. Because

the triggers to buy a product at the bottom of the pyramid are much different

than what it would be for an upmarket urban customer. Sharma of Philips

explains: ―Although in the urban areas there is awareness, there is no trigger

from awareness to actions. Because of the strong belief in traditional methods

people still don‘t want to invest in a purifier.‖ Then, upmarket customers need

choice to compare and pick the product best suited to their needs. For example,

areas which have hard-water will have consumers investing in a RO purifier that

can purify and remove any bad taste from the water, rather than UV-based

purifiers. That would explain the variety of choice that companies offer. Philips

launched its water purifiers in May 2007 and has four models which use UV

technology , Kent RO Systems similarly has products based on both UV and

RO technologies. The other motivator for the middle-andupper-end customers

are aggressive marketing campaigns. As Gupta of Kent puts it, ―We wanted our

TVCs to be clutter-breaking and the best way to do that was by having a

celebrity as that improves customer confidence in the product.‖ Eureka Forbes

on the other hand believes in the power of direct marketing for its upscale

product range — Aquaguard. Palekar of Eureka Forbes explains the rationale:

―In India people believe only in what they see. They believe what you can‘t see,

cannot be harmful. Therefore it is important to do concept selling in this

category , which can only be done house-tohouse . If people don‘t understand

the concept , nobody will buy the product even if there is a lot of advertising.‖

Eureka Forbes has a sales force of 6,000 which is responsible for selling

Aquaguard.In comparison, Aquasure is sold through retail channels. Sharma of

Philips endorses the view. ―Direct marketing is effective as the category has a

low penetration . However, now the awareness about water purifiers has gone

up considerably and today customers don‘t need to be convinced as much as

they had to be earlier,‖ he says. Modern retailing and after-sales service are also

critical components for the success of the UV and RO range of purifiers. For

example, most distributors of water purifiers like multibrand outlets also double

up as service centres. The arrival of consumer durable chains like Croma, Next

and others have helped waterpurifiers which also share shelf-space with TVs,

refrigerators, washing machine‘s , etc. Kent RO for example has even tried

95

unconventional retailing options like tying-up with IOC petrol pumps and LPG

outlets which stock the brands. HUL‘s Pureit is not available in stores, but have

set up Safe Water Zones across the country which are offices where customers

can walk-in and make enquires about the product. After-sales service

contributes to 60% of Eureka Forbes‘s annual revenues. Says Palekar, ―In a

category like water purifiers, service and sales go hand-in-hand . Service is very

important for success in this category.‖ Eureka Forbes has a service network

across 500 top towns in the country, while Ion Exchange has 1,200 service

engineers providing 24x7 service. Brands like Philips and HUL are trying to

empower the consumer to service the system themselves. Although both brands

have a helpline where consumers can reach them, their systems are customer

friendly and customers can service their products themselves. In the case lower

priced brands like Aquasure, the product design resembles a drum filter, and the

purification cartridge is designed like a candle . HUL‘s Pureit has a GermKill

Battery Kit, which has an indicator that goes red once 1,500 liters of water has

been purified, hinting the customer that a change of battery kit is due. While

metros are important for the category , the growth is being fuelled by Class 1

and Class 2 towns. Below-the-line (BTL) activities are important for every

brand including Ion Exchange‘s customer-meets , consumer fairs and interactive

programmes with school children and free water tests for consumers through the

direct sales, retailers and watermarts. ―We follow the inside out strategy by

rewarding our customers for their loyalty. Over 50% of our sales comes through

customer referrals,‖ says Rajan of Ion Exchange. The rules are changing and the

players growing, but will price-points change equations in this category is what

remains to be seen. Pureit‘s roll-out just before the monsoon season is an

indication of how monsoon‘s are critical season for water-purifiers . ―About

60% of both our sales and services come between the July - September

months,‖ says Palekar. Rains increase the threat of water-borne diseases and

hence the importance of safe drinking water in consumer minds also rises. And

though activities are done throughout the year, rainy season cannot be ignored.

Whether HUL‘s vision of making safe drinking water available to every Indian

home is fulfilled or not, this rainy season sales will be critical for Pureit‘s

future.

96

Village Financial Services and HUL tie up to sell Water Purifiers (http://indiamicrofinance.com/village-financial-nbfc-water-purifiers.html)

Village Financial Services Pvt Ltd a microfinance company that has operations in the eastern

region of India has signed a Memorandum of Understanding (MoU) with Hindustan Unilever

Ltd to promote the use of safe drinking water among the poor, according to a press release

issued by Village Financial Services.

The collaboration between Village Financial Services(VFS) and Hindustan Unilever will

enable poor households to purchase HUL‘s Pureit water purifiers through the VFS network.

The targeted 2.5 lakh beneficiaries could take loan at zero rate of interest to buy the purifier

and the loan would be repayable weekly over a period of eight months, the release added.

About VFSPL

Village Financial Services Private Limited(V.F.S.P.L) started it‘s microfinance operations in

the financial year 2005-2006 and was one of the 1st Micro Finance Companies in the eastern

region of India with a Non Banking Financial Company (N.B.F.C) license. Currently Village

Financial Services Private Limited has more than 2,00,000 active borrowers who are serviced

through it‘s 63 Branches. It has loans outstanding of more than Rs. 115 crore.

http://indiamicrofinance.com/wp-content/uploads/2010/07/vsfpl1.png

97

LATEST INNOVATION IN WATER PURIFICATION AROUND THE WORLD

(http://www.examiner.com/article/lifestraw-water-filter)

Technology can serve humanity in so many ways; it's good to see it in the perspective hands

of loving, helpful ideologies. Here's an example of something I found interesting enough to

address in this forum of interests.

More than a billion people don‘t have reliable access to clean drinking water. Boiling kills

most germs in water, but requires fuel and doesn‘t remove dirt. In recent years, sand and

ceramic filters have become more common, but these tend to be more expensive and usually

don‘t catch all the microbes. So many of the poor (worldwide) simply drink dirty water. As a

result, about 1.5 million children die of diarrhea each year.

A new generation of cheap and effective water purifiers including Pureit (made by Unilever)

and Swach (made by an Indian company, Tata, with a novel rice-husk ash filter) can remove

nearly all water-borne pathogens without electricity.

But LifeStraw, produced by the Swiss company Vestergaard Frandsen, was designed for the

poorest of the poor. The personal version works like a chunky drinking straw and can filter

about 1,000 liters, enough to keep a person hydrated for a year. The family version (which

looks something like an IV drip that ends in a water cannon) can purify 18,000 liters, serving

a typical family for about three years. Until now these filters have mainly been given away

through aid groups after such disasters like the Haitian earthquake and in chronically poor

countries like Mozambique and Myanmar. Nearly a million of the family-size LifeStraw have

been donated in Kenya alone this year. In exchange, the company is reportedly receiving

carbon credits for reduced emissions from wood-burning fires often used to boil water.

98

Forbes India: War for pure water

(http://ibnlive.in.com/news/forbes-india-war-for-pure-water/106847-7.html)

It is probably the most controversial raincoat in India right now. An advertisement by

Hindustan Unilever used a salesman in a yellow raincoat to throw a challenge that if

consumers found a water purifier that could work without running water or power, get

switched off if it is not in use and provide "germkill", the company would give them Rs 1

crore.

Its competitor, Eureka Forbes, hit back with an ad showing a blurry water purifier,

presumably HUL's Pureit, and a man in a yellow raincoat offering water to a woman. The

woman spits out the water on his raincoat saying it tastes like chlorine.

The two are now in court fighting as much over the use of the yellow raincoat as about the

quality of water from their purifiers. Hindustan Unilever says the Eureka Forbes ad mocks

Pureit, and Eureka Forbes says the assertions in the ad are true. The two have now sent water

samples from both purifiers to an American laboratory to test if the claims are true.

There is a lot at stake for both companies. Eureka Forbes was the undisputed leader in this

segment until HUL stormed its bastion. Eureka sold expensive water purifiers (Rs 7,000 or

more for each and above) that were out of the reach of most Indian homes. HUL exploited

this gap with the low-cost Pureit (Rs 2,000). But, there is also another reason why HUL is

bent on winning this war. Reports suggest HUL's Anglo Dutch parent is waiting for HUL to

perfect Pureit's business model to take it other developing markets. Even though the company

says it is currently focussed on the Indian market.

Just around 8 per cent of Indians use water purifiers, according to industry estimates. Others

boil, use candle filters or do nothing. "It is this segment that products like these cater to," says

Editor of trade magazine Everything About Water and consultant to water companies, H

Subramaniam. "It is not currently a very large or profitable market but it is the fastest

growing market and potentially the largest."

Competition has heated up in the low cost water purifier market, which is growing at 60 per

cent compared to the 15 per cent growth rates for expensive water purifiers, suggest industry

estimates.

The spat between HUL and Eureka Forbes has been brewing since HUL, India's largest

consumer products company, introduced Pureit in 2004. Eureka Forbes, known for first

99

bringing water purifiers to Indian homes, hit back with a similarly priced, no-power and no-

running-water device called AquaSure. Now, HUL sells more water purifiers but Eureka

Forbes makes more money.

Hindustan Unilever says it broadened the market for water purifiers by creating Pureit.

General Manager for HUL's water business, Vikram Surendran, says the criteria HUL talks

about in the ad were set pretty early on in the product development phase. "We set ourselves

a pretty tough task. But that in a sense helped us create a product that has helped create a

market."

While it has meant that HUL has already sold three million units of Pureit, it has not been

easy for a company built on selling small consumable products, including soap and

toothpaste, to sell the somewhat bulkier water purifiers. The company uses its existing

franchisees but asks them to set up extra space for its dedicated sales teams and to keep

products - known as Safe Water Zones.

HUL perfected this formula in South India before going national last year. And yet, the quick

ramp-up meant after-sales service found it hard to keep up. Surendran says that has now been

solved with dedicated call centres, separate after-sales teams etc. But as HUL looks to enter

rural markets, ensuring good after-sales service will be hard.

HUL tried several pilot projects to reach out to villages. It worked with Micro Finance

Institutions (MFIs) to sell and extend credit through them. But a study by social consulting

company, Monitor, found that MFI agents, used to selling loans, found it hard to transport

and sell water purifiers. They also bore the brunt of lapses in after-sales servicing. HUL may

now use MFIs only to extend credit and use its own sales team for the rest.

Eureka Forbes perfected the model of salesmen visiting homes and explaining the benefits of

moving to Aquaguard in the Eighties. But this also restricted it to a metro-centric product.

"None of us has reached the bottom of the pyramid yet," says CEO of direct sales at Eureka

Forbes, Marzin Shroff. The company is trying several things to get there. It recently launched

a service that allows families to rent an Aquaguard for Rs 450 a month. It also set up water

filtration plants in 100 villages where families can buy clean water for 10-15 paise a litre.

Shroff says it now plans to scale this up across the country.

Having initially been pipped to the low-cost water purifier, Shroff says Eureka Forbes has

new technologies in the works. Of course, he can't talk about them. "We were a small

company then," he says, talking about 2004 when Pureit was created. "But we always had

dreams. This issue was not on anyone's radar till around three years ago."

What is on everyone's radar right now is the court case and the accusations. For instance,

Eureka Forbes says Pureit uses chlorine to clean water when it should be used only to clean

swimming pools or in emergencies. But Surendran, says chlorine is one of the most popularly

used cleaning agents for municipalities. Adapting this for home use is "I think a credit to our

technology more than anything else."

Eureka Forbes has said in court that Pureit uses a chemical called TCCA to release chlorine

in to the water. But TCCA also releases cyanuric acid, in this process, which could be

harmful for consumption if it mingles with melamine, commonly used to make tea cups or

100

plates. HUL has said that no acid gets released in to the water because a carbon block leaches

it out after the water is treated by chlorine.

Shroff asks for a block of carbon in his office conference room and tosses it up in the air. The

block breaks into two on landing and Shroff suggests this is probably how effective it is when

it reaches consumers after long journeys across India. Either way, experts say chlorine is the

most widely used microbial purification chemical in the world.

Shroff also says that while Eureka Forbes has other devices to treat water for arsenic, fluoride

and other such substances, Pureit does not. Surendran says HUL may develop such products

later.

"It is also generally rare to find a single "magic bullet" that would remove all types of

contaminants, and do so cheaply," says Director of the United Nations University's

International Network on Water, Environment and Health, Dr Zafar Adeel.

Both companies are waiting for the US lab to come back with results. But Subramaniam says,

"It would be hard for a court of law to judge in the absence of any standards. The problem is

that in India there are no standards for water purifiers except those set by the Bureau of

Indian Standards for UV purifiers."

The court case is just one of many hurdles the companies want to get over to crack India's

mass market. Shroff says his company has several potentially winning technologies under

development. Surendran says he has just extended his Rs 1 crore challenge for Pureit, which

he says is still unclaimed.

101

BIBLIOGRAPHY :- www.HUL.com

www.customercomplaint.in

www.golakindia.com

www.icmrindia.org

www.compareindia.com

www.pureit.in

http://www.hul.com/

http://www.customercomplaint.in/

http://www.golakindia.com/

http://www.icmrindia.org/

http://www.compareindia.com/

http://www.pureit.in/

a competitor analysis of different water brands in india

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