Purity In Every Drops...

DEBDIP SAGOSI PVT. LTD.

PURITY “PURITY IN EVERY DROP ”

A Group Presentation by:Bhanita GohainPrerna SharmaSunny SinghDebayan GhoshPradip Karmakar

OVERVIEW• Water is a essential part of human races to survive• As per the World Health Organisation report every year 4 lacs people are

dying due to consumption of unpackaged water, either they cannot afford packaged water or there is lack of spreading awareness.

• The areas mostly affected are rural and semi-rural areas.• Our company DEBDIP SAGOSI Pvt Ltd., established on 1st February

2016,will introduce “PURITY” packaged water, for the betterment of the society with very low price and better quality to cover up the affected areas.

• It will be a Packaged drinking water with double purification process and will be affordable for every single people.

VISION

• Our vision is to be the dominant player in the local water business. Also, we must expand and be a leader in the premium beverage category

MISSION• We are in the business to serve the customer. He is the most

important person, the only one who pays, deserves the best quality and presentation for the price he is paying. We must have world class quality, at the lowest production and distribution cost. This will make us an unbeatable leader, and we will have satisfied loyal customers.

OBJECTIVE To create strong distribution network. Good brand awareness and brand positioning To construct easy availability of product in all over

India in low cost.This company tried to enhance the Hygiene factor. Mineral water is extracted after proper experimentation and removing all impurities. So hygiene factor is kept in mind while designing the product.

GOALS• A major, diversified, transitional, integrated consumer product

manufacturing company, with National Leadership and a strong environment conscience, playing a national role in safe water and Agro based drinks.

• To provide the highest quality product, keeping in mind all aspects including freshness, purity and safety, and making it easily available to the consumer at a very affordable price.

• To achieve international standards of excellence in all aspects of energy and diversified business with focus on consumer delight through value and services of  product and cost reduction.

STP ANALYSIS• SEGMENTATION• TARGETING• POSITIONING

SEGMENTINGDemographic segmentation. Our product is a low cost product which will definitely support all income group people but basically we are concentrating on middle income and lower income, all age group people, more convenient for nuclear families.Geographical segmentation .The main motive to launch this product is to reach out remote areas, rural or semirural areas where people don’t have access to freshwater supply. To provide them with best quality water which would be affordable for the people residing in rural and semirural areas.Behavioural segmentation. Our product is an affordable one which would appeal to masses in large for daily usage in large quantity for people who are not that brand conscious. They would definitely try out this product for once which would give them the same usage and quality rather than the branded one like bisleri, kingfisher etc.Psychographic segmentation. This product is suitable for the people who are more price sensitive and not brand conscious

TARGETING

• Our target market is the low and middle income group people residing in rural and semirural areas.

• We will also target some commercial markets too like railway stations, Bus stands, some of the retailers, etc.

POSITIONING

We will position our brand in the minds of our customers as “PURITY IN EVERY DROP” which would mean that we are producing a low cost product without compromising with the quality of the product.

SWOT ANALYSIS

STRENGTHS- *Good brand awareness and brand positioning.*Available in different packs like cups, 500 ml, 1 lit, 1.2 lit, 2 lit, 5 lit and 20 lit*Focus on customer orientation through low price strategy.*Product differentiation by introducing patented break way seal cap.

SWOT ANALYSIS

WEAKNESS- *Lack of brand loyalty as MNC's are entering the market like Nestlé’s Pure life, Pepsi's Aquafina.*Lack of Global Awareness in brand.*Lack of proper advertising to create brand awareness.*Market coverage is not fully utilized

SWOT ANALYSIS

OPPURTUNITIES- *Indian bottled water industry is still at growth stage.*Influence of tourists and expatriates. *Unreliable municipal water quality.*People are becoming health conscious

SWOT ANALYSISTHREATS-*Numbers of players like Kinley and other local players are present in the market have already captured the market.*Tough competition from MNC's like Coke & Pepsi.*Fluctuation in sales due to seasonality.*Local manufacturers who refill used bottle Hampers the image of the industry.*Water filters and soft drink industry is a major threat to industry.*Coke and Pepsi are already having strong distribution network in bottle water industry with their own fleet of trucks & vans.

SWOT ANALYSIS ACTIVITY SHEETStrengths

Good brand awareness positioningLow price strategyBest qualityFocus on customer needsSuitable for all income groups 

WeaknessesNo quick recognition for new entrantGlobal mnc’s like bisleri would give tough competitionLack of aggressive advertisingBrand loyalty of customers towards global brands

OpportunitiesIndian water bottle industry still at growthInfluence of tourists and expatriatesUnreliable municipal water qualityPeople are conscious to health and hygiene

ThreatsNumber of global and local players in the marketGlobal players have a huge market shareFluctuations in sales due to seasonalityTough completion from MNC like coke pepsi

MAJOR COMPETITORS

MAJOR COMPETITORS

• BISLERI• HIMALAYAS• AQUAFINA• KINLEY

Market Share

BISLERI HIMALAYAAQUAFINA KINLEY

40%

9%

36%

3%12%

Market Share by Package

Pouch500ml1ltr.5ltr.20ltr.

MARKET SHARE

MARKET SHARE

25%

75%

Rural Vs Urban Market

RuralUrban

9%

28%

15%

48%

Market Share by Region

East WastNorthSouth

MARKETING STRATEGIES*SELECTING THE TARGET MARKETSWhen the selection of the target market is over an important part of the marketing strategy of the firm is already determined, defined and expressed. The target market is the low income and the middle income group people residing in rural and semirural areas who don’t have access to freshwater supply.*ASSEMBLING THE MARKETING MIXAssembling the marketing mix means assembling the four P¶s of marketing in the right combination. We will try to put the best quality product at low cost. We will evaluate expenditures at different levels of mix on each elements to find out the best effective way to make profit.*ADVERTISING CAMPAIGNWhile designing an advertising campaign we have to focus on the areas where people do not take the use of water seriously. We will provide samples and also awareness about how a packaged water is different from usual drinking water.

MARKETING MIX*PRODUCTThe main product of the company is the mineral water by the name of PURITY Mineral water. PURITY has become a perfect synonym of the mineral water for the Indian consumers. The main challenge our company or any other player in this mineral water industry is that there is no scope of invention and innovation in the product, which can be added as the additional benefits of the product. It is just water after all. This is what the Indian customers think of the bottled water.*PRICEIn India, where the majority of the population comprise of the middle-income group and lower income groups it is not hard to understand that pricing is one of the most important factor in the buying decisions. PURITY will meet the expectations of the consumers in terms of pricing the product and also making the product available in variations of liters, making PURTIY both convenient and affordable. Its product will be available at a very reasonable price.

MARKETING MIX

*PLACETo make the product available to the target consumers a good distribution network has to be there to support the good quality of the product. Here in the case of the mineral water industry the distribution network is the important factor in being competitive and the catch lies in making water available to maximum number of places in the country mainly focused on rural and semirural areas where access to pure water is still a major hindrance for many.*PROMOTIONTo reach the customers with our product, will be done through different mediums of advertisings, sales promotions, sponsoring events, personal selling and public relations.

PACKAGING

*Our Packaging will be little different from that of our Competitors like Bisleri, Aquafina, etc.*The body of the bottle will be double layered plastic to keep the temperature of the water inside stable for a long duration.*We will be printing health tips and purification of the water process on each bottle to spread some awareness.

CHANNELS OF DISTRIBUTION*MANUFACTURER-CONSUMER(DIRECT SELLING)All the stocks will be directly transported to the targeted and segmented areas without including any intermediaries in between. This will also lower the cost and profit can be maximized. This is the simplest and shortest type of distribution channels.*MANUFACTURER-RETAILER-CONSUMERThis will be done by selling to one or more retailers who sell to consumers. We will also target the big retailers such as Super markets, etc. It will also help in controlling the distribution channel.*MANUFACTURER-WHOLESALER-RETAILER-CONSUMERWe will also try to use traditional or normal channels. This will be the most suitable type for us as our finance will be limited and we have just only one product line.

CHANNELS OF DISTRIBUTION

*MANUFACTURER-AGENT-RETAILER-CONSUMERAs we are concentrating on geographical factor so we will also use this type of distribution channels.*MANUFACTURER-AGENT-WHOLESALER-RETAILER-CONSUMERTotal stock will be handed over to the agents and then the distribution will be done in highly wide areas of the targeted areas.

CONTINGENCY PLAN

*In case the product fails in the market we will try to come out with the same product again with different alternatives and addition to its composition.*We will also be repositioning our product to different segmented market and the selected categories of family.*We will use the same fixed facilities as we already have to keep the production stable without any chaos in organization.

BUSINESS ESTABLISHMENT

As per Bank rule 80% of the project is given by Bank & 20% is self-investment. Our project is under MSME scheme (Ministry of Micro Small & Medium Enterprise), as per MSME

our project is a Small Enterprise (25 lack – 5 cr.) & our interest rate will be 11.85. We are taking loan from ALLHABAD BANK.

Share Allocation

SHARE CAPITAL

Liabilities Amt. Assets Amt.

Capital 7,00,000 Land 9,00,00

0

    Building 15,00,000

    Machinery 5,00,000

Bank Loan 28,00,000 Furniture 2,00,00

0

    Bank 4,00,000

  35,00,000   35,00,

000

COST OF PRODUCTION

Cost Heads Cost per 1ltr. Bottles (Rs)

Cost per

500ml Bottles

(Rs)

Cost per 5ltr.

Bottles (Rs)

Cost per

20ltr. Bottles

(Rs)Cap + Bottles 2.00 1.25 4.75 12Cost of Water 0.16 0.08 0.8 3.2

Treatment Cost 0.1 0.05 0.5 2

Labour Cost 0.15 0.075 0.75 0.75Carton Cost 0.5 0.25 2.5 0

Transportation Cost 0.25 0.125 1.25 3

Label Cost 0.15 0.075 0.75 2

Others (Advt.) 0.25 0.125 1.25 2.5

Total Cost 3.56 2.03 12.55 25.45

End Market Price 10.00 5.00 35.00 70.00

OTHER FINANCIAL DETAILS

Size of Bottles Total no of Bottles Price Amount

500ml 1,60,000 1.25 2000001ltr. 2,10,000 2 4200005ltr. 35000 4.75 16625020ltr. 1,00,000 12 1200000

       Total    

19,86,250

Purchase of Raw Materials ( Plastic Bottles)

OTHER FINANCIAL DETAILS Sales Figure

QtyNumber of Bottles

Purity's Profit AmountB2B B2C

500ml (MRP Rs5.00) 1,20,000 30,000 0.25 37500

1ltr.(MRP Rs10.00) 1,37,000 55,000 3.44 660480

5ltr. (MRP Rs35.00) 28,000   12.45 348600

20ltr.(MRP Rs75.00) 93,000 3000 29.55 2836800

Total 3,78,000 88,000   3883380

OTHER FINANCIAL DETAILS

Size of Bottles MRP. Cost

PriceWhole

Sale PricePurity's Profit

Purity's Profit %

Whole Sale

ProfitWhole Sale

Profit %

500ml 5 2.03 4 1.97 97.044335 1 25

1ltr. 10 3.56 7 3.44 96.629213 3 42.8571429

5ltr. 35 12.55 25 12.45 99.203187 10 40

20ltr. 70 25.45 55 29.55 116.11002 15 27.2727273

PROFITBusiness To Business

Size of Bottles Cost Price MRP. Company's

ProfitCompany's

Profit %

500ml 4 5 125

1ltr. 3.56 10 6.44180.899

5ltr. 18 35 1794.4444

20ltr. 25 70 45180

OTHER FINANCIAL DETAILS PROFIT

Business To Customer

OTHER FINANCIAL DETAILS

Size of Bottles Total no of Bottles Price Amt.

500ml 10,000 1.25 12500

1ltr. 18,000 2 36000

5ltr. 7000 4.75 33250

20ltr. 4,000 12 48000

Total     129750

Valuation of Closing Stock

Particulars Amt. Particulars Amt.

To Opening Stock Nil By sale 38,83,380

Purchase OF RM(Plastic Bottles) 19,86,250 Closing Stock 1,29,750

To Gross Profit C/d 20,26,880  

  40,13,130 40,13,130

Depreciation 1,85,000 By Gross profit C/d 20,26,880

Labour Ch.(5*8000)*12 480000  

Electricity Bill 1,50,000  

Transportation Ch. 1,80,000  

Commission 30,000  

Advertisement 50,000  

Maintanance Ch. 12,000  

Processing Ch. 45,000  

PBIT 8,94,880  

  20,26,880 20,26,880

Interst on Loan(28,00,000*11.85%) 323400  

PBT 5,71,480  

  8,94,880 8,94,880

Tax 1,33,370  

PAT 4,38,110  

  5,71,480   5,71,480

Trading & Profit & Loss A/c for the year ended 31.3.2016

OTHER FINANCIAL DETAILS Depreciation of Assets

Assets Rate(%) Amt. Dep.

Land Nil 9,00,000 Nil

Building 5 18,00,000 90,000

Machinery 15 5,00,000 75,000

Furniture 10 2,00,000 20,000

Total     1,85,000