Group No -:52 110451 - Md.

Zohair Zobairi 110571 Ashok Pandey Class :-PGCBM 21 Subject Product and Brand Management Name of the Faculty Prof. Sanjay Patro Name of the Study Center-PATNA

INTRODUCTION Globally more than one billion people lack access to safe drinking water nearly all of them in the developing countries, including India. Nearly a third of the worlds population worldwide live in water-stressed areas. This figure is expected to rise to two-third of the population by 2025. According to a 2007 United Nations report, half of the world's hospital beds are occupied by patients suffering from water-borne diseases. Almost 80 per cent of diseases in developing countries are associated with water, causing some 3 million early deaths, according to a 2009 UNESCO report. In India alone, 380,000 children die each year from diarrhea, according to UNICEF. In India, such diseases cause more than 1.5 times the deaths caused by Aids and double the deaths caused by road accidents. It is reported that groundwater in one-third of Indias 600 districts is not fit for drinking as the concentration of fluoride, iron, salinity and arsenic exceeds the tolerance levels. With increasing number of people becoming conscious of the risks of drinking contaminated water, the demand for water purifiers is rising rapidly. In the past few years, Indian water purifier industry has witnessed an exponential growth of more than 22% CAGR. The market for water purifiers is estimated to be around Rs. 3,000 crore by 2012 and 6000 crore by 2015. It is a high-growth market attracting a lot of new players. There are close to 50 organized companies and 500 unorganized firms making purifiers. Indian water purifier market is set for tough competition with leading consumer durable firms, including Godrej, Panasonic and LG gearing up to take on incumbents such as Hindustan Unilever (HUL), Kent RO, Tata Chemicals and Eureka Forbes.

INDUSTRY PROFILE
In the last decade and more, the country has undergone many changes and one of the important ones is that people have become health conscious. Water purifier are one of the most used kitchen utilities .Available in India . Water purification methods include the mechanized version as well as the age old and time-tested water purification tablets. the Water purification process includes removing contaminants from the raw water source. Some of the home remedies for water purification are boiling or the use of the household charcoal filter. But these do not ensure the required standard of water purification thus a proper treatment is mandatory. Thats where the water purifiers for home step in treatment of water by ozone also provide certain levels of purity.

India Water Purifier Market has tremendous growth potential

With increasing number of people becoming conscious of the risks of drinking contaminated water, the demand for water purifiers is rising rapidly. In the past few years, Indian water purifier industry has witnessed an exponential growth of 22% CAGR. The total water purification market, including industrial, municipal and households, is pegged at around Rs 10,000 crore. However, the share of household water purifiers in this is minimal.According to TechSci Research, the water purifier industry sales grew dramatically during FY10 as compared to previous fiscals due to improving demand and expanding production capacity. In 2011, the organised water purifier market stood at INR1,600 Crore. Given the increasing awareness, and largely untapped market potential, the sector is expected to grow at a CAGR of more than 20 percent till 2016. RO water purifier is the largest segment accounting for 42 percent of the market in 2011, while offline water purifiers contributed for about 20 percent of the market. However, by 2016, offline water purifier segment is expected to grow at a very rapid pace and increase its share to about 38 percent of the total market and is a key focus area for water purifier manufacturers, due to the large target customer base it offers, is expected to continue its rapid growth. The Indian market has very high growth potential which is more evident from the fact that global majors such as Philips and Hindustan Lever, LG have stepped in and are looking to increase their share of the market.

Company Profile
The TATA Group

The Tata group comprises over 100 operating companies in seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. The group has operations in more than 80 countries across six continents, and its companies export products and services to 85 countries. The total revenue of Tata companies, taken together, was $83.3 billion (around Rs3,796.75 billion) in 2010-11, with 58 per cent of this coming from business outside India. Tata companies employ over 425,000 people worldwide. The Tata name has been respected in India for more than 140 years for its adherence to strong values and business ethics. Every Tata company or enterprise operates independently. Each of these companies has its own board of directors and shareholders, to whom it is answerable. There are 31 publicly listed Tata enterprises and they have a combined market capitalisation of about $80.61 billion (as on July 12, 2012), and a shareholder base of 3.6 million. The major Tata companies are Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan, Tata Communications and Indian Hotels. Tata Steel is among the top ten steelmakers, and Tata Motors is among the top five commercial vehicle manufacturers, in the world. TCS is a leading global software company, with delivery centres in the US, UK, Hungary, Brazil, Uruguay and China, besides India. Tata Global Beverages is the second-largest player in tea in the world. Tata Chemicals is the worlds second-largest manufacturer of soda ash and Tata Communications is one of the worlds largest wholesale voice carriers. In tandem with the increasing international footprint of Tata companies, the Tata brand is also gaining international recognition. Brand Finance, a UK-based consultancy firm, valued the Tata brand at $15.75 billion in 2011 and ranked it 41st among the world's 100 most valuable brands. BusinessWeekmagazine ranked Tata 17th among the '50 Most Innovative Companies' list and the Reputation Institute, USA, in 2009 rated it 11th on its list of the world's most reputable companies. Founded by Jamsetji Tata in 1868, Tatas early years were inspired by the spirit of nationalism. It pioneered several industries of national importance in India: steel, power, hospitality and airlines. In more recent times, its pioneering spirit has been showcased by companies such as TCS, Indias first software company, and Tata Motors, which made Indias first indigenously developed car, the Indica, in 1998 and recently unveiled the worlds lowest-cost car, the Tata Nano. Tata companies have always believed in returning wealth to the society they serve. Two-thirds of the equity of Tata Sons, the Tata promoter holding company, is held by philanthropic trusts

that have created national institutions for science and technology, medical research, social studies and the performing arts. The trusts also provide aid and assistance to non-government organisations working in the areas of education, healthcare and livelihoods. Tata companies also extend social welfare activities to communities around their industrial units. The combined development-related expenditure of the trusts and the companies amounts to around 3 per cent of the group's net profits in 2011. Going forward, Tata is focusing on new technologies and innovation to drive its business in India and internationally. The Nano car is one example, as is the Eka supercomputer (developed by another Tata company), which in 2008 was ranked the worlds fourth fastest. Anchored in India and wedded to traditional values and strong ethics, Tata companies are building multinational businesses that will achieve growth through excellence and innovation, while balancing the interests of shareholders, employees and civil society.

Tata Chemicals
Tata Chemicals (TCL) is the second largest producer of soda ash in the world. It is India's market leader in the branded and iodised salt segment as well as in urea and phosphatic fertilisers. Established in 1939 at Mithapur in the Indian state of Gujarat, TCL has, over the last few years, invested in increasing its stake in the global soda ash business. It has acquired UK-based Brunner Mond group and American company General Chemical Industrial Products Inc, making the conglomerate the second largest soda ash producer in the world. The company also makes food additives and fertilisers and has a varied user industry base comprising glass, paper, textiles, food additives, petroleum, refining, chemicals, dyes, pesticides, direct farm application, etc. It exports to markets in Europe, Africa, South East Asia and the Middle East. Areas of business Chemicals: The range of chemicals produced at the companys integrated complex at Mithapur includes soda ash, caustic soda, salt, cement, sodium bicarbonate, bromine and bromine based compounds and gypsum. Fertilisers: The company manufactures nitrogenous fertilisers at the Babrala plant. The companys plant at Haldia produces phosphatic fertilisers like di-ammonium phosphate, NPK complexes and single super phosphate. Food additives: TCLs food additives business has two premium products: branded salt and sodium bicarbonate. TCL manufactures four varieties of salt, iodised salt, crystalline salt, vacuum salt and pure salt, and has over 40 per cent market share in the branded salt segment in India. Agri-services: The company has set up a network of Tata Kisan Sansars (or Tata farmer centres) in the northern Indian states of Uttar Pradesh, Punjab, Haryana and Uttaranchal. The centres are one-stop resource centres for farmers

Joint ventures, subsidiaries, associates

Tata Chemicals Europe (the former Brunner Mond group, acquired in 2006): The UKbased company is Europe's second largest soda ash business. Tata Chemicals North America (the former General Chemical Industrial Products Inc acquired in 2008): US-based soda ash manufacturer.

Khet Se Agriproduce India: A 50:50 joint venture set up in 2007 with Total Produce, Ireland, the third largest fruits and vegetable distribution company in the world, to start a fruits and vegetables distribution business in India. Indo Maroc Phosphore SA: An equal partnership with Chambal Fertilisers and global phosphate major, OCP of Morocco; set up in 2005.

Vaada Swach Paani Ka, Vishwas TATA Ka

BackGround of Product Development :
The Tata Swach is an innovative product from the house of Tatas which uses eco friendly raw material and technology to provide portable water at a very economic price which in itself is a service to society. TATA Swach has been an instance of collaboration between various Tata Group companies. It was an idea that originated with TCS and was subsequently picked up by Tata Chemicals and a joint team of both the companies improved & perfected the technology and made the product meet USEPA standards. When the product was ready, the team realized that no off-the-shelf production machine or process was available to mass manufacture such a product. The team discovered that another Tata Group company, Titan Industries (makers of watches & other precision instruments) had expertise in supplying automation solutions by using its precision engineering capability arising out of watch manufacturing. Titan developed the special assembly presses to undertake mass production. Thereafter, as TATA Swach readied launch, help was sought from Tata Business Support Solutions and Tata Teleservices Ltd to provide call center and toll-free number facilities, as part of after-sales-service backbone for the product.

About Product:Swach (which means 'clean' in Hindi) has been developed jointly by the Tata Group's companies .The Swach water purifier is based on a concept developed by the TCS Innovation Labs the

Tata Research Development and Design Centre (TRDDC). Amongst several benefits of Tata Swach,.the fact that it needs no electricity, no boiling and no running water are of huge advantage as India has approximately 400 million people who are not having a supply of electricity and running water. The Tata Swach meets U.S. Environmental Protection Agency standards It's cheaper than boiling water, cheaper than bottled water, and 2.5 times less expensive than Hindustan Unilever's low-cost Pureit filter, according to data provided by the companies. Considering the low price of Swach, many are already calling it the Tata Nano of water purifiers. With the introduction of this economic water purifier the company hopes to save the lives of millions of people who die because of water borne diseases. Tata Swach is an offline household water purification system which uses natural materials and cutting edge nanotechnology to deliver safe and affordable drinking water. Few Feature and Benefits of Tata Swach

Unique and innovative -:

Does not require electricity or running water, thus making it feasible for use in both urban and rural areas. Contains no harmful chemicals such as chlorine, iodine or bromine. Contains the innovative Tata Swach bulb that uses adnaced TSRF technology to destroy harmful bacteria and viruses in water and makes it safe to drink. Includes a unique Fuse system that prompts the user well in advance that it is time to replace the bulb. The bulb shuts down automatically once its purification power is exhausted. Each bulb purifies 3,000 litres of safe drinking water.

Health concerns
The Tata Swach purifier has been designed to tackle one of India's biggest social and technological challenges the need for safe drinking water. In India, water-borne diseases cause more than 1.5 times the deaths caused by Aids and double the deaths caused by road accidents. With much of India's population lacking access to safe drinking water or the resources to source it, the delivery of safe, convenient and affordable water has been a critical challenge that Tata Swach aims to fill.

Affordable and safe

The vision for Tata Swach is to reduce the incidence of water-borne diseases by making safe drinking water affordable to millions. The key component of the TATA Swach water purifier is its cartridge.Built around a bulb-like water purifier made of natural rice husk ash and nano-

silver particles, Tata Swach is designed for convenience and affordability. the TATA Swach Bulb. This bulb runs on its unique advanced TSRF technology, around which 14 patents have been filed so far. The Tata Swach Bulb purifies upto 3000 liters of water and like an electric bulb, it fuses after its power expires and prevents water from passing once its purifying capacity is exhausted. TATA Swach is the worlds lowest cost purifier, providing safe drinking water at 12 paise per liter. It is not only effective against water borne bacteria and virus, but also meets the USEPA performance norms for bacteria. A unique feature in the TATA Swach bulb is the TATA Swach Fuse- The TATA Swach bulb is packed with a purification medium which has the capability to kill bacteria & disease causing organisms. In the process of killing, the purification power of the admixture gets consumed and after around 3000 liters, this gets completely exhausted, rendering the bulb ineffective. However, impure (bacteria laden) water & pure water may both appear clear & almost similar to the naked eye. It was thus important that the user is made aware when the purification capacity of the admixture gets exhausted so as to ensure that the user replaces the Tata Swach bulb in time and thereby protects herself from drinking impure water. To achieve this, a unique fuse is incorporated which functions as auto-shut-off technique which actually stops the water flow when the purifying capacity gets exhausted. The fuse also has the ability to indicate remaining life and consumed life of the cartridge, thereby giving the user enough warning & lead-time for procurement. Clearly, with the launch of Tata Swach, a new category has been created in the water purification market in India. Also, since its launch Tata Swach has been applauded for the innovation in product at various platforms, both globally and in India. Gold Medal Award at the Asian Innovation Awards presented by Wall Street Journal and the Sniff Award for New product innovation are few such awards.

Competitive analysis of Tata Swach

What is Competitive 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 companys products and marketing strategies.

Water Purifier companies in India

Hindustan Unilever, Indias largest FMCG company was the first to enter the low-cost, economical solution for water purification with its Pureit at Rs.1,200/-. The filter with a breakthrough 'Germkill technology' has been running a campaign called One Crore Safety Challenge for the last two 2 years and is claimed to be unbeaten. There are four different variants under the Pureit brand priced between Rs.6,900/- and Rs.1,000/-. Eureka Forbes part of the Shapoorji Pallonji Group, a Rs. 3 billion ($260 Million) Corporation was the first to introduce domestic water purifiers in India in 1982. The name Aquaguard that has become synonymous with water purifiers. The company has over 25 offerings using different technologies UF, RO, UV. In 2008, it entered the off-line, storage purifier segment with AquaSure Amrit priced at Rs. 1,990/- (now Rs.2,250). Price segments range from Aquaguard Total Sensa at Rs.17,990/- at the top of the line to Aquasure Xtra at Rs.1,490/-. Usha Shriram Brita is a 50:50 joint venture between Usha Shriram Enterprises Pvt Ltd. and BRITA GmbH of Germany, a world leader in household table-top water filter systems. BRITA, a 40 year old company in the business has a formidable 85% market share worldwide in table-top water filtration systems. Usha Brita was the first company in India to launch in 1997 - a table top storage water purifier using ion exchange technology which does not require either electricity or running water and gives absolutely safe potable water. Today it boasts of the countrys largest water purifier product range - Storage, RO, UV, Jug filter and Water dispensers. Usha Brita has 13 different product variants ranging from Rs.15,999/- at the top of the line. The lowest in the range is Waterguard Spring SF introduced in 2009 at Rs. 1,499/-. Ion Exchange (India) Limited, Asia's largest water management company is perhaps the oldest player, having been in the water purifier sector for over four decades. It has at least 10 different offerings for the health concerns of the discerning Indian. Technology includes solar, RO, magnetized water, resin and Heptapure technology, a unique 6-stage purification process. It has a strong presence in industrial water treatment category. For the low-income households the company has Suraksha Zero-B, an on-tap purifier that has been in the market for close to two decades and is widely used. In 2008, it entered the low-cost storage purifier space with Zero B Suraksha Plus that uses a four stage purification process and a unique magnetized water technology. It was introduced at a price of Rs.1,890/- per unit, now at Rs.2,090/-. Kent Healthcare Products started operations in Noida in 1999. It pioneered the Reverse Osmosis technology in India. Products include Air purifiers, Water purifiers Vegetable and Fruit purifier, water softener and automatic water pressure boosting system. Kent range of water purifiers come at price points starting from Rs.50,000 (Kent Elite) at the top and Rs.1,250 at the bottom end of the line. In 2010 it came up with Kent Gold Optima with Hollow Fiber Ultra Filtration Membrane (UF Membrane) promising a 10 ltr storage and 4000 ltr life of purification, priced at Rs.1,250/-. Addition to these there are other consumer durable firms, including Godrej, Panasonic, LG, Philips Whirlpool, Hi-tech, Jaipan, Kenstar, Maharaja Whiteline, Orpat and several other firms who recently entered into the Indian market.

Feature Comparison
Tata Swach is the best option, in terms of safety, convenience and affordability.

Key features

Tata Swach

Others

Price Cost per Litter Capacity Removes harmful Viruses Removes harmful Bacteria Removes harmful Parasites(causes amoebiasis, diarrhoea, etc) End-of-life indicator Advanced Auto Switch-off Great taste Improves clarity Removes odour Doesn't need electricity Doesn't need continuous tap water Doesnt need plumbing Doesn't need an expensive

Start @499 to 999 12p 3000 liters purified water yes yes Yes

Min price Start@1200 and above 35p 1500 liters purified water yes yes Yes

Yes Yes Yes Yes Yes Yes Yes Yes Yes

Yes Yes Yes Yes Yes Yes Yes Yes Yes

maintenance contract Low initial cost Low on-going cost Yes Yes NO Yes

Data As per Case Marketing Strategy Of TATA SWACH

Less than 10 million of 220 million households in India use a water purifier. We need to increase awareness of the need to purify drinking water, set up rural distribution channels and reduce the price points further to realise the potential of this market, said Nandy. He said the firm is working on useful variants using new technology that would come at even lower price points. At present the company derives almost a third of Swach sales from non-urban areas.The companys marketing campaign is aimed at converting non-users to users of water purifiers centered on spreading awareness about the need to purify drinking water.

Pricing
The product is priced so as to make it affordable to rural Indian masses. Much lower than other purifiers on the market, its price point is aimed squarely at the middle of the bottom of the pyramid, in terms of social wealth distribution. Tata Swach is available in three Water holding Price (Rs.) Special Offer variants ie, Model capacity Tata Swach 18 lts 1,548/Extra bulb and top mesh Tata Swach Smart 15 lts 1,248/Extra bulb and top mesh Tata Swach Smart Magic NA 499/None The company crossed the Rs 500 price barrier by introducing Tata Swach Smart Magic Water Purifier at Rs.499/- in July 2010. It fits over any home water storage vessel like Matkas, buckets and steel containers. It has a sturdy body where the patented Tata Swach bulb, with 3000 liters of purification capacity is fitted.
The replaceable cartridge, Tata Swach Bulb, has a useful life of 3,000 litres and has unique features like the Fuse and Lock. The lock ensures that only a genuine Tata Swach Bulb can fit into the Tata Swach nano-tech water purifier. The Tata Swach Bulb retails for Rs.349..Top Mesh is a new feature introduced in March, 2012 to remove impurities at the time of filling water in the filter.

Distribution

The product is being distributed through organized retail stores like StarBazar and unorganized retail stores across Maharashtra, Karnataka, apart from the Northern and Eastern markets. In addition, it is distributed through networks of its agrochemical arm, Rallis India, and the farm services business, Tata Kisan Sansar, which cumulatively reach about 3 million farmers across 22,000 villages. The Tata Kisan Sansars are spread across 68 districts in the North Zone and 20 districts in the East Zone spanning 4 and 3 states respectively. In June 2011, the Buy Online feature was introduced where customers get to learnabout the technology, features and take an informed decision to buy the product fromthe comfort of their homes. As of February, 2012, the products are available through stores in over 120 cities across India.

Promotion
Swach is being promoted through video ad showing a scientist approving it, bill boards, posters inside local trains, banners at public places and ads in Newspapers. It is also tapping other vehicles for promotion. Since introducing the online purchase feature, it is promoting the concept of gifting the purifier. It gives the option of choosing the address of a third party and assures delivery anywhere in India within 10 days.

The website invites consumers to join the online forum of users called a safe water forum committed to the eradication of waterborne diseases. It has used the slogan of Vaada swach paani ka, Viswash Tata Ka in all its advertisements and POP materials.
Social Event Initiatives World Water Day, March 22 this year, was considered an ideal platform to propagate this important message, Tata Chemicals, the creators of Tata Swach joined hands with the Brihanmumbai Municipal Corporation (BMC) to launch a week-long road show 'Tata Swach wake up for water. This road show travelled across Mumbai city from March 22 to 28, 2011, to create awareness on the need and importance of clean drinking water. The show, flagged off by the first citizen of Mumbai, Shraddha Jadhav, mayor of Mumbai, covered various markets, colleges, housing societies, office complexes and other areas with high footfall, from Bandra to Borivali. In January, 2011, Tata Chemicals alongwith Hawaii Children's Foundation, distributed Tata Swach purifiers in villages and schools of Babrala, Uttar Pradesh Tata Swach also sponsored an event called the Bangalore Water Walkathon. This was as part of the Bangalore World Water Summit held in Feb 2012 organised by the Centre for Sustainable Development

Our understanding and Recommendations For Marketing Mix

PRODUCT a) unique features b)Easy to handle. c) easy to fit in any traditional container of water storage d) almost no time or very low time for installation of products

PRICE a) crossed the Rs 500 price barrier b) Product price range divided into three segments to target different audiences. c) Low cost of maintenance and consumable. d) Best prices offered when compared to other competitors. PLACE a) Rural and Urban (Low and middle Income Famiy) India b) Areas prone to diseases. C)Tie up with MFs and NGOs d)Strategically chosen locations for catching the eye of potential consumers. d) Various stalls near market places

PROMOTION a)Activate subscription immediately b) BLT and Public relationship c) Properly repair services d) Service during contract period

Price and Product

Tata Swach primarily targeted the rural consumers. The company Team Should focus more on increasing consumer awareness about water borne diseases and then present Tata Swach as an affordable and convenient solution. The price of TATA Swach is one of key differential feature from its peer group, It should be highlighted. The idea should be to expand the market by spreading awareness and fulfilling the need to provide a simple water purification system for rural and small town consumers. The basic feature of product that consumers can get purified water at 247 without interruption thus, the features like no electricity or running water requirement should be highlighted more intensively to gain consumers attention.

Place(Distribution)
The Marketing Team should develop multi channel distribution system for Tata Swach to reach more consumers. Apart from the traditional direct sales to retailers and organized Retail store, the company should focused more on the indirect channel to reach consumers. For this, it should tie up with more and more NGOs and Micro finance companies across geographical area to harness the potential at the village levels.

Promotion
Since the product was mainly focused at rural consumers, the marketing Team should decided to have a stronger focus on market activations below the line (BTL) and Public relation. The strategy should be that, since water purification is a latent need as opposed to a felt need product, hence, there is a need for strong advocacy to people on the usage for these products to expand the market. One of the important BTL activities that can really help the brand make inroads to the households is Society/School contact Programs. The idea is to create awareness about water borne diseases among the children and create pull for product. Apart from such programs, the company should reach its target consumers through participation in rural melas, haats, outdoors, activation vans and through road shows.