A SUMMER PROJECT REPORT ON

UNDERSTANDING THE DISTRIBUTION CHANNEL OF THE RETAIL MARKET AND CORPORATE WORLD
Submitted to: MUMBAI EDUCATION TRUST

In Partial fulfilment of EMPOWERED-MASTER OF BUSINESS ADMINISTRATION Under the guidance of Faculty Guide: RAJEEV GUPTE Company Guide: MR.J.ASHOK Submitted by: VAISHALI SHAH Roll Number: 12151

INDEX
No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. TITLE PAGE NO. TITLE 1 ACKNOWLEDGEMENT 2 CERTIFICATE FROM THE COMPANY 4 NEED AND JUSTIFICATION FOR THE PROJECT 7 INTRODUCTION 22 COMPANY BACKGROUND AND INFORMATION 35 DATA COLLECTION AND DATA ANALYSIS 37 PROCESSES AND PROCEDURES 54 PROBLEM FRAMING AND PROBLEM ANALYSIS 56 SUGGESTIONS AND RECOMMENDATIONS 58 ETHICAL,SOCIAL AND ENVIRONMENTAL 61 IMPACT OF THE PROJECT MY LEARNINGS 83 CONCLUSIONS 84 A PEEP INTO THE FUTURE 85 BIBLIOGRAPHY 90

ACKNOWLEDGEMENT I thank the Almighty God for his grace towards the successful completion of my project and I would like to express my gratitude towards all those who have helped me throughout my project work. Firstly, I would like to extend my heartfelt gratitude to my project guide Mr. ASHOK J. For his inspiring guidance, generous help, encouragement, patience and the valuable suggestions made throughout the course of this project. He gave me the much needed liberty to carry out the project on my terms, as per my convenience. I would also like to thank him for all those enthusiastic words that he shared with us. I am grateful to Ms. Sylvia for sharing all her valuable experiences in the industry working with SAHARA Q SHOP. I would also like to thank Mr.Sanchi (HR) who gave me the opportunity to work with SAHARA Q SHOP. I am also grateful to all the other members in the office who maintained a healthy relationship with me throughout the course of internship. A big salute to the house-keeping staff that kept us refreshed with the hot beverages and food whenever we ordered for them. Last but not the least I convey a deep sense of gratitude to my parents for their support and encouragement throughout the two months of internship.

NEED AND JUSTIFICATION OF THE PROJECT

Objective of the project Project primarily focused on to target retail market & corporate clients to sell them packaged drinking water, mineral water products and Energy Drink. Study of the distribution model Route to market and go to market strategy for beverage industry. Cost effective strategy for distribution. How do we implement strategies to increase the market share of the product. Project involved the following responsibilities: a. Sales Focus Area was corporate offices / clients, retail shops mainly in Mumbai b. Lead generation for the products under display Sales group focus area mainly western & central Mumbai. c. Identify & analyse the clients requirements by having interaction with senior management and decision-makers in the client organizations & retail shops. d. Thoroughly mapping the accounts and thereby creating database for future reference. e. Managing free samples to attract the customers. f. Assisting Sales team in moving sales cases from start to closure.

g. Marketing objectives are quantitative translations of the company's financial objectives, in marketing terms. For example: 1) sales dollars 2) sales units 3) market share 4) distribution levels/channel 5) advertising awareness 6) key account distribution The sales and marketing plan outlines each specific marketing event or action plan to increase sales. For example, it may contain a summary of quarterly promotion and advertising plans, with spending, timing, and share or shipment goals for each program. Sales and marketing plans should be a logical outgrowth of short- and long-term company objectives and your marketing strategy. In the business plan, the sales and marketing plans provide an outline of each marketing event for the year, covering the following information: description of each event vehicle (e.g., media, promotion, trade, sales) timing of each event event goals and objectives (e.g., volume, share gains) cost of each event

At the initial stage company is promoting its Water Products.

Sahara Q water is one of their many attempts at making India adulteration free and fulfilling their vision of a healthy nation. Company believe everybody has a right to pure, unadulterated nutrients and this fight for good needs to begin with the most basic element of water. SAHARA Q SHOP has launched NATURAL MINARAL WATER PACKAGED DRINKING WATER ENERGY DRINK Sahara Q Shops motto is Q= QUALITY=PURITY=OUR MISSION.

INTRODUCTION HISTORY OF BOTTLED WATER IN INDIA

Bottled water market has emerged as one of the most rapidly growing and competitive markets worldwide. The global Bottled Water Industry is a multibillion dollar industry. It has been a remarkable growth trajectory for the sector. India is among the top ten countries in terms of bottled water consumption. Today Bottled Water is one of the Indias fastest growing industrial sectors. Trends in the Industry

Mushrooming Bulk Segment New Entrants Flavoured Water Rising Investments & JVs

On the back of rising health awareness among citizens and inability of the Indian government to provide safe drinking water, bottled water industry has flourished during the past decade. Evolving perception of bottled water has made its consumption a bare necessity especially in the water scarce areas of the nation. And these factors will bring the next wave of growth in the sector. Along with these, rising disposable income, growing organized retail, rising awareness among the consumer segment and growing focus on product extension and quality will further stimulate the gains for the industry. Rising urban drift in the country will also be a wheel of growth for the industry. We have estimated the industry to grow at a CAGR of 18% till 2017 and would be soaring to new heights. Indian Bottled Water Industry currently pegged at USD 1454 million in 2011 will jump to reach USD 3925 million by 2017.

Mineral bottled water in India under the name 'Bisleri' was first introduced in Mumbai by Bisleri Ltd., a company of Italian origin in 1965. Mineral bottled water were in glass bottles in two varieties - bubbly and still in 1965 This company was started by Signor Felice who first brought the idea of selling bottled water in India.

Parle bought over Bisleri (India) Ltd. In 1969 and started bottling Mineral water in glass bottles under the brand name 'Bisleri'. Later Parle switched over to PVC non- returnable bottles and finally advanced to PET containers. Since 1995 Mr.Ramesh J. Chauhan has started expanding Bisleri operations substantially and the turn over has multiplied more than 20 times over a period of 10 years and the average growth rate has been around 40% over this period. Presently it have 8 plants and 11 franchisees all over India. Bisleri command a 60% market share of the organized market. Currently, Bailey has a national presence in 5 lakh retail outlets across the country. We plan to increase manufacturing plants for Bailey from 29 to 60, presently 40 plants are operational and few more will be ready for operations over the next few months, informed Nadia Chauhan, joint managing director of Parle Agro. Variety of packages Bottled water is sold in a variety of packages: pouches and glasses, 330 ml bottles, 500 ml bottles, one- litre bottles and even 20- to 50-litre bulk water packs. The formal bottled water business in India can be divided broadly into three segments in terms of cost: premium natural mineral water, natural mineral water and packaged drinking water. Premium natural mineral water includes brands such as Evian, San Pelligrino and Perrier, which are imported and priced between Rs.80 and Rs.110 a litre. Natural mineral water, with brands such as Himalayan and Catch, is priced around Rs.20 a litre. Packaged drinking water, which is nothing but treated water, is the biggest segment and includes brands such as Parle, Bisleri, Coca-Cola's Kinley and PepsiCo's Aquafina. They are priced in the range of Rs.10-12 a litre. The FDA also classifies some bottled water according to its origin. Artesian well water Water from a well that taps an aquifer--layers of porous rock, sand and earth that contain water--which is under pressure from surrounding upper layers of rock or clay. Mineral water. Water from an underground source that contains at least 250 parts per million total dissolved solids. Minerals and trace elements must come from the source of the underground water. They cannot be added later. Spring water Derived from an underground formation from which water flows naturally to the earth's surface. Spring water must be collected only at the spring or through a borehole tapping the underground formation feeding the spring. If some external force is used to collect the water through a borehole, thewater must have the same composition and quality as the water that naturally flows to the

surface. Well water. Water from a hole bored or drilled into the ground, which taps into an aquifer. Tap Water Some bottled water also comes from municipal sources--in other words--the tap. Municipal water is usually treated before it is bottled. Daab water in bottles: Chief minister Mamata Banerjee's focus on small investors will soon see packaged coconut water in local stores in 2013. The state food processing department is currently studying a state-of-the-art technique for packaging bottles of daab water. It will collaborate with the Indian Institute of Packaging to sell coconut water and highlight that fact that one portion of coconut water is equivalent to three portions of water. Why Bottled water? Millions of people, both in rural and urban India, suffer from inadequate or no tap water supply. Even some parts of Mumbai, the country's financial capital, get a mere two hours of daily water supply. The city's Virar suburb gets 45 minutes. So bottled water is much in demand by residents - even though the businesses profiting from the sales are thriving from access to public water sources. Bottled water fills a void created by government failure to address basic services, Peter Gleick of the Pacific Institute writes in its World Water report. "In many parts of the world, tap water is not available or safe to drink," writes . "In these regions, the failure of governments to provide basic water services has opened the door to private companies and vendors filling a critical need, albeit at a very high cost to consumers." The institute reasons that governments should tap into spending on commercial water by consumers to secure funds to provide safe water at fraction of the cost. Bottled water has been treated by distillation, reverse osmosis, or other suitable process and that meets the definition of "purified water". Bottled Water: How Safe? The bottled water industry has spent billions over the past decade to sell you on the idea that bottled water is better than tap water. Well the short answer is they are both unhealthy. One of the most ironic parts of the bottled water tragedy is that the water bottling industry gets the water free, filters it, bottles it and sells it back to us at 1,900% profit. The ironic part is that tap water is legislated to be 7.0 pH neutral. They first dump a TON of cholrine in the water to kill off all the bad bacteria, this makes it highly acidic. In India around 100 companies sell an estimated 424 million litres of bottled water valued at around Rs 200 crore in the country annually. Most bottlers

claim that their water is 100 per cent bacteria-free, safe, tastier and healthier. But is the water in these bottles really safe to drink? Do they conform to international or national standards?

Traditional Indian methods of cooling and purifying water Now people of India turning their backs on the country's ancient methods of cooling and purifying water. Stored in earthen pots, for instance, it is not only refreshingly cool and tasty but is said to become bacteria-free. Yet the common summer sight of water matkas (earthen pots) in public offices and spaces is giving way to upturned plastic drums dispensing packaged water. Rainwater is safe, doesnt bring about adverse effects. For centuries people have thought rainwater as unsafe, but contrary to their beliefs, as per an Australian study, drinking of untreated rainwater is safe for human health. The study was conducted under the auspices of eminent researchers from Melbournes Monash University. The entire team took a look at 300 homes that used rainwater collected in water tanks as their primary drinking source.This endeavor has been described as a world first study that comes in the midst of growing criticism of bottled water. Consistent quality and taste are two of the principal differences between bottled water and tap water. While bottled water originates from protected sources - largely from underground aquifers and springs - tap water comes mostly from rivers and lakes. Another factor to consider is the distance tap water must travel and what it goes through before it reaches the tap. In compliance with international regulations, bottled water is sealed and packaged in sanitary containers. If a bottled water product is found to be substandard, it can be recalled. This cant happen in case of tap water. Water is the most essential element to human life; the body usually cannot survive longer than several days without water .Water is essential to the functioning of every single cell and organ system in the human body. Water makes up greater than 2/3 of the weight of the human body; the brain is 75% water, blood is 83% water, bones are 22% water, muscles are 75% water, and the lungs are 90% water. Water is essential for the efficient elimination of waste products through the kidneys. Water regulates body temperature (through perspiration). Water helps the body to absorb nutrients in the intestines. Water plays a role in regulating metabolism. Water forms the base for saliva (necessary for consuming and digesting food). Water carries nutrients and oxygen to all cells in the body and facilitates all of the chemical processes which occur in the body. Water plays a role in the prevention of disease.

Drinking adequate amounts of water can reduce the risk of colon and bladder cancer significantly, and some studies have suggested that water may also decrease the risk of breast cancer. So, SAHARA Q SHOP came to know how important water to humans & they came up with SAHARA Q WATER in the market to reduce the thrust of the human body. In few months only SAHARA Q WATER has captured huge market of water products. People are aware about SAHARA Q WATER and its popularity is increasing day by day. A few decades ago, there were only a small number of choices for bottled water, but consumers today find more than 3,000 brands in the marketplace. And all are doing good business because all of them have targeted the survival .

ILL EFFECTS OF DRINKING UNTREATED WATER

Typhoid Bone deformation Joint pain Hardening of arteries and muscles Diarrhoea and Dysentry Excess content of fluoride can lead to flourisis Arsenic Poisoning Cholera Hepatitis

COMMONLY FOUND WATER CONTAMINATION SOURCES

Contaminated storage Tanks Cross contamination at sources Leaks in distribution network Improper functioning of Purifiers Domestic Waste Borewell or contaminated ground water Organic matters Industrial waste

SAHARA Q PACKAGED DRINKING WATER

Q packaged drinking water is aimed at providing pure and safe drinking water to the valuable consumers, which will contribute towards eliminating the invisible spread of diseases and illness that are caused by the consumption of contaminated water. Water composes approximately 70% of the human body by mass and is a crucial component of metabolic processes and serves as a solvent for many bodily solutes. Bottled water is sold for public consumption throughout the world. Sahara Q packaged drinking water is processed through state of the art water plant and aseptic filling technologies. Sahara Q shop ensures pure and safe drinking water with no risk of any harm to the human body instead will rejuvenate and rehydrate your body systems with a refreshing feel. Sahara Q Packaged Drinking Water is aimed at providing a clean and safe drinking water to the consumers, which will contribute towards eliminating the invisible spread of disease and illness that occurs through the consumption of contaminated water. The enterprise in water chemistry and the latest technology to build state-of-art water plant and aseptic filling technologies, the end result is quality product named Sahara Q Packaged Drinking Water.

The Water is derived from a natural source which then goes through series of filtration processes, followed by UV and Ozone treatment and final packaging, global standards are followed to ensure purity,quality, superiority. The end result is a crystal clear water that is pure and safe for drinking. This is hygienically packaged into top quality tempered proof PET bottle of various sizes for assurance and convenience.The plants are equipped with right tools and techniques, so goals are achieved and perfection attained.

PRICING OF PACKAGED DRINKING WATER

Packaged Drinking Water (1000 ML) Net Unit : 1000 ml RS 18

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Packaged Drinking Water - Bottle (250 ML) Net Unit : 250 ml RS 6

Packaged Drinking Water - Bottle (500 ML) Net Unit : 500 ml RS 10

SAHARA Q GOES GREEN NATURALLY-NATURAL MINERAL WATER -Water the nature meant it to be

Source : Melting snow on Himalayan peaks release natures essence,water. As it flows down it enriches itself with natural minerals and accumulates under the folds of Shivalik Range. Sourced from the pristine valleys of Shivaliks in the Himalayan foothills ,Q Natural Mineral Water comes to you as natures gift. The rich mineral content imparts a fine taste to water, which is naturally maintained by the various mineral deposits in the mountains. The water is tapped more than 300ft below the surface and bottled at source untouched. A very low nitrate content points to its virgin origin indicating freedom from contaminants, natural or man-made. Every drop of Q Natural Mineral water connects life with nature. Many sources have hazardous chemicals and toxic wastes from industrial developments in the vicinity of the source. The presence of such toxins in the source of the Natural Mineral Water is evaluated by the presence of Nitrate in the Water and the Bureau Indian Standards (BIS) allows upto 7mg per 1000ml for human consumption. Sahara Q Natural Mineral Water has only 1.2 mg nitrate content per 1000ml water .which points to its virgin origin indicating freedom from contaminants ,natural or man-made.

The nutrients present in the Sahara Q mineral drinking water are as follows: Calcium Magnesium Sodium Nitrate Chloride Ph Factor TDS 53 11 15 1.2 13 7.5 mg/litre 295-315 mg/litre

PRICING OF NATURAL MINERAL WATER

Natural Mineral Water - Bottle (1000 ML) Net Unit : 1000 ml RS 50

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Natural Water - Bottle (500 ML) Net Unit : 500 ml RS 30

ENERGY DRINK MARKET IN INDIA

Long and erratic working hours and the increasing occurrence of social gatherings are driving Indian consumers towards the consumption of energy drinks which are primarily classified as nonalcoholic,caffeinated beverages and sports drinks. The popularity of energy drinks in India is not merely due to its functional aspect as perceived in other countries. Over the past few years, the sales of energy drinks have been driven by changing consumer lifestyle and increasing demand for alcohol mixers. Their association with high octane sports such as the Indian Grand Prix and with eating out has further boosted sales and increased consumer awareness. The Indian energy drinks market is currently estimated at ~USD 154.5 millionand is expected to grow at a CAGR of 28-30%. This growth was mainly driven by an extraordinary performance by Red Bull,which has been the most dominant player in the caffeinated energy drink segment,and Gatorade,which is the leader in the sports drink segment.In order to offset the increasing raw material price, fluctuation in foreignexchange rates and rise in electricitycosts, the current unit prices have increased for energy drinks. Energy drinks account for14-15% of the non-alcoholic beverage segment and compete with other nonalcoholic beverages such as soda and brewed coffee,both of which contain caffeine for energy boost,even ifthe caffeine content is relatively lowerthan in energy drinks. Soda is the most consumed non-alcoholic beverage while readyto-drink tea also offers stiff competition as it provides the benefits of antioxidants in addition to a boost of caffeine.Unlike the US and the UKmarkets, energy shots are currently unavailable in theIndian market and

could serve as a potential business opportunity to expand the consumer base for the energy drinks players.

Q NRG DRINKS

NRG Drinks are same like REDBULL. Its an energy drink which gives energy and protein to the body. It keeps body healthy and energetic. SAHARA Q SHOP sells NRG drink at the same price equal to REDBULL in Rs.95. So REDBULL is the touch competitor for SAHARA NRG drinks. Mostly SAHARA NRG drink is useful into the pubs, hotels and restaurants.

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PRODUCT LIFE CYCLE

As a human being goes through different life cycles,same way products also goes through different life cycles. The cycle has four stages namely,introduction,growth,maturity,decline. Introduction- this is the first stage of the life cycle. Here the product is introduced in the market. The customers start getting aware of the product. In the introduction stage aggressive advertising and promotions is done. This is a very important stage because if one does not promote the product effectively,there is a chance that it can be immediately be wiped out from the market. Therefore, every company has to ensure that the product is properly introduced in the market. Growth- As the product is advertised and the consumers are aware about the products, the sales start picking up. Due to awareness and effective promotions, the consumer is now willing to experiment the product. Here the sales show a positive curve and the product starts to make a place in the market.

Maturity- this is a stage where the Sales of the product is at its Peak. This is a time when the company earns the maximum revenue. In this stage,the product is accepted by the consumers. The consumers are also liking the product. This is the result of all the marketing efforts made in the first two stages. The maturity stage is very crucial as it gives signal to the company that there is high need of effective strategies and innovations to be used for promotions. Here slight changes and innovations in the product can also occur. If efforts are not made at this stage then the product will go to the decline stage. Decline- this stage is the last stage in the product life cycle. Here, the customer is bored with the product and the sales are going down. This may be due to various internal and external factors. There may be many competitors in the market who have used excellent strategies for product promotion or there may be new entrants in the market who are offering better than us. By using innovative strategies, it is possible to help the product grow in the market. Saharas Packaged Drinking Water As the product is newly introduced in the market it is in its initial phase that is the introduction stage. Here the product is introduced in retail outlets,restaurants,fine dines,hotels and corporates. Through Promotions, awareness is created in these places. Various promotional tools are used to create awareness. Posters, Brochures,Danglers,Display has been done to make the product visible in the market. As this is the introduction stage,special offers has been given. Schemes have been introduced in retail outlets. Special offers are made on bulk purchases. Orders are collected from the retailers. The Sales team is going to different locations and routes to make people aware about the product. The company wants to enter into the growth stage for which various strategies are used. Everyday efforts are being made to visit maximum outlets and create awareness for the products. Potential outlets are found out. Observations about the outlets have been done. Efforts have been made to make contract with retail outlets, hotels,companies. Due to this the product will not only be placed in the market but also there will be growth in the sales. Saharas NRG Drink This was launched few days after the launch of packaged drinking water. In this case, strategy of Product placement is used. The promotions is done through giving special offers for selling. Free Samples are given to the retailers so that they will keep the products on display. The retailer can also use the can for sampling. Other promotional efforts are still in the process.

NRG drink will be promoted as a youth based product nad the tie ups would take place. There will be tie ups with institutes,restaurants,fine dines,etc.

INITIAL PLAYERS IN THE INDUSTRY 1. BISLERI

Bisleri has captured the whole water products market. It is the tough competitor for all other water brands in the market. Its a big brand and most trusted. Their promotional strategies are amazing. They have their own distributors in the market which makes their service easier. All retail shops ordered Bisleri water only to sell. And when customers come to buy water to any shopkeeper he always asks for bisleri bottle only. So people are aware about bisleri as a water brand with quality. So they do not look for other product.

2. AQUAFINA
This is another trusted and quality brand known in the hotel industry. Aquafina is also a tough competitor for other water products. Its packaging, pricing, quality is best thats why hotel industry always go for Aquafina brand only.

LOCAL PLAYERS
There are many local players existing in the water market and they are playing king size role. So sometimes it becomes very difficult to compete them and the

reason is they sell their products in the lower cost. So buyers easily move towards them.

COMPANY BACKGROUND AND INFORMATION

Sahara India Pariwar is an Indian conglomerate company headquartered in Lucknow, India. Its diversified business has interest in finance, infrastructure & housing, media & entertainment, consumer merchandise retail venture, manufacturing and information technology. The company has a market capitalisation of US$25.94 billion as of March 2011. The group is a major promoter of sports in India.. Sahara is the main sponsor of the Indian cricket Team. They own 42.5% stake in Formula One's Force India Formula 1 Team and also sponsors India national field hockey team. The Brand Trust Report listed Sahara in the top 100 most trusted brands of India. The report was published by Trust Research Advisory.

Subrata Roy Sahara

Subrata Roy Sahara

He is named among the 10 Most Powerful People of India by India Today. His residence is in Lucknow, Uttar Pradesh, India. Subrata Roy Sahara founded Sahara India Pariwar in 1978.

COMPANY PROFILE-SAHARA Q SHOP

On 13 August 2012, Sahara India announced the opening of their retail FMCG business named 'Q shop' (Quality shop) with an initial investment of Rs. 3000 crore. Sahara also announced the hire of 600,000 sales personnel and 3000 customer care executives. At its launch, Subrata Roy said that Sahara had been planning for this venture for the last two years and was opening 'Q shops' in major cities across the country to provide adulteration-free consumer merchandise including processed food and beverages to buyers . The group said it would set up 305 warehouses in 285 cities in a phased manner. Sahara Q shop is a mega quality consumer merchandise retail business from Sahara India Pariwar. Its aim is to provide pure, adulteration free and 100% quality products to the country. The products will be offered at the most competitive prices and in convenience of home delivery to its esteemed customers.

Sahara India has announced its foray into the retail industry in India with Sahara Q Shops, where Q stands for quality. Initially, the company plans to start more than 800 shops across 5 states, selling food items, home and personal care products, processed foods and beverages. Chairman Subrata Roy said "This will be a bigger business than our real estate business and it will be among our top three businesses in the years to come", reported ET.

Sahara Indias venture into retail is a unique business model via a Rs. 3,000 crore investment, the company plans to push out its own home brand products. The company will tie up exclusively manufacturers to deliver its own range of products to its customers. The products sold at Q Shops will be ..adulteration free 100% Quality Consumer Merchandise.. and will have 100% right weight/quantity, claims the companys website.

At present, Q Shops will be launched only in UP, Bihar, Jharkhand, Rajasthan and Uttarakhand. By end of this year, Sahara India plans to expand to West Bengal, Assam, Odisha, Tripura, Haryana, New Delhi, Punjab and Chandigarh. By February 2012, Q Shops will make their presence felt in almost all the countrys regions including Gujarat, Maharashtra, MP and other southern states. To shop at Q Shop, customers will need to become members. The company plans to develop a strong membership by tapping its significantly large existing customer base. Subrata Roy said "Our one million workers regularly visit 6.5 crore depositors and it would be easy for them to enter those houses and sell our other products". Once people become members, they can buy products directly from retail outlets or through their home delivery system. Customers can simply place orders at designated call centres and avail home delivery. It is reported that the backend of the initial phase will consist of more than 300 warehouses which will work as distribution centres to supply products to Q Shops, and to customers who call for home delivery. The concept of home brands and in-house products has been adopted since decades in the western retail markets. Taking advantage of thousands of customer walk-ins every day, supermarkets in the west are known to shelve their own home brand products alongside those of other brands.

For example, Australias largest supermarket chain Woolworths stocks its own product range of everyday household products branded as Home brand. From food and processed food products like milk to commonly used household products like dishwashing liquids, they have their in-house products for just about everything. Taking advantage of bulk volumes among many other factors, the chain can supply its products at prices a tad lower than other products, whose price tags may include the cost of branding. In Q Shops case, Industry experts are seem to believe that Roys revenue targets of Rs. 20,000 crore in the first 18 months and Rs. 45,000 crore in a span of 2-3 years will be very challenging to achieve. There seems to be a general consensus among commentators that the efficiency of Sahara Indias supply chain will be critical in shaping the growth of its retail venture. Additionally and unlike other supermarkets where consumers will have a choice of buying from many brands, it appears that Q Shop customers will only have access to the companys own product line. It will be interesting to see how, despite the lack of choice, Sahara India manages to lure consumers to its aisles. Without a doubt, pricing is expected to play a definitive role among other factors like customer service, product QC and overall shopping experience.

LATEST UPDATE

Sahara Q Shop, the quality consumer merchandise retail venture of Sahara India Pariwar, has entered the coveted record books of GUINNESS WORLD RECORDS by opening a record number of retail outlets across the country, at one time. Sahara Q Shop, on 1st April, 2013 at 4:00 p.m, simultaneously opened 315 Sahara Q Shop stores in 10 States across India. The opening of outlets was monitored by officials from GUINNESS WORLD RECORDS to verify and register the new world record set by Sahara Q Shop. GUINNESS WORLD RECORDS presented the official certificate to 'Saharasri' Subrata Roy Sahara, Managing Worker & Chairman, Sahara India Pariwar, officially registering the name of Sahara Q Shop in the prestigious world record books. Sahara Q Shop stores opened under franchisees as well as company owned formats, having sizes of 300 sq. ft, 400 sq. ft and 500 sq. ft area. The stores will provide 100% unadulterated, quality consumer merchandise products to the citizens of India at the right prices of food (staples and processed food) non food (personal care and home care), General Merchandise, Consumer Durables and Lifestyle products. Sahara Q Shop has 550 operational stores. By end of this financial year (April 2013 to 31st March 2014) this count will reach 10,000 stores across India Speaking on the occasion, 'Saharasri' Subrata Roy Sahara, Managing Worker & Chairman, Sahara India Pariwar, said, "It's a moment of great pleasure for me to present 315 more stores to the people of our beloved nation. The outlets are one more initiative to curb the menace of adulteration in the market and provide the society with 100% unadulterated, quality consumer merchandise products at fair market prices. I would also like to thank the team

of GUINNESS WORLD RECORDS for appreciating our effort by accepting it as a new record." Mr. Nikhil Shukla, India representative and adjudicator, GUINNESS WORLD RECORDS, said, "We certify the new record made by Sahara Q Shop of most stores launched simultaneously. Most stores launched simultaneously means that all these stores had to be launched at the same time, and Sahara Q Shop achieved this by launching these 315 stores at 4:00 pm IST. We congratulate Sahara for this achievement and wish them all the very best for the future." Mr. Romie Dutt - Executive Director, Sahara Q Shop said "In a short span of almost 8 months from our launch, the consumers have appreciated our products for quality and purity and we are rapidly expanding our distribution network to provide our quality consumer merchandise to the entire country." Sahara Q shop is a mega quality consumer merchandise retail business from Sahara India Pariwar. Its main aim is to provide pure, adulteration free and 100% quality products to the country. The products will be offered at the most competitive prices and in right quantities. In addition Sahara Q shop will also provide benefit and convenience of home delivery to its esteemed customers. Sahara Q Shop unbeatable advantages: 100% commitment to QUALITY Most competitive prices Right weight or quantity 100% disclosure policy across all products Convenience of phone shopping State of art QUALITY CONTROL LABS in Delhi,Mumbai,Lucknow,Nagpur,Hyderabad,Kolkata and Patna. Pan India quality team of 800 people comprising quality experts and associates ,quality control executives,quality assurance managers and quality advisors . 305 warehouses in 285 cities.

LOGISTICS

SUPPLY CHAIN
Sahara Q Shop supply chain is a mega effort by Sahara group by which people of India would get high quality products of their daily needs at their doorstep, even in small cities. The whole distribution process in Q Shop strives to optimise the entire supply chain process to ensure timely delivery to the customer at minimum cost. Q Shop supply chain covers everything from product development, inventory planning, sourcing, production, logistics, warehousing and delivery at customers' end.

WAREHOUSE
Q Shop provides unadulterated food and non-food products of daily use. Our warehouses are built keeping in mind the requirement of appropriate sunlight and proper air ventilation for better product care. Our warehouses are strategically located in an area of 50-60 kilometers from our customers. Our 305 Q Shop warehouses are well connected with national and state highways, will cover pan-India customers and are capable of keeping stocks to serve their customers in minimum delivery lead time at the customer's house.

TECHNOLOGY DEVELOPMENTS
To make sure that the product that reaches the consumer is always of highest standard and also meets international standards, Sahara Q has always been involved in improving its product packaging. One such recent development is the tamper proof break away seal. Sahara Q also recognises the need to produce environment friendly products and is working on the PET project.

THE BREAKAWAY SEAL

Keeping in mind the consumer's need to recognise a genuine product that cannot be tampered with, Sahara Q developed the break away seal. The unique cap has been patented and cannot be duplicated or tampered with. This technology development in the product ensures that the consumer will only get a highly safe product when they consume SaharaQ packaged drinking water.

PRODUCT PACKAGING
To ensure purity of the bottled water, the bottles that are used are blown and filled at the factory itself, to avoid contamination.

PURIFICATION PROCESS
At Sahara Q plants, water undergoes multi - stage purification process to ensure proper blend of minerals and complete removal of microorganisms and toxic substances. So a habit of drinking PURE and SAFE Sahara Q will ensure a healthy life What advantages Sahara Q purification process has over purification done by other methods Traditional process of boiling water for purification has its limitations. lt is time consuming. For boiling, water has to be heated to 100 deg. Celsius. Also, to kill microbes water should be boiled continuously for a minimum of 20 minutes. Boiling may kill the microbes but can not remove other physical impurities and toxic substances. Many home appliances are available in market for water purification. These gadgets use either filtration technique or Ultra Violet rays or a combination of the two techniques. These techniques do not guarantee 100 % purity of water.

Filtration removes only the visible suspended particles and not the minute , invisible particles,toxic substances or microorganisms. The filters are cleaned rarely and all the muck accumulates inside leading to more contamination. Ideally such filters need to be cleaned every day which is cumbersome. Ultra Violate rays kill the microbes but cannot ensure removal of toxic substances and physical impurities. These purification equipment are incomplete and need continuous monitoring and maintenance. At SAHARA Q , through our multi - stage purification process we ensure removal of toxic substances as well as physical and microbiological impurities. In our state-of-the-art processing plants we follow rigorous Good Manufacturing Practices and strict Quality Assurance norms so each and every bottle of SAHARA Q is made tasty, pure and safe for the consumer.

PROTECT YOUR HEALTH WITH SAHARA WHICH USES 7 STAGES OF PURIFICATION AS FOLLOWS: Chlorination Sand Filtration Carbon Filtration Micro Filtration

Reverse Osmosis Ozonation

U V Treatment

1. CHLORINATION: Kills micro organisms. Remove organic matter. Water chlorination is the process of adding the element chlorine to water as a method of water purification to make it fit for human consumption as drinking water. Water that has been treated with chlorine is effective in preventing the spread of waterborne disease. 2. SAND FILTRATION: Sand filters are used for water purification. There are three main types; rapid (gravity) sand filters upflow sand filters slow sand filters All three methods are used extensively in the water industry throughout the world. The first two require the use of flocculant chemicals to work effectively while slow sand filters can produce very high quality water free from pathogens, taste and odour without the need for chemical aids.
3.

CARBON FILTRATION :
Carbon filtering is a method of filtering that uses a bed of activated carbon to remove contaminants and impurities, using chemical adsorption. Each particle/granule of carbon provides a large surface area/pore structure, allowing contaminants the maximum possible exposure to the active sites within the filter media. One pound (450 g) of activated carbon contains a surface area of approximately 100 acres (40 Hectares). Activated carbon works via a process called adsorption, whereby pollutant molecules in the fluid to be treated are trapped inside the pore structure of the carbon substrate. Carbon filtering is commonly used for water purification, Carbon filters are most effective at removing chlorine, sediment, volatile organic compounds (VOCs), taste and odor from water. They are not effective at removing minerals, salts, and dissolved inorganic compounds.

4. MICRO FILTRATION: Additional safety measures of filtration.

Microfiltration is a membrane technical filtration process which removes contaminants from a fluid (liquid & gas) by passage through a microporous membrane.. Microfiltration can use a pressurized system but it does not need to include pressure Microfiltration is the process of filtration with a micrometre sized filter. The filters can be in a submerged configuration or a pressure vessel configuration. These filters are porous and allow water, monovalent species (Na+, Cl-), dissolved

organic matter, small colloids and viruses through but allow particles, sediment, algae or large bacteria through
5.

do

not

REVERSE OSMOSIS: Removes organic material. Reverse

osmosis (RO) is a water purification technology that uses a semipermeable membrane. not properly. In RO, an applied pressure is used to overcome osmotic pressure, a colligative property, that is driven by chemical potential, a thermodynamic parameter. RO can remove many types of molecules and ions from solutions and is used in both industrial processes and in producing potable water. The result is that the solute is retained on the pressurized side of the membrane and the pure solvent is allowed to pass to the other side. Controls total dissolved solids in the water. Around the world, household drinking water purification systems, including a reverse osmosis step, are commonly used for improving water for drinking and cooking. Such systems typically include a number of steps: a sediment filter to trap particles, including rust and calcium carbonate optionally, a second sediment filter with smaller pores an activated carbon filter to trap organic chemicals and chlorine, which will attack and degrade TFC reverse osmosis membranes a reverse osmosis (RO) filter, which is a thin film composite membrane (TFM or TFC) optionally, a second carbon filter to capture those chemicals not removed by the RO membrane optionally an ultra-violet lamp for sterilizing any microbes that may escape filtering by the reverse osmosis membrane. This stage of reserve osmosis system controls all the dissolves solidparticles and it converts hard water into soft water. 6. OZONATION: The ozone treatment increases the shelf life of water. To ensure mineral water is held safe free from contamination, ultraviolet treatment and ozonisation process is carried out. Ozone is unstable trivalent oxygen, a very powerful bactericide with no side effect, as it disintegrates into oxygen within couple of hours. Sterilization effect of ozonised water continues even after water is packaged, thereby ensuring safety of Mineral Water up to its final packing. To ensure high quality of packing materials, components like caps and bottles are manufactured in-house from resins of quality suppliers.

7.

UV TREATMENT : Another method which is gaining popularity is UV

disinfection. UV treatment leaves no residue in the water due to use of light instead of chemical disinfectants. (UV) light induces the formation of covalent linkages on DNA and thereby prevents microbes from reproducing. Without reproduction, the microbes become far less dangerous. Germicidal UV-C light in the short wavelength range of 100280 nm acts on thymine, one of the four base nucleotides in DNA. When a germicidal UV photon is absorbed by a thymine molecule that is adjacent to another thymine within the DNA strand, a covalent bond or dimer between the molecules is created. This thymine dimer prevents enzymes from "reading" the DNA and copying it, thus neutering the microbe. Still, there are limits to this technology. Water turbidity (i.e., the amount of suspended & colloidal solids contained in the water to be treated) must be low, such that the water is clear, for UV purification to work well - thus a pre-filter step might be necessary. Water treated with UV still has the microbes present in the water, only with their means for reproduction turned "off". UV-treated water must therefore not be exposed to visible light for any significant period of time after UV treatment, before consumption, to avoid ingesting reactivated and dangerous microbes.

DATA COLLECTION AND DATA ANALYSIS RESEARCH DESIGN

A research design is purely and simply the framework or plan for a study that guides the collection and analysis of data. The Survey Research was used in this project, because Retailers and consumers feedback was necessary for obtaining the data. Starting a research project needs a basic preparation regarding the issues related to the topic selected. For this one needs to do some deskwork. Deskwork includes: 1. Determining the basic objectives of the study undertaken. 2. Collection of secondary data related to the topic from Internet, magazines & newspapers. 3. Study the market, which one wants to cover. 4. Analyze the objective on the basis of information collected by secondary data. 5. All the above activities at the initial stage of the project must be completed & then the main part follows.

DATA SOURCES
a) Primary data: These are those data which are collected afresh and for the first time, and thus happen to be original in character. I will be using the structured questioners. b) Secondary data: These are those which have already been collected by someone else and which have already been passed through the statistical process. I will collect it from the sources like internet, published data etc. POPULATION OF THE STUDY People from Mumbai region will be included in the population.

SAMPLE SIZE
I took 20 consumers and 20 retailers as my respondents. They were selected by random sampling method because in this case systematic sampling is not possible since one cannot say whether a person is using mineral water or not.

SAMPLING TECHNIQUE
Random sampling technique will be used in this research project.

RESEARCH INSTRUMENT
For doing the survey research, structured questionnaire with both open-ended and closed-ended questions was used.

MODE OF SURVEY
The mode of survey was personal interview with the retailers and consumers during the filling up of the questionnaires.

PREPARING A QUESTIONARE
jective both consumer & retailers were studied apart from studying about the domestic packaged drinking water market, Brand Sahara Q in detail.

& close end for retailer were prepared.

ANALYSIS AND INTERPRETATION CONSUMER RELATED

1.

WHICH BRAND DO YOU PREFER WHILE BUYING MINERAL WATER?

Series 1
16 14 12 10 8 6 4 2 0 Often Always Sometimes Series 1

Hence it can be concluded that that 75% of the mineral water users go in for an often use while there are still 15% of the respondents who sometimes go for packaged water.

2. RESPONDENTS CHOICE AMONGST MINERAL WATER

AND SOFT DRINKS

Sales
5% 15% Mineral Water Soft Drinks Others

80%

Hence it can be concluded that 80% consumers have mineral water while only 5% prefer other drinks.

3. BRAND AWARENESS OF MINERAL WATER AMONG

RESPONDENTS

Series 1
16 14 12 10 8 6 4 2 0 (0-2) (3-5) (6-10) 10 and Above Series 1

Hence it can be seen that 70% consumers are aware of the brands of mineral water market while only 2% people are not aware of brands of the mineral water available in the market.

4. UNDER WHAT CIRCUMSTANCES RESPONDENTS OPT FOR

MINERAL WATER?

5% 10% While travelling 15% 50% Parties,meetings and seminars Illness When water not available Others 20%

It can be seen that from the analysis that 50% consumers perfer mineral water while travelling whereas 5% people consume for other reasons.

5. WHICH SIZE OF BOTTLE RESPONDENTS PREFER?

Series 1
12 10 8 6 4 2 0 250 ML 500 ML 1 LITRE Series 1

Hence it can be concluded that 60% cosumers prefer 1litre bottle of water whereas 15% people prefer 250 ml of bottle.

6. IS MINERAL WATER MORE HYGIENIC THAN NORMAL

WATER?

Series 1
18 16 14 12 10 8 6 4 2 0 YES NO Series 1

Hence it can be concluded that 85% people consider mineral water more hygeinic than normal water whereas only 15% prefer normal water.

7. CUSTOMERS PREFERENCES REGARDING PRICE WORTH

OF MINERAL WATER

30%

YES 70% NO

Hence it can be concluded that 70% consumers consider the price of the mineral water to be proper whereas only 30% people consider it to be more.

8. EFFECT OF ADVERTISING ON PURCHASE

Series 2
12 10 8 6 4 2 0 YES NO Series 2

Hence it can be seen from the data that 65% of the consumers purchase the water through advertisements whereas only 35% consumers purchase without the effect of advertisements.

9. GROWING HEALTH CONSCIOUSNESS AMONG INDIANS

10%

YES NO

90%

Hence it can be seen that 90% consumers are health concious among the Indians Whereas the remaining 10% are not health conscious.

10. WHICH BRAND DO YOU PREFER WHILE BUYING MINERAL WATER?

Series 3
8 7 6 5 4 3 2 1 0 Bisleri Kinley Aquafina Sahara Q Others Series 3

From the data it can be concluded that 40% consumers prefer bisleri as their brand for water whereas only 5% people consume Sahara Q.

ACCORDING TO RETAILERS 1. TYPES OF BRANDS THE RETAILERS SELL

Series 1
14 12 10 8 6 4 2 0 (2-3) (3-5) MORE Series 1

Hence it can be seen that 70% retailers sell only 2-3 brands whereas only 15% of retailers sell more brands of water.

2. TYPES OF BRANDS RETAILERS KEEP

Sales

20%

Advertised 10% Non-Advertised Both 70%

Hence it can seen from the data that 70% of the retailers keep advertised brands of mineral water whereas only 10% keep non advertised brands of water.

3. ACCORDING TO RETAILERS WHICH BRAND IS SELLING MORE

Series 2
9 8 7 6 5 4 3 2 1 0 Bisleri Aquafina Kinley Sahara Q Others Series 2

Hence from the data it can be seen that 45% of the retailers sell bisleri while only 5% of the retailers sell other brands.

4. SIZE OF BOTTLE SELLING MORE

Series 3
12 10 8 6 4 2 0 250 ml 500 ml 1 ltr 20 ltr Series 3

Hence from the retailers data it can be seen that 55% of the onsumers prefer 500ml whereas only 5% retailers prefer 250ml of water.

5. BRANDS WHICH GETS MORE MARGIN

Series 1
12 10 8 6 4 2 0 Bisleri Aquafina Kinley Sahara Q Others Series 1

According to the data collected 60% of the retailers got more margin from Sahara Q whereas only 5% retailers got margin from Kinley.

6. GROWTH IN MINERAL WATER IN LAST 5 YEARS

10%

YES NO 90%

Hence it can be concluded from the data that there is 90% growth in the water market from the last 5 years.

7. FUTURE PROSPECTS OF MINERAL WATERMARKET

According to the data obtained the future prospects of the water market are excellent and will grow in the future.

PROBLEM FRAMING AND PROBLEM ANALYSIS

CHALLENGES
1. 2. 3. 4. 5. 6. 7. 8. Cash problematic outlets No credit to retailer Display space constraints Competition Achieved monthly incentives Excessive outlets Problem solving Communication

SWOT ANALYSIS OF Sahara Q

STRENGTHS WEAKNESSES

Brand Name Sealed Packaging Reasonable Pricing High Quality Good Taste of the Product Wide range of products Attractive Packaging

Poor Management Not on time Delivery Weak Distribution Less target on corporate Poor after sale service Lack of knowledge of target potential market Sales force not efficient Lack of visiting cards

 Other Sahara sector problems are associated with this Giants like Bisleri and Aquafina already set in market Delay in targeting the streets of Mumbai (in monsoon)

OPPORUNITIES

THREATS

Easier to Launch Water in the Summer Season Price of Packaged Drinking water is competitive with the other organised players Lot of promotions can be done in Malls, Point of Purchase, via Brochures, Danglers and Stickers.

Dominance

of

Aquafina

and

Bisleri in the Market Higher Margins given to the retailers by Local players Lack of Customer awareness Negative mindset due to other sectors of Sahara which are in trouble Monsoon arrived early

RECOMMENDATION AND SUGGESTION

Campaign, stalls to beat local brands & create awareness. Retailers need to concentrate on 1ltr and 20 litr bottle which can be possible only if properly advertised & home delivery of jars are done to the end customers. The market is too congested and confused so the company should properly promote & strengthen the distribution channel to survive the competition. Can enter into premium segment market. They can tie up with large commercial complex,hotels & airlines industries as they are the emerging sector They can target the youth segment. Launching trendy packs to attract more and more customers. SAHARA Q SHOP should hire more enthusiastic, dynamic and passionate professionals as there is a lot of demand in the market for the industrial items. The activities should be more intense in metros, adjoining smaller towns and also the major cities located far off to increase the market share. They should form HR policies to empower the Summer-interns and also pay them appropriate stipend as any kind of sales promotional activity requires funding and also motivates the interns by creating a sense of attachment. They should follow-up every lead, however small it may be and not focus only on the big customers. There should be attractive offers and motivational schemes for the distributors and retailers time to time in an attempt to foster sales and relationships with the dealers. They should be expanding their targeting area like, in educational institutes, rural areas. It will help to rise popularity of their products. In case of Water industry, after launch the only factor which helps the company survive in the market is the Distribution. Therefore it has to be very effective. As far as the Energy Drink is concerned, the Youth can be focused and Promotions in institutions, Gyms,Pubs & Clubs can be done. Also tie ups with these can be done.

 As the company has opened its Retail outlets, in the future they would be the Eye catchers and effective promotions of these outlets and Aggressive advertisements be it Television, print, online and Outdoor can be done.

ETHICAL , SOCIAL AND ENVIRONMENTAL IMPACT OF THE PROJECT

Sahara Welfare Foundation, the social development unit of Sahara India Pariwar, is engaged in social welfare projects which aims to initiate and facilitate such processes and initiatives where socially & economically marginalised and deprived people and communities irrespective of age, caste, class, gender or race are able to participate actively in the process of their development so that they may lead a life of dignity and respect.

In todays scenario where adulteration is common practice, Sahara Q Shop will offer unadulterated quality products, with the objective of delivering 'Best Quality at the Best Price'. We will have 7 Quality Labs spread across Delhi, Mumbai, Kolkata, Chennai, Nagpur, Patna and Lucknow where each and every product will be tested for quality, along with 50 Scientists, 250 Sr. Associate Quality Advisors and 500 Associate Quality Assurance Executives who shall control perfect quality. Each point of our value chain be it material, procurement, processing, manufacturing, packaging, warehousing distribution, delivery, feedback collection and stringent analysis will follow strictly laid down Quality Control Systems. And most importantly to ensure the quality of products reaching our esteemed customers, Sahara Q Shop will have its own distribution channel. This eliminates the possibilities of any tampering / malpractices.

LETS KILL ADULTERATION

BEFORE IT KILLS US

INTERNATIONAL CROWN QUALITY AWARD

MY LEARNINGS 5 STEPS OF MAKING A CALL

Selling a product is never easy. It includes special efforts, planning and strategies. This is because, Selling is the key function of Marketing and an Ultimate aim of every businessman. If a product fails , it means the strategies that were adopted were not in proper place. While talking to a retailer/buyer, there are certain points that have to be kept in mind and precautions have to be taken. These points are listed below:1. Planning 2. Seeking Information 3. Selling 4. On Shelf Management 5. Completion Planning This is the first stage and a very important stage. If a researcher/seller fails in the first step he will not be able to achieve his purpose. In this step, the seller needs have knowledge about the retailer. Seller needs to know his personal details, details about his shop,the location, his potential or capacity. The retailer is the potential customer so the seller needs to understand his capability in selling the products. This step helps the Seller to as he does his homework and can accordingly plan as to how to pitch or how to approach a retailer.

 Seeking Information Here, the seller needs to do indepth study about the retailer. The seller should try to build a relationship with the retailer. He needs to use strategies to approach the retailer. For that, he needs to find out the timings of customer crowd in the shop, leisure time,lunch time of retailer, his availability in the entire day, timings. Care should be taken that the retailer is not to be disturbed while he is busy with his customers and while doing important work. Also information about the range of products and brands kept in the stores, the SKUs have to be observed. Accordingly, the seller can judge his opportunity and potential of the retailer. The seller also needs to find out most preffered brands of retailers. For this, friendly interaction needs to be done so as to find out the reasons of a retailer for stocking a particular product. By doing this, the seller can make space for his products in the retail outlet. Selling This is the most important step. We often feel that selling is just a transaction between the buyer and the seller. But in reality, it is not so. Today it is not enough just to sell a product for a profit. For selling, various strategies have to be observed. For e.g. Greeting a Retailer, Saying good things about his shop, observing the product placement, storage facilities, displays and promotions becomes crucial. A seller should never give an impression to a retailer that he is doing a transaction only for money. Retailers benefit needs to be highlighted. A

Seller needs to be confident, polite,caring, helpfulshow concern to the retailer. The seller needs to be friendly and needs to listen to the retailer and his problems. Retailer can also come up with solutions to his problems by offering him special schemes and discounts. On Shelf management Once retailer agrees to buy the product the seller needs to see that the product is effectively placed in the retail store. The seller needs to find proper location for promoting the product by way of pictures,brochures,point of purchase

displays,etc. A Seller needs to take care that his product is visible to the customer. The product needs to be displayed in such a manner that it is

appealing to the consumers. The product should be placed in a systematic manner and should not be kept in a haphazard manner. Proper On Shelf Management becomes one of the key factors for its sale. Completion After the transaction is complete,the retailer needs to be thanked not only for purchasing the product but also for spending his time with the seller. The seller needs to express his gratitude towards a retailer. Also, the seller needs to enquire about his next visit and can give tentative day of his next visit.

FACTORS THAT WILL HELP IN IMPROVING SALES

Promotions (in malls)- Malls are a great opportunity to do promotions. This is because malls are able to attract maximum crowd and innovative sales promotion techniques can be used in the malls. As far as energy drink is concerned free sampling in these places will promote tha product at a great level. Advertisements- there are different modes of advertisements for every product like Digital Advertisements or traditional way of radio and newspaper advertisments. Sample Testing- In college festivals NRG drinks can be provided as samples to students which will be targeting the cream market of energy drink . Also water can be sold there by providing sponsorship and opening stalls. Credit Facility There are a large number of retailers who are willing to keep product on credit basis but the only drawback on allowing this is that they wont take efforts to sell the product. Display There were danglers, posters, brochures provided which helped in sales n promotion but large bill boards and prints on trucks would bring in light the brand more among the people.

 Ready Stock In coherence with the display on trucks, these trucks should carry ready stock of the products instead of a person taking order and giving it to the distributor but this would be only possible once a certain number of order is expected daily else there is a loss to the distributor as the cost of vehicle and loader would increase than the amount the earn by selling and delivering. Tie-up- Like redbull has had a tie-up with a alcohol brand, Saharas NRG should also tie up with a famous liquor brand which will promote it significantly

DISTRIBUTOR
The distributor is the middleman and the member of the distribution channel. He is the link between the Company and the retailer. Many a times, it is not possible for a company to supply its products directly to a retailer. There are various constraints like time constraint, Geographical distance, lack of equipments, manpower, capacity due to which the Company cannot directly supply products to the retailers. Hence a distributor is chosen to do that role.

Factors to be taken care of while selecting a Distributor

Selection of a Distributor is a crucial decision because it is he who is going to supply products to the retailer. Therefore, there are various factors that have to be taken care of before selecting a Distributor. They are as follows Background of the Distributor- before selecting a distributor his background needs to be known. Information about the distributor, his personal details ,his operations needs to be known. Potential of the Distributor- how many products can a distributor deliver in a single day, what is the delivery time needs to be found out. His Method of Working- Every distributor has his own way of working. Every distributor manages his responsibilities in a different manner and achieves his target. Does a distributor perform his work effectively and manage his people well also needs to be ensured. Past Records- before selecting a distributor,his past records,his image in the market ,his successful deals need to be found out so as to decide whether he is the right person or not. Information can also be gathered about his past clients. Number of Products he is Distributing- the nature and the type of product,ranges of the product that the distributor is supplying convey a lot about his potential,calibre and efficiency.

 Area of Distribution- the distributor should be willing to work in the area as required by the company. Before deciding him for a particular area,care should be taken that the area is a feasible option for him. Ensuring Delivery Time- Delivery is the key aspect which builds relationship between the retailer and the company. Hence, the delivery time of the distributor is extremely important. Number of people available for Distribution- this is important for cost of the distributor and for loading and unloading of goods. Legal/Official documents of the Distributor-before cracking a deal they have to be checked properly. Distributors Policies- there has to be transparency in the operations. In case distributor has fixed policies,rules they need to be cleared before signing the contract. Storage Space-does the distributor have proper place to store the goods have to be observed. How does a distributor manage his inventory, has to be observed thoroughly. Capacity of the Vehicle used for Distribution- which vehicle is used for distribution,what is the capacity of the van,how much quantity of goods can be loaded at one trip should be known as they influence the cost.

COSTS OF THE DISTRIBUTOR

Whenever a Company approaches a distributor, he does not immediatelty agree to the offer. There are various factors that need to be considered. There are various factors that influence is decision. After getting an offer,the distributor first things about the Return on Investment,the margins that he would be getting,his breakeven point. Various things included in Cost of Distributor are Vehicle Cost Fuel charges of Vehicle Maintenance of Vehicle Loading and Unloading Charges Storage Cost Salaries of Employees (Loader , Driver etc) Cost of Returned goods.

PRODUCT CLASSIFICATION Competitors price

Brand Price

Distributors margin
Distributor Margin in Rs.

BISLERI

85

COMPANY

10

AQUAFINA QXYRICH

75 60

COMPANY LOCAL

10 10

BAILY

65

COMPANY

10

KINGFISHER

65

COMPANY

10

PARLE AGNO

65

LOCAL

10

SAHARA Q WATER

75

LOCAL

OBSERVATIONS IN THE MARKET

We have targeted different types of retail outlets. These include general stores, mom & pop stores, medical shops, dairy,farsan and sweetmeat shops, pan beedi shops and restaurants. All these outlets possess different features and have different potentials. The retailers in these outlets also have different attitudes, perceptions and risk taking abilities. General Stores- Retailers in general stores are cooperative and are also willing to pay attention to new offers. They have many products stocked in their shops and hence their potential can be judged. These retailers are very experimental and have high risk taking abilities. They do not run behind margins but are ready to face challenges and be competitive in one another. They believe in providing best offerings to their customers. They even are willing to purchase more than 10 boxes at a time which shows their confidence and their ability to sell. Mom & Pop Stores- they deal with products pertaining to day to day life of a customer. Hence they know what the customer wants and what kind of products to offer. They have a fairly good response towards our product. In case of tie ups with different brands they are very adamant but otherwise do not mind trying new products.

 Dairy farms- they offer a good opportunity in terms of packaged drinking water as well as energy drinks. These shops have huge potentials, the retailers are also quite experimental and give a good response for our products. The owners/retailers are visionary, analyst and know exactly which product has potential and which does not. Dairy farms have great potentials and can be concentrated in future. Sample Testing is demanded by them. Farsan & Sweet shops- they have very good potentials and response in terms of packaged drinking water. Retailers are experimental and risk takers. These shops have a wide product range from snacks to beverages as well as water. Due to this they attract more number of customers and have high potentials. Medical Shops- there is mixed response in case of medical shops because some of them have tie ups with other companies due to which they cannot store our products. Brand building, Effective Advertisements and Sales promotions are tools that will help gain trust of these shops. Restaurants- they have a very high potential in terms of promoting a product. Various promotional tools such as posters, dangers, fridges of the brand can be placed in a restaurant which will gain attention of maximum number of people. The major problem in a restaurant is tie up and contract with the companies. But few restaurant owners are very experimental. If the product is offered at a best prices with special

schemes,then they are ready to crack a deal. Sample Testing is demanded by them. Pan Beedi Shops-here the owners are attracted by margins but at the same time are very experimental and welcoming for new products. These have high potentials and are ready to crack a deal if it is cost effective.

Energy Drink Sale per area

andheri 11%

vileparle 21%

Bandra 51%

santacruz 15%

khar 2%

sales of water per area

20% 4% 26% 31% 19% Andheri Vile parle Santa cruz Khar road Bandra

 CooperatesIn cooperates ,companies offer a good opportunity in terms of 20 litre jars.Here there is mixed response,some have tie up with other brand and not ready to change the product whereas other are attracted towards price and proper distribution. Supply of products is also in huge stock which is about 10jars a day and for a longer period which lead a good profit for the company. Initial stage of the project 1) Staying close to your customers: For example, how often do you ask them what they want/need that they are not getting from anyone? Staying close to the ultimate product user: how often do you talk with the end users of your product, if they are not the same people who actually buy your product? Staying close to your sales force, if you have one: when was the last time you asked anyone in sales if they have seen anything that is better or that they like better? Staying close to your suppliers: suppliers are often the closest to the latest technology, materials, ingredients, international advances, and competitive improvements. Larger companies will periodically conduct usage and attitude studies, diary panel studies, product perception mapping studies, and other product

development monitoring devices. They may also employ special researchers to scan patents and new product technology publication sources and talk with industry attorneys, consultants, research firms, and industry/trade experts to keep tabs on target user needs and wants. 2) Market Situation : Which includes size, growth trends of total market, and key segments For example, a small business could include local industry sales or volume for the last five years and estimated total market for this year and the following year, with company sales and share of the market. Rationale should be provided for estimating the trend of the market, including key industry developments, introduction of new technology or new products, increased marketing spending by key competitors, etc. 3) Competitive Situation: Which provides a description of major competitors with size, goals, market share, product quality comparisons, marketing strategies, marketing spending, etc? Description of key competitors and their market positioning size of key competitors in units/dollars market shares of key competitors sales trends of key competitors strengths and weaknesses of key competitors compared to

your company's product or services perceived marketing strategies of key competitors and their probable impact on your company. 4) Target Buyer or End User Situation: Which analyzes the identification and behavior of target buyers/end users and consumer wants and needs? Staying close to your customers: for example, how often do you ask them what they want/need that they are not getting from anyone? Staying close to the ultimate product user: how often do you talk with the end users of your product, if they are not the same people who actually buy your product? Staying close to your sales force, if you have one: when was the last time you asked anyone in sales if they have seen anything that is better or that they like better? Staying close to your suppliers: suppliers are often the closest to the latest technology, materials, ingredients, international advances, and

competitive improvements. Larger companies will periodically conduct usage and attitude studies, diary panel studies, product perception mapping studies, and other product development monitoring devices. They may also employ special researchers to scan patents and new product technology publication sources and talk with industry attorneys, consultants, research firms, and industry/trade experts to keep tabs on target user needs and wants.

FACTORS THAT HAVE IMPACT ON SALE OF A PRODUCT

Players in the market Every product has a totally different market scenario. Whenever a product is newly introduced in the market, definitely there are challenges and problems that it faces. The biggest challenge is the competitors. Their presence itself poses a big challenge because one needs to compete with the established players in the Market. Their Brand Value, popularity, reputation, market share all these factors create hindrances in the initial stage. Competitors activities, promotions- Every player in the Market wants to be the best due to which he is constantly proactive and is trying to attract more and more customers. The established players in the market know the essence of the market and the requirements of the consumers. Hence they come up with innovative strategies and techniques for promoting their product. If these catches the eye of the customer, he immediately buys the product. Competitors Pricing Strategies: Price is one of the most crucial and distinguishable factor which influences the Retailers as well as the customers buying behaviour. Effective pricing strategies by established brands pose a threat to the new ones and a significant difference in price creates problem.

Tie ups and Contracts of Retail Outlets with the brands Established Brands often tie up with many retailer outlets. Once the retailer is tied up with them,according to the contract,he cannot stock the competitors product. As soon as the retailer ties up with a particular company, he immediately gets promotional tools, special offers and discounts. Sometimes the retailer is given extra monetary income for stocking their products. In case for a company like Pepsico, which has numerous products, the retailers are also given discount for other products. Sometimes Customized offerings are also made. Tie ups is an effective method to end competition. Perception of Retailer about the Brand- For introducing a new product to the retailer, lot of initial efforts in terms of advertising and promotions have to be made. As the retailer is unaware of the product, effective techniques and approach needs to be used to convince him. After introducing the product to the retailer, he develops a certain image about the product which certainly affects the sale. Perception of Customer about the Brand- A retailer stocks the products as per consumers demands. He is more concerned about fulfilling the demands of the consumers. When a consumer is made aware of the product through a retailer, effective advertising and display the customer also develops a brand image. This has a strong impact on Sale.

Distribution System The Water Industry is extremely dynamic in nature. Mostly all the competitive products offer the same price range to the customers. But as far as the retailers are concerned they wont hesitant to switch over a brand if there is lack of proper distribution system. After sales, it is the distributions of a product which will help the brand survive in the market.

PRICING STRUCTURE OF SAHARA Q WATER PRODUCTS Package size MRP/Bottle No. of MRP per Retailer price

bottles in a case case Packaged drinking water 250 ml 500ml 1000ml 20 LTR Natural mineral water 500 ml 1000ml Energy drink 30 50 24 12 720 600 6 10 18 75 24 24 12 1 144 240 216 75

115 160

70

612 510

TYPES OF MARKETING CHANNELS

Manufacturer to Consumer In this channel there is no intermediary. Manufacturer makes the goods and directly distributes to consumers. 2. Manufacturer to Retailer to Consumer Retailer is the intermediary between manufacturer and consumer. He purchases goods from manufacturer and sells to consumer. 3. Manufacturer to Wholesaler to Retailer to Consumer In this channel, there are two option, one is wholesaler and other is retailer. Wholesaler buys large scale and sells to retailer and the retailer sells to consumer. 4. Manufacturer to Wholesaler to Consumer Consumer can buy easily and directly from wholesaler. So, in this channel there is only one intermediary and he is wholesaler.

Integrated Channel or Non conventional channels integrated channel are modern channel for distribution of goods. This channel can be divided into two parts.

1.Vertical Channel Vertical channel is that corporate channel which are useful for the flow of products which are capital nature. In this, if one company contracts with other manufacturers who will convert the capital product into most usable shape and sell it to the dealers. Then it will be vertical channel. 2. Horizontal Channel Two companies join together for marketing of any product for reducing competition and excess capacity.

CONCLUSION
After analysis of the data & facts we have collected from consumer & the retailers & matching them with the objectives one can say that there is very good future for water market. Soft drink market might be some threat to the water at present but within few years the scenario is going to change. Trend signifying increasing health consciousness amongst Indians could also be observed. Market has seen a tremendous growth from the early nineties & now it is increasing by 70% to 90% every year so one can easily say there is great potential in the water market. It could also be observed that the living standards of the People improving & as they are becoming health conscious are ready to pay for water now. On the question of survival of so many companies government has made policies & restrictions from April 2001 which will force many manufactures to shut down their factories. But due to potential in the market companies with quality product will survive. Finally from the data collected at both primary and secondary level one can confidently say that Sahara Q as packaged water brand is the emerging brand in the market.

FUTURE PLANS

The range of products which they are planning to launch are as follows: Pulses- All the pulses are sortexed, cleaned and have a low moisture content. Being unpolished, they do not have a shiny surface. Some of the products that they are coming up with are Chana Kesari, Moong Dhuli, Moong Chilka, Kabuli Chana, and Urad Chilka. Dals- They are sortexted, cleaned and have a low moisture content. Being unpolished, they do not have a shiny surface. Soaking the Dals for 20 minutes gives a better yield and great taste. The Classic Dals give higher yield of cooking namely Q Rajma Sharmilli, Chana Dal,Arhar Dal, Masoor Milka, Urad Dal. Rice- Rice is obtained from Select Quality paddy grains and is processed through a multi stage milling process to retain nutrition flavour and taste. It offers a unique fragrance, long and delicate basmati grains for the finest taste. The best Quality Authentic Rice gives a better yield on cooking with great aroma. Swagat Basmati Rice, Royal Basmati Rice, Mogra Basmati rice are few included in this category. Spices- Spices are processed in s modern plant using scientific technology that helps to retain the freshness and taste for a long period of time. It includes Garam Masala,Haldi Powder.

 Flour- All the flour items are of fine texture of six grains namely wheat,oats,soya,barley,chana and maize. Ghee- Rich in aroma it is strictly manufactured from milk fat under Q Hygienic conditions. Oils- it has the goodness of Vitamains A, D2 and E. Snacks & Savouries- it includes bhujia,farsan,mix dal, chips, Noodles and Vermicelli (Kheer). Beverages- it includes different types of Juices and Tea. Cookies & Biscuits- they have flavours of Cashewnuts, Orange. Jams- it contained Mixed Fruit, Strawberry and Pine Apple. Breakfast Cereals- they were basically cornflakes. Sauces Ketchups Condiments- it includes Snack Sauce, Tomato Ketchup and Pickle. Toothpaste-it includes Red Dental Gel and Super White Toothpaste.they offer all round dental care. Soaps- it includes Cleansing,Moisturizing and Germ Control Soap. Mens Hygiene- it includes Moisturizing shaving cream Skin Care Health Care Fairness Cream Hair care- this includes Root Strengthening shampoo, anti dandruff shampoo, Amla hair oil and Herbal Henna Fragrance All Day Fresh Talc Home Care Glass Cleaner, Surface Cleaner, Toilet Cleaner, Mosquito Coil, Scrubber, Agarbatti, are products included in this Category. Utensil Care- Dishwash Active liquid and Dishwash bar are the products. Fabric Care- this includes matic Detergent Powder, Advanced Detergent powder and Detergent Cake.

MARKET POTENTIAL GROWTH SAHARA Q SHOP is recently has came up in the market. So companys market growth chances are very high. They can set into the market in the way they

want. As we all know that SAHARA INDIA is a huge company so they can put big amount to expand and promote SAHARA Q SHOP easily. 1. Market Situation which includes size, growth trends of total market, and key segments. For example, a small business could include local industry sales or volume for the last five years and estimated total market for this year and the following year, with company sales and share of the market. 2. Rationale should be provided for estimating the trend of the market, including key industry developments, introduction of new technology or new products, increased marketing spending by key competitors, etc. 3. Competitive Situation which provides a description of major competitors with size, goals, market share, product quality comparisons, marketing strategies, marketing spending, etc. description of key competitors and their market positioning size of key competitors in units/dollars market shares of key competitors sales trends of key competitors strengths and weaknesses of key competitors compared to your company's product or services perceived marketing strategies of key competitors and their probable impact on your company

 4. Target Buyer or End User Situation which analyzes the identification and behaviour of target buyers/end users and consumer wants and needs Larger companies will periodically conduct usage and attitude studies, diary panel studies, product perception mapping studies, and other product development monitoring devices. They may also employ special researchers to scan patents and new product technology publication sources and talk with industry attorneys, consultants, research firms, and industry/trade experts to keep tabs on target user needs and wants. After making a strong retail debut in multiple cities of India, Sahara Q shop, retail venture of Sahara India Pariwar is now all set to take on the ecommerce wave with its new online store SaharaQshop.com. It was launched on June 10th on the birthday of Subrata Roy, Founder and Chairman of Sahara India Pariwar. Talking to the Ecommerce head of Sahara Q shop, Darshan Satgar, he highlights that, There is gap of no big player being here at this platform(FMCG category), there were attempt made earlier by smaller websites but delivery mechanism was restricted to 3rd party, and because of that it was difficult to complete the delivery, and companies(Offline retailers) were not recognising ecommerce for this industry, Even the smaller websites that have been launched had limited reach to few cities or states. So for Sahara, its an opportunity to explore this industry, he added. He also claims that it will be a long term approach and the company will provide immense learning for expansion giving an early mover advantage. All the products being offered will be private labelled with Sahara Q. For now it has over 300 products being listed. Beverages, processed food,

personal care, home care, etc are the few categories to be added for now with introduction of more categories in coming months. To start with, it will fulfill orders in 10 cities with 100% company owned delivery system, offering free shipping on minimum cart value of INR 500, which might be increased to INR 1000 in future. For logistics, the company will use its own delivery network Sahara Q Shop supply chain. It controls the entire distribution process, which includes product development, inventory planning, sourcing, production, logistics, warehousing and delivery at customers end. The website claims to deliver products in 3-4 days depending upon the locations, i.e. 48 hours for major cities and 4 days for other small cities. The company will also be open for bulk orders. Sahara Q Shops online store will also focus on carrying its brand position by offering quality products to its online customers as its USP along with the convenience in delivery. Sahara Q shop has started with a mission to curb menaces of rampant adulteration, dishonest practices of compromising with quality, underweighing, etc. and thus will be focussed to provide the customers with 100% unadulterated and best quality products at most competitive prices says the chairmans message on the website. The company has also adopted Sahara Quality Management System (SQMS) to ensure quality control which includes raw material testing, online process monitoring, finished product testing and secondly, Quality Assurance i.e. verification of quality systems in the entire value chain by developing and verifying SQMS of all food categories and non-food categories and eliminating all types of hazards (physical, chemical and biological). The company is also looking for exclusive retailers for its private label. Currently it has 550 operational stores and by end of financial year (April 2013 to 31st March 2014) this count will reach 10,000 stores across India as mentioned on the online website. It will compete online with players such as Bigbasket.com, MyGrahak.com, Zopnow.com, Aaramshop.com to name a few. Other players which launched similar categories recently includes Homeshop18 and Ebay.in. FMCG is a hard to crack category when it comes online, but what might help Sahara Q Shop to sail through it will be its brand exclusivity and

might be the higher margins being a private label altogether for more quality savvy customers.

BIBLIOGRAPHY www.saharaqshop.com
www.sahara.in/qshop.html en.wikipedia.org/wiki/Sahara_India_Pariwar www.sahara.in/

Under observation of MR.ASHOK.J. ( SAHARA Q SHOP) MS SYLVIA AND MR SHIVHAM.