1

A STUDY ON DISTRIBUTION SYSTEM IN CLASSIQUE

WATER PRODUCT Private Limited., PUDUCHERRY

PROJECT REPORT

Submitted by

N.MANIKANDAN

REGISTER NO: 13MBA426

Under the guidance of

Mr. Dr. L.J.SOUNDAR RAJAN

Professor , DEPARTMENT OF MANAGEMENT STUDIES

In partial fulfillment for the award of degree of

MASTER OF BUSINESS ADMINISTRATION

DEPARTMENT OF MANAGEMENT STUDIES

CHRIST COLLEGE OF ENGINEERING AND TECHNOLOGY

PONDICHERRY UNIVERSITY

PUDUCHERRY

June – 2015

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Christ College of Engineering and Technolog

(Approved by AICTE, Affiliated to Pondicherry University and An ISO 9001:2008 Certified Institution) Pitchaveeranpet, Moolakulam, Oulgaret, Puducherry –605 010

DEPARTMENT OF MANAGEMENT STUDIES

BONAFIDE CERTIFICATE

This is to certify that the project work entitled is “A STUDY ON DISTRIBUTION

SYSTEM IN CLASSIQUE WATER PRODUCT Pvt. Ltd., PUDUCHERRY” is a

bonafide work done by N.MANIKANDAN [REGISTER NO: 13MBA426] in partial

fulfillment of the requirement for the award of Master of Business Administration by

Pondicherry University during the academic year 2013–2015.

GUIDE H.O.D DEAN

Submitted on Viva-Voce Examination held on __________________

EXTERNAL EXAMINER

1. ____________________

2. ____________________

3

DECLARATION

I hereby declare that the dissertation entitled “A STUDY ON DISTRIBUTION

SYSTEM IN CLASSIQUE WATER PRODUCT Pvt. Ltd., PUDUCHERRY” Submitted

for the degree of Master of Business Administration is my original work and the dissertation

has not formed the basis for the award of any degree, diploma, associate ship, fellowship or

other titles. It has not submitted to any other university or institution for the award of any

degree or diploma.

PLACE:

DATE:

N.MANIKANDAN

4

ACKNOWLEDGEMENT

The successful completion of any task would be incomplete without mentioning the

names of the persons who helped to make it possible. I take this opportunity to express my

gratitude in few words and respect to all those who helped me in the completion of this

summer project.

I express my deep gratitude to Dr. S. R. SAM PAUL, Chairman & Managing

Director, Christ College of Engineering & Technology.

I am extremely grateful to our Principal/Director Dr. A. RAVICHANDRAN for

providing necessary and essential facilities to do this project work.

I would like to extend my sincere thanks to Dr. L. J. SOUNDARARAJAN,

Professor, and Department of management studies, for his encouragement, support and

guidance to complete this project work successfully.

I express our sincere thanks and deep sense of gratitude to Dr. M. PRABHU, Head

of the Department of Management Studies for providing me with an opportunity to study and

for his encouragement, support and guidance to complete this project work successfully.

I express a deep sense of gratitude to my Guide, Dr. L. J. SOUNDARARAJAN,

Senior Professor, Department of Management Studies, for his support, motivation and

constant guidance to complete the project work successfully.

I convey my heartiest thanks to Mrs. GEETHA, Manager, CLASSIQUE WATER

PRODUCT Pvt.Ltd., who kindly granted permission to do this project work in his esteemed

organization.

Finally, I express my sincere thanks and deep sense of gratitude to my parents and

friends for giving timely advice in all the ways and in all aspects for the success of this

project work.

N.MANIKANDAN

5

TABLE OF CONTENTS

CHAPTER TITLE PAGE

NO

I INTRODUCTION

COMPANY PROFILE & INDUSTRY PROFILE

14

INTRODUCTION TO THE STUDY

II OBJECTIVES OF THE STUDY 21

III REVIEW OF LITERATURE 23

VI RESEARCH METHODOLOGY 36

V DATA ANALYSIS AND INTERPRETATION 40

VI FINDING OF THE

STUDY&SUGGESTION&RECOMMENTATION

77

VII CONCLUSION 82

ANNEXURE I

QUESTIONNAIRE

ANNEXURE II

BIBILIOGRAPHY

LIST OF TABLE

6

LIST OF CHART

4..1.1

HOW LONG YOU BE THE DEALER FOR CLASSIQUE

WATER PRODUCTS PVT.LTD

4.1.2

WHICH FACTOR ENABLES YOU TO BE THE DEALER

OF CLASSIQUE WATER PRODUCTS PVT.LTD

4.1.3

CAN BE ABLE TO MEET THE CUSTOMER

SATISFACTION IN AVAILABILTY

4.1.4

WHICH TYPE OF THE FOLLOWING CUSTOMER

HIGHLY PREFERS CLASSIQUE WATER PRODUCTS

PVT.LTD

4.1.5

.

HOW WILL YOU ORDER THE PRODUCTS

4.1.6

WHETHER ORDER QUANTITY OF CLASSIQUE

WATER PRODUCTS SUPPLIED

4.1.7

HOW MUCH TIME DOES IT TAKES OF CALSSIQUE

WATER PRODUCTS AFTER ORDERING?

4.1.8

ARE YOU SATISFIED TO TAKE THE THE DEALERSHIP

OF CLASSIQUE WATER PRODUCT PVT.LTD

4.1.9

DOES THE COMPANY EXECUTIVE CONVEY

SCHEMES ON PROPER TIME

4.1.10

IN WHICH AREA DO YOU EXPECT TO IMPROVE IN

CLASSIQUE WATER PRODUCT PVT.LTD

4.1.11

RANKING FOR DISTRIBUTION SYSTEM INVOLVE IN

DISTRIBUTOR

4.1.12

RANKING FOR DISTRIBUTION SYSTEM INVOLVE

IN DISTRIBUTOR

4.1.13 ANOVA

4..1.1

HOW LONG YOU BE THE DEALER FOR CLASSIQUE

WATER PRODUCTS PVT.LTD

7

4.1.2

WHICH FACTOR ENABLES YOU TO BE THE DEALER

OF CLASSIQUE WATER PRODUCTS PVT.LTD

4.1.3

CAN BE ABLE TO MEET THE CUSTOMER

SATISFACTION IN AVAILABILTY

4.1.4

WHICH TYPE OF THE FOLLOWING CUSTOMER

HIGHLY PREFERS CLASSIQUE WATER PRODUCTS

PVT.LTD

4.1.5

.

HOW WILL YOU ORDER THE PRODUCTS

4.1.6

WHETHER ORDER QUANTITY OF CLASSIQUE

WATER PRODUCTS SUPPLIED

4.1.7

HOW MUCH TIME DOES IT TAKES OF CALSSIQUE

WATER PRODUCTS AFTER ORDERING?

4.1.8

ARE YOU SATISFIED TO TAKE THE THE DEALERSHIP

OF CLASSIQUE WATER PRODUCT PVT.LTD

4.1.9

DOES THE COMPANY EXECUTIVE CONVEY

SCHEMES ON PROPER TIME

4.1.10

IN WHICH AREA DO YOU EXPECT TO IMPROVE IN

CLASSIQUE WATER PRODUCT PVT.LTD

4.1.11

RANKING FOR DISTRIBUTION SYSTEM INVOLVE IN

DISTRIBUTOR

4.1.12

RANKING FOR DISTRIBUTION SYSTEM INVOLVE

IN DISTRIBUTOR

4.1.13 ANOVA

8

CHAPTER I

INTRODUCTION

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Introduction

The “Case Note: The Evolution of Distribution Systems” appearing in a recent (Vol.

10 No. 4, 1993) issue of the International Marketing Review provides the start of an effort to

understand changes in distribution systems in the nations of Central and Eastern Europe and

particularly in Hungary (Mueller et al., 1993). The authors are to be encouraged to continue

exploratory work in this area. Having said this, there are some major flaws which occur in the

article. It is the purpose of this Comment to draw attention to these in the best spirit of

academic criticism with an eye to encouraging the authors and others to make contributions

to our understanding. Although it might be argued that a “case” does not need to be so precise

or so exact as traditional academic articles, I would argue that it should be no less since it is

used as a vehicle for providing students, whoever they may be, with the best possible

background for understanding critical issues. The discussion follows the major headings of

the article to provide a means for the reader to consider substantive issues more easily. A

final section will draw the reader‟s attention to several other matters.

Models of Distribution Development

The authors too easily dispel the rich and robust work in the analysis of change in

distribution. Indeed, this has been an important topic for a great number of scholars in

economics, history, marketing and sociology. The present piece seeks refuge in one narrow

set of ideas which may or may not be applicable to the conditions of the region on which they

are focusing. There is room for a variety of explanations and hypotheses; while it is important

to select one, it is also convention to cite opposing views and argue why they have been

rejected. The present discussion is not aimed at proposing oneview; rather its purpose is to

illuminate others. In this regard, Kotler did not establish the principle of stages in distribution

as noted, although it would be an interesting scholarly exercise to trace its origin. Further,

recent historical research in marketing clearly shows that this three-stage explanation of the

development of marketing is not accurate (Fullerton, 1988). There is a large literature in this

field, too large to cite in any detail, which clearly shows a variety of alternatives, most of

which, unlike the authors‟ contentions, are not disjointed. Most of the work in this area can

be grouped into three major classifications, each containing theoretical work and extensive.

While the scope of the discussion is somewhat limited, what also is missing is a discussion of

the conditions under which marketing institutions are changing. The difficulties of

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understanding marketing in this environment are made more challenging because no one has

a full understanding of how transformation will unfold. Even the Organization for Economic

Co-operation and Development ( OECD) has noted that there are few models from which the

changes can be directed (OECD, 1992). The most important examples may come from the

experiences in the developing world rather than the developed world as argued in the article.

No reference to the extensive work in the former area, primarily that of Slater, diminishes the

arguments (Slater, 1968, 1970).

Retail Structure

The background discussion for retail structure, especially the recent past, is

particularly weak; the present discussion does not provide a sufficient background to

appreciate the past fully and, more importantly, does not get to the “basic causes” argument

that the authors established as important. Interestingly enough, much of this literature is

available in English and some of it was written by Hungarians. One of the key pieces looks at

changes in enterprise structures for consumer goods and, although looking at retailing in

general, provides some important insights about how the distributive trades were organized

and how they performed (Lukacs, 1988). A second discusses innovation in Hungarian

retailing and offers insights about changes in food distribution in a holistic sense with clearer

focus on innovative reforms (Naor, 1988) . Finally, a recent article provides an excellent case

study of one of Hungary‟s major retailers (James, 1992).

The other part of retail structure which requires further development is privatization. The

authors‟ brief description at the bottom of page 46 overly simplifies the complex

privatization activities pursued in Hungary in general and in specific those directed at retail

trade. Much of this is spelled out in an article entitled “The Uncertain State of Privatization”

in The New Hungarian Quarterly ( Kocsis, 1992). Hungary has pursued almost every

measure in privatizing the old state organizations; a listing let alone an evaluation of them

would take several pages. For anyone interested, a recent publication summarizes them

(Frydman et al., 1993).

With regard to retailing, privatization guidelines were developed in the 19891991 period.

These were not related to size, as the article implies on page 47, but were based on a desire to

privatize the sector as quickly and fully as possible. While many, including Francis S. Dobos,

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the General Director of the Ministry of Industry and Trade, Department of Trade Policy,

believe the programmes went ahead without appropriate concerns for restructuring, they

nevertheless went ahead (Dobos, 1993).

Within the discussion of privatization, it is necessary to focus on the behaviours that

privatization has brought to retailing. While the description of behaviours at the end of the

section are most representative, they do not deal with the larger issue of the effects of

privatization. Except for those firms that are part of joint ventures, such as Skala, or part of

Western investment, such as Julius Meinl where Western practices have begun to change the

previous socialistic practices, the same cannot be said about retail privatization of internal

investment and employee buy-outs. Neither the academic nor the journalistic literature is so

robust as one might like, but there are key pieces showing that some privatization in retail

trade has simply been a change of ownership without a change in management style (Mora,

1991; Pasztor, 1991). Finally, an important element of understanding retail structure and

behaviour depends on understanding consumer behaviour both at the aggregate and

individual levels. No mention of important economic issues such as inflation, as well as

inflationary expectation, income levels, and income distribution is included in the article. The

National Bank of Hungary in its Annual Bulletin as well as in Monthly Reports provides

discussions of the effects of these factors on retail trade. Retail trade in real terms declined

throughout the 1989-1992 period, a phenomenon which has substantial effects on food

retailing, especially with regard to the importance of “informal” operators (National Bank of

Hungary, 1992, 1993).

Other Issues

While the title states “evolution” the text often talks about revolution and the two

appear to be used interchangeably. If it is a revolution, then the authors need to provide a

proper foundation. Two works offer great insight into marketing and mass distribution

revolutions, though they can be offered with the caveat that they are from developed

economies and may not apply to Hungary or the other transforming nations (Chandler, 1977;

Stacey and Wilson, 1958). There is no doubt that many of the changes in Hungary in the past

two-and-a-half decades are dramatic but there are many areas which need further

development. For example, much work is required in the development of basic marketing

functions; in agriculture and the food industry more attention must be given to the

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development of standardization and grading. Other problems still exist, and even with

Western investment are not being rapidly eliminated, and many go beyond new plant and

equipment (Juhasz and Mohacsi, 1992) . Certainly, changes have been hastened by a number

of factors and will be affected by others not included, such as inflation, employment, and

ability to raise capital and the ability of firms to learn how to compete.

Conclusions

Understanding the changes in the countries in Central and Eastern Europe is not easy.

Predictions of what will happen are more chancy than trying to predict the weather. At this

stage in their transformation, it is critical to make certain that we are as comprehensive as

possible in describing events.

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1.1 INDUSTRY PROFILE

PACKAGED DRINKING WATER IN INDIA

It is needless to mention that water, a compound of Hydrogen and Oxygen is a

precious natural gift which is very essential for survival of mankind including animals. The

water used for potable purposes should be free from undesirable impurities. The water

available from untreated sources such as Well, Boreholes and Spring is generally not

hygienic and safe for drinking. Thus it is desirable and necessary to purify the water and

supply under hygienic conditions for human drinking purpose. As the name implies, the

mineral water is the purified water fortified with requisite amounts of minerals such as

Barium, Iron, Manganese, etc which can be absorbed by human body. It is either obtained

from natural resources like spring and drilled wells or it is fortified artificially by blending

and treating with mineral salts. The mineral water shall be manufactured and packed under

hygienic conditions in properly washed and cleaned bottles in sterilized conditions.

Amongst other things, access to clean drinking water is a basic necessity for a healthy living.

In India, access to safe drinking water has always been an issue due to several reasons.

Overpopulation and scarcity of water resources are some of the major factors. This has

resulted in high growth in demand for packaged drinking water.

The last few years have seen a sea change

Market approximately at Rs. 100 now.

The 6.5 Million cases Market have not just witnessed a number of few corporate

entrants but it has also seen a host of smaller, regional level play as entering the fray. In fact

at last count there where several Packaged Drinking Water Manufacturers in the country with

number likely to rise given the robust 50% annual growth rate of segment.

The Phenomenon increase in demand for Mineral Water- From just 3.5 Million cases in

1992-93 to 7.5 million cases at present –has been propelled in no small measures by the

rising concern for healthy and safe drinking water.

Drinking Water Market approximately at Rs.100 now.

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The domestic packaged water industry is highly fragmented and local with more than 1,000

players. The bottled water industry in India is regulated by Bureau of India Standards (BIS)

by providing ISI mark.

All Indian packaged water manufacturers have to mandatorily obtain the ISI mark from BIS

for manufacturing and sale of packaged drinking water or natural mineral water.

The world‟swaterindustrypackedrecorded a yearly growth rate of 4% in 2010 to exceed $99

billion, reports Market Line. The market is expected to expand by more than 27% in the five-

year period ending 2015 to generate more than $126 billion in revenue. In 2010, the market

had a volume in excess of 152 billion liters, forecast to reach close to 183 billion liters in

2010, representing a 20% increase in five years.

Packed Drinking Water Industry in India

The overall packaged drinking water in India is estimated to touch the Rs 10,000

croremark in the 2012-13 fiscal, growing at a compound annual growth rate (CAGR) of 19%,

says a new report by Ikon Marketing Consultants. Presently, this market is estimated at Rs

8,000 crore, and could touch Rs15,000crore by 2015, the report adds. While Bisleri mineral

Water continues as the top brand with a 36% share among national players, Coca-Cola's

Kinley follows with 25% share, followed by Aquafina at 15%. Other smaller brands include

Parle Argo‟sBailey, Kingfisher and McDowell‟s No. 1, according to the report. The global

bottled water market, which saw an increase of 40-45% over the past five years, is currently

valued at close to US$ 85-90 billion, the report adds.

The domestic market is split between three sets of players -- national brands with apan India

presence worth around Rs 4,000 crore, local brands manufactured by registered

plants but restricted to regions estimated to have a combined turnover of Rs 2,400 crore and

unorganized local brands estimated at Rs 1,600 crore. The report estimates that there are over

2,500 brands in this category, of which over three-fourths are local. The non-traditional

category, or bulk packs, (with over 5 litre capacity) is growing rapidly, and has a current

share of over 40% share. "The rising trend of bulk water consumption in homes and

institutional segments will pave the way for bulk water packs to acquire half of the total

bottled water market within next four-five years," the report adds. According to a national-

level study, making bottled water is today a cottage industry in the country. Leave alone the

metros, where a bottled-water manufacturer can be found even in a one-room shop, in every

medium and small city and even rural areas there are bottled water manufacturers. While

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India ranks in the top 10 largest bottled water consumers in the world, its per capita per

annum consumption of bottled water is estimated to be five litres which is comparatively

lower than the global average of 24 litres. Today it is one of India's fastest growing industrial

sectors. Between 1999 and 2004, the Indian bottled water market grew at a compound annual

growth rate (CAGR) of 25 per cent - the highest in the world. The total annual bottled water

consumption in India had tripled to 5 billion liters in 2004 from 1.5 billion liters in 1999.

Global consumption of bottled water was nearing 200 billion liters in 2006.

In India, there are two categories of packaged water as recognized by BIS:

Packaged natural mineral water (PNMW):

This is regulated under IS: 13428 and is drawn from a natural source. It should meet the

composition standard defined under IS: 13428 and must be bottled without altering the

natural composition of water):. Some brands under this category are, Evian, Qua, Himalayan,

etc.

Packaged drinking water (PDW):

This is regulated under IS: 14543 and is ordinary water treated to meet the regulatory

standards. In this case, any of the processes of filtration/disinfection listed under the IS:

14543 can be used for changing the composition of water before bottling.

Demand for packaged drinking water is being driven by:

Higher disposable income

Increased preference for hygiene

Improved affordability

Easier availability of packaged drinking water

Shortage of safe drinking water

MAJOR PLAYERS IN PACKED DRINKING WATER:

The market leader is Bisleri International, which boasts a 40 per cent share. It isfollowed

by Coca- Coca‟sleyKin(around 25 per cent) and10 per cent). The top players in bottled

water industry in India are the major international giants like Coca cola, Pepsi, Nestle and

noticeable presence of national players like Mount Everest, Manikchand, Kingfisher, Mohan

Meakins, SKN Breweries , Indian Railways so on. With increasing competition, this sector

will register a robust growth in 2010, predict industry analysts.

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THE MINERAL WATER MANUFACURERS IN TOWN OF PUDUCHERRY ARE:

Pondicherry Agro Service & Industries Corporation

Health care water products

Newgen Bioscience Pvt Ltd

Arkay Water Products

Lakshmi Agency

Sai Aqua Packaged Drinking Water Suppliers

o Karthi Agencies

o Sri Amman Holdings

o J S Agencies

o Eagles Purifier Drinking Water

o Sowmiya Packaged Drinking Water

o Aqua LTD

New development in packed drinking water industry:

June 24, 2013: Bisleri to venture into flavored water category June 23, 2013: Tamil

Nadu Chief Minister J Jayalalithaa announced that state transport corporations will set up

mineral water plants and sell bottled water at Rs10 per litre. May 15, 2013: Health Minister

writes to food regulator on bottled water safety April 5, 2013: Bisleri launches digital

campaign for 500 ml bottle March 30, 2013: Illegal bottled water units booming in Noida:

At least 34 packaged drinking water units have been instructed by court to shut down their

units for "exploiting" underground water and operating without permission of any of the

competent authorities. March 19, 2013:TGBL has launched two brands Tata Gluco Plus and

Tata Water Plus in select cities in India February 5, 2013: Danone wanted to launch water-

based flavored restorative drink B‟lueDecember25, 2012: Mohan Meakin, maker of the

world's largest-selling dark rum, Old Monk, plans into mineral water with its brand,

Golden Eagle. November 15, 2012

Sarvajal came with the invention of the Water ATM October 19, 2012: Lady Gaga to launch

water brand October 15, 2012:Amity scientists develop low cost, pocket friendly and re-

usable water purifier using Silver Nano p October 12, 2012: The stock of Tata Global

Beverages has appreciated 26 per cent in the last three weeks hitting a new high of Rs 163.30

today. September 16, 2012: Coca-Cola to re-align India, SWA business unit operations

17

August 27, 2012: Central Ground Water Authority (CGWA) has notified 82 areas for

regulation of ground water being used in the business of bottled water. In these areas,

installation of new ground water abstraction structures is not.

Permitted without prior specific approval of the Authority / Authorized officer.June 22,

2012: Thirty-two packaged water units seized in Karimnagar district for not possessing BIS

certificates as part of the Food Safety and standards Act 2006. June 20, 2012: Japanese

conglomerate Suntory, known for its whiskies and beers, has picked up majority stake in a

subsidiary of Mumbai-based NarangGroup to enter India's non-alcoholic beverage market.

May 10, 2012: Spectators will be banned from taking bottles of water into the Olympic Park

in case they are used to conceal so-called "liquid bombs". April 17, 2012: The Coca-Cola

Company Reports First Quarter 2012- -Strong global volume growth of 5% in the quarter,

with growth across every geographic operating group. North America volume grew 2% and

international volume grew 6% in the quarter.Coca-Cola Company looking ahead for water

Coca-Cola uses 309 billion liters of water annually to produce its beverages. That's about

what Atlanta uses infive months, according to the city's Department of Watershed

Management. In 2008, the company said, Coca-Cola used 2.43 liters of water to produce an

average one-liter beverage. One liter goes into the beverage itself, and 1.43 liters are used for

manufacturing processes such as rinsing, cleaning and cooling. The company says its global

system of about 1,000 bottling plants is on track to improve water efficiency by 20 percent

between 2004 and 2012.

The Mineral Water Company was founded in 1948 by the late James. He has been succeeded

by his son and grandsons, so the third generation is now involved in the family business.

Originally based on the sale of soft drinks directly to the consumer's home, Classic Mineral

Water has a long history of delivering quality products and listening to our customers needs.

By the early 1990's the company began to diversify as a direct result of listening to its

consumer requirements. Consequently The Classic Mineral Water Company is recognised as

producers of high quality soft drinks and mineral water products. The changes that have

occurred in recent years have seen new packaging, the introduction of new pack sizes and the

further development of naturally flavoured mineral waters and soft drinks. These changes not

only add to the range within Classic, but also compliment the existing traditional products, in

order to satisfy the changing demands of the market The revolution in drinking tastes that has

18

witnessed the consumption of mineral water and flavoured mineral water leap forward.

Coincides with the Classic Mineral Water Company's newest product ranges. Since achieving

Mineral Water Status in 1994, and being one of the few companies in Ireland to do so, the

company has had a resounding success in all its markets with its still and sparkling flavoured

waters and soft drinks. The finest quality products, presented in the highest quality

packaging, have proved for the company, to be a recipe for success.

Water is as important as air and food. Without these three things, we cannot imagine life on

the earth. Understanding the needs and importance of water, we set up a company, Honey

Rich Mineral Water purifiers for offering pure and healthy Packaged Mineral Water and

Mineral Water Bottle in various capacity such as Mineral Water Bottle (500 Ml), Mineral

Water Bottle (1 & 2 Litres) and Mineral Water Bottle (20 Litres). Over the years we have

become the market leader in the bottled drinking water segment. We supply bottled mineral

water in various cities of Karnataka and other cities of India as well. Honey Rich‟s water

passes through multiple stages of purification to ensure the complete elimination of all forms

of bacteria. This makes the water completely safe to consume. Our Packaged Water Bottles

are available in 1 liter, 2 Liter, 20 liter, 500 ml, 4 Mineral Water and Jumbo packaging.

While purification of our water, we don‟t compromise on quality and perform quality test of

water at various stages of its packaging and production. We are committed to offer pure and

healthy drinking water to our esteemed customers. We use water from MIDC water supply

and are processed through sophisticated filtration for maintaining purity of water. Honey

Rich Mineral Water contains minerals which are necessary for healthy living. They not only

maintain the ph balance of the body but also help in keeping body fit and energetic at all

times. It helps to maintain a healthy body including digestion system, strengthens muscles

and good for the brain. We offer both water and water bottle at nominal prices to ensure

customers‟ satisfaction.

Application Area

Honey Rich produces, bottles and supplies packaged water that naturally contains the right

proportion of minerals and other trace elements which give the body the right nutrients to

promote general good health and overall well-being. We deliver our orders within a day,

which is why we are admired by our customers. We cater mainly to restaurants, hotels,

generalpublic,corporatehouses,marriageceremonies,etc. OurAdvancedInfrastructure

19

Honey Rich‟s manufacturing unit is spread on an area of 6000 sq. M that includes a mineral

water treatment plant. The plant accommodates Reverse Osmosis (RO) purification plant for

water cleaning and purification, UV systems, Ozone reaction tank for organisation. Apart

from, water purification equipments and plants, Honey Rich Mineral Water has a bottling and

pet bottle manufacturing plant. The space is sufficient to produce 5000 bottles of packaged

water every month. Wetak extra care of hygiene and cleanliness in our unit. Proficient Team

We are backed by a team of hard-working, dedicated, enthusiastic, determined and honest

professionals who possess expertise in this industry. We have quality analyst, technicians,

testers and management professionals who ensure that at every stage, safe and pure water is

delivered. Our team believes that time is precious and we deliver our assignments on time.

Our success is mainly due to the hard-work and perseverance of our team. Stringent

QualityPolicy We have ISI license to run mineral water business. Our company, Honey

Rich conducts 52 quality tests to ensure the purity of water as per the ISI norms. The products

undergo various chemical tests for purification before and after water processing. The

packaged water that we supply reaches our customer after passing through multiple stages of

purification, ozonisation & bottling. The bottles also undergo an online check where qualified

engineers inspect each bottle for any leaks or breakages. They are then packed into sturdy

cartons which are dispatched to the market by our fleet of trucks. Strict hygiene conditions

are maintained in all the processing plants. We ensure that every drop of water is purified as

per international standard to provide a pure and satisfying experience.

Companies in this industry operate water treatment and water supply systems; sewer

systems and sewage treatment facilities; and steam and air-conditioning supply

systems. Major companies include American Water Works, Aqua America, and

California Water Service (all based in the US), along with France-based global giants

SUEZ Environnement and Veolia Environnement, Brazil's SABESP, and the UK's

Severn Trent.

The size of the global water utility market is estimated to be $185 billion, according

to S-Network Global Water Indexes. Private-sector operators make up about 20% of

that market. Though public utilities dominate, competition among private water

management companies takes place in major markets in Europe, Asia, Australia, and

North America.

20

The US commercial water and sewer utilities industry includes about 4,900

establishments (single-location companies and units of multi-location companies)

with combined annual revenue of about $13 billion. The commercial industry is small

compared to the water and sewer services operated by many regional and local

governments in the US. Government-owned water and sewer utility services earn

about $120 billion annually.

COMPETITIVE LANDSCAPE

Demand depends on commercial and residential water needs, which are related to population

growth and to the level of economic activity. The profitability of individual companies

depends on efficiency of operations, because prices are fixed by public utility commissions

(pucs). Large companies have economies of scale in operations and the ability to raise

capital for infrastructure improvements. Small companies can compete successfully ...

Water forms an essential part of every human being. Since it is a human necessity it makes

best sense to do business in. As a normal human being requires an average of 2-3 liters of

water everyday and world population is more than one billion (growing at 2-3% annually) the

business opportunity is enormous and the potential is largely untapped.

The bottled water industry is estimated to be a whopping `. 1600 crores business. It has

grown at a rate of 38-40% annually over the past four years. Initially bottled water brands

like the French manufactured Damone were promoted at clubs, fitness centers, cinemas,

department stores, malls, ice-cream parlors, cafes and retail sports outlets, besides restaurants,

hotels and supermarkets with a price tag of ` 70/- for 1 liter bottle. Other brands later began

pitching for the larger middle class and lower middle class markets.

PLANT CAPACITY PER ANNUM

The unit is proposed to produce 57.55 lakh bottle (1 liter) of packaged drinking water per

annum.

MARKET & DEMAND ASPECTS

Earlier bottled drinking water was privileged to high class, foreign tourist and highly health

conscious people but the present decade has witnessed increasing popularity among average

consumers, increasing living standards, disposable income, education and awareness among

21

the consumers domestic and foreign tourist, sophisticated business houses and offices has

increased rapidly the sales of bottled water in recent years.

The growing demand for bottled water speaks volumes of the scarcity of clean drinking water

and the quality of tap water. It has become an icon of healthy lifestyle emerging in India.

Selling – „safety‟ – i.e. Pure and simple water has now become one of the fastest growing

industries in India despite the harsh truth it is build on the foundation of bad governance,

inequality and obvious exploitation. However, bottled water provides the

Distance advantages of convenient packing, consistent quality and is ubiquitous.

This particular industry in India has never looked back after the economic liberalization

process of 1991-92. In fact the fastest growth in the consumption of bottled water in the

world has been recorded in India according to a new study conducted by the US based earth

policy institute.

According to Bureau of Indian Standards (BIS), there are 1200 bottling plants (out of which

600 are in the state of Tamilnadu) and 200 brands of packed drinking water across the

country (nearly 80% of which are local) hitting over the markets which thoroughly signifies

the market is big, even by international standards.

These are boom time for the Indian bottled water industry – more so because the economics

are sound. India is the tenth largest bottled water consumer in the world. The consumption

of smaller units of 500 ml has increased by around 140% perceptibly. Even school children

are carrying the 500 ml packs in their school bags. The 20 liter bulk water jars have found

phenomenal acceptance in house hold and at workplace. With the growing market size, one

can imagine the employment opportunity being created with the surge in bottled water

industry.

The bottled water market is dominated by major player such as Coco- cola, Pepsico, Parle

K.K. Beverages, Manikkchand, Tata-Mount Everest. Although we have a large number of

players, Parle was the pioneer among the major player when it was launched in India, 35 year

s ago Packaged drinking water industry has grown many fold in all the developed economics

of the world. The product is targeted especially at touring and traveling market segments. The

market is also growing due to contamination/shortage of water supply in the cities.

22

At present the Indian market is dominated by processed water. The demand for consumption

of mineral water in India has been estimated at approx. 500 million liters of pure water

bottles and the market is expected to grow at a rate of 25- 35% per annum.

The domestic market of mineral water is mainly derived from the tourism sector. Further, the

demand may also be from institutional sector as well as from higher income bracket group in

urban areas.

In view of the large scope of packaged drinking water, the project will has tremendous scope

for its development.

There are many different kinds of bottled waters, and each one has specific requirements

regarding its origin, composition and treatment. Spring water comes from an underground

source from which the water flows naturally to the surface and has less than 500 parts per

million of total dissolved solids (TDS). Mineral water is the same as spring water, except

that it has more than 500 parts per million of TDS. In the United States, spring water must

have less than 250 parts per million of TDS. Spring water and mineral water may or may not

be treated. Only spring water and mineral water must be potable at its source; all other types

of bottled water do not have to potable at the water source. Well water is

water which would meet the definition of spring water, except that it does not flow naturally

to the surface, and must be drilled in order to obtain the water. Well water comes from an

unconfined aquifer, which is a supply of underground water that has an impermeable layer of

clay or rock beneath it.

Artesian well water rises under its own pressure from a confined aquifer, which is a supply of

underground water that has an impermeable layer of clay or rock beneath it and above it.

Artesian water has to be drilled in order to access it. For more information about

groundwater and aquifers, see the Groundwater fact sheet.

Distilled water is from the steam that is collected from boiling water; the steam is

reconsdensed and bottled. Distilled water will not contain any microbes or natural minerals

that exist in water. Purified water can come from any source, but has been treated to be free

of chemicals; in the United States, purified water must have less than ten parts per million of

TDS. Purified water may or may not contain any microbes; this depends upon the type of

treatment that has been used. Purified water can be treated by a variety of processes,

including filtration, distillation, deionization and reverse osmosis. If the water has been

23

treated by distillation or reverse osmosis, it will be free of all microbes. There is one other

regulation that is not explicitly stated in the above regulations. Bottled water products are not

permitted to contain any Pseudomonas aeruginosa , which are bacteria that can be found in

source waters, and has been found to be responsible for gastrointestinal illnesses.

Of these nine regulations for bottled water, five regulations deal with labeling requirements

and one regulates prepackaged ice, leaving only three regulations for bottled water quality.

The three that deal with water quality are B.12.001, which regulates the source of mineral and

spring water, B.12.004, which states the maximum concentration of bacteria that can be in

bottled water, and B.12.006, which states the regulations for bottled water, other than mineral

and spring water. These three conditions are not sufficient, to ensure that there are no

bacteria, parasites or viruses in the water. It is a common myth that, as long as fecal

coliforms are not present, the water is safe for drinking. Chemical contaminants, for

example, cannot be detected through fecal coliform presence.

Under the Food and Drugs Act, the federal government is permitted to take action when

products pose a health hazard to consumers. And since Canada uses the Guidelines for

Canadian Drinking Water Quality to assess the quality of tap water, bottled water

manufacturers are typically expected to ensure that chemical and radiological contaminants

do not exceed the maximum acceptable concentrations, as set out in the Guidelines for

Canadian Drinking Water Quality. However, there is very little accountability to ensure that

bottle water manufacturers do follow the Guidelines. Inspectors from the Canadian Food

Inspection Agency visit a water bottling plant once in a 12 to 18 month period. As well, there

is nothing to regulate how often bottled water must be tested for bacterial, chemical or

radiological contaminants. In the United States, water bottling plants must test source waters

and finished products at least once per week for microbiological contaminants and at least

once per year for physical, chemical and radiological contaminants. The Canadian Bottled

Water Association (CBWA) sets out a stringent code of practices for its members, but

membership is voluntary and CBWA membership is not written on the label of the bottle.

In a recent study, the Natural Resources Defense Council (NRDC), in the United States,

studied the differences between drinking water and tap water. In the report, they discuss a

contamination issue that arose in Massachusetts several years ago. This case illustrates the

lack of accountability within the bottled water industry. A commercial well, located in the

parking lot of an industrial warehouse, was supplying “spring water” to several bottling

24

manufacturers; the well was also located near a hazardous waste site. On multiple occasions

between 1993 and 1996, the well water was found to contain high levels of trihalomethanes

and other contaminants. The trihalomethane levels consistently exceeded the standards set by

both the Environmental Protection Agency (EPA) and the Food and Drug Administration

(FDA) for tap and bottled water. This company continued to sell the water without

investigating the cause of contamination, and no one permitted them from operating either!

The issue continued until an employee within the company revealed the issue to the public;

today, the well is no longer used.

The regulations for bottled water are much less stringent than the guidelines are for tap water.

The following table summarizes some significant differences between the EPA regulations

for tap water and the FDA regulations for bottled water in the United States. Another

common myth about bottled water is the origin; only mineral water and spring water must

come from a groundwater source. In the United States, it is estimated that more than 25

percent of all bottled water is from tap water. To produce Dasani water, Coca-cola takes

water from surface waters in Calgary, Alberta, and Brampton, Ontario, filters it five times

and adds minerals to the water. Pepsi uses water from Vancouver, British Columbia, and

Mississauga, Ontario, to produce Aquafina water. Recently, an American campaign called

the Think Outside the Bottle campaign, has been informing the public of the source of

Aquafina water, and urging Pepsi to explicitly include the source on the labels of the bottles.

In July 2007, Pepsi agreed to write “Public Water Source” on their bottles of Aquafina water.

A third myth is that bottled water is better because it contains fewer chemicals than tap water.

In the United States, many of the tap water and bottled water standards are the same for

chemical contaminants. The only ones that are stricter for bottled water are copper, fluoride

and lead. And fluoride is, to a certain extent, healthy. A study by the CDC concluded that

fluoride was a healthy addition to tap water, and recommended that bottled water

manufacturers include total fluoride on the labels of bottles. There is much speculation that

children who drink bottled water are more likely to get cavities than children who drink tap

water, as most municipalities add fluoride to their drinking water.

Many people buy bottled water because they dislike chlorine in their drinking water, whether

for health or aesthetic concerns. However, small amounts of chlorine in water can keep it

safe for drinking. When water goes through the chlorination process, a small amount is left

in the water, so that it remains safe as the water travels from the water treatment facility to

25

the tap. Ozonation is a process that many bottled water companies choose to use, because

ozone is aneffective disinfectant and does not change the taste of the water, as chlorination

does. However, ozonation treatment does not remain effective as long as chlorine does.

Depending on storage temperature, bacteria can multiply fairly quickly in bottled water. The

following g the rapid growth of bacteria in two different bottles of water. Studies have shown

that, after just one week in storage, total bacteria counts can increase 1000- fold or more in

mineral water. Still water stored in plastic containers appears to allow bacteria levels to grow

more quickly than gasified water in glass containers.

As well, while bottled water companies perpetuate the idea that bottled water has no chlorine

in it, there have been chlorine by-products found in bottled water. In fact, the American

guideline for trihalomethanes (abbreviated thms; these are potentially dangerous by-products

of chlorine) is stricter for tap water than for bottled water.

Do people actually get sick from drinking bottled water?

There have been multiple waterborne disease outbreaks from contaminated bottled water.

The CDC documented a cholera outbreak in the 1970s in Portugal. The contaminated water

source of a bottled water company resulted in 2,467 hospitalized cases of cholera and 48

deaths. A small number of these people became ill after attending a spa which was fed with

the same water source as the bottled water, but the majority of the illnesses were attributed to

the bottled water.

In 1994, a cholera outbreak occurred in a United States territory in the Marianas Islands.

Approximately one-third of the residents on the island drank the brand of bottled water,

which was contaminated with Vibrio cholerae . Thousands may have been exposed to the

bacteria, but at least 11 became ill (four of whom had to be hospitalized). In the past, the

company that produced the bottled water had been in trouble for not cleaning the bottles

properly.

In 2004, Coca-cola recalled its entire line of Dasani bottled water from the British market

after bromate levels were found to exceed the legal standards. In March 2007, the Canadian

Food Inspection Agency issued a warning for excessive arsenic levels in an imported brand

of mineral water. Some bottled water recalls and warnings are kept relatively private, so that

the public remains unaware. In other circumstances, bottled water manufacturers use

practices that do not protect the water against contamination; these practices can remain

26

unnoticed for extended periods of time, due to the lack of accountability in the bottled water

industry. In 2005, Canadians spent $652.7 million to consume 1.9 billion litres of bottled

water. That works out to about 60 litres per capita in one year. The city of Toronto estimates

that one litre of tap water in Canada costs less than one-tenth of a cent. Bottled water costs

range from 240 more than 10,000 times more than tap water costs.

A 1993 American poll found that 35 percent of people who drank bottled water did so

primarily because of concerns about tap water quality. Another 12 percent of people drank

bottled water because of health concerns and because they wanted a beverage substitute for

juice or pop. That leaves 53 percents of bottled water drinkers who were not concerned about

tap water quality, but were still buying bottled water. Those statistics may have changed

after the Cryptosporidium outbreak in Milwaukee in 1993 that killed more than 100 people

and the E. Coli outbreak in Walkerton in 2000 that killed seven people, but there are still

many people who buy bottled water for the sake of appearances.

The manufacturing of bottled water is a large industry, and is continuing to grow and expand.

In 2000, there was reported to have been 119.8 trillion litres of bottled water produced in the

world; in 2003, that number was up to 153.1 trillion litres of bottled water! In 2003, the

production value of bottled water was $45.8 billion! In 2000, the bottled water market in the

United States alone was worth $5.7 billion! If that fact that tap water and bottled water are of

similar quality, especially in urban areas of developed countries, is not enough to encourage

you to save money by drinking tap water, here are a few more reasons. Bottled water

production requires more natural resources and energy than tap water treatment and

distribution does. A great deal of resources and energy is used to put water into bottles and

transport them around the world. According to ABC News, to transport a one-litre bottle of

French water to Chicago uses about 57 grams of oil. David Coale, of Acterra, calculated the

amount of oil that would be used to transport several brands of water from their source to

California. The picture below illustrates his findings, as he poured the amount of oil that

would be required into each bottle of water. In one year, manufacturers use about 2.7 million

tonnes of plastic to bottle water. Most bottled water comes in plastic bottles, made from

polyethylene terephthalates (PET). To produce one kilogram of PET requires 17.5 kilograms

of water and emits several significant air pollutants in the process. To produce enough

bottles to meet the yearly demand in the United States uses 1.5 million barrels of oil (which

would be enough to fuel 100,000 cars for one year!).

27

Furthermore, scientists suggest that PET contains dangerous chemicals and water bottles can

take many years to degrade. A 2006 Canadian study found that after bottles containing PET

had been stored for six months, a significant level of antimony (which is a toxic chemical)

had leached from the plastic into the water.

Bisphenol A is a synthetic chemical that is found in plastic and canned goods, including

transparent water bottles made from PET. The chemical is derived from petroleum and is one

of the highest volume chemicals currently in production. Plastics that use bisphenol A are

generally identified by a triangle with the number seven inside it. There is emerging concern

that bisphenol A may be a hormone disruptor, which is a chemical that acts as a synthetic

hormone (estrogen or androgen), and can cause a variety of diseases and defects, including

cancer, miscarriages and birth defects. For more information about emerging contaminants,

including hormone disrupters, see the fact sheet about Emerging Contaminants. Bisphenol A

has been shown to act as a synthetic female sex hormone and has been associated with

increased risks of cancer, miscarriages and birth defects. Researchers have known that

bisphenol A can act as a synthetic estrogen since the 1930s, but production has been

increasing since the 1950s. The Canadian government has selected bisphenol A as one of

200 currently used chemicals that need further research to determine how dangerous the

chemical really is. The unusual characteristic of bisphenol A is that is appears to be more

harmful at low doses than at high doses. There are Canadian guidelines for bisphenol A, but

health effects have been observed in animals who received doses up to 1000 times less than

the maximum limit that was set by Health Canada in 1999. Many environmentalists are

comparing bisphenol A with cigarettes, stating that bisphenol A will be the next tobacco

industry.

Another bottled water concern is the large number of plastic bottles that end up in landfills. It

is estimated that 88 percent of water bottles are not recycled. In 2002, the Environment and

Plastics Industry estimated that Canadians threw 65,000 tonnes of PET drink containers,

many of them water bottles, into the garbage, instead of recycling. This allows the harmful

chemicals in plastic water bottles to leach into nearby water supplies. And, unfortunately,

recycling plastic isn‟t as easy as people tend to think. Bottled water manufacturers don‟t

typically use recycled plastic, because of the cost, and even recycled plastic bottles generally

contain more new plastic than recycled plastic. Drinking bottled water, when there is access

to safe drinking water from a tap, is an action that promotes inequity around the world. There

are millions of people without access to safe drinking water and adequate sanitation.

28

According to the International Water Management Institute, clean water could be provided to

everyone in the world for approximately $1.7 billion per year, above current spending.

Improved sanitation would cost an additional $9.3 billion per year. Altogether though, this is

less than 24 percent of the $46 billion that the bottled water industry is worth.

Another speculation is that, if current consumption trends continue, bottled water could lead

to the privatization of municipal water supplies. As consumption rates increase, the amount

of water that is required by bottled water companies also increases. Water sources that

municipal water treatment facilities previously used to provide water for communities are

being bought out by bottled water companies. Over the last several years, there has been

speculation aboutif your municipally treated water is safe, and you do not have any health-

related reasons to drink bottled water, then don‟t! There are so many advantages of avoiding

bottled water, including the cost, pollution and health risks that are associated with bottled

water.

If you choose to drink bottled water, for whatever reason, here are a few tips to minimize risk

of contamination and impact of pollution:

ƒ When you buy your bottled water, check the inside and the outside of the bottle for any

irregularities. Look for broken seals, floating material inside, or anything else. ƒ Check the

manufacturing label, best-before date, chemical analysis, treatment method, and type of

water. ƒ Do your research. Before choosing a brand of bottled water, research the

company, the origin of the water and the treatments that they have used. The NRDC recently

completed a four year study of bottled water, which included testing more than 1000 bottles

of 103 brands of bottled water. The NRDC found that at least one sample of about one-third

of the tested water contained significant contamination (where significant contamination

means that it violated standards or guidelines). The contaminants that they found included

arsenic, (including chloroform), excessive heterotrophic-plate-count (HPC) bacteria and

elevated (but below standards) levels of nitrates.

29

30

1.2 COMPANY PROFILE

ORIGIN

Classique Water Products Pvt., Ltd., is a closely related family owned concern having

various business operations in Puducherry few more than 5 decades. We have a motivated

team that is committed to achieve the highest standards of water, quality and customer

services. St. Classique Water Product, our dedicated steps are taking at every level to make it

the best.

LOCATION

Classique packaged Drinking Water comes from a land where nature is still in nature.

The most modern hygienic plant is located in Auroville, and International Township

promoted by Sri Aurobindo and the Mother near Puducherry.

The plant is built in an area of around 8000-sqft building having a land extend of more than

one Acre. The water is derived from deep aquifer in a pollution free area and not

PRODUCT

Water is the substance of life. Life cannot exist without water Classique water product

has understood the importance of this source of life.

Consumers are getting more health conscious and they are urging for better quality drinking

water. Health mind individuals prefer to purchase bottled water instead of other beverages.

While marketing the healthful benefits of it products, it remains

Vigilant to quality and safety innovations for bottled water to make it a food product.

CLASSIQUE WATER PRODUCTS PVT.LTD QUALITY POLICY:

Customer Satisfaction

Delivery Performance

online Booking

Reduce Complaints

Marriage Receptions Pack& Quick deliver ntaminated with industrial wastes and

agricultural chemicals. The water has no impurities such as chemical and just has pure clean

water.

31

Services in Classique Products

The entire process of manufacturing the products in governed by norms and

conditions of BIS (IS: 14543-2004). We always adhere to this to achieve quality product to

gain absolute satisfaction of the actual user.

Classique water treatment plant is equipped with the state of the art system of on line doing,

multistage micron filtration, Reverse Osmosis process, UV sterilization and away from urban

limits.

Classique pure for sure packaged water has cleared all 166 pesticide residual tests, and

guarantees purity at every drop.

All systems and processes are housed in a dust free and hygiene plant to provide utmost care

and attention to cleanliness and quality, which guarantees purity every drop.

The water is tested for all chemical and microbiological parameter both in house and outside

labs to ensure the water we serve is of the highest quality standard

Services in Classique water Delivery

Appoint the area wise classique water delears

New Deleres can get agency in online

Home delivery shall be made within the municipal limits of all cities.

online booking of marriage and receptions feast packing (350ml or 300ml)

Door delevery of marriage hall or receptions hall after call with in hours (limits of

cities)

Water is a chemical substance with the chemical formula H2O. A water molecule contains

one oxygen and two hydrogen atoms connected by covalent bonds.

Often know as the elixir of life, water covers two thirds of the Earth's surface and constitues

75% of the human body. It is one of Nature's most significant and precious gifts to mankind,

without which life on Earth would be impossible.

Different Quantity of packing is manufacturing and these products are in ISI Certified

Types of Water

Mineral Water

Carbonated Water

Sparkling Water

32

Mountain Water

Minearl Water

Water which contains minerals and other dissolved substance is called mineral water.

Minerals add therapeutic value to water; the minerals commonly added are magnesium

sulphate, potassium bicarbonate, calcium and iron. Studies reveal that mineral water is one of

the healthiest types of bottled water and daily consumption enhances overall health and helps

boost the immune system.

Carbonated Water

In 1767, Englishman Joseph Priestley first discovered a method of infusing water with

carbon dioxide to make carbonated water. Carbonated water, also known as seltzer, or soda

water, it is plain water into which carbon dioxide gas under pressure has been dissolved, and

thus made effervescent. It is the major and defining component of carbonated soft drinks

(itself a class of aerated beverages). The process of dissolving carbon dioxide in water is

called carbonation.

Sparkling Water

Sparkling water is the simplest form of carbonated water. Essentially it is identical to

still water, except that it contains numerous bubbles. The term sparkling water can also

include spring water that has been carbonated or aerated.

Mountain Water

Natural Mountain Water is water in its pure nascent stage coming from a pristine

source situated in the scenic mountains of Northern India. Packed with minerals and

resonating with health, it replenishes you with energy. There is absolutely no substitute for

pure natural water.

Classique Customer Benefits

Customer can get classique's factory outlet price on each products

Customer can get all the products such as Classique PT Canes(20lit), 2lit, 1lit, 500ml,

350ml,300ml, 250ml sachets

Payment to be made only in cash at the time of home delivery.

After customer fill the form, requirments of order processing by company admin.

Selected Products deliver by delaer, who are around in your area. otherwise in some

cases the company will directly deliver to your place / area

33

Customer directly make the Order by fill the order form

Any customer sale huge range of mineral water products, they can join as dealer in

our CLASSIQUE WATER PRODUCTDS PVT.LTD. Just fill the Dealer signup form

Classique is reputed mineral water products. we got BIS certified

MANAGEMENT PEEOPLE OF CLASSIQUE WATER PRODUCTS

Mr. M.Sougoumarin Managing Director

Mrs. Geetha HR Manager

Mr. Mahesh Marketing Manager

34

1.3INTRODUCTION OF THE STUDY

DISTRIBUTION SYSTEM

The distribution system is the movement of goods and services between the production and

the point of consumption through organization that performs a variety of marketing activities.

The major participants in the distribution channel are: producers intermediaries and

consumers.

Definition of Distribution System:

According to A. W. Shaw, “Distribut materials as they move the times, places, forms and

conditions where they have no value to the times, places, forms and conditions.

According to john A. Howard, “Market agencies through which the seller, who is

often though not necessarily the manufacturer, markets his products to the ultimate user.

Management of all activities which facilitate movement and co-ordination of supply and

demand in the creation of time and palace utility in goods.

The art and science of determining requirements , acquiring them distributing them and

finally maintaining them in an operationally ready condition for their entire life.

Board range activities concerned with the efficient movement of finished goods products

from the end of the line to the consumers .In some case it also includes the movement of raw

materials from the source of supply of the beginning of the production line.

IMPORTANCE OF DISTRIBUTION SYSTSTEM

Distribution system is the route taken by the title to goods as they move from the producer to

the ultimate consumer. It brings maximum profit to all institutions concerned. The channel of

distribution is very important to the producer and the consumer. The consumers are scattered

in many places. The producer is situated in one place. There is a big gap between the

producer and the consumer. The gap between the producer and the consumer shrunk by the

distribution system. Hence the distribution system is connecting link between the producer

and the consumer to sell the products

METHODS OF DISTRIBUTION SYSTEM

Direct Distribution System

In direct distribution system the marketer reaches the target consumer directly without the use

of any intermediary. The distribution chain is small and no other party can take ownership of

the product being distributed. The direct distribution system can be further sub-divided on the

basis of the methods of communication that takes place during sale between marketer and

consumer. These methods are:

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Direct Marketing Systems

In this system the consumer buys the product based on information gained from impersonal

contact with the marketer like by visiting the marketer's website or ordering from the

marketer's catalog. Or he buys based on information gathered through some personal

communication with a customer service personnel who is not a salesperson and can be

reached through a toll-free number.

Direct Retail System

In this type of system the marketer operates his own retail stores. A perfect example of this

system is Starbucks.

Personal Selling Systems

In this system the distribution of the product is carried forward by people whose main

responsibility is creating and managing sales (for instance a salesperson). He persuades the

buyers into placing an order. This order may not be handled by the salesperson but through

websites or toll-free telephone numbers. The sales person plays a vital role here in generating

sales.

Assisted Marketing System

In this form of distribution system the marketer handles the distribution of his product and

helps it reach directly to the end user. However he needs assistance from others to spread

awareness about his product among the customers. An example of assisted marketing system

is e-bay, here the buyers and sellers are brought together for a fee. Agents and brokers can

also be included in this category.

Indirect Distribution System

In indirect distribution system the marketer includes intermediaries or other members in his

distribution chain. These resellers make sure the product reaches the end user, while

performing their duties they take complete ownership of the product. However the reseller

may sell products on a consignment basis wherein the reseller pays for the product only when

the product is sold. The resellers may be expected to take up a few responsibilities to help

boost the sales of the product.

Indirect methods include the following:

Single-Party Selling System

In this system the marketer involves another party to sell and distribute his product to the end

user. An example of single-party selling can be when the product is sold through large store-

based retail chains or through online retailers. In this case the distribution system is also

referred to as trade selling system.

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Multiple-Party Selling System

In multiple-party selling system the distributor involves two or more reseller in the

distribution process before the product reaches the end user. This is most likely to happen

when a wholesaler buys the product from the manufacturer and then sells it to the retailer.

Multi-Channel (Hybrid) Distribution System

A marketer is said to be using a multi-channel or hybrid distribution system when he utilizes

more than one distribution design. As we have studied earlier in the example of Starbucks,

multiple distribution designs are put to use in the distribution of its product. It uses a direct

retail system when it sells its products in company-owned stores, a direct marketing system

by selling via direct mail and single party selling system is put to use when its products are

sold through grocery stores. Apart from these other distribution systems are also put to use.

Multi-Channel distribution system is advantageous as it expands the distribution system and

more customers can be reached. The possible disadvantage again is channel conflict of which

the marketer should always be cautious.

Patterns of distribution

Determines the intensity of the distribution .Intensity decides the service level provided.

Intensive distribution:

Strategy is to make sure that the product is available in as many outlet as possible. Preferred

for consumer , pharmaceutical products and automobiles spares. Distribution through every

reasonable outlet available.

Selective Distribution:

Outlets selected in line with the image the company wants to project. Multiple ,but not all

outlets in the market, preferred highly value products, keeps distribution costs lower.

Exclusive Distribution:

Highly selective choice of outlets may be one outlet in an entire market. It include outlets set

up by companies producer wants a close watch and control on distribution of its product.

FUNCTIONS OF DISTRIBUTION MEMBERS

Distribution decisions have a broad impact on the marketing program used by a

firm because middlemen can provide a wide variety of marketing functions. Middlemen

perform a number of important functions in the distribution of products.

The specialized efforts of distribution channel members generate following three kinds of

utility for the consumers

Place Utility: Channel members facilitate transportation of the product from the

manufacturer ‟stock inconvenient location, placewhich is easily accessible to buyer, and thus

37

creates place utility.

Possession or Ownership Utility: Middlemen purchase the products from the manufacturer

and ultimately exchange them for money with consumers who, after buying them, gain their

possession and title. Ownership utility is created at the time of transfer of title from the

channel members to the consumer.

Time Utility: Marketing channels create time utility when they make products available for

sale at a time when consumer wants to purchase them

TYPES OF CHANNEL INTERMEDIARIES

There are many types of intermediaries such as wholesalers, agents, retailers, the Internet,

overseas distributors, direct marketing (from manufacturer to user without an intermediary),

and many others. The main modes of distribution will be looked at in more detail.

1. Channel intermediaries - wholesalers

They buy from producers and resell to retailers. They take ownership or 'title' to goods

whereas agents do not.

They provide storage facilities. For example, cheese manufacturers seldom wait for

their product to mature. They sell on to a wholesaler that will store it and eventually

resell to a retailer.

Wholesalers offer reduce the physical contact cost between the producer and

consumer e.g. customer service costs, or sales force costs.

A wholesaler will often take on the some of the marketing responsibilities. Many produce

their own brochures and use their own telesales operations.

2. Channel intermediaries - agents

Agents are mainly used in international markets. An agent will typically secure an

order for a producer and will take a commission. They do not tend to take title to the

goods. This means that capital is not tied up in goods. However, a 'stockiest agent'

will hold consignment stock.

Agents can be very expensive to train. They are difficult to keep control of due to the

physical distances involved. They are difficult to motivate.

3. Channel intermediaries - retailers

Retailers will have a much stronger personal relationship with the consumer.

The retailer will hold several other brands and products. A consumer will expect to be

exposed to many products.

Retailers will often offer credit to the customer e.g. electrical wholesalers, or travel

38

agents.

Products and services are promoted and merchandised by the retailer.

The retailer will give the final selling price to the product.

Retailers often have a strong 'brand' themselves e.g. Ross and Wall-Mart in the USA,

and Alisuper, Modelo, and Jumbo in Portugal.

4. Channel intermediaries - internet

The Internet has a geographically disperse market.

The main benefit of the Internet is that niche products reach a wider audience e.g.

Scottish Salmon direct from an Inverness fishery.

There are low barriers low barriers to entry as set up costs are low.

Use e-commerce technology (for payment, shopping software, etc)

39

CHAPTER II

OBJECTIVES OF THE STUDY

40

2.11.. NEED FOR THE STUDY:

The study of distribution system tells how the product reaches distributors and

consumers. To gain more knowledge in detail about the packed drinking water industry. This

study was mainly undertaken to identify the relationship between distributors, retailers and

customer. And effectiveness of the distribution system can be evaluated.

This study determines the features of the product preferred by the distributors and

consumers.

41

2.1.2.5SCOPE OF THE STUDY:

This research pertains to selected categories of Small scale Industrial Units involved

in manufacturing and marketing packed drinking water products. It tries to look into the

processes and decisions related to the distribution system employed by these units for

marketing their product it produce. Distribution system is more referred to as the „product‟

and place controllable variable. The type of product being marketed is the major factor which

could influence decisions in this area.

The survey is conducted to know the opinion, views, expectations and satisfaction

level of the distributors & sellers towards the company. Efforts have been put forward to see

the final result of the work which becomes a valuable one.

42

2.1.3Objective of the study

To study the Classique Water Products Pvt., Ltd

To find the retailer expectation

To ascertain the time availability and delivery of the product

43

CHAPTER III

REVIEW OF LITERATURE

44

REVIEW OF LITERATURE

"Distribution channel management: power considerations", International Journal of

Physical Distribution & Logistics Management,

I.F. Wilkinson, (1996),

Historically, goods and services have been distributed through networks in which

loosely aligned firms have bargained at arm‟s length, negotiated aggressively over price and

other conditions of sale, and otherwise behaved autonomously. However, planned vertical

marketing systems are rapidly displacing these conventional marketing channels.

Vertical marketing systems are organized in various ways, and of course many channels

remain loosely aligned. Channels of distribution vary in their degree of organization too.

"Distribution systems, loyalty and performance", International Journal of Retail &

Distribution Management.

Mei Su Chen Gene C. Lai, (2010),

This paper aims to examine the influence of distribution systems and customer loyalty

on firm performance.

Design/methodology/approach – Efficiency scores and profitability are used as the proxies

for performance. The data envelopment analysis approach is used to calculate efficiency

scores. The sample is from the Taiwanese life insurance industry.

Findings – The results suggest that a multiple distribution channel strategy performs worse

than a single distribution channel strategy in terms of efficiency and profitability. It is also

found that agent turnover rate is negatively related to technical efficiency, cost efficiency, and

profitability. The evidence also suggests that insurers with higher customer loyalty perform

better than insurers with lower customer loyalty.

Role of the Sales Manager in Channel Management: Impact of Organizational

Variables

Rajiv Mehta, Bert Rosenbloom and Rolph Anderson (2000),

In the sales and channel management literatures it has been posited that sales

managers are the de facto "channel managers." This assertion implies that their scope of

responsibilities goes far beyond traditional sales management tasks and functions.

45

Consequently, determining whether these additional responsibilities with regard to channel

management are accurate served as the impetus behind this investigation.

Assessing the Economic Value of Distribution Channels: An Application to the Personal

Computer Industry

Junhong Chu, Pradeep K. Chintagunta and Naufel J. Vilcassim (Feb., 2007)

Firms in multichannel, multiproduct settings must often welfare but also its

relationships with channel intermedi- decide which channel to enter, which channel to exit,

and aries and other firms in the market.

which product to sell in which channel. None of these are The issue of managing multiple

channels along with mul- easy decisions because a firm's channel strategy is often tiple

product lines is a particularly noteworthy aspect of the intertwined with its product-line,

market segmentation, market for personal computers (PCs) because all PC makers

positioning, and targeting strategies (Kotler 2000).

A Model of the Distribution of Branded Personal Products in Jamaica

John U. Farley and Harold J. Leavitt (Nov., 1968),

A behavioral model of a developing economy's distribution system might be useful to

governments businesses. Governments sometimes channel DESCRIPTION OF THE MODEL

little public capital into the distribution sector; there- The model involves key decisions for

each member fore balanced development depends on response of the three level structure

this private distribution structure to external change. Manufacturers and importers, who sell

either Similarly, private industry interested in tapping sub through wholesalers or directly to

retail outlets. stantial and growing markets of developing countries A single firm may

manufacture or package part must understand how the merchandising structure function of its

line and import another part.

Managing Conflict in Distribution Channels: A Laboratory Study

Louis W. Stern, Brian Sternthal and C. Samuel Craig (May, 1973),

In distribution, competition most often manifests itself between Conflict is as

pervasive a phenomenon in distributions occupying the same horizontal level. Marketing

Conflict,institution channels as it is in other inter organizational systems. The other hand, is

46

direct personal and opponent Conflict between channel members may encompasstered

behavior.

The Channel Intermediary Selection Decision: A Model and an Application

V. Kasturi Rangan, Andris A. Zoltners and Robert J. Becker(Sep., 1986),

A distribution system is "an inter organizational system comprising a set of

interdependent institutions and agencies involved in the task of moving anything of value

from its point of conception, extraction, or production to points of consumption" (Stern and

El-Ansary 1977). More simply, a distribution system is a network of organizations linking a

supplier to its various customer segments.

Some Problems in Market Distribution

A. W. Shaw (Aug., 1912),

Lack of systematic study of market distribution. Emphasis on production explained

by economic causes. Importance of a better organization of market distribution, Complexity

of the problem facing the distributer, Consumer's surplus. Bearing on the distributer's

problem, Selling at the market minus, selling at the market, and selling at the market plus,

Social justification of the differentiation of commodities: Importance of trade-marking,

Methods of sale: sale in bulk; sale by sample; sale by description. Available agencies for

selling: middlemen, producers' salesmen, and advertising, direct and general, Emergence

and rise in importance of the middleman.

Coordination Mechanisms for a Distribution System with One Supplier and Multiple

Retailers

Fangruo Chen, Awi Federgruen and Yu-Sheng Zheng(May, 2001),

A production and distribution channel often encom- passes independent firms or

decentralized divisions of the same firm. The channel members typically optimize

performance based on locally available information. Driven by competitive pres- sures and

enabled by modern information technology, many supply chains have come to realize that

their performance

improved dramatically by employing novel mechanisms to coordinate

decisions.

47

CHAPTER VI

RESEARCH METHODOLOGY

48

RESEARCH METHODOLOGY:

Research methodology is way to systematically solve the research problem. It is a plan of

action for a research project and explains in detail how data are collected and analyzed

Research Methodology may be understood as a science of studying how research is done

scientifically. It can cover a wide range of studies from simple description and investigation

to the construction of sophisticated experiment.

A clear objective provides the basis of design of the project. Since the main objective of this

study is to identify the customers preference, expectation and perception It was decided to

use descriptive research design include, surveys and fact-findings enquires of different kinds,

which found out to be the most suitable design in order to carry out the project.

3.1MEANING OF RESEARCH

Research is an art of scientific inves of current English lay‟s down the meaning of

rese inquiry especially through search for new and Mary define research as a “systematic

3.2RESEARCH DESIGN:

A research design is purely and simply the framework or plan for a study that guides the

collection and analysis of data. Generally a research design is a blue print of the research that

is to be followed in completing the study. For this project in the research initially the

researcher used descriptive research to report the factor as such happen.

3.3DESCRIPTIVE RESARCH:

Descriptive research includes surveys and fact-finding enquiries of different kinds. The major

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

Descriptive Research To obtain information on current status of phenomenon. To provide

information on the situation during the time of study.

3.4NATURE AND SOURCE OF DATA:

3.4.1PRIMARY DATA:

The primary data are those which are collected a fresh and for the first time and thus happen

to be in original character .For this project; Primary data was collected with the help of

questionnaire.

3.4.2SECONDARY DATA:

Secondary data are those data available already in the books of records. Secondary data was

collected from company records, annual reports and company website

49

3.5QUESTIONNAIRE DESAIGN AND DEVELOPMENT

In constructing questionnaire, care was taken to investigate the difficulties that the respondent

may face while answering them. It was prepared keeping in view the objective of the study.

During the constructing care was taken to avoid questions, which may lead to

misinterpretation. The question thus constructed was a structured one so as to collect all the

relevant information. The questions were arranged in a logical order/sensible sequence. The

questionnaire consists of a variety of questions presented to the employees for their response.

Dichotomous questions, multiple choice questions, and rating scale were used in constructing

the questionnaire.

3.5.1PILOT STUDY

The researcher tested the questionnaire with 12 respondents chosen from different Dealer at

random and checked whether this questionnaire was related and understandable. The

suggestions that collected from the respondents helps to finalize questionnaires forthe study.

A STUDY ON DISTRIBUTION SYSTEM IN“CLASSIQUE WATER PRODUCT

PVT.LTD”

3.5.2RELIABILITY AND VALIDITY OF THE QUESTIONNAIRE

Hence the pilot study was conducted, it results the questionnaire was reliability and validity

upto.61% to the objective of the study based on using reliability calculations.

3.6SAMPLE DESIGN

Sample design is a definite plan determined before any data actually for obtaining for a

sample from a given data. The sample was collected from 110 population size. In the sample

size considered for the study is 100. The purpose of selected sample from the given

population is called sampling. The simple random sampling (probability sampling) is used for

s type of study. This type of research design helps to collect the total data into a small split

out.

POPULATION

Overall population size is 110 dealers of Classique water pvt.ltd

SAMPLE UNIT

Target respondents is dealers of claissque water products.

SAMPLE SIZE

The sample size for this study is 100

50

PERIOD OF THE STUDY

10 Weeks(2015)

3.7STATISICAL TOOL USED FOR ANALYSIS

Percentage

Rank

Anova (one way)

3.7.1Percentage method:

Percentage analysis, are used to represent the result graphically from the questionnaire. It

can be represented to bar charts and pie charts. To know the percentage level of the demographic

factor the percentage method should be used.

Number of respondents favorable

Percentage of respondents = * 100

Total number of respondents

3.7.2 ANOVA

It is a statistical method for making simultaneous comparisons between two or

more means; a statistical method that yields values that can be test determine whether a

significant relation exists between variables.

Analysis of variance (ANOVA) is a statistical method used to test differences

between two or more means. It may seem odd that the technique is called “Analysis of

variance” rather than “Analysis of means”. As you will see, the name is appropriate because

inferences about means are made by analyzing variance. The mainstay of many scientific

experiments in the factorial design. These comprise a number of experimental factors which

are each expressed over a number of levels. Data are collected for each factor/level

combination and the analyzed using Analysis of variance (ANOVA)

3.7.3 Mean

51

The mean is just the average. It is the sum of all your measurement, divided by the

number of measurements. This is the most used measure of central tendency, because of its

mathematical qualities. It works best if the data is distributed very evenly across the range, or

is distributed in the form of a normal or bell-shaped curve one interesting thing about the

mean is that it represents the expected value if the distribution of measurements were

random. This mean should be used to find out the mean value of statement for employee

attitude and organizational effectiveness.

52

CHAPTER V

DATA ANALYSIS AND INTERPRETATION

53

HOW LONG YOU BE THE DEALER FOR CLASSIQUE WATER PRODUCTS

PVT.LTD?

TABLE4..1.1

HOW LONG YOU BE THE DEALER FOR CLASSIQUE WATER PRODUCTS

PVT.LTD?

CHART4.1.1

INTERPRETATION: From the above table, it is inferred that 40% of the respondents are having the dealership

period of 4-7 years with classique water products.pvt.ltd, 25% of the respondents are

having the dealership period of 1-3years with classique water products.pvt.ltd, 20% of the

respondents are having the dealership period of 8-10years and 15% of the respondents are

having the dealership period of above 10 years with classique water products.pvt.ltd.

0

20

40

60

80

100

1-3years 4-7years 8-10years above 10years

Total

Percent

Percent

Opinion Frequency Percent

1-3years 25 25.0

4-7years 40 40.0

8-10years 20 20.0

above 10 years 15 15.0

Total 100 100.0

54

WHICH FACTOR ENABLES YOU TO BE THE DEALER OF CLASSIQUE WATER

PRODUCTS PVT.LTD?

CHART4.1.2

Opinion Frequency Percent

Quality 33 33.0

Demand 36 36.0

Price 14 14.0

Delivery of goods 17 17.0

Total 100 100.0

WHICH FACTOR ENABLES YOU TO BE THE DEALER OF CLASSIQUE WATER

PRODUCTS PVT.LTD?

CHART4.1.2

INTERPRETATION:

From the above table, it is inferred that 36% of the respondents are enabled the demand

factor , 33% of the respondents are enabled the quality factor, 17% of the respondents are

enabled delivery of the goods factor, 14% of the respondents are enabled price factor be the

dealer of classique water products pvt.lt

0

20

40

60

80

100

120

Opinion Quality Demand Price Delivery ofgoods

Total

Percent

Percent

55

CAN BE ABLE TO MEET THE CUSTOMER SATISFACTION IN AVAILABILTY

OF CLASSIQUE WATER PRODUCTS PVT.LTD?

TABLE4.1.3

Opinion Frequency Percent

Yes 46 46.0

No 54 54.0

Total 100 100.0

CAN BE ABLE TO MEET THE CUSTOMER SATISFACTION IN AVAILABILTY

OF CLASSIQUE WATER PRODUCTS PVT.LTD?

CHART4.1.3

INTERPRETATION:

From the above table, it is inferred that 54% of the respondents are say No to meet the

customer satisfaction in availability of classique water products pvt.ltd and 46% of the

respondentsare say Yes to meet the customer satisfaction in availability of classique water

products pvt.ltd

Series1

0

20

40

60

80

100

YesNo

Total

Series1

56

WHICH TYPE OF THE FOLLOWING CUSTOMER HIGHLY PREFERS

CLASSIQUE WATER PRODUCTS PVT.LTD

TABLE4.1.4

Opinion Frequency Percent

General customers 27 27.0

Retailor 45 45.0

Hotels 8 8.0

Others 20 20.0

Total 100 100.0

WHICH TYPE OF THE FOLLOWING CUSTOMER HIGHLY PREFERS

CLASSIQUE WATER PRODUCTS PVT.LTD

CHART4.1.4

.

INTERPRETATION:

From the above table, it is inferred that 27% of the respondents are the general customer, , 45% of

the respondents are Retailers,8% of the respondents are Hotels and 20% of the respondents are

Others highly prefers classique water products pvt.ltd

0

20

40

60

80

100

120

Opinion Generalcustomers

Retailor Hotels Others Total

Percent

Percent

57

HOW WILL YOU ORDER THE PRODUCTS?

TABLE4.1.5

HOW WILL YOU ORDER THE PRODUCTS?

CHART4.1.5

INTERPRETATION:

From the above table, it is inferred that 16% of the respondents ordering the product through

Phone, 45% of the respondents ordering the product through E-mail, 28% of the respondents

ordering the product through Direct visit through fax, 11% of the respondents ordering the

produc

Percent

0

50

100

Percent

Percent

Opinion Frequency Percent

Phone 16 16.0

E-mail 45 45.0

Directory visit 28 28.0

Fax 11 11.0

Total 100 100.0

58

WHETHER ORDER QUANTITY OF CLASSIQUE WATER PRODUCTS SUPPLIED

TO YOU IN TIME

TABLE4.1.6

WHETHER ORDER QUANTITY OF CLASSIQUE WATER PRODUCTS SUPPLIED

TO YOU IN TIME

CHART4.1.6

INTERPRETATION:

From the above table, it is inferred that 54% of the respondents are satisfied with ordered

quantity supplied in time and 46% of the respondents are not satisfied with ordered

quantity supplied in time

Percent

0

50

100

opinion yesno

Total

Percent

Percent

Opinion Frequency Percent

yes 54 54.0

no 46 46.0

Total 100 100.0

59

HOW MUCH TIME DOES IT TAKES OF CALSSIQUE WATER PRODUCTS

AFTER ORDERING?

TABLE4.1.7

Opinion Frequency Percent

6-12 hours 28 28.0

1-2 days 40 40.0

2-7 days 17 17.0

more than 7 days 15 15.0

Total 100 100.0

HOW MUCH TIME DOES IT TAKES OF CALSSIQUE WATER PRODUCTS AFTER

ORDERING?

CHART4.1.7

INTERPRETATION:

From the above table, it is inferred that 28% of the respondents answered that they are

getting their product 6-12hours, 40% of the respondents answered that they are getting

their product1-2days, 17% of the respondents answered that they are getting their product

2-7days. 15% of the respondents answered that they are getting their product more then 7

days.

0102030405060708090

100

Opinion 6-12hours

1-2 days 2-7 days morethan 7days

Total

Percent

Percent

60

ARE YOU SATISFIED TO TAKE THE THE DEALERSHIP OF CLASSIQUE

WATER PRODUCT PVT.LTD?

TABLE4.1.8

Opinion Frequency Percent

Yes 44 44.0

No 56 56.0

Total 100 100.0

ARE YOU SATISFIED TO TAKE THE THE DEALERSHIP OF CLASSIQUE

WATER PRODUCT PVT.LTD?

CHART4.1.8

INTERPRETATION:

From the above table, it is inferred that 44% of the respondents are satisfied to take the

dealership dealership of Classique water products pvt. , and other 56% of the respondents

are not satisfied with to take dealership of Classique water products pvt. ltd

0

20

40

60

80

100

Opinion Yes No Total

Percent

Percent

61

DOES THE COMPANY EXECUTIVE CONVEY SCHEMES ON PROPER TIME?

TABLE4.1.9

Opinion Frequency Percent

yes 51 51.0

no 49 49.0

Total 100 100.0

DOES THE COMPANY EXECUTIVE CONVEY SCHEMES ON PROPER TIME?

CHART4.1.9

INTERPRETATION:

From the above table, it is inferred that 51% of the respondents are say Yes to company

executive convey schemes on proper time of classique water products pvt.ltd and 49% of the

respondents are say No to company executive convey schemes on proper time.

0

20

40

60

80

100

Opinion yes no Total

Percent

Percent

62

IN WHICH AREA DO YOU EXPECT TO IMPROVE IN CLASSIQUE WATER

PRODUCT PVT.LTD?

TABLE4.1.10

Opinion Frequency Percent

quality 25 25.0

price 23 23.0

promotional activities 21 21.0

Delivery of goods 21 21.0

Total 100 100.0

IN WHICH AREA DO YOU EXPECT TO IMPROVE IN CLASSIQUE WATER

PRODUCT PVT.LTD?

CHART4.1.10

INTERPRETATION:

From the above table, it is inferred that 25% of the respondents expect to improve

QUALITY in Classique water products pvt. ltd , 23% of the respondents expect to improve

PRICE, 21% PROMATIONAL ACTIVITIES and 21% of the respondents expect to

improve DELIVERY OF GOODS in of Classique in water products pvt. Ltd

0102030405060708090

100

Percent

Percent

63

RANKING FOR DISTRIBUTION SYSTEM INVOLVE IN DISTRIBUTOR

TABLE 4.1.11

FACTORS

STATEMENT

MEAN

RANK

Distribution

quality

2.5800

III

Discount

2.4600

II

availability

2.2300

I

Credit sales

2.6000

IV

INTERPRETATION

The above table infers that distribution factor there are four statements. From the

table it is inferred that the respondents availability at first, followed by quality as

second, discounts is in third position, credit sales is at fourth position and availability

is at the last position.

64

RANKING FOR DISTRIBUTION SYSTEM INVOLVE IN DISTRIBUTOR

TABLE 4.1.12

FACTORS STATEMENT MEAN RANK

Distribution

Transportation must be maintained in proper

manner for distributing products by classique

water products?

2.3900

IV

Please give your satisfaction level of damaged

product replacement of classique water

products?

2.3000

III

Are you satisfied with the margins preferred

by calssique water products?

2.1700

II

Please mention the sales promotional efforts

of classique water product pvt.ltd?

1.9900

I

How do rate the supply norms of the classique

water product pvt.ltd?

2.9000

V

INTERPRETATION

From the table it is inferred that the respondents participate at first, followed by supply norms

as second, maintain the proper maner for distributing products is in third position, credit

demaged product replacement of product is at fourth position and sales promotional efforts is

at the last position.

65

ANOVO

TABLE5.1.13

INTERPRETATION

It is inferred that the ONE WAY ANOVA is positively . Therefore, it is said that the factor of

the you be the sdealer for classique water products .

Factors

Sum of squares Df Mean square F Sig.

Between groups 39.765 3 13.255 21.573 .000

Within groups 58.985 96 .614

Total 98.750 99

66

CHAPTER VI

FINDINGS OF THE STUDY

67

5.1. FINDINGS FROM THE STUDY

Most of the dealers are dealing with minimum of 1-3years only with Classique water

pvt.ltd

Quality factor is place a major role for the dealer to continue their dealership with

Classique water pvt.ltd .

62% of dealers feel satisfied with the Quality of Classique water pvt.ltd .

Majority of dealers are able to meet the customer satisfaction in availability of

Classique water pvt.ltd

There is a regular shortage of 250ml bags/pouches .

There is a regular demand of Classique water pvt.ltd from retailers.

Most of the dealers received ordered quantity promptly.

51% of dealers get product within time period of 6-12 hours from the ordered time.

53% of the dealers are satisfied with margins preferred by Classique water pvt.ltd

Majority of dealers are satisfied with dealership of by Classique water pvt.ltd

Majority of the dealers are not satisfied with the sales promotional efforts by

Classique water pvt.ltd because of lack of encouragement from the management side

Most of the dealers are satisfied with the transportation service provided by Classique

water pvt.ltd .

Majority of dealers are satisfied with the policy of replacement of damaged goods by

Classique water pvt.ltd

68

66% of the dealers get information about the schemes provided by water products

Classique water pvt.ltd through marketing executive in time.

The credit facility is provided to most of the dealers by Classique water pvt.ltd .

Most of the dealers do not get clear information about the supply norms of the

Classique water pvt.ltd

Lack of smooth relationship between production and marketing department of

Classique water pvt.ltd

75% of the dealer order for the product is through phone contact.

From the rank calculated, it is found the dealers give higher rank to the availability

and the availability of the product.

From the rank calculated, it is found the dealers give higher rank to the promotional

activity of the product.

It is inferred that the ONE WAY ANOVA is positively . Therefore, it is said that the

factor of the you be the sdealer for classique water products .

69

CHAPTER VII

SUGGESTION AND RECOMMANDATIONS

70

6.1.1SUGGESTIONS AND RECOMMENDATIONS

Classique water products should concentrate on fulfilling requirements of dealers as

they do not get regular supply and also in time

The company must concentrate on sales promotional efforts because most of the

dealers are dissatisfied with sales promotional efforts of the Classique water products

The company must take step to maintain a good relationship between production and

marketing department of Classique water products.

The most important is the feedback of the dealers about the product that has to be give

importance to make fast growth of the organization

71

CHAPTER VIII

CONCLUSION

72

7.1.1CONCLUSIONS

A distribution system is one of the important branches in business next to production and

exchange .In the modern world, the distribution system has been strengthened by technology.

In this study, it was found that the organization has direct link with dealers of the product.

Dealers are unable to remain in the market as they do not get their supplies at the quickest

possible time. As a consequence of that, dealers move away within two to three years Ways

and mean have to be found out to insulate them from these practical inconsistencies A

separate study can be done intensively to find out the problems of dealers so that remedial

measures can be taken to solve their problems.

73

ANNEXURE-I

74

A STUDY ON DISTRIBUTION SYSTEM IN“CLASSIQUE WATER

PRODUCTS PVT.LTD”

QUESTIONNAIRE

1.Dealer name :

2.Geographical Area :

3. How long you be the dealer for Classique water products pvt.ltd?

A. 1-3years B.4-7years

C. 8-10years D. above 10 years

4.which factor enables you to be the dealer of Classique water products pvt.ltd?

A.Quality B.Demand

C.Price D.Delivery of goods

5.Can be able to meet the customer satisfaction in availability of Classique water products

pvt.ltd ?

A. Yes B. No

6.Follwing which type of water product had a regular shortage that produced by

Classique water pvt.ltd?

A. 250ml bags B.300ml reception bottle

C. 1litre bottle D. Bubble top(20litre)

7. Which type of the following customers highly prefers Classique water pvt.ltd?

A. General consumer B. Retailers

C. Hotels D. Others

8. How will you order the product?

A. Phone B. E-MAIL

75

C. Direct visit D. Fax

9. Whether ordered quantity of Classique water products supplied to you in time ?

A. Yes B. No

10. How much time does it takes of Classique water products after ordering?

A. 6-12hours B. 1-2days

C. 2-7days D. more than 7 days

11. Which factors attracted you to buy the Classique water products?

Factor Highly Satisfied Average Dissatisfied Highly

satisfied Dissatisfied

Quality

Discounts

Availability

Credit sales

12. Transporation must be maintained in proper manner for distributing the products by

Classique water products?

A. Highly satisfied B. Satisfied

C. Dissatisfied D. Highly dissatisfied

E. Neutral

76

13. Please give your satisfaction level of damaged product replacement of Classique water

products?

A. Highly satisfied B. Satisfied

D. Dissatisfied D. Highly dissatisfied

E.Neutral

14. Are you satisfied with the margins preferred by Classique water products?

A. Highly satisfied B. Satisfied

C. Dissatisfied D. Highly dissatisfied

E.Neutral

15. Are you satisfied to take the dealership of Classique water product pvt.ltd?

A. Yes B. No

16. Please mention the sales promotional efforts of Classique water product pvt.ltd?

A. Very good B. Good

C. Average D. Poor

D.Worst

17. How do rate the supply norms of the Classique water products pvt.ltd?

A Very good B. Good

C. Average D. Poor

E.Worst

18. Does the company executive convey schemes on proper time?

B. Yes B. No

77

19. In which area do you expect to improve in Classique water products pvt.ltd?

A. Quality B. Price

C. Promotional activities D. Delivery of goods

20. Give your valuable suggestion about Classique water products pvt.ltd?

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

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

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78

ANNEXURE-II

79

ANNEXURE-II

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