FBM IV PROJECT REPORT S.Y.

II GROUP 5

GROUP MEMBERS
ROLL NO.
151 152 153 154 155 156 157 158 160

NAME
AJAY KHIMNANI MAYUR KHUHA NAMRATA KINGER DEEP KORADIA ANKITA KOTADIA PRATIK KOTAK SAKHI KOTAK ABHISHEK KUCHERIA MILY KUNDALIA

Acknowledgement
The accomplishment of our project was possible only due to the cooperation, coordination and united efforts of different individuals, several sources of material, knowledge and time. Pertaining to this we therefore take this opportunity to express our deep sense of gratitude to Mr. Rajesh. We are very grateful to Dr. Darshana Padia (Faculty) and Ms. Zalak Shah (Faculty) for their guidance and encouragement. The moving spirit behind this research was all of them, without their constant encouragement and support this report would not have been a successful outcome.

List of contents
Sr. No.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Particulars
Group Members Acknowledgement Abstract Introduction What Makes Aava So Different Production Process Products Marketing Human Resource Management Organisational Structure Distribution Network Competitors SWOT Analysis PEST Analysis Awards and Achievements Strategy Recommendations Conclusion Bibliography

Page No.
2 3 6 7-8 9 10 11 12-13 14-16 17-18 19 20 21 22 23 24 25 26 27

A BUSINESS REPORT ON AAVA MINERAL WATER

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Abstract
The report enhances the progress and working of Aava Mineral Water (Sheelpe Enterprise). The companys objective is to earn profit just like any other company but apart from this its main objective is to provide better quality product in a lower price. Aava Mineral Water has grown and achieved international recognition. It is the first company to launch bottled water of which every drop is naturally purified. Aava Natural Mineral Water is untouched by human hands at all points. Aava is Indias most certified water and goes through 77 different tests before and after being bottled, perhaps making it the BEST Drinking Water of India today." This report focuses on various aspects of the company such as Production Department, Human Resource Department, Marketing Department, Competitors, Awards, etc. Management tools like SWOT Analysis and PEST Analysis informs about the position of the company. These tools help to conclude that the company has a good image in market and has great scope in the future.

Word Count: 163

Water is the most important liquid in the world. Without water, there would be no life, at least not the way we know it. In today's living condition, the need for Pure Drinking Water is becoming the issue for the common Man.

Aava is the natural mineral water originating from the holy hills of Taranga, a part of the worlds oldest mountain range, the Aravallis. Every drop of Aava is naturally purified with great patience: Drop by drop, for 20 years Aava trickles down from the catchment area to our deep underground reservoirs. Along the way, it is purified as it passes through layers of alluvium and clay that acts as natural filters. In a world where every alternate food item claims to be fortified, nothing about Aava is artificial. Nature has endowed Aava with a unique mineral composition that is beneficial to health.

Aava is packaged in an environment that adheres to toughest international certification standards, guaranteeing that the water contained in every bottle of Aava has the natural purity and unaltered mineral composition. Aava Natural Mineral Water is full of natural minerals and is clean, refreshing, healthy and eco-friendly since it is originally pure at source and full of goodness of natural mineral, and hence is neutral sweet in taste and good for the human body. It is eco- friendly because it does not use water rejection technologies such as RO. Aava is promoted by Sheelpe Enterprises. Based out of Ahmedabad, Sheelpe launched Aava in October 2005. Being a late entrant into the overcrowded packaged water market may not seem like a smart entrepreneurial move. But Aava brand of natural mineral water not only outsells premium national brands by a wide margin regionally the company claims a 50% market share in Gujarat but has also managed to attract quite a few global beverage companies like Danone, for equity investments. Aava is Indias most certified water and goes through 77 different tests before and after being bottled, perhaps making it best drinking water of India today. Bringing a Green Revolution to the water world by being 100 per cent natural, Aava is bottled under systems that adhere not only to the standards of the ISO 9001 - 2000,but also to the standards of the ISO 14001 - 2004.The Aava water plant uses the 'Clean Room' technology, within the automatic filling, capping and sealing system, so that Aava's original mineral composition as well as the purity of the air and water is maintained at all times. Safe, natural, pure and healthy, Aava is certainly bringing in a Green Revolution in a Blue World!

WHAT MAKES AAVA SO DIFFERENT?

Packaged drinking water (IS : 14543)
Raw water could be sourced from anywhere. (Municipal water, ground water etc.) This water is rendered potable through various processes such as reverse osmosis. (chemicals, UV rays, pesticides)

Aava mineral water (IS : 13428)

Aava is obtained from protected natural sources.

Aava is natural pure and does not need to put through any chemical process, UV radiation or reverse osmosis.

RO further strips healthy minerals present in water. If the ph level in this demineralised packaged drinking water falls, as per one theory, the water may tend to become acidic. For every 1 litre if water processed through RO, 2 litres or more is wasted. RO can never fully eliminate chlorine content, which can lead to cancer. Most of packaged waters sourced from municipal taps have excessive fluoride content leading to diseases of teeth, bones as well as nervous systems.

Aava is well-balanced healthy drink. It has a natural mineral composition that is beneficial to health and is absolutely safe to drink. Not a single drop of Aava water is ever wasted, hence Aava is awarded ISO 14001 certification. Aava is 100% free of chlorine.

Aava has well balanced fluoride content within prescribed limits, by ISI & other international standards.

Production process
FULLY AUTOMATED AND HYGIENIC PLANT
The Aava water plant is the first of its kind in India; it is a fully automatic, washable, air-conditioned, hygienic plant. The plant even adheres to pharmaceutical standards, and uses the Clean Room technology (class 10,000) within the automatic filling, capping and sealing system so that Aavas original mineral composition as well as the purity of the air and water is maintained at all times. Aava Natural Mineral Water is untouched by human hands at all points. Aava is also not put through any chemical procedures that can contaminate its original purity. The companys fully automatic bottling unit currently produced one lakh bottles of water of water a day and another 1000 Family-pack 20 litre & smaller jars. Hi Mec Machine which produce 60 bottle per minute Filler who fill 9 bottle per Sash There are 63 different chemical, microbiological and other tests. Aava does not go through certain processes that other packaged drinking water like Activated Carbon Filtration, Softening and RO purification. The new Osmosis E-Series Ozone Generators feature a durable flat plate ceramic cell construction that provides stable ozone output at higher concentrations (from 6 to 10 per cent by weight), while efficiently producing up to 3 ppd (57 g/hr) of ozone.

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Natures purest offering comes in different pack sizes

Family Pack (20 Litres): Aava is also available in 20L packs so that a glass of refreshing Aava is only as far as your kitchen is, when you want it. Cup-Cap Bottle (1 Litre): For the first time in India, the 1L pack comes with an in-built cup. Thus, it makes sharing your water easy without the mess of having to drink from the same spout. Sports Bottle (750 ml): The 750ml bottle is designed to suit the needs of the fitness conscious individual on the go. With a double-seal sportcap thats leak proof, its ideal for people working-out as well as children to avoid spilling. Aava Personal (500ml): Just the right amount of water for the individual. Ideal for room service for all stars establishment. Aava Mini (200ml and 300ml): The 200ml and 300 ml bottle is available for you to quench your thirst instantly without having to carry around the weight of a big bottle. Its convenient size even allows it to be stored in small bags.

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Marketing
To a layman, marketing means selling or advertising. It is true that these are parts of marketing, but marketing is wide concept over and above advertising. The simplest definition of marketing is managing profitable customer relationship. The two fold goal of marketing is to attract new customer by promising supplier value and to keep and grow current customers by delivering satisfaction. Hence we can define, Marketing as the process by which companies create value for customers and build stronger customer relationship in order to capture value from customers in return.

AAVAs MARKETING STRATEGY

It is complete and an unbeatable plan designed specifically for attaining the marketing objective of a firm. The marketing objective indicates what the firm wants to achieve. The marketing strategy provides the design for achieving them the linkage between marketing strategies and overall corporate success is indeed direct and vital. Broadly strategy stances can be classified under three headsOffensive Strategy: Offensive Strategy also known as confrontation strategy is a strategy of aggression. A firm that is not presently the leader usually employs it, but it aspires to leadership position in the Industry. Aava is following this strategy, as its not market leader, but in the way of that. Defensive Strategy: The leader who has the compulsion to defend his position against the confrontation of powerful existing competitors or to dislodge the leader from his topmost position usually employs it. Kinley, Bislery etc. are falls in this kind of strategy as they are the market leaders & they are trying to maintain this position. Niche Strategy: A firm practicing the niche strategy neither confronts other nor defends itself. It cultivates a small market segment for itself with unique products / services supported by a unique marketing mix.

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Local company like Gallons waters, Royal Packaged drinking water, etc all are following this kind of strategy as they are interested only on maintaining their local market share.

FORMULATION OF AAVAs MARKETING STRATEGYBasically; formulating the marketing strategy consists of two main stepsSelecting the target market: As such every individual is target potential customer for any company but definitely it needs to reach the market place in structured manner. The target market for Aava initially is Middle class of Gujarat only, as the brand grown up, they reach throughout the country. Assembling the marketing mix: Assembling the marketing mix means assembling the four Ps of marketing in the right combination. The firm has to find out how it can generate the best sales and profit. It plans different marketing mixes with varying levels of expenditure on each element and tries to figure out the effectiveness of each combination in terms of the possible sales and profit.

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Human resource management

Today the management people are become more and more important in organization. Most of the companies are following on the quality of their work force to create a new competitive advantage for themselves. It is the quality of the work force that will matter in the future. So investing in the work force is inevitable for any organization, which wants to succeed in the long run. The secret of success of the companies is the way they treat their employees. Employees should be treated as colleagues and merely as means to profit. Employees are more important of the company, just as much as top management. Employees are the heart of organization. Thus is because, even though organizations has all the Ms namely machine, market, money, man, management. It would not be able to achieve its objective more effectively and efficiently if its manpower is dormant. It is very important, therefore, for the human resource manager to invest and develop its manpower in such a manner so as to make its lively resources and its constantly responding to any changing situation. Formerly importance was given to personnel management and industrial relations, which were treated as separate functions. But now to fast respond to changing environment both these functions have been assembled in to the Human Resources Management, which is also concerned with developing manpower and above this.

HUMAN RESOURCE FUNCTIONS

Human Resource and Planning: It is a process by which an organization ensures that it was right number and kind of people, at the right place, at the right time, capable effectively and effectively completing those tasks that will help the organization to achieve its overall objectives. The various objectives of human resource planning are: (a) Making correct estimation of manpower recruitment

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(b) Coping (c) Managing manpower according (d) Help in recruitment and selection. Recruitment:

with to need

of

changes. organization.

It is a process of searching for prospective employees and stimulating them to apply for the jobs. Such need is caused by growth of organization. Training and Development: Training is the act of increasing the skills and efficiency of the employees inputs. The purpose of this activity is to provide training to the employees so that they can achieve higher standards of production, vacancies, can more easily be filled up from internal sources to improve organizational climate, etc. it is needed because Aavas plant is fully automated. At Aava Company for the existing employees, the training needs are identified concluding regular performance appraisal. During these appraisal the employees himself on the basis of his performance determines the area in which he is required to undergo training Performance Appraisal: Performance Appraisal is an act of reviewing and assessing the performance of the employees on the basis of set standards for each and every employee. On the basis of this, other decision and training needs of the employees are identified. At Aava Company, the performance is done from six month. Every year the performance appraisal is done from six month. Every year the performance appraisal form is issued to each and every employee to be filled Transfer and Promotion: Transfer of the employees may be due to any of the following: 1. To fill up the requirements of the important and potential areas. 2. Need based transfer: The excess employees of one department are transferred to the department in which the requirement exists.

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At Aava Company, an employee is eligible for promotion strictly on the basis of this capability and his on the job performance. If this performance track record has been consistent for a couple of years and if there exists a vacancy at the next higher up then he would be promoted. Promotion may be gives in the organization in the same level. Labour Welfare: Satisfied employees are the best assets of the company. Hence importance is given to labour welfare at Aava Company. The company provides its workers and the staff persons various statutory welfare facilities as per the provision of the Factories Act. Provident Fund schemes: Aava Company has started its own trust since 1992 for provident fund. The contribution of employees is 12% of the salary in the provident fund scheme. Bonus: The employees get bonus at the rate of 20% of annual salary during the financial year. Gratuity: The employees got the aspects gratuity at the rate of 15 days salary per year of Services at the time of retirement or resignation. Loans: Aava provides loans for the employees and workers on 12 monthly instalments and the company profitability. The payment is made on every last working day of the month. Salary Structure: 1. Assistant Manager 15000 Per Month 2. Account department 9000 per Month 3. Creative Department 12000 Per Month 4. Laboratory Chemist 9000 Per Month 5. Employee in Production department 3000 Per Month 6. Sales Department 10000 Per Month

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Organisational structure
The firm needs to tear-down and restructure an organizational hierarchy which has not evolved on a need to basis, but instead, erect one that is strategically structured to enable the organization to best carry out its Tactical and Operational Level operations in accordance with the Strategic objectives of the firm. Aava must restructure its inflexible and highly unorganized organizational structure, into a meticulously planned, well coordinated, supportive more flatter hierarchy with lesser hierarchical levels and comparatively greater span of control, encouraging more delegation of authority, leading to greater job satisfaction, enrichment and career development, paving the way to a Learning Organization information, Incentive, Control & Strategic Plan.

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Person

Position

Mr. Behram Mehta

Co- Founder of Aava

Mr.Rajesh Padaliya

Assistant Manager

Jagin Tivedi(Jay Plast)

Production of PET bottle

Mudra Communication

Promotion and design of bottle

Yamini Gupta and Shekhar Pandey

Account Management Team

Sajit Surendran and Mehul Chokshi, Creative Team Tina Mehta

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DISTRIBUTION NETWORK of AAVA

The intermediary is not a hired in a network forged by a manufacture, but rather an independent market, the focus of a large group of customer for whom is buys. The Distribution Chain of Aava mineral Water is in three stages: Manufacture

Distributors

Consumers

AAVA sell its production to many estimated clients like;

Four Season Hotel Group Ramada Group Goa ITC Welcome Group, Baroda Fortune Landmark, Ahmedabad Indian Airlines, Air India, Spice Jet, King Fisher, Jet Lite IIM (Ahmedabad) Hotel TAJ Umed Le Meridian Hotel CAMA Grand Bhagwati Hotel & caterers Indigo Restaurant Havmor Caterers Fun Cinemas Wide Angel Cinemas CCI Club Mumbai Ambani School Mumbai Flight Kitchen Ambassador Hotel Mumbai

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Competitors
According to Kotler, poor firms ignore their competitors; average firms copy their competitors; winning firms lead their competitors. In simple term the competitors are those who produced the same product and sale it to the market. A companys closest the competitors are those seeking to satisfy the same customer and need and making similar offers. There are different types of competitors for different types of product. And all companies have to face the competitors to create good will identify and particular image in market. AAVA has many competitors in India as well as in the world. Like: Parle Bisleri Kinley Aquafina Himalayan Oxyrich

The Himalayan waters PH level vary from 7.7 to 7.3 which brings them dangerously close to water becoming acidic, compared to that AAVA is constant at 7.93 making it absolutely non-acidic. It is a well known fact that calcium is good for bones but is also a known fact that excessive calcium causes kidney stones and therefore across the world FDAs allow up to 100 mg per litre as the maximum permissible limit. AAVA at absolutely well balanced 20.8mg per litre proves the superiority of being good and also being safe compared to Himalayans content of calcium 49mg per litre.

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Swot analysis
STRENGTHS: AAVA is a 100% natural mineral water. AAVA has a wide range of different size bottle that satisfy peoples demand. AAVA is Indias most certified water and goes through 77 different tests before and after being bottled, perhaps making it the BEST Drinking Water of India today." Nature has endowed AAVA with a unique mineral composition that is beneficial to health. WEAKNESS: AAVA has a small production factory The organization is not able to cover only the niche segment of the industry. The organization is not able to entertain the order untapped segment of the industry. The organization is lacking in the well established concept of total quality. OPPORTUNITIES: Ultra modernization of the technology may lead AAVA to cutter the needs of the untapped market. With new technology advancement AAVA may diversify its product portfolio. The consumer orientation towards the AAVA because it is a natural mineral water different from packaged drinking water .it is good for health. So that may increase the demand. THREATS: Inconsistency in the technology may harm the progress of AAVA. AAVA has threats from its competitors New competitors Price wars with competitors.

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Pest analysis
Political: Political decisions can affect bottled water companies for the good and the bad, because if taxes increase, therefore consumer's decrease and sales of stock decrease. However if taxes decrease the likelihood is consumers will buy more. Laws can also change bottled water companies income because if a law was brought out, that you could only work 9.00am - 5.00pm, factory hours would be cut, resulting in less water being bottled and people would have less disposable income to spend on pleasurable items e.g. chocolate. Economic: The interest rates can affect companies because if the interest rates were high then water companies would not want to borrow as much money for expansion. Also if consumers had loans they would again have less disposable income to buy luxury items. If the minimum wage were brought down, this would mean more money for bottled water companies but would also result in low sales from the consumers. The government can also raise taxes, which would bring a standstill to the sales of water. Social: If water factories do not control their pollution levels or have big buildings destroying the landscape with noise and traffic congestion, then the local residents would complain to their local council resulting to possible incentives for bringing in jobs for the community being stopped. On the other hand local residents with small businesses near to water factories would benefit due to the money being brought in by tourists. Technological: Cost of machinery, it would be expensive running machinery to package and make bottles to put the water in. This part of the production must be fast. New machinery would help speed up the process, the world is constantly updating, bigger and faster machines are also available, and this could increase the amount of packaging and bottles made. Maintenance is needed in the event of a breakdown; it must be sorted quickly and efficiently. http://www.docshare.com/doc/157342/SWOT-and-PESTE-Analysis-forBottled-Water

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Awards and achievements

During the packing of "Aava Natural Mineral Water, not a single drop of water is wasted and hence Aava is the only natural water to have achieved the unique environment friendly international certification ISO 14001-2004 for eco-friendly practices. ISO 9001-2000: International Quality Management System Standard.

Aava wins the Silver Award at the Bottled Water World Awards2007. ISI: "Bureau of Indian Standards" quality standard certifying the water safe for consumption. H.A.C.C.P: Hazard Analysis and Critical Control Point.

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Strategy
Selling bottled water requires constantly expanding the market. The company should also target the market for soft drinks. All the soft drinks addresss three issues: fun, thirst and refreshment followed by status to some degree. The thirst and the status value of the mineral water are well accepted. There is very little the mineral water brands can do to add the fun element around the product. Again here, it becomes important for the company to have a good distribution network. It should be understood that if the mineral water is easily available everywhere then it can be said with confidence that it would be able to replace the soft drinks as thirst quencher. If we try and look at the reasons that why consumers buy soft drinks as thirst quenchers: we would find the answer as that either water is not available or if it is available then safety is not assured. Therefore, backed by a good distribution network mineral water industry can grow at a rapid rate.

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Recommendations
Advertisement to build the brand image that will provide the required ground to establish the authenticity to the product. Display of hot and cold dispensers and bottles at places like hotels, clubs and airports where upper class group visits, as they are the potential customers. Place like departmental stores, petrol pumps and super bazaars can also be considered. Distribution channel play an important role in this kind of product. But Aava does not have sufficient distribution network. For selling and marketing Aava should improve their distribution network. Aava is not focusing on promotion as compared to other. They are giving advertisement in news paper but they are not regularly giving ad in news paper. They use different newspaper every time. There is a lack of faith in peoples mind.

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Conclusion
After having a sizable analysis on the mineral water brand, AAVA, It Can conclude that every business entity has a pros & cons. Aava is one of the emerging player in the Indian market & so, they needs to be more consumer friendly & they must invest in advertising to get more market share. Though they are providing good quality, they dont have any more production facility, so, for that they require a new production facility & Finance. They also have threat of new local competitors in the market, to compete them, there should not be any more hike in price factor. The Plus Point is Aava Has a big market share in Fixed Client, i.e. Spice Jet, Le Meridian, Ambani Schools, Fun Cinemas, etc. So, they dont have any threat of shut down of business due to sell. But, they cant rely on these customers as these big consumers dont give expansion. Another positive point is they have different product size, Packets. So, every class of Consumer can covered in any one of them. It can conclude that though AAVA is making good business, it is not yet market leader, even they have only less than 8% of market share. So, Growth is expected in future.

Word Count: 3880

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Bibliography
http://lite.epaper.timesofindia.com/mobile.aspx?article=yes&pageid=11& edlabel=ETKM&mydateHid=25-122009&pubname=&edname=&articleid=Ar01101&format=&publabel=ET http://www.indiamart.com/sheelpeenterprises/aboutus.html http://www.aavawater.com/# http://www.antya.com/detail/Aava-Packaged-Natural-MineralWater/14974 http://www.docshare.com/doc/157342/SWOT-and-PESTE-Analysis-forBottled-Water http://www.aavawater.com/mediacenter4.html Report on Bisleri http://www.scribd.com/doc/35177986/Final-Strw Principles and Practice of Management - L.M.Prasad Brochure of Aava Company

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