sahara final
TRANSCRIPT
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A SUMMER PROJECT REPORT ON
UNDERSTANDING THE DISTRIBUTION
CHANNEL OF THE RETAIL MARKET ANDCORPORATE WORLD
Submitted to:
MUMBAI EDUCATION TRUST
In Partial fulfilment of
EMPOWERED-MASTER OF BUSINESS ADMINISTRATION
Under the guidance of
Faculty Guide: RAJEEV GUPTE
Company Guide: MR.J.ASHOK
Submitted by: VAISHALI SHAH
Roll Number: 12151
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INDEX
No TITLE PAGE NO.
1. TITLE 1
2. ACKNOWLEDGEMENT 2
3. CERTIFICATE FROM THE COMPANY 4
4. NEED AND JUSTIFICATION FOR THE PROJECT 7
5. INTRODUCTION 22
6. COMPANY BACKGROUND AND INFORMATION 35
7. DATA COLLECTION AND DATA ANALYSIS 37
8. PROCESSES AND PROCEDURES 54
9. PROBLEM FRAMING AND PROBLEM ANALYSIS 56
10. SUGGESTIONS AND RECOMMENDATIONS 58
11. ETHICAL,SOCIAL AND ENVIRONMENTAL
IMPACT OF THE PROJECT
61
12. MY LEARNINGS 8313. CONCLUSIONS 84
14. A PEEP INTO THE FUTURE 85
15. BIBLIOGRAPHY 90
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ACKNOWLEDGEMENT
I thank the Almighty God for his grace towards the successful completion of my
project and I would like to express my gratitude towards all those who have
helped me throughout my project work.
Firstly, I would like to extend my heartfelt gratitude to my project guide Mr.
ASHOK J. For his inspiring guidance, generous help, encouragement, patience
and the valuable suggestions made throughout the course of this project. He
gave me the much needed liberty to carry out the project on my terms, as per
my convenience.
I would also like to thank him for all those „enthusiastic‟ words that he shared
with us.
I am grateful to Ms. Sylvia for sharing all her valuable experiences in the
industry working with SAHARA Q SHOP.
I would also like to thank Mr.Sanchi (HR) who gave me the opportunity to
work with SAHARA Q SHOP.
I am also grateful to all the other members in the office who maintained a
healthy relationship with me throughout the course of internship.
A big salute to the house-keeping staff that kept us refreshed with the hot
beverages and food whenever we ordered for them.
Last but not the least I convey a deep sense of gratitude to my parents for their
support and encouragement throughout the two months of internship.
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NEED AND JUSTIFICATION OF THE PROJECT
Objective of the project
Project primarily focused on to target retail market & corporate clients to sell
them packaged drinking water, mineral water products and Energy Drink.
Study of the distribution model – Route to market and go to market
strategy for beverage industry. Cost effective strategy for distribution.
How do we implement strategies to increase the market share of the product.
Project involved the following responsibilities:
a. Sales Focus Area was corporate offices / clients, retail shops
mainly in Mumbai
b. Lead generation for the products under display Sales group focus
area mainly western & central Mumbai.
c. Identify & analyse the clients‟ requirements by having interaction
with senior management and decision-makers in the client
organizations & retail shops.
d. Thoroughly mapping the accounts and thereby creating database
for future reference.
e. Managing free samples to attract the customers.
f. Assisting Sales team in moving sales cases from start to closure.
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g. Marketing objectives are quantitative translations of the company's
financial objectives, in marketing terms. For example:
1) sales dollars
2) sales units
3) market share
4) distribution levels/channel
5) advertising awareness
6) key account distribution
The sales and marketing plan outlines each specific marketing event or action
plan to increase sales. For example, it may contain a summary of quarterly
promotion and advertising plans, with spending, timing, and share or shipment
goals for each program. Sales and marketing plans should be a logical
outgrowth of short- and long-term company objectives and your marketing
strategy. In the business plan, the sales and marketing plans provide an outline
of each marketing event for the year, covering the following information:
description of each event vehicle (e.g., media, promotion, trade, sales)
timing of each event
event goals and objectives (e.g., volume, share gains)
cost of each event
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At the initial stage company is promoting its Water Products.
Sahara Q water is one of their many attempts at making India adulteration free
and fulfilling their vision of a healthy nation. Company believe everybody has a
right to pure, unadulterated nutrients and this fight for good needs to begin with
the most basic element of water.
SAHARA Q SHOP has launched
NATURAL MINARAL WATER
PACKAGED DRINKING WATER
ENERGY DRINK
Sahara Q Shop‟s motto is
Q= QUALITY=PURITY=OUR MISSION.
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INTRODUCTION
HISTORY OF BOTTLED WATER IN INDIA
Bottled water market has emerged as one of the most rapidly growing andcompetitive markets worldwide. The global Bottled Water Industry is amultibillion dollar industry. It has been a remarkable growth trajectory for thesector.
India is among the top ten countries in terms of bottled water consumption.Today Bottled Water is one of the India‟s fastest growing industrial sectors.
Trends in the Industry
Mushrooming Bulk Segment New Entrants Flavoured Water Rising Investments & JV‟s
On the back of rising health awareness among citizens and inability of the
Indian government to provide safe drinking water, bottled water industry has
flourished during the past decade. Evolving perception of bottled water has
made its consumption a bare necessity especially in the water scarce areas of thenation. And these factors will bring the next wave of growth in the sector.
Along with these, rising disposable income, growing organized retail, rising
awareness among the consumer segment and growing focus on product
extension and quality will further stimulate the gains for the industry. Rising
urban drift in the country will also be a wheel of growth for the industry. We
have estimated the industry to grow at a CAGR of 18% till 2017 and would be
soaring to new heights. Indian Bottled Water Industry currently pegged at USD1454 million in 2011 will jump to reach USD 3925 million by 2017.
Mineral bottled water in India under the name 'Bisleri' was first introduced inMumbai by Bisleri Ltd., a company of Italian origin in 1965. Mineral bottledwater were in glass bottles in two varieties - bubbly and still in 1965 Thiscompany was started by Signor Felice who first brought the idea of selling
bottled water in India.
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Parle bought over Bisleri (India) Ltd. In 1969 and started bottling Mineralwater in glass bottles under the brand name 'Bisleri'. Later Parle switchedover to PVC non- returnable bottles and finally advanced to PET containers.Since 1995 Mr.Ramesh J. Chauhan has started expanding Bisleri operations
substantially and the turn over has multiplied more than 20 times over a period of 10 years and the average growth rate has been around 40% overthis period. Presently it have 8 plants and 11 franchisees all over India.Bisleri command a 60% market share of the organized market.
Currently, Bailey has a national presence in 5 lakh retail outlets across thecountry. “We plan to increase manufacturing plants for Bailey from 29 to
60, presently 40 plants are operational and few more will be ready foroperations over the next few months,” informed Nadia Chauhan, joint
managing director of Parle Agro.
Variety of packages
Bottled water is sold in a variety of packages: pouches and glasses, 330 ml bottles, 500 ml bottles, one- litre bottles and even 20- to 50-litre bulk water packs. The formal bottled water business in India can be divided broadly intothree segments in terms of cost: premium natural mineral water, naturalmineral water and packaged drinking water.
Premium natural mineral water includes brands such as Evian, SanPelligrino and Perrier, which are imported and priced between Rs.80 and
Rs.110 a litre. Natural mineral water, with brands such as Himalayan andCatch, is priced around Rs.20 a litre. Packaged drinking water, which isnothing but treated water, is the biggest segment and includes brands such asParle, Bisleri, Coca-Cola's Kinley and PepsiCo's Aquafina. They are pricedin the range of Rs.10-12 a litre. The FDA also classifies some bottled wateraccording to its origin.Artesian well water Water from a well that taps an aquifer--layers of
porous rock, sand and earth that contain water--which is under pressure fromsurrounding upper layers of rock or clay.
Mineral water. Water from an underground source that contains at least250 parts per million total dissolved solids. Minerals and trace elementsmust come from the source of the underground water. They cannot be addedlater.Spring water Derived from an underground formation from which water
flows naturally to the earth's surface. Spring water must be collected only atthe spring or through a borehole tapping the underground formation feedingthe spring. If some external force is used to collect the water through a
borehole, thewater must have
the same composition and quality as the water that naturally flows to the
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surface.
Well water. Water from a hole bored or drilled into the ground, which tapsinto an aquifer.
Tap Water Some bottled water also comes from municipal sources--inother words--the tap. Municipal water is usually treated before it is bottled.
Daab water in bottles: Chief minister Mamata Banerjee's focus on smallinvestors will soon see packaged coconut water in local stores in 2013. Thestate food processing department is currently studying a state-of-the-arttechnique for packaging bottles of daab water. It will collaborate with theIndian Institute of Packaging to sell coconut water and highlight that factthat one portion of coconut water is equivalent to three portions of water.
Why Bottled water?
Millions of people, both in rural and urban India, suffer from inadequate orno tap water supply. Even some parts of Mumbai, the country's financialcapital, get a mere two hours of daily water supply. The city's Virar suburbgets 45 minutes. So bottled water is much in demand by residents - eventhough the businesses profiting from the sales are thriving from access to
public water sources.Bottled water fills a void created by government failure to address basic
services, Peter Gleick of the Pacific Institute writes in its World Water
report. "In many parts of the world, tap water is not available or safe todrink," writes . "In these regions, the failure of governments to provide basicwater services has opened the door to private companies and vendors fillinga critical need, albeit at a very high cost to consumers." The institute reasonsthat governments should tap into spending on commercial water byconsumers to secure funds to provide safe water at fraction of the cost.
Bottled water has been treated by distillation, reverse osmosis, or othersuitable process and that meets the definition of "purified water".
Bottled Water: How Safe?
The bottled water industry has spent billions over the past decade to sell youon the idea that bottled water is better than tap water. Well the short answer isthey are both unhealthy. One of the most ironic parts of the bottled watertragedy is that the water bottling industry gets the water free, filters it, bottles itand sells it back to us at 1,900% profit. The ironic part is that tap water islegislated to be 7.0 pH neutral. They first dump a TON of cholrine in the waterto kill off all the bad bacteria, this makes it highly acidic.
In India around 100 companies sell an estimated 424 million litres of bottledwater valued at around Rs 200 crore in the country annually. Most bottlers
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claim that their water is 100 per cent bacteria-free, safe, tastier and healthier.But is the water in these bottles really safe to drink? Do they conform tointernational or national standards?
Traditional Indian methods of cooling and purifying water
Now people of India turning their backs on the country's ancient methods ofcooling and purifying water. Stored in earthen pots, for instance, it is not onlyrefreshingly cool and tasty but is said to become bacteria-free. Yet the commonsummer sight of water matkas (earthen pots) in public offices and spaces isgiving way to upturned plastic drums dispensing packaged water.Rainwater is safe, doesn’t bring about adverse effects. For centuries people have thought rainwater as unsafe, but contrary to their
beliefs, as per an Australian study, drinking of untreated rainwater is safe forhuman health. The study was conducted under the auspices of eminentresearchers from Melbourne‟s Monash University. The entire team took a look
at 300 homes that used rainwater collected in water tanks as their primarydrinking source.This endeavor has been described as a world first study thatcomes in the midst of growing criticism of bottled water.
Consistent quality and taste are two of the principal differences between bottled water and tap water. While bottled water originates from protected
sources - largely from underground aquifers and springs - tap water comesmostly from rivers and lakes.
Another factor to consider is the distance tap water must travel and what it goesthrough before it reaches the tap. In compliance with international regulations,
bottled water is sealed and packaged in sanitary containers. If a bottled water product is found to be substandard, it can be recalled. This can‟t happen in case of tap water.Water is the most essential element to human life; the body usually cannot
survive longer than several days without water .Water is essential to thefunctioning of every single cell and organ system in the human body. Watermakes up greater than 2/3 of the weight of the human body; the brain is 75%water, blood is 83% water, bones are 22% water, muscles are 75% water, andthe lungs are 90% water. Water is essential for the efficient elimination of waste
products through the kidneys. Water regulates body temperature (through perspiration). Water helps the body to absorb nutrients in the intestines. Water plays a role in regulating metabolism. Water forms the base for saliva(necessary for consuming and digesting food). Water carries nutrients and
oxygen to all cells in the body and facilitates all of the chemical processeswhich occur in the body. Water plays a role in the prevention of disease.
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Drinking adequate amounts of water can reduce the risk of colon and bladdercancer significantly, and some studies have suggested that water may alsodecrease the risk of breast cancer. So, SAHARA Q SHOP came to know howimportant water to humans & they came up with SAHARA Q WATER in the
market to reduce the thrust of the human body. In few months only SAHARA QWATER has captured huge market of water products. People are aware aboutSAHARA Q WATER and its popularity is increasing day by day.A few decades ago, there were only a small number of choices for bottled water,
but consumers today find more than 3,000 brands in the marketplace. And allare doing good business because all of them have targeted the survival .
ILL EFFECTS OF DRINKING UNTREATED WATER
Typhoid Bone deformation
Joint pain
Hardening of arteries and muscles
Diarrhoea and Dysentry
Excess content of fluoride can lead to flourisis
Arsenic Poisoning
Cholera
Hepatitis
COMMONLY FOUND WATER CONTAMINATION
SOURCES
Contaminated storage Tanks
Cross contamination at sources
Leaks in distribution network
Improper functioning of Purifiers
Domestic Waste
Borewell or contaminated ground water
Organic matters
Industrial waste
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SAHARA Q – PACKAGED DRINKING WATER
Q packaged drinking water is aimed at providing pure and safe drinking waterto the valuable consumers, which will contribute towards eliminating theinvisible spread of diseases and illness that are caused by the consumption ofcontaminated water.Water composes approximately 70% of the human body by mass and is acrucial component of metabolic processes and serves as a solvent for many
bodily solutes. Bottled water is sold for public consumption throughout theworld. Sahara Q packaged drinking water is processed through state of the artwater plant and aseptic filling technologies. Sahara Q shop ensures pure and
safe drinking water with no risk of any harm to the human body instead willrejuvenate and rehydrate your body systems with a refreshing feel.
Sahara Q Packaged Drinking Water is aimed at providing a clean and safedrinking water to the consumers, which will contribute towards eliminating theinvisible spread of disease and illness that occurs through the consumption ofcontaminated water. The enterprise in water chemistry and the latest technologyto build state-of-art water plant and aseptic filling technologies, the end result isquality product named Sahara Q Packaged Drinking Water.
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The Water is derived from a natural source which then goes through series offiltration processes, followed by UV and Ozone treatment and final packaging,global standards are followed to ensure purity,quality, superiority. The endresult is a crystal clear water that is pure and safe for drinking. This is
hygienically packaged into top quality tempered proof PET bottle of varioussizes for assurance and convenience.The plants are equipped with right toolsand techniques, so goals are achieved and perfection attained.
PRICING OF PACKAGED DRINKING WATER
Packaged Drinking Water (1000 ML)
Net Unit : 1000 ml
RS 18
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Packaged Drinking Water - Bottle (250 ML)
Net Unit : 250 ml
RS 6
Packaged Drinking Water - Bottle (500 ML)
Net Unit : 500 ml
RS 10
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SAHARA Q GOES GREEN NATURALLY-NATURAL
MINERAL WATER
-Water the nature meant it to be
Source : Melting snow on Himalayan peaks release nature‟s essence,water. As it flows down it enriches itself with natural minerals and accumulates underthe folds of Shivalik Range. Sourced from the pristine valleys of Shivaliks inthe Himalayan foothills ,Q Natural Mineral Water comes to you as nature‟s gift.
The rich mineral content imparts a fine taste to water, which is naturallymaintained by the various mineral deposits in the mountains. The water istapped more than 300ft below the surface and bottled at source untouched. Avery low nitrate content points to its virgin origin indicating freedom fromcontaminants, natural or man-made. Every drop of Q Natural Mineral waterconnects life with nature.Many sources have hazardous chemicals and toxic wastes from industrialdevelopments in the vicinity of the source. The presence of such toxins in thesource of the Natural Mineral Water is evaluated by the presence of Nitrate inthe Water and the Bureau Indian Standards (BIS) allows upto 7mg per 1000mlfor human consumption. Sahara Q Natural Mineral Water has only 1.2 mgnitrate content per 1000ml water .which points to its virgin origin indicatingfreedom from contaminants ,natural or man-made.
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The nutrients present in the Sahara Q mineral drinking water are as follows:
Calcium 53
Magnesium 11
Sodium 15 Nitrate 1.2
Chloride 13
Ph Factor 7.5 mg/litre
TDS 295-315 mg/litre
PRICING OF NATURAL MINERAL WATER
Natural Mineral Water - Bottle (1000 ML)
Net Unit : 1000 ml
RS 50
/shop/faces/tiles/
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Natural Water - Bottle (500 ML)
Net Unit : 500 ml
RS 30
ENERGY DRINK MARKET IN INDIA
Long and erratic working hours and the increasing occurrence of socialgatherings are driving Indian consumerstowards the consumption of energy drinks which are primarily classified as non-alcoholic,caffeinated beverages and sports drinks. The popularity of energydrinks in India is not merely due to its functional aspect as perceived in other
countries.Over the past few years, the sales of energy drinks have been driven bychanging consumer lifestyle and increasing demand for alcohol mixers.Their association with high octane sports such as the Indian Grand Prix andwith eating out has further boosted sales and increased consumer awareness.
The Indian energy drinks market is currently estimated at ~USD 154.5millionand is expected to grow at a CAGR of 28-30%. This growth was mainlydriven by an extraordinary performance by Red Bull,which has been the most
dominant player in the caffeinated energy drink segment,and Gatorade,which isthe leader in the sports drink segment.In order to offset the increasing rawmaterial price, fluctuation in foreignexchange rates and rise in electricitycosts,the current unit prices have increased for energy drinks. Energy drinks accountfor14-15% of the non-alcoholic beverage segment and compete with other non-alcoholic beverages such as soda and brewed coffee,both of which containcaffeine for energy boost,even ifthe caffeine content is relatively lowerthan inenergy drinks. Soda is the most consumed non-alcoholic beverage while ready-to-drink tea also offers stiff competition as it provides the benefits of anti-
oxidants in addition to a boost of caffeine.Unlike the US and the UKmarkets,energy shots are currently unavailable in theIndian market and
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could serve as a potential business opportunity to expand the consumer base forthe energy drinks players.
Q NRG DRINKS
NRG Drinks are same like REDBULL. It‟s an energy drink which gives energy
and protein to the body. It keeps body healthy and energetic.SAHARA Q SHOP sells NRG drink at the same price equal to REDBULL inRs.95. So REDBULL is the touch competitor for SAHARA NRG drinks.Mostly SAHARA NRG drink is useful into the pubs, hotels and restaurants.
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PRODUCT LIFE CYCLE
As a human being goes through different life cycles,same way products alsogoes through different life cycles. The cycle has four stagesnamely,introduction,growth,maturity,decline.
Introduction- this is the first stage of the life cycle. Here the product isintroduced in the market. The customers start getting aware of the product. In
the introduction stage aggressive advertising and promotions is done. This is avery important stage because if one does not promote the producteffectively,there is a chance that it can be immediately be wiped out from themarket. Therefore, every company has to ensure that the product is properlyintroduced in the market.
Growth- As the product is advertised and the consumers are aware about the products, the sales start picking up. Due to awareness and effective promotions,the consumer is now willing to experiment the product. Here the sales show a
positive curve and the product starts to make a place in the market.
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Maturity- this is a stage where the Sales of the product is at its Peak. This is atime when the company earns the maximum revenue. In this stage,the product isaccepted by the consumers. The consumers are also liking the product. This isthe result of all the marketing efforts made in the first two stages. The maturity
stage is very crucial as it gives signal to the company that there is high need ofeffective strategies and innovations to be used for promotions. Here slightchanges and innovations in the product can also occur. If efforts are not made atthis stage then the product will go to the decline stage.
Decline- this stage is the last stage in the product life cycle. Here, the customeris bored with the product and the sales are going down. This may be due tovarious internal and external factors. There may be many competitor‟s in the
market who have used excellent strategies for product promotion or there may be new entrants in the market who are offering better than us. By usinginnovative strategies, it is possible to help the product grow in the market.
Sahara’s Packaged Drinking Water
As the product is newly introduced in the market it is in its initial phase that isthe introduction stage. Here the product is introduced in retailoutlets,restaurants,fine dines,hotels and corporates. Through Promotions,awareness is created in these places. Various promotional tools are used tocreate awareness. Posters, Brochures,Danglers,Display has been done to make
the product visible in the market. As this is the introduction stage,special offershas been given. Schemes have been introduced in retail outlets. Special offersare made on bulk purchases. Orders are collected from the retailers. The Salesteam is going to different locations and routes to make people aware about the
product.
The company wants to enter into the growth stage for which various strategiesare used. Everyday efforts are being made to visit maximum outlets and createawareness for the products. Potential outlets are found out. Observations about
the outlets have been done. Efforts have been made to make contract with retailoutlets, hotels,companies. Due to this the product will not only be placed in themarket but also there will be growth in the sales.
Sahara’s NRG Drink
This was launched few days after the launch of packaged drinking water. In thiscase, strategy of Product placement is used. The promotions is done throughgiving special offers for selling. Free Samples are given to the retailers so thatthey will keep the products on display. The retailer can also use the can for
sampling. Other promotional efforts are still in the process.
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NRG drink will be promoted as a youth based product nad the tie ups wouldtake place. There will be tie ups with institutes,restaurants,fine dines,etc.
INITIAL PLAYERS IN THE INDUSTRY
1. BISLERI
Bisleri has captured the whole water products market. It is the tough competitor
for all other water brands in the market. It‟s a big brand and most trusted. Their
promotional strategies are amazing. They have their own distributors in the
market which makes their service easier. All retail shops ordered Bisleri water
only to sell. And when customers come to buy water to any shopkeeper he
always asks for bisleri bottle only. So people are aware about bisleri as a water
brand with quality. So they do not look for other product.
2. AQUAFINA
This is another trusted and quality brand known in the hotel industry. Aquafina
is also a tough competitor for other water products. Its packaging, pricing,
quality is best that‟s why hotel industry always go for Aquafina brand only.
LOCAL PLAYERS
There are many local players existing in the water market and they are playing
king size role. So sometimes it becomes very difficult to compete them and the
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reason is they sell their products in the lower cost. So buyers easily move
towards them.
COMPANY BACKGROUND AND INFORMATION
Sahara India Pariwar is an Indian conglomerate company headquartered
in Lucknow, India. Its diversified business has interest in finance, infrastructure
& housing, media & entertainment, consumer merchandise retail venture,
manufacturing and information technology. The company has a market
capitalisation of US$25.94 billion as of March 2011. The group is a major
promoter of sports in India.. Sahara is the main sponsor of the Indian cricket
Team. They own 42.5% stake in Formula One's Force India Formula 1
Team and also sponsors India national field hockey team. The Brand Trust
Report listed Sahara in the top 100 most trusted brands of India. The report was
published by Trust Research Advisory.
Subrata Roy Sahara
Subrata Roy Sahara
He is named among the 10 Most Powerful People of India by India Today. Hisresidence is in Lucknow, Uttar Pradesh, India. Subrata Roy Sahara founded
Sahara India Pariwar in 1978.
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COMPANY PROFILE-SAHARA Q SHOP
On 13 August 2012, Sahara India announced the opening of their retail FMCG
business named 'Q shop' (Quality shop) with an initial investment of Rs. 3000
crore. Sahara also announced the hire of 600,000 sales personnel and 3000
customer care executives. At its launch, Subrata Roy said that Sahara had been
planning for this venture for the last two years and was opening 'Q shops' in
major cities across the country to provide adulteration-free consumer
merchandise including processed food and beverages to buyers. The group said
it would set up 305 warehouses in 285 cities in a phased manner.
Sahara Q shop is a mega quality consumer merchandise retail business from
Sahara India Pariwar. Its aim is to provide pure, adulteration free and 100%
quality products to the country. The products will be offered at the most
competitive prices and in convenience of home delivery to its esteemed
customers.
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Sahara India has announced its foray into the retail industry in India with Sahara
„Q Shops‟, where Q stands for quality. Initially, the company plans to start more
than 800 shops across 5 states, selling food items, home and personal care
products, processed foods and beverages. Chairman Subrata Roy said "This will
be a bigger business than our real estate business and it will be among our top
three businesses in the years to come", reported ET.
Sahara India‟s venture into retail is a unique business model via a Rs. 3,000
crore investment, the company plans to push out its own „home brand‟ products.
The company will tie up exclusively manufacturers to deliver its own range of
products to its customers. The products sold at Q Shops will be „..adulteration-
free 100% Quality Consumer Merchandise..‟ and will have ‟100% right
weight/quantity‟, claims the company‟s website.
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At present, Q Shops will be launched only in UP, Bihar, Jharkhand, Rajasthan
and Uttarakhand. By end of this year, Sahara India plans to expand to West
Bengal, Assam, Odisha, Tripura, Haryana, New Delhi, Punjab and Chandigarh.
By February 2012, Q Shops will make their presence felt in almost all the
country‟s regions including Gujarat, Maharashtra, MP and other southern states.
To shop at Q Shop, customers will need to become members. The company
plans to develop a strong membership by tapping its significantly large existing
customer base. Subrata Roy said "Our one million workers regularly visit 6.5
crore depositors and it would be easy for them to enter those houses and sell
our other products".
Once people become members, they can buy products directly from retail
outlets or through their home delivery system. Customers can simply place
orders at designated call centres and avail home delivery. It is reported that the
backend of the initial phase will consist of more than 300 warehouses which
will work as distribution centres to supply products to Q Shops, and to
customers who call for home delivery.
The concept of home brands and in-house products has been adopted since
decades in the western retail markets. Taking advantage of thousands of
customer walk-ins every day, supermarkets in the west are known to shelve
their own home brand products alongside those of other brands.
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For example, Australia‟s largest supermarket chain Woolworths stocks its own
product range of everyday household products branded as „Home brand„. From
food and processed food products like milk to commonly used household
products like dishwashing liquids, they have their in-house products for just
about everything. Taking advantage of bulk volumes among many other factors,
the chain can supply its products at prices a tad lower than other products,
whose price tags may include the cost of branding.
In Q Shop‟s case, Industry experts are seem to believe that Roy‟s revenue
targets of Rs. 20,000 crore in the first 18 months and Rs. 45,000 crore in a span
of 2-3 years will be very challenging to achieve. There seems to be a general
consensus among commentators that the efficiency of Sahara India‟s supply
chain will be critical in shaping the growth of its retail venture.
Additionally and unlike other supermarkets where consumers will have a choice
of buying from many brands, it appears that Q Shop customers will only have
access to the company‟s own product line.
It will be interesting to see how, despite the lack of choice, Sahara India
manages to lure consumers to its aisles. Without a doubt, pricing is expected to
play a definitive role among other factors like customer service, product QC and
overall shopping experience.
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LATEST UPDATE
Sahara Q Shop, the quality consumer merchandise retail venture of Sahara IndiaPariwar, has entered the coveted record books of GUINNESS WORLDRECORDS by opening a record number of retail outlets across the country, atone time. Sahara Q Shop, on 1st April, 2013 at 4:00 p.m, simultaneously opened315 Sahara Q Shop stores in 10 States across India. The opening of outlets wasmonitored by officials from GUINNESS WORLD RECORDS to verify andregister the new world record set by Sahara Q Shop.
GUINNESS WORLD RECORDS presented the official certificate to'Saharasri' Subrata Roy Sahara, Managing Worker & Chairman, Sahara
India Pariwar, officially registering the name of Sahara Q Shop in the prestigious world record books.
Sahara Q Shop stores opened under franchisees as well as company ownedformats, having sizes of 300 sq. ft, 400 sq. ft and 500 sq. ft area. The stores will
provide 100% unadulterated, quality consumer merchandise products to thecitizens of India at the right prices of food (staples and processed food) non
food (personal care and home care), General Merchandise, Consumer Durablesand Lifestyle products.
Sahara Q Shop has 550 operational stores. By end of this financial year (April2013 to 31st March 2014) this count will reach 10,000 stores across India
Speaking on the occasion, 'Saharasri' Subrata Roy Sahara, Managing
Worker & Chairman, Sahara India Pariwar, said, "It's a moment of great pleasure for me to present 315 more stores to the people of our beloved nation.The outlets are one more initiative to curb the menace of adulteration in the
market and provide the society with 100% unadulterated, quality consumermerchandise products at fair market prices. I would also like to thank the team
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of GUINNESS WORLD RECORDS for appreciating our effort by accepting itas a new record."
Mr. Nikhil Shukla, India representative and adjudicator, GUINNESS
WORLD RECORDS, said, "We certify the new record made by Sahara QShop of most stores launched simultaneously. Most stores launchedsimultaneously means that all these stores had to be launched at the same time,and Sahara Q Shop achieved this by launching these 315 stores at 4:00 pm IST.We congratulate Sahara for this achievement and wish them all the very best forthe future."
Mr. Romie Dutt - Executive Director, Sahara Q Shop said "In a short spanof almost 8 months from our launch, the consumers have appreciated our
products for quality and purity and we are rapidly expanding our distribution
network to provide our quality consumer merchandise to the entire country."
Sahara Q shop is a mega quality consumer merchandise retail business fromSahara India Pariwar. Its main aim is to provide pure, adulteration – free and100% quality products to the country. The products will be offered at the mostcompetitive prices and in right quantities. In addition Sahara Q shop will also
provide benefit and convenience of home delivery to its esteemed customers.Sahara Q Shop unbeatable advantages:
100% commitment to QUALITY Most competitive prices
Right weight or quantity
100% disclosure policy across all products
Convenience of phone shopping
State of art QUALITY CONTROL LABS in
Delhi,Mumbai,Lucknow,Nagpur,Hyderabad,Kolkata and
Patna.
Pan India quality team of 800 people comprising quality experts andassociates ,quality control executives,quality assurance managers and
quality advisors .
305 warehouses in 285 cities.
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LOGISTICS
SUPPLY CHAIN
Sahara Q Shop supply chain is a mega effort by Sahara group by which peopleof India would get high quality products of their daily needs at their doorstep,even in small cities. The whole distribution process in Q Shop strives tooptimise the entire supply chain process to ensure timely delivery to thecustomer at minimum cost. Q Shop supply chain covers everything from
product development, inventory planning, sourcing, production, logistics,warehousing and delivery at customers' end.
WAREHOUSE
Q Shop provides unadulterated food and non-food products of daily use. Ourwarehouses are built keeping in mind the requirement of appropriate sunlightand proper air ventilation for better product care. Our warehouses arestrategically located in an area of 50-60 kilometers from our customers.
Our 305 Q Shop warehouses are well connected with national and statehighways, will cover pan-India customers and are capable of keeping stocks to
serve their customers in minimum delivery lead time at the customer's house.
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TECHNOLOGY DEVELOPMENTS
To make sure that the product that reaches the consumer is always of higheststandard and also meets international standards, Sahara Q has always beeninvolved in improving its product packaging. One such recent developmentis the tamper proof break away seal. Sahara Q also recognises the need to
produce environment friendly products and is working on the PET project.
THE BREAKAWAY SEAL
Keeping in mind the consumer's need to recognise a genuine product that cannot
be tampered with, Sahara Q developed the break away seal. The unique cap has been patented and cannot be duplicated or tampered with. This technologydevelopment in the product ensures that the consumer will only get a highlysafe product when they consume SaharaQ packaged drinking water.
PRODUCT PACKAGING
To ensure purity of the bottled water, the bottles that are used are blown andfilled at the factory itself, to avoid contamination.
PURIFICATION PROCESS
At Sahara Q plants, water undergoes multi - stage purification process to ensure proper blend of minerals and complete removal of microorganisms and toxicsubstances. So a habit of drinking PURE and SAFE Sahara Q will ensure ahealthy life
What advantages Sahara Q purification process has over purificationdone by other methods Traditional process of boiling water for purification hasits limitations. lt is time consuming. For boiling, water has to be heated to 100deg. Celsius. Also, to kill microbes water should be boiled continuously for aminimum of 20 minutes. Boiling may kill the microbes but can not removeother physical impurities and toxic substances.
Many home appliances are available in market for water purification. Thesegadgets use either filtration technique or Ultra Violet rays or a combinationof the two techniques. These techniques do not guarantee 100 % purity of
water.
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Filtration removes only the visible suspended particles and not the minute ,invisible particles,toxic substances or microorganisms. The filters are cleanedrarely and all the muck accumulates inside leading to more contamination.Ideally such filters need to be cleaned every day which is cumbersome. Ultra
Violate rays kill the microbes but cannot ensure removal of toxic substances and physical impurities.These purification equipment are incomplete and need continuous monitoringand maintenance. At SAHARA Q , through our multi - stage purification
process we ensure removal of toxic substances as well as physical andmicrobiological impurities. In our state-of-the-art processing plants we followrigorous Good Manufacturing Practices and strict Quality Assurance norms soeach and every bottle of SAHARA Q is made tasty, pure and safe for theconsumer.
PROTECT YOUR HEALTH WITH SAHARA WHICH USES
7 STAGES OF PURIFICATION AS FOLLOWS:
Chlorination
Sand Filtration
Carbon Filtration
Micro Filtration
ReverseOsmosis
Ozonation
U V Treatment
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1. CHLORINATION : Kills micro organisms. Remove organic matter.Water chlorination is the process of adding the
element chlorine to water as a method of water purification to make it fitfor human consumption as drinking water. Water that has been treatedwith chlorine is effective in preventing the spread of waterborne disease.
2. SAND FI LTRATION : Sand filters are used for water purification. There are three main types;
rapid (gravity) sand filters
upflow sand filters
slow sand filters
All three methods are used extensively in the water industry throughoutthe world. The first two require the use of flocculant chemicals to workeffectively while slow sand filters can produce very high quality waterfree from pathogens, taste and odour without the need for chemical aids.
3. CARBON F I LTRATION :
Carbon filtering is a method of filtering that uses a bed of activatedcarbon to remove contaminants and impurities, usingchemical adsorption.
Each particle/granule of carbon provides a large surface area/porestructure, allowing contaminants the maximum possible exposure to theactive sites within the filter media. One pound (450 g) of activated carboncontains a surface area of approximately 100 acres (40 Hectares).
Activated carbon works via a process called adsorption, whereby pollutant molecules in the fluid to be treated are trapped inside the porestructure of the carbon substrate. Carbon filtering is commonly usedfor water purification, Carbon filters are most effective atremoving chlorine, sediment, volatile organic compounds (VOCs), taste
and odor from water. They are not effective at removing minerals, salts, and dissolved inorganic compounds.
4. MICRO FI LTRATION : Additional safety measures of filtration.
Microfiltration is a membrane technical filtration process whichremoves contaminants from a fluid (liquid & gas) by passage through amicroporous membrane.. Microfiltration can use a pressurized system butit does not need to include pressure Microfiltration is the process offiltration with a micrometre sized filter. The filters can be in a submergedconfiguration or a pressure vessel configuration. These filtersare porous and allow water, monovalent species (Na+, Cl-), dissolved
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organic matter, small colloids and viruses through but do notallow particles, sediment, algae or large bacteria through
5. REVERSE OSMOSIS : Removes organic material. Reverse
osmosis (RO) is a water purification technology that uses a semipermeable
membrane. not properly. In RO, an applied pressure is used toovercome osmotic pressure, a colligative property, that is driven by chemical
potential, a thermodynamic parameter. RO can remove many typesof molecules and ions from solutions and is used in both industrial processesand in producing potable water. The result is that the solute is retained on the
pressurized side of the membrane and the pure solvent is allowed to pass to theother side. Controls total dissolved solids in the water. Around the world,household drinking water purification systems, including a reverse osmosisstep, are commonly used for improving water for drinking and cooking.
Such systems typically include a number of steps:
a sediment filter to trap particles, including rust and calcium carbonate
optionally, a second sediment filter with smaller pores
an activated carbon filter to trap organic chemicals and chlorine, which willattack and degrade TFC reverse osmosis membranes
a reverse osmosis (RO) filter, which is a thin film compositemembrane (TFM or TFC)
optionally, a second carbon filter to capture those chemicals not removed bythe RO membrane
optionally an ultra-violet lamp for sterilizing any microbes that may escapefiltering by the reverse osmosis membrane.
This stage of reserve osmosis system controls all the dissolvessolidparticles and it converts hard water into soft water.
6. OZONATION : The ozone treatment increases the shelf life of water. Toensure mineral water is held safe free from contamination, ultraviolet treatmentand ozonisation process is carried out. Ozone is unstable trivalent oxygen, avery powerful bactericide with no side effect, as it disintegrates into oxygenwithin couple of hours. Sterilization effect of ozonised water continues evenafter water is packaged, thereby ensuring safety of Mineral Water up to its final
packing. To ensure high quality of packing materials, components like caps and bottles are manufactured in-house from resins of quality suppliers.
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7. UV TREATMENT : Another method which is gaining popularity is UVdisinfection. UV treatment leaves no residue in the water due to use of lightinstead of chemical disinfectants.
(UV) light induces the formation of covalent linkages on DNA and thereby prevents microbes from reproducing. Without reproduction, the microbes become far less dangerous. Germicidal UV-C light in the short wavelengthrange of 100 – 280 nm acts on thymine, one of the four base nucleotides in DNA.When a germicidal UV photon is absorbed by a thymine molecule that isadjacent to another thymine within the DNA strand, a covalent
bond or dimer between the molecules is created. This thymine dimer prevents enzymes from "reading" the DNA and copying it, thus neutering themicrobe. Still, there are limits to this technology. Water turbidity (i.e., the
amount of suspended & colloidal solids contained in the water to be treated)must be low, such that the water is clear, for UV purification to work well - thusa pre-filter step might be necessary.
Water treated with UV still has the microbes present in the water, only withtheir means for reproduction turned "off". UV-treated water must therefore not
be exposed to visible light for any significant period of time after UV treatment, before consumption, to avoid ingesting reactivated and dangerous microbes.
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DATA COLLECTION AND DATA ANALYSIS
RESEARCH DESIGNA research design is purely and simply the framework or plan for a study thatguides the collection and analysis of data. The Survey Research was used inthis project, because Retailer‟s and consumers feedback was necessary for
obtaining the data. Starting a research project needs a basic preparationregarding the issues related to the topic selected. For this one needs to dosome deskwork. Deskwork includes:
1. Determining the basic objectives of the study undertaken.2. Collection of secondary data related to the topic from Internet, magazines &newspapers.3. Study the market, which one wants to cover.4. Analyze the objective on the basis of information collected by secondarydata.5. All the above activities at the initial stage of the project must be completed &then the main part follows.
DATA SOURCESa) Primary data: These are those data which are collected afresh and for thefirst time, and thus happen to be original in character. I will be using thestructured questioners.
b) Secondary data: These are those which have already been collected bysomeone else and which have already been passed through the statistical
process. I will collect it from the sources like internet, published data etc.
POPULATION OF THE STUDY
People from Mumbai region will be included in the population.
SAMPLE SIZEI took 20 consumers and 20 retailers as my respondents. They were selected byrandom sampling method because in this case systematic sampling is not
possible since one cannot say whether a person is using mineral water or not.
SAMPLING TECHNIQUERandom sampling technique will be used in this research project.
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RESEARCH INSTRUMENT
For doing the survey research, structured questionnaire with both open-endedand closed-ended questions was used.
MODE OF SURVEYThe mode of survey was personal interview with the retailers and consumer‟s
during the filling up of the questionnaires.
PREPARING A QUESTIONARE jective both
consumer & retailers were studied apart from studying about thedomestic packaged drinking water market, Brand Sahara Q in detail.
& close end for retailer were prepared.
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ANALYSIS AND INTERPRETATION
CONSUMER RELATED
1. WHICH BRAND DO YOU PREFER WHILE BUYINGMINERAL WATER?
Hence it can be concluded that that 75% of the mineral water users go in for anoften use while there are still 15% of the respondents who sometimes go for
packaged water.
0
2
4
6
8
10
12
14
16
Often Always Sometimes
Series 1
Series 1
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2. RESPONDENTS CHOICE AMONGST MINERAL WATER
AND SOFT DRINKS
Hence it can be concluded that 80% consumers have mineral water while only5% prefer other drinks.
80%
15%
5%
Sales
Mineral Water
Soft Drinks
Others
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3. BRAND AWARENESS OF MINERAL WATER AMONG
RESPONDENTS
Hence it can be seen that 70% consumers are aware of the brands of mineralwater market while only 2% people are not aware of brands of the mineral wateravailable in the market.
0
2
4
6
8
10
12
14
16
(0-2) (3-5) (6-10) 10 and Above
Series 1
Series 1
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4. UNDER WHAT CIRCUMSTANCES RESPONDENTS OPT FORMINERAL WATER?
It can be seen that from the analysis that 50% consumers perfer mineral waterwhile travelling whereas 5% people consume for other reasons.
50%
20%
15%
10%
5%
While travellingParties,meetings and seminars
Illness
When water not available
Others
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5. WHICH SIZE OF BOTTLE RESPONDENTS PREFER?
Hence it can be concluded that 60% cosumers prefer 1litre bottle of waterwhereas 15% people prefer 250 ml of bottle.
0
2
4
6
8
10
12
250 ML 500 ML 1 LITRE
Series 1
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6. IS MINERAL WATER MORE HYGIENIC THAN NORMALWATER?
Hence it can be concluded that 85% people consider mineral water morehygeinic than normal water whereas only 15% prefer normal water.
0
2
4
6
8
10
12
14
16
18
YES NO
Series 1
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7. CUSTOMERS PREFERENCES REGARDING PRICE WORTH
OF MINERAL WATER
Hence it can be concluded that 70% consumers consider the price of the mineralwater to be proper whereas only 30% people consider it to be more.
30%
70%
YES
NO
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8. EFFECT OF ADVERTISING ON PURCHASE
Hence it can be seen from the data that 65% of the consumers purchase the
water through advertisements whereas only 35% consumers purchase withoutthe effect of advertisements.
0
2
4
6
8
10
12
YES NO
Series 2
Series 2
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9. GROWING HEALTH CONSCIOUSNESS AMONG INDIANS
Hence it can be seen that 90% consumers are health concious among the Indians
Whereas the remaining 10% are not health conscious.
90%
10%
YES
NO
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10. WHICH BRAND DO YOU PREFER WHILE BUYINGMINERAL WATER?
From the data it can be concluded that 40% consumers prefer bisleri as their brand forwater whereas only 5% people consume Sahara Q.
0
1
2
3
4
5
6
7
8
Bisleri Kinley Aquafina Sahara Q Others
Series 3
Series 3
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ACCORDING TO RETAILERS
1. TYPES OF BRANDS THE RETAILER‟S SELL
Hence it can be seen that 70% retailers sell only 2-3 brands whereas only 15%of retailers sell more brands of water.
0
2
4
6
8
10
12
14
(2-3) (3-5) MORE
Series 1
Series 1
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2. TYPES OF BRANDS RETAILERS KEEP
Hence it can seen from the data that 70% of the retailers keep advertised brandsof mineral water whereas only 10% keep non advertised brands of water.
70%
10%
20%
Sales
Advertised
Non-Advertised
Both
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3. ACCORDING TO RETAILER‟S WHICH BRAND IS SELLING
MORE
Hence from the data it can be seen that 45% of the retailers sell bisleri whileonly 5% of the retailers sell other brands.
0
1
2
3
4
5
6
7
8
9
Bisleri Aquafina Kinley Sahara Q Others
Series 2
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4. SIZE OF BOTTLE SELLING MORE
Hence from the retailers data it can be seen that 55% of the onsumers prefer500ml whereas only 5% retailers prefer 250ml of water.
0
2
4
6
8
10
12
250 ml 500 ml 1 ltr 20 ltr
Series 3
Series 3
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5. BRANDS WHICH GETS MORE MARGIN
According to the data collected 60% of the retailers got more margin fromSahara Q whereas only 5% retailers got margin from Kinley.
0
2
4
6
8
10
12
Bisleri Aquafina Kinley Sahara Q Others
Series 1
Series 1
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6. GROWTH IN MINERAL WATER IN LAST 5 YEARS
Hence it can be concluded from the data that there is 90% growth in the watermarket from the last 5 years.
90%
10%
YES
NO
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7. FUTURE PROSPECTS OF MINERAL WATERMARKET
According to the data obtained the future prospects of the water market areexcellent and will grow in the future.
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PROBLEM FRAMING AND PROBLEM ANALYSIS
CHALLENGES
1. Cash problematic outlets
2. No credit to retailer
3. Display space constraints
4. Competition
5. Achieved monthly incentives
6. Excessive outlets7. Problem solving
8. Communication
SWOT ANALYSIS OF Sahara Q
STRENGTHS
Brand Name
Sealed Packaging
Reasonable Pricing
High Quality
Good Taste of the Product
Wide range of products
Attractive Packaging
WEAKNESSES
Poor Management
Not on time Delivery
Weak Distribution
Less target on corporate
Poor after sale service
Lack of knowledge of target
potential market
Sales force not efficient
Lack of visiting cards
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Other Sahara sector problems are
associated with this
Giants like Bisleri and Aquafina
already set in market
Delay in targeting the streets of
Mumbai (in monsoon)
OPPORUNITIES
Easier to Launch Water in the
Summer Season
Price of Packaged Drinking water
is competitive with the other
organised players
Lot of promotions can be done in
Malls, Point of Purchase, via
Brochures, Danglers and Stickers.
THREATS
Dominance of Aquafina and
Bisleri in the Market
Higher Margins given to the
retailers by Local players
Lack of Customer awareness
Negative mindset due to other
sectors of Sahara which are in
trouble
Monsoon arrived early
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RECOMMENDATION AND SUGGESTION
Campaign, stalls to beat local brands & create awareness.
Retailers need to concentrate on 1ltr and 20 litr bottle which can be possible only if properly advertised & home delivery of jars are done tothe end customers.
The market is too congested and confused so the company should properly promote & strengthen the distribution channel to survive thecompetition.
Can enter into premium segment market.
They can tie up with large commercial complex,hotels & airlinesindustries as they are the emerging sector
They can target the youth segment.
Launching trendy packs to attract more and more customers.
SAHARA Q SHOP should hire more enthusiastic, dynamic and
passionate professionals as there is a lot of demand in the market for the
industrial items.
The activities should be more intense in metros, adjoining smaller towns
and also the major cities located far off to increase the market share.
They should form HR policies to empower the Summer-interns and also
pay them appropriate stipend as any kind of sales promotional activity
requires funding and also motivates the interns by creating a sense of
attachment.
They should follow-up every lead, however small it may be and not focus
only on the big customers.
There should be attractive offers and motivational schemes for the
distributors and retailers time to time in an attempt to foster sales and
relationships with the dealers.
They should be expanding their targeting area like, in educational
institutes, rural areas. It will help to rise popularity of their products .
In case of Water industry, after launch the only factor which helps the
company survive in the market is the Distribution. Therefore it has to be
very effective. As far as the Energy Drink is concerned, the Youth can be
focused and Promotions in institutions, Gyms,Pubs & Clubs can be done.
Also tie ups with these can be done.
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As the company has opened its Retail outlets, in the future they would be
the Eye catchers and effective promotions of these outlets and Aggressive
advertisements be it Television, print, online and Outdoor can be done.
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ETHICAL , SOCIAL AND ENVIRONMENTAL IMPACT
OF THE PROJECT
Sahara Welfare Foundation, the social development unit of Sahara India
Pariwar, is engaged in social welfare projects which aims to initiate and
facilitate such processes and initiatives where socially & economically
marginalised and deprived people and communities irrespective of age, caste,
class, gender or race are able to participate actively in the process of their
development so that they may lead a life of dignity and respect.
In today‟s scenario where adulteration is common practice, Sahara Q Shop will
offer unadulterated quality products, with the objective of delivering 'Best
Quality at the Best Price'. We will have 7 Quality Labs spread across Delhi,
Mumbai, Kolkata, Chennai, Nagpur, Patna and Lucknow where each and every
product will be tested for quality, along with 50 Scientists, 250 Sr. Associate
Quality Advisors and 500 Associate Quality Assurance Executives who shall
control perfect quality. Each point of our value chain – be it material, procurement, processing, manufacturing, packaging, warehousing distribution,
delivery, feedback collection and stringent analysis – will follow strictly laid
down Quality Control Systems. And most importantly to ensure the quality of
products reaching our esteemed customers, Sahara Q Shop will have its own
distribution channel. This eliminates the possibilities of any tampering /
malpractices.
“LET’S KILL ADULTERATION
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BEFORE IT KILLS US”
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INTERNATIONAL CROWN QUALITY AWARD
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MY LEARNINGS
5 STEPS OF MAKING A CALL
Selling a product is never easy. It includes special efforts, planning and
strategies. This is because, Selling is the key function of Marketing and an
Ultimate aim of every businessman. If a product fails , it means the strategies
that were adopted were not in proper place. While talking to a retailer/buyer,
there are certain points that have to be kept in mind and precautions have to be
taken. These points are listed below:-
1. Planning
2. Seeking Information
3. Selling
4. On Shelf Management
5. Completion
Planning
This is the first stage and a very important stage. If a researcher/seller fails in
the first step he will not be able to achieve his purpose. In this step, the seller
needs have knowledge about the retailer. Seller needs to know his personal
details, details about his shop,the location, his potential or capacity. The retailer
is the potential customer so the seller needs to understand his capability in
selling the products. This step helps the Seller to as he does his homework and
can accordingly plan as to how to pitch or how to approach a retailer.
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Seeking Information
Here, the seller needs to do indepth study about the retailer. The seller should
try to build a relationship with the retailer. He needs to use strategies to
approach the retailer. For that, he needs to find out the timings of customer
crowd in the shop, leisure time,lunch time of retailer, his availability in the
entire day, timings. Care should be taken that the retailer is not to be disturbed
while he is busy with his customers and while doing important work. Also
information about the range of products and brands kept in the stores, the
SKU‟s have to be observed. Accordingly, the seller can judge his opportunity
and potential of the retailer. The seller also needs to find out most preffered
brands of retailers. For this, friendly interaction needs to be done so as to find
out the reasons of a retailer for stocking a particular product. By doing this, the
seller can make space for his products in the retail outlet.
Selling
This is the most important step. We often feel that selling is just a transaction
between the buyer and the seller. But in reality, it is not so. Today it is not
enough just to sell a product for a profit. For selling, various strategies have to
be observed. For e.g. Greeting a Retailer, Saying good things about his shop,
observing the product placement, storage facilities, displays and promotions
becomes crucial. A seller should never give an impression to a retailer that he is
doing a transaction only for money. Retailer‟s benefit needs to be highlighted. A
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Seller needs to be confident, polite,caring, helpfulshow concern to the retailer.
The seller needs to be friendly and needs to listen to the retailer and his
problems. Retailer can also come up with solutions to his problems by offering
him special schemes and discounts.
On Shelf management
Once retailer agrees to buy the product the seller needs to see that the product is
effectively placed in the retail store. The seller needs to find proper location for
promoting the product by way of pictures,brochures,point of purchase
displays,etc. A Seller needs to take care that his product is visible to the
customer. The product needs to be displayed in such a manner that it is
appealing to the consumers. The product should be placed in a systematic
manner and should not be kept in a haphazard manner. Proper On Shelf
Management becomes one of the key factors for its sale.
Completion
After the transaction is complete,the retailer needs to be thanked not only for
purchasing the product but also for spending his time with the seller. The seller
needs to express his gratitude towards a retailer. Also, the seller needs to
enquire about his next visit and can give tentative day of his next visit.
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FACTORS THAT WILL HELP IN IMPROVING SALES
Promotions (in malls)- Malls are a great opportunity to do promotions.
This is because malls are able to attract maximum crowd and innovative
sales promotion techniques can be used in the malls. As far as energy
drink is concerned free sampling in these places will promote tha product
at a great level.
Advertisements- there are different modes of advertisements for every
product like Digital Advertisements or traditional way of radio and
newspaper advertisments.
Sample Testing- In college festivals NRG drinks can be provided as
samples to students which will be targeting the cream market of energy
drink . Also water can be sold there by providing sponsorship and
opening stalls.
Credit Facility – There are a large number of retailers who are willing to
keep product on credit basis but the only drawback on allowing this is
that they wont take efforts to sell the product.
Display – There were danglers, posters, brochures provided which helped
in sales n promotion but large bill boards and prints on trucks would
bring in light the brand more among the people.
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Ready Stock – In coherence with the display on trucks, these trucks
should carry ready stock of the products instead of a person taking order
and giving it to the distributor but this would be only possible once a
certain number of order is expected daily else there is a loss to the
distributor as the cost of vehicle and loader would increase than the
amount the earn by selling and delivering.
Tie-up- Like redbull has had a tie-up with a alcohol brand, Sahara‟s NRG
should also tie up with a famous liquor brand which will promote it
significantly
DISTRIBUTOR
The distributor is the middleman and the member of the distribution channel.
He is the link between the Company and the retailer. Many a times, it is not
possible for a company to supply its products directly to a retailer. There are
various constraints like time constraint, Geographical distance, lack of
equipments, manpower, capacity due to which the Company cannot directly
supply products to the retailers. Hence a distributor is chosen to do that role.
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Factors to be taken care of while selecting a Distributor
Selection of a Distributor is a crucial decision because it is he who is going to
supply products to the retailer. Therefore, there are various factors that have to
be taken care of before selecting a Distributor. They are as follows
Background of the Distributor- before selecting a distributor his
background needs to be known. Information about the distributor, his
personal details ,his operations needs to be known.
Potential of the Distributor- how many products can a distributor
deliver in a single day, what is the delivery time needs to be found out.
His Method of Working- Every distributor has his own way of working.
Every distributor manages his responsibilities in a different manner and
achieves his target. Does a distributor perform his work effectively and
manage his people well also needs to be ensured.
Past Records- before selecting a distributor,his past records,his image in
the market ,his successful deals need to be found out so as to decide
whether he is the right person or not. Information can also be gathered
about his past clients.
Number of Products he is Distributing- the nature and the type of
product,ranges of the product that the distributor is supplying convey a lot
about his potential,calibre and efficiency.
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Area of Distribution- the distributor should be willing to work in the
area as required by the company. Before deciding him for a particular
area,care should be taken that the area is a feasible option for him.
Ensuring Delivery Time- Delivery is the key aspect which builds
relationship between the retailer and the company. Hence, the delivery
time of the distributor is extremely important.
Number of people available for Distribution- this is important for cost
of the distributor and for loading and unloading of goods.
Legal/Official documents of the Distributor-before cracking a deal they
have to be checked properly.
Distributor’s Policies- there has to be transparency in the operations. In
case distributor has fixed policies,rules they need to be cleared before
signing the contract.
Storage Space-does the distributor have proper place to store the goods
have to be observed. How does a distributor manage his inventory, has to
be observed thoroughly.
Capacity of the Vehicle used for Distribution- which vehicle is used
for distribution,what is the capacity of the van,how much quantity of
goods can be loaded at one trip should be known as they influence the
cost.
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COSTS OF THE DISTRIBUTOR
Whenever a Company approaches a distributor, he does not immediatelty agree
to the offer. There are various factors that need to be considered. There are
various factors that influence is decision. After getting an offer,the distributor
first things about the Return on Investment,the margins that he would be
getting,his breakeven point. Various things included in Cost of Distributor are
Vehicle Cost
Fuel charges of Vehicle
Maintenance of Vehicle
Loading and Unloading Charges
Storage Cost
Salaries of Employees (Loader , Driver etc)
Cost of Returned goods.
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PRODUCT CLASSIFICATION
Competitors price Distributors margin
Brand Price Distributor Margin
in Rs.
BISLERI 85 COMPANY 10
AQUAFINA 75 COMPANY 10
QXYRICH 60 LOCAL 10
BAILY 65 COMPANY 10
KINGFISHER 65 COMPANY 10
PARLE AGNO 65 LOCAL 10
SAHARA Q WATER 75 LOCAL 7
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OBSERVATIONS IN THE MARKET
We have targeted different types of retail outlets. These include general stores,
mom & pop stores, medical shops, dairy,farsan and sweetmeat shops, pan beedi
shops and restaurants. All these outlets possess different features and have
different potentials. The retailers in these outlets also have different attitudes,
perceptions and risk taking abilities.
General Stores- Retailers in general stores are cooperative and are also
willing to pay attention to new offers. They have many products stocked
in their shops and hence their potential can be judged. These retailers are
very experimental and have high risk taking abilities. They do not run
behind margins but are ready to face challenges and be competitive in one
another. They believe in providing best offerings to their customers. They
even are willing to purchase more than 10 boxes at a time which shows
their confidence and their ability to sell.
Mom & Pop Stores- they deal with products pertaining to day to day life
of a customer. Hence they know what the customer wants and what kind
of products to offer. They have a fairly good response towards our
product. In case of tie ups with different brands they are very adamant but
otherwise do not mind trying new products.
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Dairy farms- they offer a good opportunity in terms of packaged
drinking water as well as energy drinks. These shops have huge
potentials, the retailers are also quite experimental and give a good
response for our products. The owners/retailers are visionary, analyst and
know exactly which product has potential and which does not. Dairy
farms have great potentials and can be concentrated in future. Sample
Testing is demanded by them.
Farsan & Sweet shops- they have very good potentials and response in
terms of packaged drinking water. Retailers are experimental and risk
takers. These shops have a wide product range from snacks to beverages
as well as water. Due to this they attract more number of customers and
have high potentials.
Medical Shops- there is mixed response in case of medical shops
because some of them have tie ups with other companies due to which
they cannot store our products. Brand building, Effective Advertisements
and Sales promotions are tools that will help gain trust of these shops.
Restaurants- they have a very high potential in terms of promoting a
product. Various promotional tools such as posters, dangers, fridges of
the brand can be placed in a restaurant which will gain attention of
maximum number of people. The major problem in a restaurant is tie up
and contract with the companies. But few restaurant owners are very
experimental. If the product is offered at a best prices with special
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schemes,then they are ready to crack a deal. Sample Testing is demanded
by them.
Pan Beedi Shops-here the owners are attracted by margins but at the
same time are very experimental and welcoming for new products. These
have high potentials and are ready to crack a deal if it is cost effective.
19%
26%
31%
4%
20%
sales of water per area
Andheri
Vile parle
Santa cruz
Khar road
Bandra
Bandra
51%
khar
2%
santacruz
15%
vileparle
21%
andheri
11%
Energy Drink Sale per area
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Cooperates-
In cooperates ,companies offer a good opportunity in terms of 20 litre jars.Here
there is mixed response,some have tie up with other brand and not ready to
change the product whereas other are attracted towards price and proper
distribution. Supply of products is also in huge stock which is about 10jars a
day and for a longer period which lead a good profit for the company.
Initial stage of the project
1) Staying close to your customers:
For example, how often do you ask them what they want/need that they
are not getting from anyone? Staying close to the ultimate product user:
how often do you talk with the end users of your product, if they are not
the same people who actually buy your product?
Staying close to your sales force, if you have one: when was the
last time you asked anyone in sales if they have seen anything that
is better or that they like better?
Staying close to your suppliers: suppliers are often the closest to
the latest technology, materials, ingredients, international
advances, and competitive improvements.
Larger companies will periodically conduct usage and attitude studies, diary
panel studies, product perception mapping studies, and other product
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development monitoring devices. They may also employ special researchers to
scan patents and new product technology publication sources and talk with
industry attorneys, consultants, research firms, and industry/trade experts to
keep tabs on target user needs and wants.
2) Market Situation :
Which includes size, growth trends of total market, and key segments
For example, a small business could include local industry sales or
volume for the last five years and estimated total market for this year and
the following year, with company sales and share of the market.
Rationale should be provided for estimating the trend of the market, including
key industry developments, introduction of new technology or new products,
increased marketing spending by key competitors, etc.
3) Competitive Situation:
Which provides a description of major competitors with size, goals, market
share, product quality comparisons, marketing strategies, marketing
spending, etc?
• Description of key competitors and their market positioning • size of key
competitors in units/dollars • market shares of key competitors • sales trends of
key com petitors • strengths and weaknesses of key competitors compared to
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FACTORS THAT HAVE IMPACT ON SALE OF A PRODUCT
Players in the market
Every product has a totally different market scenario. Whenever a product is
newly introduced in the market, definitely there are challenges and problems
that it faces. The biggest challenge is the competitors. Their presence itself
poses a big challenge because one needs to compete with the established players
in the Market. Their Brand Value, popularity, reputation, market share all these
factors create hindrances in the initial stage.
Competitor’s activities, promotions- Every player in the Market wants to be
the best due to which he is constantly proactive and is trying to attract more and
more customers. The established players in the market know the essence of the
market and the requirements of the consumers. Hence they come up with
innovative strategies and techniques for promoting their product. If these
catches the eye of the customer, he immediately buys the product.
Competitor’s Pricing Strategies:
Price is one of the most crucial and distinguishable factor which influences the
Retailer‟s as well as the customer‟s buying behaviour. Effective pricing
strategies by established brands pose a threat to the new ones and a significant
difference in price creates problem.
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Tie ups and Contracts of Retail Outlets with the brands
Established Brands often tie up with many retailer outlets. Once the retailer is
tied up with them,according to the contract,he cannot stock the competitor‟s
product. As soon as the retailer ties up with a particular company, he
immediately gets promotional tools, special offers and discounts. Sometimes the
retailer is given extra monetary income for stocking their products. In case for a
company like Pepsico, which has numerous products, the retailers are also given
discount for other products. Sometimes Customized offerings are also made. Tie
ups is an effective method to end competition.
Perception of Retailer about the Brand- For introducing a new product to the
retailer, lot of initial efforts in terms of advertising and promotions have to be
made. As the retailer is unaware of the product, effective techniques and
approach needs to be used to convince him. After introducing the product to the
retailer, he develops a certain image about the product which certainly affects
the sale.
Perception of Customer about the Brand- A retailer stocks the products as
per consumer‟s demands. He is more concerned about fulfilling the demands of
the consumers. When a consumer is made aware of the product through a
retailer, effective advertising and display the customer also develops a brand
image. This has a strong impact on Sale.
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Distribution System
The Water Industry is extremely dynamic in nature. Mostly all the competitive
products offer the same price range to the customers. But as far as the retailers
are concerned they won‟t hesitant to switch over a brand if there is lack of
proper distribution system. After sales, it is the distributions of a product which
will help the brand survive in the market.
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PRICING STRUCTURE OF SAHARA Q WATER PRODUCTS
Package size MRP/Bottle No. of
bottles in a
case
MRP per
case
Retailer
price
Packaged
drinking
water
250 ml 6 24 144 115
500ml 10 24 240 160
1000ml 18 12 216
20 LTR 75 1 75 70
Natural
mineral
water
500 ml 30 24 720 612
1000ml 50 12 600 510
Energy
drink
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TYPES OF MARKETING CHANNELS
Manufacturer to Consumer
In this channel there is no intermediary. Manufacturer makes the
goods and directly distributes to consumers.
2. Manufacturer to Retailer to Consumer
Retailer is the intermediary between manufacturer and consumer. He
purchases goods from manufacturer and sells to consumer.
3. Manufacturer to Wholesaler to Retailer to Consumer
In this channel, there are two option, one is wholesaler and other is
retailer. Wholesaler buys large scale and sells to retailer and the
retailer sells to consumer.
4. Manufacturer to Wholesaler to Consumer
Consumer can buy easily and directly from wholesaler. So, in this
channel there is only one intermediary and he is wholesaler.
Integrated Channel or Non conventional channels
integrated channel are modern channel for distribution of goods. This
channel can be divided into two parts.
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1.Vertical Channel
Vertical channel is that corporate channel which are useful for the flow
of products which are capital nature. In this, if one company contracts
with other manufacturers who will convert the capital product into most
usable shape and sell it to the dealers. Then it will be vertical channel.
2. Horizontal Channel
Two companies join together for marketing of any product for reducing
competition and excess capacity.
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CONCLUSION
After analysis of the data & facts we have collected from consumer &the retailers & matching them with the objectives one can say that there
is very good future for water market. Soft drink market might be some threat to the water at
present but within few years the scenario is going to change. Trendsignifying increasing health consciousness amongst Indians could also beobserved.
Market has seen a tremendous growth from the early nineties & now it isincreasing by 70% to 90% every year so one can easily say there is great
potential in the water market.
It could also be observed that the living standards of the People
improving & as they are becoming health conscious are ready to pay forwater now. On the question of survival of so many companiesgovernment has made policies & restrictions from April 2001 which willforce many manufactures to shut down their factories. But due to
potential in the market companies with quality product will survive.
Finally from the data collected at both primary and secondary level onecan confidently say that Sahara Q as packaged water brand is theemerging brand in the market.
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FUTURE PLANS
The range of products which they are planning to launch are as follows:-
Pulses- All the pulses are sortexed, cleaned and have a low moisture
content. Being unpolished, they do not have a shiny surface. Some of the products that they are coming up with are Chana Kesari, Moong Dhuli,
Moong Chilka, Kabuli Chana, and Urad Chilka.
Dals- They are sortexted, cleaned and have a low moisture content. Being
unpolished, they do not have a shiny surface. Soaking the Dals for 20
minutes gives a better yield and great taste. The Classic Dals give higher
yield of cooking namely‟ Q Rajma Sharmilli, Chana Dal,Arhar Dal,
Masoor Milka, Urad Dal.
Rice- Rice is obtained from Select Quality paddy grains and is processedthrough a multi stage milling process to retain nutrition flavour and taste.
It offers a unique fragrance, long and delicate basmati grains for the finest
taste. The best Quality Authentic Rice gives a better yield on cooking
with great aroma. Swagat Basmati Rice, Royal Basmati Rice, Mogra
Basmati rice are few included in this category.
Spices- Spices are processed in s modern plant using scientific
technology that helps to retain the freshness and taste for a long period of
time. It includes Garam Masala,Haldi Powder.
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Flour- All the flour items are of fine texture of six grains namely
wheat,oats,soya,barley,chana and maize.
Ghee- Rich in aroma it is strictly manufactured from milk fat under Q
Hygienic conditions.
Oils- it has the goodness of Vitamains A, D2 and E.
Snacks & Savouries- it includes bhujia,farsan,mix dal, chips, Noodles
and Vermicelli (Kheer).
Beverages- it includes different types of Juices and Tea.
Cookies & Biscuits- they have flavours of Cashewnuts, Orange.
Jams- it contained Mixed Fruit, Strawberry and Pine Apple.
Breakfast Cereals- they were basically cornflakes.
Sauces Ketchups Condiments- it includes Snack Sauce, TomatoKetchup and Pickle.
Toothpaste-it includes Red Dental Gel and Super White Toothpaste.they
offer all round dental care.
Soaps- it includes Cleansing,Moisturizing and Germ Control Soap.
Men’s Hygiene- it includes Moisturizing shaving cream
Skin Care Health Care – Fairness Cream Hair care- this includes Root
Strengthening shampoo, anti dandruff shampoo, Amla hair oil and Herbal
Henna Fragrance – All Day Fresh Talc Home Care Glass Cleaner, Surface
Cleaner, Toilet Cleaner, Mosquito Coil, Scrubber, Agarbatti, are products
included in this Category.
Utensil Care- Dishwash Active liquid and Dishwash bar are the
products.
Fabric Care- this includes matic Detergent Powder, Advanced Detergent
powder and Detergent Cake.
MARKET POTENTIAL GROWTH
SAHARA Q SHOP is recently has came up in the market. So company‟s market
growth chances are very high. They can set into the market in the way they
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want. As we all know that SAHARA INDIA is a huge company so they can put
big amount to expand and promote SAHARA Q SHOP easily.
1. Market Situation which includes size, growth trends of total market, and
key segments. For example, a small business could include local
industry sales or volume for the last five years and estimated total
market for this year and the following year, with company sales and
share of the market.
2. Rationale should be provided for estimating the trend of the market,
including key industry developments, introduction of new technology or
new products, increased marketing spending by key competitors, etc.
3. Competitive Situation which provides a description of major
competitors with size, goals, market share, product quality comparisons,
marketing strategies, marketing spending, etc.
description of key competitors and their market positioning
size of key competitors in units/dollars
market shares of key competitors
sales trends of key competitors
strengths and weaknesses of key competitors compared to your
company's product or services
perceived marketing strategies of key competitors and their probable
impact on your company
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4. Target Buyer or End User Situation which analyzes the identification
and behaviour of target buyers/end users and consumer wants and needs
Larger companies will periodically conduct usage and attitude studies, diary
panel studies, product perception mapping studies, and other product
development monitoring devices. They may also employ special researchers to
scan patents and new product technology publication sources and talk with
industry attorneys, consultants, research firms, and industry/trade experts to
keep tabs on target user needs and wants.
After making a strong retail debut in multiple cities of India, Sahara Q
shop, retail venture of Sahara India Pariwar is now all set to take on the
ecommerce wave with its new online store SaharaQshop.com.
It was launched on June 10th on the birthday of Subrata Roy, Founder
and Chairman of Sahara India Pariwar.
Talking to the Ecommerce head of Sahara Q shop, Darshan Satgar, he
highlights that, “There is gap of no big player being here at this
platform(FMCG category), there were attempt made earlier by smaller
websites but delivery mechanism was restricted to 3rd party, and because
of that it was difficult to complete the delivery, and companies(Offline
retailers) were not recognising ecommerce for this industry,”
“Even the smaller websites that have been launched had limited reach to
few cities or states. So for Sahara, its an opportunity to explore this
industry,” he added.
He also claims that it will be a long term approach and the company will
provide immense learning for expansion giving an early mover
advantage.
All the products being offered will be private labelled with Sahara Q. For
now it has over 300 products being listed. Beverages, processed food,
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personal care, home care, etc are the few categories to be added for now
with introduction of more categories in coming months.
To start with, it will fulfill orders in 10 cities with 100% company owned
delivery system, offering free shipping on minimum cart value of INR
500, which might be increased to INR 1000 in future.
For logistics, the company will use its own delivery network „Sahara Q
Shop supply chain‟. It controls the entire distribution process, which
includes product development, inventory planning, sourcing, production,
logistics, warehousing and delivery at customers‟ end.
The website claims to deliver products in 3-4 days depending upon the
locations, i.e. 48 hours for major cities and 4 days for other small cities.
The company will also be open for bulk orders.
Sahara Q Shop‟s online store will also focus on carrying its brand
position by offering quality products to its online customers as its USP
along with the convenience in delivery.
Sahara Q shop has started with a mission to curb menaces of rampant
adulteration, dishonest practices of compromising with quality, under-
weighing, etc. and thus will be focussed to provide the customers with
100% unadulterated and best quality products at most competitive prices
says the chairman‟s message on the website. The company has also adopted „Sahara Quality Management System‟
(SQMS) to ensure quality control which includes raw material testing,
online process monitoring, finished product testing and secondly, Quality
Assurance i.e. verification of quality systems in the entire value chain by
developing and verifying SQMS of all food categories and non-food
categories and eliminating all types of hazards (physical, chemical and
biological).
The company is also looking for exclusive retailers for its private label. Currently it has 550 operational stores and by end of financial year (April
2013 to 31st March 2014) this count will reach 10,000 stores across India
as mentioned on the online website.
It will compete online with players such as Bigbasket.com,
MyGrahak.com, Zopnow.com, Aaramshop.com to name a few.
Other players which launched similar categories recently includes
Homeshop18 and Ebay.in.
FMCG is a hard to crack category when it comes online, but what mighthelp Sahara Q Shop to sail through it will be its brand exclusivity and
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might be the higher margins being a private label altogether for more
quality savvy customers.
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BIBLIOGRAPHY
www.saharaqshop.com
www.sahara.in/qshop.html en.wikipedia.org/wiki/Sahara_India_Pariwar www.sahara.in/ Under observation of MR.ASHOK.J. ( SAHARA Q SHOP) MS SYLVIA AND MR
SHIVHAM.