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Sip Report

The document is a project report submitted by Akshata D Yadav for their post graduate diploma in management at Ramaiah Institute of Management. The report covers Akshata's summer internship project at Whiteleo Industries Private Limited. The report includes chapters on the bottled water industry profile, Whiteleo company profile, tasks accomplished during the internship, and an analysis of the research undertaken during the internship. It provides an overview of the bottled water industry in India including key players, government policies, and a PESTEL analysis.

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0% found this document useful (0 votes)
449 views72 pages

Sip Report

The document is a project report submitted by Akshata D Yadav for their post graduate diploma in management at Ramaiah Institute of Management. The report covers Akshata's summer internship project at Whiteleo Industries Private Limited. The report includes chapters on the bottled water industry profile, Whiteleo company profile, tasks accomplished during the internship, and an analysis of the research undertaken during the internship. It provides an overview of the bottled water industry in India including key players, government policies, and a PESTEL analysis.

Uploaded by

hemanthreddy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 72

SUMMER INTERNSHIP PROJECT REPORT

AT

WHITELEO INDUSTRIES PRIVATE LIMITED


A Project Report Submitted in Partial Fulfillment of the Requirements
For the Award of the

POST GRADUATE DIPLOMA IN MANAGEMENT


TO

RAMAIAH INSTITUTE OF MANAGEMENT


BY

AKSHATA D YADAV

REG.NO. 191154

BATCH 2019-21

Under the guidance of


Dr. ANITA SINGH

RAMAIAH INSTITUTE OF MANAGEMENT

NEW BEL ROAD, BANGALORE-560054

July 2020
COMPANY CERTIFICATE
CERTIFICATE

This is to certify that the Project Report undertaken by Akshata D Yadav, Reg
no. 191154 conducted at Whiteleo Industries Private Limited Submitted in
partial fulfillment of the requirements for the award of the

POST GRADUATE DIPLOMA IN MANAGEMENT

TO

RAMAIAH INSTITUTE OF MANAGEMENT

Is a record of bonafide internship carried out under my supervision and


guidance. She has attended the required guidance sessions held. This report
has not been submitted for the award of any other
degree/diploma/fellowship or similar titles or prizes.

Guide’s Signature:

Name: Dr. Anita Singh

Qualification:
STUDENT’S DECLARATION

I hereby declare that the Project Report conduct at Whiteleo Industries Private
limited, Raipur

Under the guidance of Dr. Anita Singh

Submitted in Partial fulfillment of the requirements for the

POST GRADUATE DIPLOMA IN MANAGEMENT

TO

RAMAIAH INSTITUTE OF MANAGEMENT

is my original work and the same has not been submitted for the award of any
other Degree/Diploma/Fellowship or other similar titles or prizes

Signature of the Student

Place: Bangalore STUDENT NAME: AKSHATA D YADAV

Date: Reg. No.: 191154


ACKNOWLEDGEMENT

I extend my special gratitude to our Dean Dr. H. Muralidharan and


Academic Head Dr. Savitha Rani Ramachandran for inspiring me to take up
this project and also for their able guidance and support in completing this
internship.

I wish to acknowledge my sincere gratitude and indebtedness to my project


guide Dr. Anita Singh of RAMAIAH INSTITUTE OF MANAGEMENT,
Bangalore for his/her valuable guidance and constructive suggestions in the
preparation of project report.

STUDENT NAME: Akshata D Yadav

Register Number: 191154


Table of contents
S. No. Title Page No.

Chapter 1 INDUSTRY PROFILE 1-14

1.1 Introduction 2

1.2 Growing role of bottled water industries 3

1.3 History of bottled water industries 4

1.4 Future prospects 4

1.5 Government policies 6

1.6 Key players in the industry 8

1.7 Value chain model 9

1.8 PESTEL Analysis 11

1.9 Porter’s five forces model to the industry 13

Chapter 2 COMPANY PROFILE 15-28

2.1 About the company 16

2.2 Environment 19

2.3 Marketing 21

2.4 Customers 22

2.5 Competitors 23

2.6 Technology 24

2.7 Human Resource 24


2.8 Operations 25
2.9 Finance 25
2.10 Organizational Hierarchy 26
2.11 SWOT Analysis 27
Chapter-3 TASKS ACCOMPLISHED DURING 29-31
INTERNSHIP
3.1 Tasks Accomplished During Internship 30
3.2 Roles and Responsibilities 30
3.3 Learning Outcome and contribution 30
3.4 Contribution 31
Chapter- 4 ANALYSIS OF RESEARCH 32-51
UNDERTAKEN
4.1 Introduction 33
4.2 Statement of Problem 36
4.3 Methodology 37
4.4 Data Analysis 39
4.5 Hyposthesis testing 53
BIBLIOGRAPHY 58
ANNEXURE 59

LIST OF TABLES AND LIST OF FIGURES


SI.NO TABLES AND FIGURE TITLE Page No

1 Graph representing gender of respondents 39


2 Graph representing age of respondents 40

3 Graph representing preference of grocery shopping 41

4 Graph representing reasons to purchase from their 42


preferred outlets
5 Graph representing number of respondent’s shop 43
groceries online
6 Graph representing reason to think online grocery stores 44
as beneficial
7 Graph representing frequency of consumer to shop 45
groceries online
8 Graph representing spending on groceries by consumers 46

9 Graph representing need to shop online 47

10 Graph representing features in online shopping that 48


attracts customers
11 Graph representing premium pay for delivery of 49
groceries by consumers
12 Graph representing issues regarding online grocery 50
shopping
13 Graph representing factors which satisfies the consumer 51

14 Graph representing the waiting time for groceries 52


delivery

EXECUTIVE SUMMARY
The project titled “Consumer perception towards online grocery stores” was chosen to
understand that what are the factors which influence the consumer perception towards online
grocery stores. This study helps to find out which parameter should company to focus on, so
that it helps to know that which factors they should concentrate in order to face the
competitors and also to satisfy the consumers.
First chapter includes the brief note of Industry profile which also includes PESTEL analysis
and porter’s five forces model. The second chapter includes the company profile which
describes its environment, marketing, operations, competitors, human resource, finance,
technology and SWOT analysis. The third chapter includes the various roles and
responsibilities that we have performed in the company. The fourth chapter includes data
analysis for which the data has been collected and analysis is done.
For my research work I have collected primary data in the form survey i.e., through
questionnaire.
CHAPTER-1
INDUSTRY ANALYSIS

1
1.1 INTRODUCTION

Bottled Water Industry

Origin
The earliest bottled water company was founded in the United States in the middle of the
19th century. In 1845, the Ricker family of Maine bottled and sold water from a so far
unidentified source. Their small operation quickly grew; capitalizing on the spring’s
supposed medicinal properties, eventually became the Poland Springs water company.
Mirroring the Ricker success, in 1905, the Ozarka Spring Water Company was founded in
Eureka Springs, Arkansas. Since then, bottled water landscape has expanded tremendously.
This expansion has come mostly recently, and it seems to be the acceleration of a slowly
expanding industry. Between the early part of the 20th century and its end, there was little
activity in the bottled water industry. In India, Parle was the pioneer Indian company to
enter the bottled water market in the country by introducing Bisleri in 1969 and created
Bisleri as the synonym of mineral water.

Uses
Various reasons for the higher trend of bottled water use, which include:

I. Consumer awareness of increasing water pollution.


II. Deficiencies in municipal water supplies in terms of aesthetic, chemical and
microbiological water quality.
III. Successful marketing strategies of bottled water by the bottling companies.
IV. Easy availability and reasonable pricing has popularized the utilization of bottled
drinking water by a number of people who can afford it.
V. Bottled water is generally considered safe and is taken for granted by people without
question. For example, Spring water is perceived as a pristine, natural source of
water.
VI. Bottled mineral water has long been consumed as a safer alternative in countries
with reticulated water of uncertain quality. However, consumers should be aware
that bottled water is not necessarily safer than tap water.

Key players in the industry


There are more than 6,000 licensed water bottling setups under BIS (Bureau of Indian
Standards) and uncountable unorganised mineral water companies in India. There are around
150 domestic Indian bottled water brands in the market today. The key brands in India are
Bisleri, Kinley, Bailey, Aquafina, Himalayan, Rail Neer, Oxyrich, Vedica and Tata Water
Plus. Consumption of bottled water in India is linked to the level of prosperity in the different
regions. The western region accounts for 40 per cent of the market and the eastern region just
10. However, the bottling plants are concentrated in the southern part of the country. More
than 55% of the total bottling plants are in four southern states.
2
1.2 GROWING ROLE OF BOTTLED WATER INDUSTRIES

Bottled water represents a key segment of the global beverage market. Market stimulants
for bottled water include rising population, consumer spending patterns, lifestyle trends,
and growing levels of health consciousness, among others. Bottled water is also gaining
prominence due to growing consumer concerns about fitness, water quality and health. The
major challenge for most companies is product innovation and differentiation of water.
Disposable incomes are rising as much as the awareness about clean drinking water, the
packaged water industry is growing at about 15 % every year. Increase in per capita spending,
rapid urbanization growing, awareness regarding benefits of bottled water and hygiene
coupled with increasing preference for active lifestyle is driving India’s bottled water market.
India is a country with a majority of sunny areas. Bottled water market varies with season, it
is greater in summer. Installed purifier in homes restrains India’s bottled water market. People
spend a large part of their time outside homes and prefer to purchase 20-liter bulk packages of
water for home use rather than installing water purifiers. People don’t carry water as it is
available everywhere, even in the smallest of shops. There are 5,735 licensed bottlers for
packaged drinking water across India, along with uncountable unbranded ones.
The government is unable to provide clean water hence leading is taking advantage. Owing to
all these factors still water bottle accounts for about 90 % market share. PET packaging
constitutes 98 % of the India bottled water market. Still, water is PET packaged. PET
packaging offers up to 90% weight reduction, compared to glass therefore more economical
transportation is achieved. Better mechanical qualities, high transparency, exceptionally shiny
surface, very good stability, high-pressure resistance, and good barrier properties makes PET
ideal for water packaging purpose. The reports cover key developments in the content bottled
water market as organic and inorganic growth strategies. Various companies are focusing on
organic growth strategies such as product launches, product approvals and others such as
patents and events. Bisleri, the largest selling packaged water brand in India, has 120 bottling
plants. Yoga Guru Baba Ramdev’s Patanjali Ayurveda set to launch its bottled drinking water
Divya Jal. Other major players are Pepsi’s Aquafina, Coca-Cola’s Kinley, Himalayan, and
Kingfisher. Bisleri, Coca-Cola India, PepsiCo India, Dharibal Group, Narang Beverages,
Aquasure, Himalayan and Kingfisher. The objective of the report is to present comprehensive
analysis of India Bottled Water Market including all the stakeholders of the industry.

3
1.3 HISTORY OF BOTTLED WATER INDUSTRIES

The earliest bottled water company was founded in the United States in the middle of the
19th century. In 1845, the Ricker family of Maine bottled and sold water from a so far
unidentified source. Their small operation quickly grew; capitalizing on the spring’s
supposed medicinal properties, eventually became the Poland Springs water company.
Mirroring the Ricker success, in 1905, the Ozarka Spring Water Company was founded in
Eureka Springs, Arkansas. Since then, bottled water landscape has expanded tremendously.
This expansion has come mostly recently, and it seems to be the acceleration of a slowly
expanding industry. Between the early part of the 20th century and its end, there was little
activity in the bottled water industry.
Bottling companies eventually formed their own lobbing group in 1950 in order to promote
their product, and have only been recently successful. Now, there are hundreds of
companies and thousands of brand names of bottled water, and worldwide consumption is in
the billions of dollars. Currently, both the Ozarka and Poland Spring brands are owned by
Nestlé, and are part of Nestle’s seventy-five US water brands.
It was in the early 19th century, when the market showed a noticeable change in Europe and
captured a great part of the beverage market share. The real boost of bottled water
commenced in 1968 when the French company Vittel revolutionarily launched the first
plastic bottled water- aimed for general public consumption. With France and Germany on
top with their highest sales in volume, Europe became an established and leading market.
Bottlers marketed the product to consumers as safer, healthier, refreshing, more reliable and
above all, better than other soft drinks. Moreover, consumers had become more health
conscious and in some parts of the world tap water was unavailable or unsafe. These drivers
were the beginning of a booming global bottled water market.

1.4 FUTURE GROWTH PROSPECTS


A number of factors are fueling the growth in the market. Rapidly rising population has led to
increased requirements for drinking water and sewage treatment. While this is largely in the
urban areas at the moment, this could shift to smaller towns and villages in times to come. The
Government has also got into the action by imposing stringent legislations regarding wastewater
treatment. There is also a compulsory requirement of Environment Clearances from Pollution
Control Boards at the Centre and the states. The recent Supreme Court directive to move
polluting units out of Delhi is also likely to act as an impetus to future sales of water treatment
equipment. Also, at the same time, many existing treatment plants would need to be replaced or
upgraded to meet with more stringent standards.

4
Drinking water problems in India are quite different from those in developed countries. The
main concern is with disinfecting the potable water at the point of use. Traditionally, the point
of use market has been dominated by ultraviolet purifiers and filters. Industrial majors like Ion
Exchange and Thermax have tried entering this market, but with limited success. In the last
year, domestic reverse osmosis purifiers have struck the market and have been hugely
successful. Recent advancements in nano filtration and ultra-filtration are now entering this area
and offer future opportunities. One big area of growth has been the increase in bottled water
plants in India. With liberalization and increased awareness of water quality, hundreds of
bottled water brands have entered the market. The USD 250 million bottled water market is
growing at the rate of 75-80 per cent and a large number of reverse osmosis plants have come
up in the last two years. With multinationals like PepsiCo and Coke getting established in the
market, the quality and technology in their plants has improved.

Figure 1.4: Future growth of bottled water industries

5
1.5GOVERNMENT POLICIES
The laws on municipal drinking water safety have been heavily enforced. In contrast, the laws on
bottled water labelling have barely been enforced. One solution would be to adopt international
standards on bottled water. One of the purposes of the international Codex Alimentarius was to
develop food standards that protect consumer health.
Two of these standards, the General Standard for Bottled/Packaged Drinking Waters (other
than natural mineral waters 2001) and the Standard for Natural Mineral Waters (1981) are
available to regulate bottled water. Quebec stepped into the gap with its Regulation
Respecting Bottled Water a comprehensive rule for the distribution of bottled water in the
province. It requires a hydro-geological and vulnerability study of source waters for spring
and mineral waters; detailed chemical, microbiological and radiochemical information, and
standard labels.
Bottled Water Association has a model Code, April 2009 that it asks its members to follow.
The Code states that “natural water”, i.e., that obtained from an underground or approved
natural source, must comply with maximum allowable concentrations of parameters defined
in the CDWQ Guidelines. The Code also sets out rules for product quality as well as good
manufacturing practices, storage, handling and testing, as well as operational requirements
that include bottlers submitting a hydrogeology report that shows the integrity of the source
water supply. It includes monitoring source water and the final product for contamination.
Unfortunately, no one enforces this Code.
1.5.1 Bottled Water Law in India
The term "mineral water" is misleading because Indian laws do not stipulate the minimum
mineral content level required for water to be labelled as such. Ahmedabad-based Consumer
Education and Research Society (CERS), an independent non-profit institution with a
sophisticated product-testing laboratory, recently carried out a detailed study on 13 major
brands of bottled water available in the country. The CERS study indicates that there is an
urgent need to revise standards for bottled water.

1.5.2 Legal Regulations of Packaged Drinking Water


Water is an elixir of life. In India the following agencies are directly or indirectly connected
with regulating, monitoring and laying down standards of water.
1. Ministry of health and family welfare

2. Bureau of Indian standards under the ministry of food and consumer affairs.

3. Ministry of Rural development

4. Ministry of Urban development

6
5. Ministry of environment and forests

6. Ministry of water resources

7. Local bodies

1.5.3 Bottled water regulations


Most provincial water quality standards, such as Ontario’s Drinking Water Quality
Standards regulation under the Safe Drinking Water Act, 2002 (SDWA), set maximum
limits for microbiological, chemical and radiological parameters for all drinking water in
the province. But these rules do not apply to bottled water. Bottled water is regulated, much
less tightly, under the federal Consumer Packaging and Labelling Act and Regulations. The
source of the water need not be disclosed, unless it is labelled as spring or mineral water.
(Many bottled waters are actually tap water. For example, Dasani (owned by Coca-Cola) is
filtered municipal tap water, bottled in Brampton, Ont., and Calgary. Pepsi’s Aquafina, is
essentially the same. Both companies pay less for municipal water, by the way, than
consumers do. The bottle label includes: Common name (e.g., “water”), list of ingredients,
if more than one, Net quantity, Name, address of responsible company, Fluoride content, for
all bottled waters, except spring or mineral water: description of any treatment the water has
received (e.g., chlorination, filtration). For spring or mineral water: dissolved mineral salt content,
statement as to whether ozone or fluoride has been added and geographic location of
underground water source.
1.5.4 Implication for Policy and Way Forward
The developing world is marked with challenges of coping with failing infrastructures,
inadequate finance, poor legislation, lack of appropriate institutional capacity for regulation
and control and often the political will to enforce control measures. The position is
complicated by the fact that many of these developing nations are at a loss on how to set
standards. Consequently, they resort to dependence on adopted standards, policies and
guidelines as presented by international organizations based on scenarios and context in the
developed world. Case studies are presented shortly of some on-going success stories in the
packaged water industry. In the cited locations, various levels of stakeholder participation
led to the birth of solutions that found a right balancing in between safeguarding public
health through enactment of regulatory standards and improving social welfare through
sustained access to packaged drinking water. There could be possible serious implication of
a tenacious focus on such policies, standards and regulatory approaches imported from
developed countries on drinking water access for residents of the developing world as each
situation differs in its own respect and has to be treated as such. For example, the WHO
bacteriological water guidelines are widely accepted in industrialized as well as developing
countries but they are not always achieved in practice.

7
1.5.5 Packaged Drinking Water Regulation in India
The late nineties marked the commencement of packaged drinking water regulation in
India. Solely handled by the Bureau of Indian Standards in collaboration with the Health
Ministry, the rules on its safety were drafted into a Prevention of Food Adulteration Act.
The original plan was to come up with a standard that matches with international standards.
Given the complexities and the technologies involved in the implementation, the PFA Act
however remained vague on the issue of allowable levels of pesticides in packaged drinking
water. With growing health concerns, a stakeholder meeting between the BIS and the
Health Ministry officials marked the declaration of specific allowable limit - no pesticide
should exceed 0.0001 mg/litre and total content of pesticide not exceeding 0.005 mg/litre. It
was agreed that testing methods and support are to be provided by the BIS. Again,
consensus was reached that it will take some time before the necessary changes take effect
in the packaged water industry.

1.6 KEY PLAYERS IN THE INDUSTRY

The market leader is Bisleri International, which boasts a 40 per cent share. It is followed
by Coca- Cola’s Kinley (around 25%) and PepsiCo’s Aquafina (around 10 %). The top
players in bottled water industry in India are the major international giants like Coca cola,
Pepsi, Nestle and noticeable presence of national players like Mount Everest, Manikchand,
Kingfisher, Mohan Meakins, SKN Breweries, Indian Railways and so on. With increasing
competition, this sector will register a robust growth in 2010, predict industry analysts. To
take on rivals in this sector, PepsiCo India is drawing up a fresh game plan which includes
investment in capacity enhancement, packaging initiatives and below-the-line activities to
pump up volumes in the over-crowded category. Meanwhile, swadeshi major Parle Agro is
extending the manufacturing facility for Bailley from 29 to 60 plants this year. While
swadeshi major Bisleri International is beefing up its distribution, manufacturing and
marketing operations. Coca-Cola India is sharpening its focus on packaging initiatives of
Kinley to woo new consumers. In essence, the packaged water industry in India will soon
witness a major tussle between swadeshi and videshi players to gain market and mind share.
The western region accounts for 40 per cent of the market and the eastern region just 10.
However, the bottling plants are concentrated in the southern region - of the approximately
1,200 bottling water plants in India, 600 are in Tamil Nadu. But many regions of southern
India, especially Tamil Nadu is water starved.
Top multinational players such as Coca-Cola and PepsiCo have been trying for the past
decade to capture the Indian bottled water market. Today they have captured a significant
portion of it. However, Parle Bisleri continues to hold 40 per cent of the market share.
Kinley and Aquafina are fast catching up, with Kinley holding 20-25 per cent of the market
and Aquafina approximately 10 per cent. The rest, including the smaller players, have 20-25
8
per cent of the market share.
1.7 VALUE CHAIN MODEL OF THE INDUSTRY

Figure 1.7: Value chain model

9
Water is a very sensitive product on both microbiological and chemical levels. One of the
main challenges of bottled water processing is to consistently produce a quality product free
of pathogenic organisms and protozoa that could taint its quality, reduce its shelf life and be a
pathogenic threat to customers. Strict production control is critical to avoid any contamination
of pathogenic bacteria or protozoa.
While bottled water production processes differ by type of products and applications, the
basic process is the same and can be adapted to fit your specific requirements.
Bottled Water Processing Steps:
Water Filtration
Water must be free of any containments that will spoil its quality, reduce its shelf life and be a
pathogenic threat to consumers.
Tank Venting
The air in the storage tank must be free of microorganisms to ensure that the water stored will
not be contaminated.
Carbonation
Carbonation is the step of adding carbon dioxide to a drink. It is used to produce sparkling
water. The CO2 that you inject into your water must be free of particles and
microorganisms.
Bottle Blower and Bottle Washer
The air used in the bottle blower to turn the pre-forms into the final PET bottle must be free
of contaminants; its filtration ensures a bottle with low bioburden is produced. Bottle
blowing is done during any process using PET bottles. The water used to rinse PET bottles
must be free of contaminants; its filtration ensures good quality of the bottles prior to
filling.
Filler
Gas filtration can also be used during the filling process of carbonated drinks. In order for
the filling to be possible, the filler bowl must be pressurized, and it is essential that the gas
used is microbiologically stable.

10
1.8 PESTEL ANALYSIS
PESTEL (Political Economical Social Technology Environment Legal) analysis is one of the
macro strategic analysis techniques to critically examine the business strategy, evaluate the
product, etc. This technique is used to analyse the all-round macro-environment factors which
impact the decisions being taken by the management of any organization. New Laws,
government policies, demographic changes, tax changes and trade barriers are few examples
of macro changes.

Figure 1.8: Pestel analysis

Political Analysis
The government of the land has an important role to play within the operation of
manufacturing bottled water in terms of regulations. Potential fines are set by the government
for the manufacturers in case they fail to meet the standard of laws. Some of the political
factors which cause the results of the Bottled water manufacturing Companies to differ
materially from the expected objectives in their annual statement.

Economic Analysis
The up and down swinging economy is one of the factors, which can make an organization
successful or a big failure. When the economy is strong, any well managed industry grows
with the economy. However, with the recent recessionary trend, the business environment is
becoming a difficult place to survive for any firm which is not cash rich and does not have the
necessity appeal. The premium appeal of the high-quality bottled water may not be as high as
compared to the necessity appeal. Still, the negative growth and nose-diving GDP of the
country can drastically affect the growth of the company.

11
Sociological Analysis
Now-a-days, everyone wants to remain healthy. The damaging effects of the alcoholic drink
are not hidden from anyone. More and more people are switching their lifestyle to enable
them to remain healthy. This change of thought process has contributed to the higher selling
on the bottled water, and diet colas. The market share of the non-alcoholic drinks has
increased at the cost of alcoholic drinks. Never before an average person needed the Bottled
water and healthy products as much as they need now. Frequent health capsules from
respected medical professionals’ advice against alcoholic drinks and urge people to shift to
less sugar and bottled water in their diet to remain healthy.

Technological Analysis
The synergy achieved through the right mix of advertising, marketing and promotional
programs cannot be ignored. The interplay of these three activities results in efficient
marketing of the products. Internet and television are the new marketing channels opened up
as a result of the new technology. These channels have made it possible to have a focused
marketing for the consumers which is a big achievement compared to mass marketing. The
special effects possible through these channels make a product look attractive. Few
technological advances in the area of packaging like plastic bottles and cans have made it
convenient for the consumers to buy these products. This makes it easier to carry and dispose
off.

The automation technology in the area of producing bottled water has increased the
productivity of the bottling plant. The state-of-the-art technology adopted by the bottling
company results in the same level of quality and less dependence on the man power in
production means an effective utilization of the resources. The man power can be used in
other functions instead of manual bottling.

Environment Analysis
The concern for the environment is growing as several countries across the globe have
introduced fines for following environment un-friendly manufacturing practices. The Bottling
companies would need to review their manufacturing and packaging strategies by developing
new technologies in these areas. Only after that, they would be able to remain in the business.

Legal Analysis
There have been recent changes in the law which mentions the level of chemicals allowed in
the bottled water. The impact of this legislation is higher as the non-compliant organization
would be forced to shut shop. The deadline of compliance is 3 years by countries and the
companies would be required to take their product off the shelf if they are unable to comply
with the norms.

12
1.9 PORTER’S FIVE FORCES MODEL TO THE INDUSTRY
Porter's Five Forces is a model that identifies and analyses five competitive forces that shape
every industry and helps determine an industry's weaknesses and strengths. Five Forces
analysis is frequently used to identify an industry's structure to determine corporate strategy.
Porter's model can be applied to any segment of the economy to understand the level of
competition within the industry and enhance a company's long-term profitability. The Five
Forces model is named after Harvard Business School professor, Michael E. Porter.

1. Competitive rivalry
2. Threat of New Entrants
3. Threat of Substitutes
4. Bargaining Power of Buyers
5. Bargaining Power of Suppliers

13
Figure 1.9: Porter’s five forces model
Rivalry among Existing Competitors

The Industry Competitors in the bottled water market are Bisleri, Bailey, Aquafina, Kinley,
Yes, Ganga, Himalayan, Evian, Perrier and various other local brands.

Threat of New Entrants

The “Potential entrants” are water purifier and various new local brands that come in the
market. Shaw Wallace is also in the process to enter the bottled market in the premium
segment.

Threat of Substitute Products or Services

The “Substitutes” in this industry would be soft drinks, aqua guard, tap water and the most
economical drink Nimbupani. The industries estimate that bottled water is the fastest growing
beverage segment and are immediately followed by the soft drink/aerated beverages market.

Bargaining Power of Suppliers

The “Supplier’s Power” also should be considered while analysing the industry. When the
company’s suppliers are able to raise price or reduce quantity supplied of PET bottles or the
labelling material, then the supplier power would be high.

Bargaining Power of Buyers

The “Buyer Power” should also be considered when the buyer demands more quality or
service, and set competitors against each other, all at the expense of seller’s profitability. This
power is prevailing in the industry where there are many brands fighting for their existence or
for their share. One of the ways to defend themselves would be to develop superior offer that
strong buyers cannot refuse.

14
CHAPTER- 2
COMPANY ANALYSIS

15
2.1 ABOUT THE COMPANY

Figure 2.1: Whiteleo industries logo

Whiteleo Industries Private Limited is a Private company incorporated on Tuesday, 26 June


2018. It is classified as Non-government company and is registered at Registrar of
Companies, Chhattisgarh. It has authorized share capital of Rs.1,000,000 and has paid up
capital of Rs.233,560. It is involved in Manufacture of bottled mineral water.
Directors of Whiteleo industries private limited are Shreyansh Sahu and Rajendra Kumar
Sahu.
Whiteleo Industries Private Limited's Corporate Identification Number is (CIN)
U15549CT2018PTC008615 and its registration number is 008615. Its registered address is
245, near aam baagicha sunder nagar, Raipur.

16
Company Details

CIN U15549CT2018PTC008615

Company Name WHITELEO INDUSTRIES PRIVATE


LIMITED

Company Status Active

RoC RoC-Chhattisgarh

Registration Number 8615

Company Category Company limited by Shares

Company Sub Non-govt company


Category

Class of Company Private

Date of Incorporation 26 June 2018

Age of Company 2 years, 0 month, 24 days

Activity Manufacture of bottled mineral water

Table 2.1: Company details

17
Figure 2.1.1: Machinery at bottling plant of whiteleo

Figure 2.1.2: Whiteleo water bottle

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Objective:
The basic objective of this is to specialize in manufacturing Packaged drinking water at the art
bottling plant. Avail of total health benefits like lower obesity levels and stable blood sugar.

Quality policy:
“The packaged drinking water with laced with essential nutrients needed by your body. With
the right alkaline concentration, your body sees multiple benefits like better blood circulation
and improved immunity”.

Products offered:
The products offered by the whiteleo are ½ litre, 1litre, 2litre bottled water and 25 litre canned
water.

2.2 ENVIRONMENT
There are two elements within the external marketing environment; micro and macro. These
environmental factors are beyond the control of marketers but they still influence the
decisions made when creating a strategic marketing plan.

Micro Environment Factors

1. Competitors
There are more than 6,000 licensed water bottling setups under BIS (Bureau of Indian
Standards) and uncountable unorganised mineral water companies in India. There are
around 150 domestic Indian bottled water brands in the market today. The key brands in
India are Bisleri, Kinley, Bailey, Aquafina, Himalayan, Rail Neer, Oxyrich, Vedica and
Tata Water Plus. Consumption of bottled water in India is linked to the level of prosperity
in the different regions. The western region accounts for 40 per cent of the market and the
eastern region just 10. However, the bottling plants are concentrated in the southern part
of the country. More than 55% of the total bottling plants are in four southern states.

2. Customers
As this company sell water in ½ litre, 1litre, 2litre bottled water and 25 litre canned
water, hence it covered all demographics.

3. Suppliers
Suppliers are wholesalers, retailers, distributors and vendors to end consumers.

19
4. Public
Publics are groups that may have a significant impact on marketing activities
formulated to contribute to customers' satisfaction with a product and an organization.
Many satisfied customers in Raipur are a public they contributed to a marketing
program through positive word of mouth.

5. Marketing intermediaries
Organization typically rely on banks, venture capitalists and other sources to finance
and for operations it depends wholesalers and retailers to distribute goods and
advertising in local newspapers and public-relations firms to market their products.

6. Workers and their union


As of now there is no union for workers working in the bottling plant.

Macro Environment Factors

1. Demographic factors
Product will be used by all age groups and it covered all the demographics but it is
mainly concentrated in Raipur.

2. Economic factors
The up and down swinging economy is one of the factors, which can make an
organization successful or a big failure. When the economy is strong, any well managed
industry grows
is becoming a difficult place to survive for any firm which is not cash rich and does not
have the necessity appeal. The premium appeal of the high-quality bottled water may not
be as high as compared to the necessity appeal. Still, the negative growth and nose-diving
GDP of the country can drastically affect the growth of the company.

3. Natural/physical forces
Another aspect of the macro environment is its physical setting. This includes the
geographical location, the presence of ecology and biodiversity, temperature, weather and
climate and predominant seasons. By having a concrete understanding of all these
features, marketers will know where to sell what kind of products.

4. Technological factors
In Whiteleo Industries Private Limited, the used technologies for processing and
packaging of bottled water are: Blow moulding for PET bottles, chemical treatment,
disinfection, bottle washing, filtration and filling & capping.

20
5. Political and legal forces
Potential fines are set by the government for the manufacturers in case they fail to meet
the standard of laws. Marketing decisions should always take into account political and/or
legal developments relating to the organisation and its markets.

6. Social and cultural forces


More and more people are switching their lifestyle to enable them to remain healthy. This
change of thought process has contributed to the higher selling on the bottled water, and
diet colas. The market share of the non-alcoholic drinks has increased at the cost of
alcoholic drinks.

2.3 MARKETING
Marketing mix

The term 'marketing mix' is a foundation model for businesses, historically centred around
product, price, place, and promotion. The marketing mix has been defined as the "set of
marketing tools that the firm uses to pursue its marketing objectives in the target market".

Applicability of 7P’s to the company:

Figure 2.3: 7Ps Marketing mix

21
P-Product
The products offered by the whiteleo are ½ litre, 1litre, 2litre bottled water and 25 litre canned
water.
P-Price
The organisation being one of the start-ups in its industry doesn’t enjoys a high market share.
With the competitors like Bisleri, Kinley, Bailey, Aquafina, Himalayan, Rail Neer, Oxyrich,
Vedica and Tata Water Plus. Etc. it follows a competitive pricing strategy. Most customers
are B2B and city distribution to direct customers which employs competitive pricing.

P-Place
The company is located in the Raipur, Chhattisgarh. It distributes mainly in the Raipur city
and some places in Chhattisgarh state.
P-Promotion
Promotion is a necessary business activity to keep up the pace with the consumer market. It
has used the conventional promotion technique to reach out to its consumers. Without creating
much of dilemma, it clearly states the fact their mineral water is full of vital nourishment. It
helps to tackle the harmful effects of oxidative stress and restores the alkalinity of the water to
improve our health substantially. The idea of promotion is to reach the consumers locally and
that is why a simple promotional gimmick is used for the promotion.

P-People
The company has a strong sense of responsibility towards its people i.e. employees as well as
its customers. The company has over 50 employees. The company focuses well towards its
employees in terms of trade unions, health, safety, remuneration, incentives etc.
P-Process
The company has a manufacturing plant in Raipur for the manufacturing of packaged drinking
water. The bottling plant at manufacturing plant is designed to maintain a strict level of
hygiene and quality when producing the packaged water. 
P-Physical evidence
Physical evidence refers to everything customers see when interacting with business. This
includes the physical environment where product (water bottles) is sold in shops,
supermarkets etc and physical evidence also involves packaging of water bottle and its
branding.

2.4 CUSTOMERS
22
As this company sell water in ½ litre, 1litre, 2litre bottled water and 25 litre canned water,
hence it covered all demographics b2b

2.5 COMPETITORS
1. Bisleri International is an Indian brand bottled water formed in 1969 by Jayantilal
Chauhan and Felice Bisleri. Bisleri conducts its major businesses in India, with 135
operational plants and a network of 3000 distributors & 5000 distribution trucks. [3] The
company conducts business across India and neighbouring countries. The company sells
bottled water and flavoured drinks.
2. Kinley is a brand of still or carbonated water owned by The Coca-Cola Company and sold
in many large European and Asian countries. Its carbonated forms are used for mixers, and
also available in a variety of fruit flavours.
The Kinley brand is used by Coca-Cola for two types of drinks:

 Packaged water bottle


 A carbonated water with a wide array of variants: tonic, bitter lemon, ginger ale, club
soda and fruit flavoured. Available in Austria, Bangladesh, Belgium, Bulgaria, Czech
Republic, Denmark, El Salvador, Germany, Greece, Hungary, India, Israel, Italy etc.

3. Aquafina is a brand of purified bottled water products produced by PepsiCo, consisting of


both unflavoured and flavoured water. The Aquafina brand name is also licensed for use on
multiple skin care products, including lip balm and wrinkle cream.[1] It was first distributed
in Wichita, Kansas in 1994, before becoming more widely sold across the United States,
Canada, Spain, Lebanon, Turkey, the GCC countries, Iran, Egypt, Morocco, Vietnam,
Pakistan, and India to compete with The Coca-Cola Company's Dasani and Dr. Pepper
Snapple's Deja Blue.

4. Baileys’ journey began with its launch in 1993 and was the second brand to be launched in
packaged drinking water category. Bailley has been the symbol of purity and is widely
preferred as a source of safe drinking water. Packaged across India in 52 state-of-the-art
bottling plants, Bailley caters to diverse consumer needs and occasions. It is available in
various pack sizes like 250ml, 500ml, 1ltr, 2ltr PET, as well as 5ltr and 20ltr jar.

5. Himalayan is marketed by NourishCo, a joint venture between Tata consumer Products


and PepsiCo India. The water is bottled at source from a pure and pristine underground
moving stream aquifer, which is about 400 ft below the surface, located at the foothills of the
Shivalik range in the Himalayas. This aquifer is one of the largest and purest sources in the
world, providing a perennial source of natural mineral water. The catchment area has no
human activity and is pollution free.

23
6. Oxyrich is the only packaged water in India to have 300% more oxygen. This feat is
exclusively achieved through their path-breaking patented technology. It is the first and only
bottled water in the country to be ISO 22000:2005 certified; the world's most stringent
standard for food safety management system. In 2002, we set up one of the most modern &
comprehensive packaged water plants near Pune. We subsequently expanded our operations with
another plant at Hyderabad and franchisees across the country.

2.6 TECHNOLOGY
In Whiteleo Industries Private Limited, the used technologies for processing and packaging of
bottled water are: Blow moulding for PET bottles, chemical treatment, disinfection, bottle
washing, filtration and filling & capping.

2.7 HUMAN RESOURCE


Senior Management
The Directors of the company are Shreyansh Sahu and Rajendra Kumar Sahu. Shreyansh
Sahu is the head of finance department and marketing which also includes sales and
distribution department, under him 30 employees are working, in that 15 employees under
sales and distribution department, 8 employees under marketing department, 5 employees
under finance department and 2 employees under IT department.
Rajendra Kumar Sahu is the head of manufacturing and technical department, under him 5
employees working under technical department and 15 employees are working in bottling
plant.
Department and functions
Finance department manages company's cash flow. It is the duty of the finance
department to manage all cash flows into and out of a company and ensure that there are
enough funds available to meet the day-to-day running of the company.
Marketing department’s job to reach out to prospects, customers, investors and/or the
community, while creating an overarching image that represents your company in a positive
light.
Sales and Distribution, when it comes to sales its B2B Sales due its inherent nature of the
industry and it distributes the products to wholesalers, retailers, distributors and vendors.
Manufacturing department is the core department of this industry for the manufacture of
packaged water bottles.
Technical Department analyses the quantity of chemicals that to be added in water and
manages the machinery and equipment of the plant
24
Staff Strength
The company has over all strength of 50 employees.
Recruitment
It will be handled by directors of the company Shreyansh Sahu and Rajendra Kumar Sahu.
Training and Development
For the employees working in bottling plant training is provided for 1 month at the time of
joining and if new technology is introduced in plant then training is provided for the
employees. For other department employees training is provided for 1 week at the time of
joining.
Appraisal and retention practices
There will be appraisal for employees for every year based on employee’s contribution to the
company.

2.8 OPERATIONS
It has only one branch operated in Raipur, Chhattisgarh.

2.9 FINANCE
Capital Structure
Whiteleo Industries Private Limited has authorized share capital of Rs.1,000,000 and has paid
up capital of Rs.233,560.

25
2.10 ORGANIZATIONAL HIERARCHY

Figure 2.10: Organizational hierarchy

Figure 2.11: Organizational hierarchy

Under IT department, 2 employees are working, they will not come under any directors, they
are more like freelancers.

26
2.11 SWOT Analysis
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT
Analysis is a technique for assessing these four aspects of your business.

Figure 2.11: SWOT analysis

Strengths
Health and Hygiene Conscious: Packaged Water category is a healthier option considering the
increasing amount of water diseases and their consequences.

Differentiation: It has a differentiated product offering as well with its agenda “New age
person of today’s times. You have to ward off the harmful effects of pollution in order to
remain active at all times. Don’t let acidic stress, toxin stress, or oxidative stress take a toll on
your body. The hydrogen-enriched water brings down the acidic stress inside your body and
restores the natural balance of the body toxin levels”.

Weakness

High Competition: Presence of high competition such as Bisleri, Kinley, Bailey etc.


discourages an increase in market share for Whiteleo.

Opportunities

Distribution: Increasing the distribution of the product is the best way and only way that
Water companies can sell higher numbers. Water is a universal requirement, so the farther and
wider the brand is present, the more will be the sale. Off course, production and shelf life is a
bottleneck to distribution as well.
27
Increasing Awareness: There has been an increasing awareness towards the Pure and hygienic
water, which is a boost to the packaged water industry.

Threats

Water shortage: Water shortage is a major threat to Aquafina because government might


decide to limit the water supply to packaged drinking water companies. These companies are
selling the water back to consumers when there is a shortage of water supply. Many
consumers have a problem with this because they believe that mineral water companies
should not be supplied water in the first place and it should go to consumers.

Low Capital required: Packaged water industry is a low capital intensive industry especially at


the local level and hence it is easier for new entrants to enter the market.

Local Competition: Local Competition also become a deterrent to growth in the industry and
hence rise of Local competition is also a threat.

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CHAPTER-3
TASKS ACCOMPLISHED DURING INTERNSHIP

29
3.1 TASKS ACCOMPLISHED DURING INTERNSHIP
Have undergone Summer Internship at Whiteleo Industries Private Limited in the Business
analyst department on project “Consumers Perception Towards Online Grocery Stores” period
of 9 weeks i.e. 20th April 2020 to 22nd June 2020. Reported to Mr. Shreyansh Sahu, Director in
Whiteleo Industries Private Limited. As the internship is work from home due to COVID
pandemic, the communication is through Zoho mail app.
Whiteleo Industries Private Limited had assigned me a project “Consumers Perception
Towards Online Grocery Stores” to identify the customer views on online delivery of
groceries as the company is about to develop a delivery app for groceries i.e. WILSTOP. I
have worked on case studies provided by the company.

3.2 ROLES AND RESPONSIBILITIES


As this internship is from work from home due to COVID pandemic and roles and
responsibilities provided by company are as follows:
 Analyse business goals, objectives and needs for the app.
 Help plan and design business processes and make recommendations for
improvement.
 Perform research and analysis in support of operations.
 Assist in resolving business issues using systems and data.
 Estimate costs and benefits of multiple actions and solutions and provide
recommendations on new projects of the company.
 Help launch new initiatives.
 May perform additional projects upon request like case studies.
 Team will assist in writing reports, conducting research, analysing data and making
recommendations to improve effectiveness and efficiency of the project.

3.3 LEARNING OUTCOME

Internship at Whiteleo Industries helped me to get the work experience for 2 months and
helped me to get the many insights after working with business analyst team.

 Working there as a business analyst intern helped me to understand and analyse the
case studies on Digital India and Chinese investments in India.
30
 It helped to design the research report on consumer perception towards online delivery
of groceries.
 It helped me to improve my analytical skills to analyse the business goals, objectives
and needs.
 It helped me to gain knowledge in statistics by using software SPSS.
 It improved interpersonal skills like communication skills and teamwork etc.
 It helped me to increase my network with the people of other institutions and
employees of the company.

3.4 CONTRIBUTION TO THE ORGANIZATION


The Business analyst team has submitted the report on “Consumers Perception Towards
Online Grocery Stores” for the upcoming delivery app of whiteleo i.e. WILSTOP. The report
includes the statistical analysis of the data which is obtained from the people through
questionnaire and also presented the case studies which are Chinese investments in India and
Digital India.

31
CHAPTER- 4
ANALYSIS OF THE RESEARCH UNDERTAKEN

32
4.1 INTRODUCTION

With the Covid-19 crisis, the brick and mortar businesses are facing heavy losses. With the entirety
of the country under a lockdown and a social distancing program, the consumers are having, a
relatively more, difficult time, in shopping for their daily usage items. Consequently, retailers are
facing a slow or outright dead business. Furthermore, with the production coming to a halt, the
supply of goods is also affected, thus increasing the inflation. This is causing a deep hole in
customer’s pocket.
Hence, with online delivery of goods, not only the problem of a customer and a retailer is solved,
but this will also increase Whiteleo’s customer base. All over the world, e-commerce sales have
skyrocketed. On-demand platforms that deliver groceries and food have experienced surging
demand and are aggressively bringing on new workers, in addition to providing demand to local
grocers, restaurants and other essential stores The COVID crisis brings a host of opportunities, that
if leveraged cleverly, can prove to be very lucrative for the organization. Not only that, but due to
ubiquitous connectivity, there is a huge pool of potential customers already available that can be
tapped into. With clever marketing strategies and social media campaigns, the WILSTOP app can
gain a significant user base and will also be able to carry it into post COVID period.

We did a survey in order to make sure WILSTOP app has every feature and product a consumer
expects an online grocery delivery app to have. We prepared an exhaustive questionnaire. The
survey was done to gain an insight into

 How a typical consumer buys in grocery (for instance whether he visits a retail shop or
orders it online)
 What they like about online shopping,
 Their price expectations, when it came to online shopping
 Their reasons to use/not use online retail for shopping
 The maximum expected waiting time for delivery of their order
 All products must have in inventory, based on consumer’s expectations

33
4.1.1 ABSTRACT

The study focusses on ascertaining the factors influencing the buying consumers perception towards
online grocery stores and the level of satisfaction through purchase of the grocery through online. The
collection of data source was primary data source through a well-designed questionnaire. The
research methodology adopted is a descriptive research methodology and Non-Probability Sampling
Technique. A total of 250 respondents were taken.

The Independent sample T-test conducted on the data helps in concluding that the study finds out that
shows that respondents have no impact on buying behaviour related to internet clutter. The study also
demonstrates that there is significant relationship between discounts and offers and consumer
perception towards online grocery stores.

A survey was conducted in order to make sure WILSTOP app has every feature and product a
consumer expects an online grocery delivery app to have. I prepared a questionnaire using Google
forms and floated it to the consumers. With the survey, we gained an insight into various customer
habits, expectations they might have with the WILSTOP app and if they would be willing to use
online shopping to buy groceries. The survey got 250 responses, from people of varying age groups
and occupations, with students and the age group 18-24 being most respondents.

34
4.1.2 REVIEW OF LITERATURE

An Empirical Study on the Online Grocery Shopping Intentions of Consumers in Vadodara


City by Ranadive. The study looks into the levels of acceptance among consumers in Vadodara
city. It focuses the factors that affect the consumers buying intentions and shopping preferences.
The result of the study conducted have reaffirmed that the framework of Theory of Planned
Behaviour (TPB) is applicable to the measurement of consumer’s behavioural intentions while
shopping for groceries online. This study presents substantial empirical support for the sufficiency
of Ajzen’s TPB model in online shopping behavior. Therefore, with all the other three variables of
the TPB, the study demonstrates the predictive utility of the TPB to determine online shopping
behaviour, specifically for grocery shopping in the city of Vadodara.

Predicting consumer intentions to use online shopping by Vijayasarathy. The research


conducted the survey for customer intention to use online shopping. The survey was done by 281
people. The study found compatibility, usefulness, ease of use, and security to be significant
predictors of attitude towards online shopping, but privacy was not. Another finding showed that
intention to use online shopping was strongly influenced by attitude toward online shopping,
normative beliefs, and self-efficacy.

Consumer’s Attitude for Acceptance of Online Grocery Shopping in India by Kaur and
Shukla. This paper seeks to understand the consumer’s attitude towards online grocery shopping
and to identify some factors and technical barriers that may hinder the growth of online grocery
shopping in India. A questionnaire was developed and distributed to the online shoppers in Delhi
city and then collected data was analysed by using ANOVA, Mean and Standard Deviation. The
results suggest that among family income and age is one of the significant factors while
understanding behaviour dimension related to education level or working members in the family can
also help online marketers to develop positive tendency to online grocery shopping. Moreover,
results indicate that time slot option among product delivery factors and user-friendly website
among website designing factors are the most important variables for the respondents. However,
Consumers are also more concerned about the quality of products among the various fear factors
related to online grocery shopping. Social influence factors have least importance, and customer
review has moderate weightage. Speed of the internet and unfamiliarity of OGS websites are the
technical barriers perceived by respondents.

35
Consumer Perception Towards Online Grocery Stores by Kumar and Subramani. The main
objective of the study is to determine the customer perception towards online grocery shopping in
Chennai. The sources of data used in this project report are both primary and secondary data.
Descriptive research type is used for this research. Primary data consists of original information
gathered from sample size of 200 respondents residing in Chennai, Tamil Nadu through Google
forms. The major findings of the study are 29% of respondents quoted the reason for choosing the
online-shopping is to purchase unique and special articles, and they want to find the best price of the
product. The outcome of the research paper also revealed that the demographic variables, such as
gender, age group don’t have influence of the factors of customer satisfaction.

The impact of aging on access to technology by Czaja. Two major demographic trends underscore
the importance of considering adaption to technology by older adults. In the past decade,
developments in computer and information technologies have occurred at an unprecedented rate and
technology has become an integral component of work, education, communication and
entertainment. Technology holds the promise of enhancing the quality of life and independence of
older people by augmenting their ability to perform a variety of tasks and access information and
services. However, unless we have an understanding of why older adults have difficulty adapting to
new technologies and older adults are perceived as active users of technology by system designers
successful use of technology will continue to be a challenge for future generations of older people.

4.2 STATEMENT OF THE PROBLEM

The development of technology has changed the consumer buying methods of groceries, as the smart
phones is available with most of the people now, they are using delivery services for groceries
tremendously and this boosted the competition for online grocery stores.
There are many factors which influence the consumer perception towards online grocery stores, by
doing the survey we can identify the factors which influence the consumer buying behaviour and to
inculcate those in the app.
This study focuses on the effect of differential factors and its impact on customer preference towards
online grocery stores.

4.2.1 OBJECTIVES
The main objectives of the survey were to gain an insight into:
1. To identify consumer perception towards online grocery stores.
2. To ascertain how internet clutter influences the buying behaviour of the customer.

36
4.2.2 SCOPE OF THE STUDY
1. The study was conducted in Bangalore city with a duration of 10 days, to identify the
consumer perception towards online grocery stores.

2. The research is conducted for cross-sectional study.

4.2.3 HYPOTHESES

1. Null Hypotheses (Ho): There is no association between age of consumer and internet
clutter.
Alternative Hypotheses (H1): There is association between age of consumer and internet
clutter.

4.3 METHODOLOGY

a) Research Method.
Applied research is used to identify consumer’s perception towards online grocery
stores and the research is conducted between age of respondents which is divided into two
groups which are younger adults and older adults and their familiarity with the technology
which is based on the research paper “ The impact of aging on access to technology” by
czaja. The test conducted is extension of this paper i.e., age of respondents based on
familiarity with technology and internet clutter.

b) Research Design.
Descriptive research: Descriptive research design is used to determine the factors that
influence the perception of consumers.

c) Sampling Procedure.
Targeted population: People staying in cities and working people who will not be having
time to go to local shops and supermarkets to shop groceries and technical oriented people.
d) Sampling Method.
Non-probability Sampling: Convenience sampling.
e) Sample Size.
A sample of 250 respondents were taken.

37
f) Data Collection.
Sources: Primary data: data collected through well-structured questionnaire.
Secondary data - Journals, Research papers.
Data collection method: survey

g) Data Evaluation.
Data evaluation is done by using SPSS Software.
h) Plan of Analysis.
Analysis is done through various statistical techniques such as chi-square using
SPSS software.

4.3.1 LIMITATIONS OF THE STUDY

 The limitation caused during the market research was to find out the respondent who shop
online and are web savvy.

 The research will only study the consumer perception towards online grocery shopping and
bot the dealers, wholesalers or retailer’s perception towards online shopping which acts as
an agent to the online retail industry to support its business operation

38
4.4 DATA ANALYSIS
Table 4.4.1: Gender
Gender No of Respondents Percentage

Male 138 55.2%

Female 110 44%

Prefer not to say 2 0.8%

Interpretation: About 55% of respondents are males and 44% of respondents are females, only 0.8%
of respondents preferred not to say their gender.
Figure 4.4.1:

60.00%

50.00%
Percentage of No of Respondents

40.00%

30.00%
55%

44%
20.00%

10.00%

0.00% 1%
Male Female Prefer not to say

39
Table 4.4.2: Age of Respondents:

Age No. of Respondents Percentage


18-24 207 82.66%
25-31 34 13.71%
32-38 4 1.61%
39-45 2 0.81%
46-52 0 0%
53 and above 3 1.21%
Total 250 100%

Interpretation: More than 80% of the respondents belong to age group of 18 to 24, while 34
respondents are between 25-31. Remaining age groups have a smaller number of respondents.

Figure 4.4.2:

90.00%

80.00%

70.00%
Percentage of No of Respondents

60.00%

50.00%

40.00% 82.66%

30.00%

20.00%

10.00%
13.71%
0.00%
0.00% 1.61% 0.81% 1.21%
18-24 25-31 32-38 39-45 46-52 53 and above

40
Table 4.4.3: Preference of grocery shopping

Places to shop groceries No. of Respondents Percentage

Supermarkets 164 65.73%

Local corner shops 54 21.37%

Online 18 7.26%

Malls 1 0.40%

Bulk orders 9 3.45%

Others 4 1.79%

Total 250 100%

Interpretation: Out of total respondents about 65% prefer supermarkets to shop groceries and next
preference is given to Local corner shops and then online grocery shopping. Least preference is given
to malls, from this supermarkets and local corner shops are major competitors for online shopping.

Figure 4.4.3:

70.00%

60.00%

50.00%
Percentage of Total No of Records

40.00%

65.73%
30.00%

20.00%

10.00% 21.37%

7.26%
3.45% 1.79%
0.00% 0.40%
Supermarkets Local corner shops Online Malls Bulk orders with Others
consumer group

41
Table 4.4.4: Reason to purchase groceries from their preferred outlets.

Reason to purchase groceries No of respondents Percentage


Quality 130 52.02%
Convenience 43 17.34%
Nearby 21 8.47%
Fresh 38 14.90%
Trust 8 3.23%
Price 5 2.02%
Safe 5 2.02%
Total 250 100%

Interpretation: About 52% of respondents chose quality as their primary reason for their grocery
shopping in their preferred outlets and second preference is convenience about 17% and least
preference given to price and safe.

Figure 4.4.4:
60.00%

50.00%
Percentage of Total No of Records

40.00%

30.00%
52.02%

20.00%

10.00%
17.34% 14.90%
8.47%
3.23% 2.02% 2.02%
0.00%
Quality Convenience Nearby Fresh Trust Price Safe

Axis Title

42
Table 4.4.5: Number of respondent’s shop groceries online

Respondents shop online No of Respondents Percentage

Yes 116 46.4

No 134 53.6

Total 250 100%

Interpretation: About 46.4% of respondents agreed that they shopped groceries online and 53.6%
agreed that they haven’t shopped groceries online.

Figure 4.4.5:

56

54

52
Percentage of No of Respondents

50

48 53.6

46

44 46.4

42
YES NO

43
Table 4.4.6: Reason to think online grocery stores as beneficial

Factors No of Respondents Percentage


Easy to order 84 72.17%
Variety at one shop 10 8.70%
Discounts and offers 9 7.82%
Saves time 10 8.70%
Avoid long queues 3 2.61%
Total 116 100%

Interpretation: Most of the consumers around 72% chose easy to order as their primary preference
and varieties, discounts and offers as their second preference. The least preference was given to avoid
long queues.

Figure 4.4.6:

80.00%

70.00%

60.00%
Percentage of No of Respondents

50.00%

40.00%
72.17%

30.00%

20.00%

10.00%

8.70% 7.82% 8.70%


0.00% 2.61%
Easy to order Variety at one shop Discounts and offers Saves time Avoid long queues

44
Table 4.4.7: Frequency of grocery shopping
Frequency No of Respondents Percentage
Everyday 9 8%
Once a week 52 44.8%
Once a month 22 19.2%
Others 33 28%
Total 116 100%

Interpretation: About 44.8% of the respondent’s shop groceries once a week and about 28% of
respondents chose others i.e., they shop groceries whenever there is necessary. Least preference is
given to everyday i.e., only 8% of respondents shop groceries every day.

Figure 4.4.7:

120%

100.00%
100%
Percentage of No of Respondents

80%

60%

44.80%

40%

28.00%

19.20%
20%

8.00%

0%
Everyday Once a week Once a month Others Total

45
Table 4.4.8: Spending on groceries
Spending No of Respondents Percentage
100-500 10 9.02%
501-1000 42 36.11%
1001-5000 51 44.23%
5001 and above 13 10.4%
Total 116 100%

Interpretation: Majority of respondents i.e., 44% spend 1001-5000 and 36% of consumers spend
501-1000 on groceries. About 70% of respondents spend 501-5000 on groceries.

Figure 4.4.8:

50.00%

45.00%

40.00%

35.00%
Percentage of No of Respondents

30.00%

25.00%

44.23%
20.00%
36.11%

15.00%

10.00%

5.00% 9.02% 10.40%

0.00%
100-500 501-1000 1001-500 5001 and above

46
Table 4.4.9: Need to shop online

Need to shop online No of Respondents Percentage


When I need home delivery 73 63.21%
When I want something unique 2 2.11%
and special
When I need to compare prices 6 5.17%
When I don’t have the time to 33 28.01%
find things by different markets
Others 2 1.5%
Total 116 100%

Interpretation: About 63% of respondents when they need home delivery, they prefer to shop
groceries online and about 28% of respondents when they don’t have prefer to shop online.

Figure 4.4.9:
70.00%

60.00%

50.00%
Percentage of No of Respondents

40.00%

63.21%
30.00%

20.00%

28.01%
10.00%

5.17%
0.00% 2.11% 1.50%
When I need home When I want When I need to When I don’t have the Others
delivery something unique and compare prices time to find things by
special different markets

Table 4.4.10: Features in online shopping that attracts customers


47
Features No of Respondents Percentage
Design of a website 19 16.52%
Discounts offered 63 53.91%
Advertisement 11 9.57%
Variety 18 15.65%
Value for money 3 2.61%
Dynamic range 2 1.74%
Total 116 100%

Interpretation: Most of the customers about 53% chose discounts offered as their main attractive to
shop groceries online and second preference was given to design of a website and least preference
was given to dynamic range.

Figure 4.4.10:
60.00%

53.91%

50.00%

40.00%
Percentage of No of Respondents

30.00%

20.00%
16.52% 15.65%

9.57%
10.00%

2.61% 1.74%
0.00%
Design of a Discounts offered Advertisement Variety Value for money Dynamic range
website

48
Table 4.4.11: Premium pay for delivery of groceries

Premium No of Respondents Percentage


Not ready to pay premium 59 50.43%

10% more 51 44.35%


20% more 4 3.48%
30% more 2 1.74%
Total 116 100%

Interpretation: About 50% of consumers are not ready to pay the premium for delivery of groceries
and about 44% of consumers are ready to pay 10% more on normal price of groceries.

Figure 4.4.11:

60.00%

50.43%
50.00%

44.35%
Percentage of No of Respondents

40.00%

30.00%

20.00%

10.00%

3.48%
1.74%
0.00%
Not ready to pay premium 10% more 20% more 30% more

49
Table 10.12: Issues regarding online grocery shopping
Factors No of Respondents Percentage
No guarantee 34 28.70%
Possibility of forgery 40 34.78%
Product highly priced 10 8.70%
Internet clutter 3 2.61%
Security issue 12 10.43%
Physical examination 13 11.30%
Time delay 4 3.48%
Total 116 100%

Interpretation: Most of the respondents (34%) opinion possibility of forgery as their main issue
regarding online grocery shopping, second issue was no guarantee and customers doesn’t consider
internet clutter as issue to shop groceries online.

Figure 4.4.12:
40.00%

34.78%
35.00%

30.00% 28.70%
Percentage of No of Respondents

25.00%

20.00%

15.00%
11.30%
10.43%
10.00% 8.70%

5.00% 3.48%
2.61%

0.00%
No guarantee Possibility of Product highly Internet clutter Security issue Physical Time delay
forgery priced examination

50
Table 4.4.13: Factors which satisfies the customer

Factors Not important Somewhat Very important Percentage for


important Very important

User friendly 6 36 74 63.6%


Adequate search 2 41 73 62.93%
options
Product 8 31 77 66.38%
assortments
Payment options 6 34 76 65.52%
Offers and 7 7 102 87.93%
discounts
Free shipping 16 32 68 58.62%
Id and Password 16 33 67 57.76%
Tracking of items 5 24 87 75%
Order 5 23 88 76.72%
Confirmation

Interpretation: About 87.93% of consumers chose offers and discounts as their main factor to shop
groceries online, second preference was given to order confirmation through message or call etc and
least preference was given to id and password of their delivery service app.
Figure 4.4.13:
100
90
80
70
Percentage of No of Responents

60
50
87.93
40 75 76.72
63.6 62.93 66.38 65.52
30 58.62 57.76
20
10
0
ly ns ts ns ts in
g
or
d s on
e nd tio en tio oun pp w ite
m
ati
fri op
rtm to
p sc sh
i ss of rm
r h so di Pa nfi
Us
e rc as en d ee d in
g o
s ea ct ym an Fr an ck rC
u Pa s Id a de
te od er Tr
qua Pr Off Or
e
Ad

Table 4.4.14: Waiting time


51
Waiting time No of Respondents Percentage

Within 3 hours 30 25.86%

Within 3 to 6 hours 42 36.21%


Within 6 to 9 hours 35 30.17%

24 hours 9 7.76%

Total 116 100%

Interpretation: About 36.21% of consumers preferred their waiting time for grocery delivery from 3
to 6 hours and only 7.76% of consumers preferred their waiting time as 24 hours.

Figure 4.4.14:

40.00%

35.00%

30.00%
Percentage of No of Respondents

25.00%

20.00%
36.21%

15.00% 30.17%
25.86%

10.00%

5.00%
7.76%

0.00%
Within 3 hours Within 3 to 6 hours Within 6 to 9 hours 24 hours

52
4.5 HYPOTHESIS TESTING

1. Null Hypothesis (Ho): There is no association between age of consumers based and
internet clutter.
Alternative Hypothesis (H1): There is association between age of consumers and internet
clutter.

Table 4.5.1: Association between age of respondents and internet clutter


Case Processing Summary

Cases
Valid Missing Total
No of Percentage No of Percen No Percentag
Respondents Respondents tage of e
Resp
onde
nts
Association between age of
respondents and internet 116 100% 116 100% 116 100.0%
clutter

GROUP STATISTICS

Internetclutter * Age Crosstabulation


Count
Age
old people Young people Total
Internetclutter No 4 97 101
Yes 0 15 15
Total 4 112 116

53
CHI-SQUARE TEST

Chi-Square Tests
Asymptotic
Significance (2- Exact Sig. (2- Exact Sig. (1-
Value df sided) sided) sided)
Pearson Chi-Square .615a 1 .433
b
Continuity Correction .001 1 .979
Likelihood Ratio 1.129 1 .288
Fisher's Exact Test 1.000 .570
Linear-by-Linear Association .610 1 .435
N of Valid Cases 116
a. 2 cells (50.0%) have expected count less than 5. The minimum expected count is .52.
b. Computed only for a 2x2 table

INTERPRETATION:
Since p = 0.433 is more than significance level 0.05, we reject the alternate hypothesis and
accept null hypothesis.

INFERENCE:
The chi-square test is conducted between age of respondents which is divided into two groups which
are younger adults and older adults and their familiarity with the technology which is based on the
research paper “The impact of aging on access to technology” by czaja. The test conducted is
extension of this paper i.e., age of respondents based on familiarity with technology and internet
clutter.
Since, the null hypothesis is accepted and alternate hypothesis is rejected, hence there is association
between age of consumers and internet clutter.

54
4.5.1 FINDINGS:
 The study revealed that age group of 18-24 are more intended to do online grocery
shopping and these numbers are bound to increase with increasing age, in the future
about 70% of this age group will start using the online services.
 Out of total respondents about 65% prefer supermarkets to shop groceries and next preference
is given to Local corner shops and then online grocery shopping. Least preference is given to
malls, from this supermarkets and local corner shops are major competitors for online
shopping.
 About 52% of respondents chose quality as their primary reason for their grocery shopping in
their preferred outlets and second preference is convenience about 17% and least preference
given to price and safe.
 About 46.4% of respondents agreed that they shopped groceries online and 53.6% agreed that
they haven’t shopped groceries online.
 Most of the consumers around 72% chose easy to order as their primary preference and
varieties, discounts and offers as their second preference. The least preference was given to
avoid long queues.
 About 44.8% of the respondent’s shop groceries once a week and about 28% of respondents
chose others i.e., they shop groceries whenever there is necessary. Least preference is given to
everyday i.e., only 8% of respondents shop groceries every day.
 Majority of respondents i.e., 44% spend 1001-5000 and 36% of consumers spend 501-
1000 on groceries. About 70% of respondents spend 501-5000 on groceries.
 About 63% of respondents when they need home delivery, they prefer to shop groceries online
and about 28% of respondents when they don’t have prefer to shop online.
 Most of the customers about 53% chose discounts offered as their main attractive to shop
groceries online and second preference was given to design of a website and least preference
was given to dynamic range.
 About 50% of consumers are not ready to pay the premium for delivery of groceries and about
44% of consumers are ready to pay 10% more on normal price of groceries.
 Most of the respondents (34%) opinion possibility of forgery as their main issue regarding
online grocery shopping, second issue was no guarantee and customers doesn’t consider
internet clutter as issue to shop groceries online.
 About 87.93% of consumers chose offers and discounts as their main factor to shop groceries
online, second preference was given to order confirmation through message or call etc and
least preference was given to id and password of their delivery service app.
 About 36.21% of consumers preferred their waiting time for grocery delivery from 3 to 6
hours and only 7.76% of consumers preferred their waiting time as 24 hours.

55
4.5.2 CONCLUSIONS
The overall study shows the consumers found online groceries shopping successful because it is easy
to order and discounts offered by online stores to consumers. It is found that consumers are facing
issues in terms of forgery of grocery items, as consumers think possibility of forge is the main
problem faced by them in online shopping of groceries. It is revealed there is no association
between age of consumer based on their familiarity with technology and internet clutter.

4.5.3 RECOMMENDATIONS
1. As most of the customers preferred to shop groceries in supermarkets and local corner shops
over online grocery stores due to main factors like quality, convenience and fresh. So, it is
important for online grocery stores to maintain the quality of groceries and delivery of fresh
groceries and to make more convenient for consumers to order groceries.
2. It is important for online grocery stores to provide discounts on groceries for the consumer as
most of the consumers preferred discounts offered as the main factor that attracts them to shop
online.
3. Online grocery stores should always mail or message the consumer’s order confirmation, in
the research most of the consumers preferred order confirmation factor satisfy them most.

56
BIBILOGRAPHY
[1] Ranadive, An Empirical Study on the Online Grocery Shopping Intentions of Consumers
in Vadodara City, International Journal of Management and Social Sciences Research
(IJMSSR)
ISSN: 2319-4421 Volume 4, No. 3, March 2015

[2] Vijayasarathi. R, predicting consumer intentions to use online shopping: the case for
an augmented technology acceptance model, in journal of information and management
volume 41, issue: 6, July 2004

[3] Kaur, Shukla, Consumer’s Attitude for Acceptance of Online Grocery Shopping in India,
International Journal of Current Research, Volume 9, Issue 05, May 2017

[4] Sathiyaraj, Kumar, Subramani, Consumer Perception Towards Online Grocery Stores,
Zenith International Journal of Multidisciplinary Research, Volume 5 (6), June

57
ANNEXURE

A study on consumer perception towards online grocery stores Greetings!


This is a study on consumer perception towards online grocery stores. The information
collected through this questionnaire shall be kept confidential.
Thank you for your time.

1. Name

2. Gender

a. Male
b. Female
c. Prefer not to say

3. Age

a. 18-24
b. 25-31
c. 32-38
d. 39-45
e. 46-52
f. 53 and above

4. Occupation
a. Service
b. Self Employed
c. Business Homemaker
d. Student
e. Others

58
5. Where do you prefer to do your grocery shopping?

a. Supermarkets
b. Local corner shops
c. Online
d. Malls
e. Bulk orders with consumer group
f. Others

6.What is your important reason of purchase from the above outlets?

Quality Convenience Nearby Fresh Trust Price Safe

1st
choice
2nd
choice
3rd
choice
4th
choice
5th
choice
6th
choice
7th
choice

7. Do you use online shops and delivery services for grocery shopping?

a. Yes
b. No

59
8. If yes, why do you think it is beneficial?

a. Easy to order
b. Variety at one shop
c. Discounts and offers
d. Saves time
e. Avoid long queues
f. Others
9.How often do you shop for food?

a. Everyday
b. Once a week
c. once a month
d. Others

10.How much do you spend on grocery?

a. 100 – 500
b. 501 – 1000
c. 1001 – 5000
d. 5001 and above

11.When do you feel the need to shop online?

a. When I need home delivery


b. When I want something unique and special
c. When I need to compare prices
d. When I don't have the time to find things by different markets
e. Others

12.What features in online shopping website attracts you?

a. The design of a website


b. Discounts offered
c. Advertisement
d. Variety
e. Value for money
f. Dynamic range
g. Others

60
13.What would be the premium you would pay for delivery of groceries?

a. I will not pay premium


b. I am ready to pay up to 10% more than the normal price
c. I am ready to pay up to 20% more than the normal price
d. I am ready to pay up to 30% more than the normal price

14.What are your issues regarding online grocery shopping?

a. No guarantee
b. Possibility of forgery
c. Product highly priced
d. Internet clutter
e. Security issue
f. Physical examination
g. Time delay
h. Others

15.While shopping what affects your satisfaction the most?

Not important Somewhat important Very important

User friendly

Adequate search
options Product
assortments Payment
options
Offers and discounts
Free shipping
Id and password
Tracking of items
Order confirmation screen

61
16.How much waiting time, according to you is justified for delivering basic everyday amenities?

a. Within 3 hours
b. Within 3 to 6 hours
c. Within 6 to 9 hours
d. 24 hours
e. Others

17 What grocery items do you think online services must have in their inventory, which you find
difficult to get in other outlets?

62

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