Introduction

Aava Natural Mineral Water – a one man show as called by Behram Mehta – the owner of
Aava Natural Mineral Water, has been strengthening its roots in the state of Gujarat in western
India and is now planning to spread its wings in further states of Rajasthan, Maharashtra, Goa
and Karnataka. Aava in a very short span of time has become a potential market leader with
capturing almost 22% of market share in natural mineral water segment. The main reason for
this success is said to be its natural form of production and steps taken to maintain its sanctity
till it is bottled. The four quality certifications (ANSI, ASQ, BIS & ISO) has led to some very
successful client list such as Air India, Ramada Group, ITC Welcome and many more leading
service industry players. Aava has been performing well in the market but is still facing a tough
competition from the older players. The company has been earning huge profits of 25% which
has been identified as a driving force in the particular industry. Despite having a strong network
base in the state of Gujarat, it has not been a dominant supplier of bottled mineral water. The
only question remains here is that is it advisable to expand its horizon to the southern states
since the cost of transportation is very high and will be increasing as the demand increases and
how crucial it is for the company to increase its sales volume by market penetration.

1|Page
Challenges

One of the biggest challenges being faced by Aava Natural Mineral Water is maintaining the
cost of transportation at the minimum level possible. Though the case provides no further
details about the transportation cost but it does mentions that this is the major cost in the
company. Furthermore, Aava Natural Mineral Water will be facing difficulty in establishing
brand image and penetrating the market of lower tier cities because of the tough competition
from Himalaya and Bisleri.

2|Page
3|Page