WINNING STRATEGY FOR HIL’S

WATER PURIFIER

BY | GROUP 14
AASHUTOSH | JB | KAUSHIK | KRUTIKA | SUMIRAN | VACHA
Water Purifier Market - India
Robust growth in the market is anticipated on
$603 Size of the market in 4 mn account of:
mn 2016 units
● Growing water pollution owing to rising
industrialization
● Increasing health concerns and consumer
awareness about importance of clean water
● Expanding middle class population and rising
21% CAGR projection in value terms
per capita income levels.
● High concentration of fluoride and arsenic in
water across various geographies in the
country.

Projected to reach $ 4,277 million First time users still account for 65-70 percent of
by 2026 the market, with only 30-35 percent coming from
replacement sales
Potential for Water Purifier Industry
● Under penetrated category
● Market Penetration = 1.20% [Total Population = 132.42 crores, No. of households = 33.105
(Assuming avg. members per household = 4); Unit sales in 2017 = 4 mn]

● Penetration in rural India is even lower due to economic factors and poor sales and distribution
networks.
● Less than 5% of the country’s rural market is currently being addressed.
● The share of rural sales is steadily increasing with the introduction of affordable offline water
purifiers.
Competitive environment
Water purifier market in India is divided into organised and unorganised segments

Key Players in the organised segment :

● Eureka Forbes
● Kent RO Systems
● Hindustan Unilever
● Ion Exchange
● Luminous Water Technologies
● Tata Chemicals
● Okaya Power Limited
 HIL’s present status in the category
New product launch

Delhi - December launch

1000 units

Present market size of HIL and potential

HIL targeting - 100 cr in first year - 2.5/3 % of unorganised market share

4-5 yrs - Top 3 players - 500 cr market

 Key Consumer Benefits
Futuristic Design
Aesthetically appealing products - developed from in-depth consumer understanding

Best in Class Technology

Unique multi stage 100% RO & UV purification - assured safety across price points
Minerals - essential natural minerals deliver balanced pH & mineral fortified safe and healthier water
Double UV purification - round the clock freshness
Revitalizer - re-structures water molecules - makes biologically active to improve hydration and improve mineral
absorption

Advanced Consumer Friendly features

iProtect purification monitoring | Convenient multi fill programmable dispensing options - ease of operation
Feather touch user interface | Process indicator | Maintenance error alert - trouble free operation
Zero splash hygienic water dispensing
Positioning vis-a-vis competitors
a. First RO that can be mounted in a corner-small houses in india
Product b. Touch phone model- status updated
Differentiation c. Color design also differentiated
d. Make in india- inhouse production in haridwar

Innovation Dedicated centre for research - Continuously innovating

Pricing Price positioning and maintenance cost-exactly in line with competitors

Distribution Strong distribution network

Service Focussing on building an in-house after-sales service team

Experience Far advanced customer experience as compared to competitors

Future Challenges
● Increasing Number of Unorganized Players manufacture, assemble, and sell water purifiers at
competitive rates. They primarily operate in the local markets and take benefit of the nonexistence
of any certification or quality norms.
● Highly competitive market where competitors constantly indulge in implementing innovative
marketing strategies such as free demo, free installation charges and others to gain competitive
advantage and differentiate their product offerings.
● Increasing demand of substitutes - Rising health consciousness and expansion of the reach of
packaged drinking water is increasing people’s preference for the same. Similarly, Government’s
initiatives to make pure drinking water accessible to all, like Water ATMs etc. are a major challenge
in the road of water purifier market growth.
● Reaching out the huge untapped rural market - It is important to expand the reach to the rural
market and develop distribution channels for the same.
● Changing customer perception: Most of the people believe that boiling water makes it healthy and
safe for drinking. The importance of water purifiers and additional benefits need to be explained.
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Water Purifier Ad

https://www.youtube.com/watch?v=c5SRlsnJNj0
THANK YOU