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A
SUMMER PROJECT REPORT ON
“ ANALYSIS OF DISTRIBUTION EFFICIENCY OF
BISLERI IN NOIDA”
Under the guidance of
Bisleri International Pvt. Ltd., Shahibabad
Submitted byRAJEEV KUMAR
In partial fulfillment for the award
of
MASTER OF BUSSINESS ADMINISTRATION
Mangalmay Institute Of Management & TechnologyMahamaya Technical University, Noida
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BISLERI INTERNATIONAL PVT LTD, SAHIBABAD
Report Submitted for the Partial Fullfilment of the Degree of MASTER OF BUSINESS ADMINISTRATION (Affiliated to Mahamaya Technical University , Noida) (2011 – 2013)
SUBMITTED TO SUBMITTED BY MR.SANJEEV SINGH RAJEEV KUMAR Sr.EXECUTIVE –HR M.B.A 3RD SEM. BISLERI INTERNATIONAL MIMT (P) LTD.SAHIBABAD(U.P) ROLL NO-1115270102
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DECLARATION
I, RAJEEV KUMAR , hereby declare that the project work entitled of the
award of the of MASTER OF BUSSINESS ADMINISTRATION.
“ANALYSIS OF DISTRIBUTION EFFICIENCY OF BISLERI ”
At Noida is an authenticated work carried out by me at Bisleri International
Pvt. Ltd. Shaibabad. in the supervision of Mr. ARUN SHARMA for the
partial fulfillment and this work has not been submitted for similar purpose
anywhere else except to Mangalmay institute of management, Greater Noida
affliated to MAHAMAYA TECHNICAL UNIVERSITY , NOIDA.
Date:Place: RAJEEV KUMAR
MIMT
(2011-13)
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ACKNOWLEDGEMENT
Any work visible is not the effort the presenter only,but there are many others behind the camera and my report also is is not an exception to this . so, in the process of recognizing the efforts of those behind the scen,I take immense pleasure in thanking “BISLERI INTERNATIONAL PVT LTD SAHIBABAD” for their permission to do this project in this esteemed organization
I would like to thank Mr.GAURAV CHHABRA(MANAGER CORPORATE RELATION MIMT) for their kind cooperation and constant encouragement
I take this opportunity to express my deep gratitude to Mr.MUKESH AGGARWAL (SALES MANAGER) for their invaluable guidance insipiration and offcorse moral support through my project session.
I would like to pay cordial thank to Mr.SAYED FARID ALI (Sr. SALES EXECUTIVE) and Mr.ARUN SHARMA (SALES OFFICER) for their continuous guidance, keen interest cooperation suggestion through out the project
I am deeply indebted top Prof.SANDEEP SHARMA and the faculty member of institute MANAGALMAY INSTITUTE OF MANAGEMENT & TECHNOLOGY, MAHAMAYA UNIVERSITY, NOIDA for giving me the opportunity for this project
Rajeev kumar (MIMT)
(2011-13)
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INTRODUCTION
GENESIS
The name that epitomizes mineral water today was first introduced in Mumbai
in the early 60's. In 1965 Signor Felice Bisleri an Italian by origin, came up with
the idea of selling bottled water in India. His company Bisleri Ltd. offered
mineral water in two Variants- bubbly and still.
In 1969 Parle bought over Bisleri (India) Ltd. and started bottling Mineral water
in glass bottles under the brand name 'Bisleri'. In due course Parle switched over
to PVC non-returnable bottles and finally advanced to PET containers.
EXPANSION
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Under the leadership and vision of Mr. Ramesh J. Chauhan, Bisleri has
undergone significant expansion in their operations. The company has
witnessed an exponential growth with their turnover multiplying more than
twenty times in a short span of 10 years. The average growth rate over this
period has been around 40% with Bisleri enjoying more than 60% of the market
share in the organized mineral water segment.
Currently Bisleri has 11 franchisees and 8 plants across India, with plans of
setting up 4 new plants on the anvil. The overwhelming popularity of 'Bisleri'
and the fact that it was the pioneer of the bottled water industry in India has
made it synonymous to Mineral water and a household name. So naturally
'When you think of bottled water, you think Bisleri'.
Rigorous Research and Development and stringent quality controls have made it
market leaders in the bottled water segment. Bisleri has always been committed
to offering every Indian pure and clean drinking water. Hence Bisleri water is
put through multiple stages of purification, ozonisation and is hygienically
packed for final consumption.To maintain strict quality controls in every unit,
Bisleri not only purchase caps from approved vendors, but also manufacture
own bottles, in-house. To be at par with International standards, they have
recently procured the latest state-of-the-art machinery which has not only
helped them improve packaging quality but has also reduced raw material
wastage and doubled production capacity. One can rest assured that they are
drinking safe and pure water when they consume Bisleri. Bisleri is free of
impurities and is 100% safe. Enjoy the sweet taste of Purity!
BISLERI TODAY
The Indian consumer today enjoys the sweet and pure taste of Bisleri mineral
water. However in an effort to offer something special to there loyal consumers
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they have recently introduced Bisleri Natural Mountain Water - water brought
to consumers from the foothills of the mountains situated in Himachal Pradesh.
This newly launched offering has widened Bisleris product range to two
variants: Bisleri with added minerals and Bisleri Mountain Water. Bisleri’s
registered office is in Mumbai.
VISION
Our vision is to be the dominant player in the branded water business where the
second player is less than 20% of our business.
MISSIONWe are in the business to serve the customer. He is the most important person.
He is the only one who pays. He deserves the best quality and presentation at a
worth of the price. We must have world class quality, at the lowest production
& distribution cost. This will make us an unbeatable leader, and will have
satisfied loyal customers.
VALUES
Integrity, Leadership, Teamwork, Co-operation, Quality, Passion, Openness &
Transparency.
PRODUCTS
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Bisleri has developed 8 unique pack sizes to suit the need of every individual. It
is present in 250ml cups, 250ml bottles, 500ml, 1L, 1.5L, 2L which are the non-
returnable packs & 5L,10L 20L which are the returnable jar packs.
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BISLERI WITH ADDED MINERALS
This product is bottled drinking water at its best. Bisleri with added minerals
has a TDS count (total dissolved solids count) of approximately 100. It contains
minerals such as magnesium sulphate and potassium bicarbonate which are
essential minerals for healthy living. They not only maintain the pH balance of
the body but also help in keeping one fit and energetic at all times.
Bisleri with added minerals is also put through multiple stages of purification to
ensure the elimination of all forms of bacteria. This makes the water you drink
completely safe to consume. Bisleri with added minerals is available in 250ml
cups, 250ml bottles, 500ml bottles, 1 litre bottles, 2 litre bottles and 5 and 20
litre cans.
BISLERI MOUNTAIN WATER
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Bisleri Natural Mountain emanates from a natural spring, located in Uttaranchal
and Himachal nestled in the vast Shivalik Mountain ranges. Lauded as today's
'fountain of youth', Bisleri Natural Mountain Water resonates with the energy
and vibrancy capable of taking you back to nature.
Bisleri Natural Water is bottled in its two plants in Uttaranchal and Himachal
Pradesh and is available in six different pack sizes of 250ml, 500ml, 1 litre, 1.5
litre, 2 litre and 5 litres.
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7 STAGES OF PURIFICATION
Every drop of Bisleri water is purified as per international standards to ensure
that customers Bisleri experience always remains pure and satisfying for longer.
The following is a brief understanding of the water treatment process.
CHLORINATIONKills micro organisms. Remove organic matter.
ARKAL FILTER
Removes suspended matter and turbidity.
CARBON FILTER
Removes residual chlorine & odours
REVERSE OSMOSIS
Removes organic material. Controls total dissolved solids in the water.
ADDITION OF MINERALS
For the purpose of maintaining a balanced mineral content.
MICRON FILTRATION
Additional safety measures to guarantee purity.
OZONATIONEnsures water remains bacteria free for longer life.
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CHLORINATIONKills microorganisms. Removes organic matter.
SAND FILTERRemoves suspended matter and turbidity.
CARBON FILTERRemoves residual chlorine and odours.
REVERSE OSMOSIS SYSTEMControls total dissolved solids [TDS]
Perfectly pure water shipped to you in diferent packs.
OZONATIONEnsures water remains bacteria free for longer shelf life.
ULTRAFILTRATIONRemoves bacteria and makes water sparkling clean.
MICRON FILTERSAdditional safety measure of filtration.
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PACKAGING
The most critical aspect of Bisleris bottling process that sets them apart from the
rest of the industry is the fact that there bottles remain untouched right through
the rinsing, filling, capping and labeling operations.
FILLING
Bottles are fed by an air conveyor from the blowing unit directly into the in-feed
of the RFC. Our RFC equipment is neck run and it boasts of a monoblock unit,
which means that every bottle is held by the neck automatically while being
inverted, rinsed and sprayed with ozonated water at 2 Bar pressure. After
draining, the bottles are re-inverted and transferred to the filler. At the filler
these bottles are straightened up and gradually lifted to the filling valves which
open only when a bottle is placed under them. Filling is then done
systematically through gravity.
CAPPING
After the filling process the bottles are then transferred to the capping section.
Here ozonated-water rinsed caps are screwed on the bottle with uniform torque.
Since our water is ozonated all product contact parts are of 316L grade stainless
steel and the rubber parts are of EPDM. (All components are water lubricated
above the table top.)
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LABELLINGFrom the capping section the bottles are directly sent to the labeling section. All
Bisleri bottles are labeled on a hot melt reel feed BOPP labeling machine. This
machine allows each individual bottles to be spaced out and fed to the labeling
station where precisely cut labels with a strip of hot melt glue at the leading and
trailing edge, get rolled around the bottle. These labels are fed into the machine
in a roll form too.
QUALITY CHECK
From here on, the bottles go through an online check where qualified personnel
inspect each bottle for any leaks or breakages. They are then packed into sturdy
cartons which are dispatched to the market by our fleet of trucks.
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COMPETITORS
The bottled water industry is one of the most thriving sectors in India. The
market is growing at a whopping rate of about 55 per cent annually and is
expected to cross Rs. 1000-crore mark within the next couple of years.
Almost all major national and international brands have taken a plunge. Parle's
Bisleri that virtually monopolised the bottled water market is now vying with
Nestle, Coca Cola, PepsiCo, Manikchand, UB and Britannia. According to a
national-level study, there are close to 200 bottled water brands in India. Nearly
80 per cent of these are local brands.
MAJOR COMPETITORS IN REGION
AQUAFINA
Aquafina is a brand of Pepsi co. It was first distributed in Wichita, Kansas in
1994, and was distributed across the United States, Canada, Turkey, Saudi
Arabia, Vietnam, Pakistan and India. As of 2003, it had become the United
States' top-selling bottled water brand in measured retail channels. Aquafina
uses PepsiCo's own seven-step purification system, which it calls HydRO-7,
which includes pre-filtration treatment to remove larger particles, two stages of
polishing filtering, charcoal filtration, reverse osmosis, ultraviolet and ozone
sterilization [1]. PepsiCo states in marketing material that this system removes
substances that may be in other brands of bottled water.
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Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns
established distribution network.
Now when we talk about the market, there are various startegies used by
Aquafina in Rajasthan. Like they are giving away free water bottles to retailers
with purchase of cola cartons and they are not letting any other drink to be
stored inside the refrigerators provided by them to the retailers. In that case
small retailers are unable too keep Bisleri bottles cold and propsing one of the
major reason to not to buy Bisleri then to buy any other water. Consumer
always ask for cold water because of heat in Delhi.
KINLEY
Kinley is owned by The Coca-Cola Company and sold in many Central
European countries and India. Its carbonated forms are used for mixers, and also
available in a variety of fruit flavors.
The Kinley brand is used by Coca-Cola for two types of drinks:
-A Carbonated water with a wide array of variants: tonic, bitter lemon, club
soda and fruit flavored. Available in Austria, Belgium, Bulgaria, Czech
Republic, Denmark, El Salvador, Germany, Hungary, India, Israel, Italy,
Lithuania, Luxembourg, Maldives, Moldova, Nepal, Netherlands, Norway,
Poland, Romania, Slovakia, Sweden, Switzerland, United States, West Bank-
Gaza and Zambia.
A High quality bottled water available in Bangladesh, Bulgaria, India,
Maldives, Nigeria and Pakistan.
When we talk about the market Kinley also follows similar strategies to
Aquafina of giving away free water bottles with there cola cartons and not
letting retailers kep any other product inside there complimentary refrigerators.16
BAILLEY
Bailley, brand is owned by Parle Agro Pvt. Ltd. Parle Agro’s other products are
Frooti, Appy, LMN, candies like mintrox etc. It is the first water brand to be
issued an ISI certification. The first to launch special four-sided 200ml bottles
catering to premium airlines like Jet Airways and British Airways. Bailley is
available in 200ml, 330ml, 1 Ltr. & 2 Ltr. PET.
The reason behind Bailleys success is that they are offering bottles to the
retailers at very low price hence giving them opportunities to gain considerable
margins. In few areas Bailley distributers were supplying water at nominal price
of five rupees to the retailers. Retailers believe that brand name does not make a
difference when it comes to water and they always go for cheaper available
variant to them.
KINGFISHER
Kingfisher is mainly a beer brand manufactured and marketed by united
breweries ltd. It is one of the largest selling beer in country commanding a 29%
market share in country. Its not been very long since it entered into Packaged
drinking water segment. The only strategy behind this was diversification
henceforth emerging as one of the main competitors to Bisleri. Kingfisher also
makes use of its already set network and it’s a major supplier of water to wine
shops.
FOSTERS
Based in Melbourne, Australia, and publicly listed on the Australian Stock
Exchange, Foster's products are sold in over 100 countries. They have around
200 premium brands, and operations stretching over to five continents. Fosters
beer is very popular in India among youth that creates a kind of loyalty to the
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brand further showing a glimpse in packaged drinking water segment. Fosters
also use low price strategy to sell its packaged drinking water in market.
OTHER COMPETITORS IN MARKET
ALFA
ATLAS
GOLDEN EAGLE
GOLDEN VALLEY
DEW DROPS
HELLO
HIMALAYAN
INTIMATE
KENABAR
NAKSHATRA
NESTLE PURE LIFE
PRISTINE
RAINDROPS
SUN
SPRINT UP
SPA AQUA
GAGAN
VINAYAK
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MINERAL WATER INDUSTRY“CURRENT MARKET SCENARIO”
A few years back, the mineral water market had been crawling at the rate
of 3-4%, or even a lower figure. Indians carried drinking water in earthen
pitchers, plastic or PUF bottles. But increasing cases of typhoid and other
waterborne diseases began to be reported. In addition to this,
liberalization happened and the mineral water industry began to be stirred
and shaken. The market started growing an astounding rate of over 100%
per annum. The fact that there were very few players in the market meant
that their business grew by leaps and bounds.
The market today has grown to Rs11bn. The organized sector -- branded
mineral water -- has only Rs5bn of market share. The rest is accounted
for by the unorganized sector, which is dominated by small regional
players. The market is still growing – at a rate greater than 80% per
annum. In the branded segment, Parle’s Bisleri is the market leader
with a share of more than 45%. Parle Agro’s Bailley comes a close
second with market share of 15%. Other major players in the market are
Yes of Kotharis, Ganga of T-Series, Himalayan, Hello, Nestlé’s Pure
Life, Pepsi’s Aquafina, Coca-Cola’s -Kinley Prime, and Florida
etc.Sensing the opportunity that this segment holds, MNCs began to draw
up plans to enter the market. Today the market is proving to be yet
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another battlefield for an ongoing battle between the Desi’s and MNC’s.
Last year the industry had around 170 brands. This figure is over 300
presently. The major foreign players are Coca-Cola promoted Kinley,
Pepsi’s Aquafina, Britannia’s Evian, Nestlé’s Perrier, Herbert sons and
Danone International.
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MARKETING
STRATEGY
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It is complete and an unbeatable plan designed specifically for attaining the
marketing objective of a firm. The marketing objective indicates what the firms
want to achieve. The marketing strategy provides the design for achieving
them the linkage between marketing strategies and overall corporate success is
indeed direct and vital. Realizing the marketing objectives is the purpose of two
generic categories.
1. price based
2. Differentiation based
The price based marketing strategy
A business that opts for the price route in its competitive battle will enjoy
certain flexibilities in matter of its product and use prices as main competitive
level. It will price its product to suit the varying competitive demands. It will be
enjoying certain inherent cost advantages, which permits it to resort a price
based fight. The major forms where such cost advantage can occurs are
economies of scale, absolute cost advantages. Benefits of early entry a large
market share build over a time. it provides freedom in the matter of pricing but
after producing a particular product and getting stuck in the face of the
competition , one can not successfully opt for a price led strategy .
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The differentiation based strategy
Marketing strategy based on differentiation works on the principle that any
aspect of the offer and any activity of the firm can be made distinctive
compared with the competiting offers. Right from technology, plant location to
post sale and service a company can perceptibly differentiate and many buyer
values. Companies usually choose those functions, which give them the greatest
relative advantage. Different firms adopts different strategy stances as their
situational design differ Broadly strategy stances can be classified under three
heads-
1) Offensive Strategy -
Offensive Strategy also known as confrontation strategy is a strategy of
aggression. A firm that is not presently the leader usually employs it, but
it aspires to leadership position in the Industry.
2) Defensive Strategy -
The leader who has the compulsion to defend his position against the
confrontation of powerful existing competitors or to dislodge the leader
from his topmost position usually employs it.
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3) Niche Strategy - A firm practicing the niche strategy neither confronts other
nor defends itself. It cultivates a small market segment for itself with unique
products / services supported by a unique marketing mix.
FORMULATING THE MARKETING STRATEGY-
Formulating the marketing strategy consists of two main steps-
1. Selecting the target market -
It does not fully bring out the import of the inseparable linkage between the
two. When the selection of the target market is over an important part of the
marketing strategy of the firm is already determined, defined and expressed.
2. Assembling the marketing mix-
Assembling the marketing mix means assembling the four p’s of
marketing in the right combination. The firm has to find out how it can
generate the best sales and profit. It plans different marketing mixes with
varying levels of expenditure on each element and tries to figure out the
effectiveness of each combination in terms of the possible sales and profit.
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ADVERTISING CAMPAIGN
OF BISLERI
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ADVERTISING CAMPAIGN OF BISLERI
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Every brand needs a good ad campaign to establish itself in the market.
So it becomes very imperative to look at various ad campaigns that
Bisleri undertook to build itself as a brand. Bisleri started its game plan
with the punch line of ‘Pure and Safe’ and used the same catch-line for
advertising. But with the advent of many new players, all claiming the
purity, it became very imperative for Bisleri to differentiate its product so
as to stand out in the market. Bisleri found the answer in ‘sealed cap
bottles’. It claimed 100% purity. While the bottles of the other brands, it
claimed, could be refilled with ordinary, or even germinated water,
Bisleri’s seal capped bottles ensured the consumer of purity of water and
single-used ness of the bottles. The ad showed a milk-man and a child
showering their buffaloes and filling the ‘so-called’ mineral water bottles
with the same water and packing them with the simple polythene seal and
the consumer not knowing about the ‘purity’ of the water he is drinking.
Next clip shows the Bisleri bottles being sealed with plastic caps and
ensuring the purity of water. The ad did work for Bisleri and it got its
much needed product differentiation.
In 2000, some giant brands like Pepsi and coca-cola entered the mineral
water industry with a big bang. Bisleri now had a big threat of
maintaining its market cap. While Coca-cola introducing its brand
‘Kinley’ as a health care product, Pepsi projected ‘Aquafina’ as
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something as pure as ‘Your own body’. Pepsi targeted the young
generation and introduced Aquafina as a fancy product to carry.
The ad campaign of Aquafina emphasized as ‘70% of your body is water’
and thus give your body the purest water. The ad showed young vibrant
models and created the atmosphere of youthfulness. Water, Pepsi
claimed, was no longer a simple beverage, but was something highly
fashionable. They complimented it by giving their bottles an attractive
look. This soon caught the eye of the consumer. All these factors made
Pepsi the biggest upcoming competitor of Bisleri (whereas Kinley lagged
behind the race, showing a doctor advising a family to take Kinley for
pure water – not a very attractive ad campaign).
Bisleri, to counter-attack the new ‘Feel-Young’ fever had to even bolder steps.
They first changed their base line from ‘Pure and Safe’ to ‘Play Safe’. They
tried a brand new ad campaign to catch the fancy of consumer. The new ad
showed a young romantic couple on a marooned island, when the girl
seductively attracts the guy and he follows her in trance. The moment he gets
hold of her, she whispers something in his ears. The next few shots show the
guy looking for something in frenzy…can not find it….rushes towards the
chemist’s shop….buys ‘something’ (keeping the audience in suspense…or
rather implicitly pointing for ‘……’). The girl opens it and….POOF….takes out
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a bottle of Bisleri and quenches her thirst. Caption: “Play Safe”. This
campaign was to catch the attention of youth and a new Indian society which is
supposed to be ‘not-so-prudish’. Thus Bisleri has taken a very bold step. The
T.V. ads have been complimented by print ads also. The company has to focus
on the marketing management of the product. In light of the challenge in front
of the company and its current strengths and position, we have incorporated the
marketing mix to counter the marketing strategies of the competitors by
developing its own marketing.
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PACKAGINGAND
DISTRIBUTION
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PACKAGING
Variety is spices of life. Today for any business organization to be successful it
has to provide its customer with the differentiated product that is a value buy for
them. In order to cater to the changing needs of the customer the business has to
continuously come out with the variants of the products so that it can target the
maximum segments.
Today Aqua Minerals offers a variety of packaging options: 1 lit, 2 lit, 5 lit, 20
lit. The 5 liter bottles account for 35 % of sales showing a growing health
concern among the Indian society. 1 liter bottles account for 30% of the share.
The 2 liters bottle introduced to slowly and steadily replace the conventional 1
liter bottle. The 5 liter packs, launched in dec. 1999 in Goa, now available
everywhere.
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DISTRIBUTION
It’s obvious that availability holds the key to the market .For any product to be
successful yhe distribution system has to be really good. Large tracts of the
country have not been explored by the national brands, which explain the
proliferation of smaller brands.
Bisleri’s strategy is to build a direct distribution system at an all India level that
means serious investment in company owned trucks and carts; this would make
it the largest fleet owner in the country. Bisleri has around 80,000 retail outlets
in the country with about 12,000 each in the Delhi and Mumbai. It is intended to
be increased this no. to 10,00,000 in order to expand brands reach.
The company will invest approximately Rs.200 cr. to procure 2000 trucks and
hire same no. of sales people. The company plans to have its own distribution
network in places where it has its own plant
DISTRIBUTION CHANNEL
Distribution (or place) is one of the four elements of marketing mix. An
organization or set of organizations (go-betweens) involved in the process
of making a product or service available for use or consumption by a
consumer or business user. ‘Marketing channels can be viewed as set of
interdependent organizations involved in the process of making a product
or service available for consumption or use’
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Role of distribution channels: To adjust the discrepancy of assortment through the process of
sorting, accumulation, allocation, and assorting
• To minimize the distribution costs through routinising and
standardizing transactions to make exchange more efficient and
effective
• To facilitate the searching process of both buyers and sellers by
structuring the information essential to both the parties
• To provide a place for both parties to meet each other and
reducing uncertainty
Distribution channel strategy: Setting distribution objectives in terms of the customer
requirements
• Finalizing the set of activities that are required to be performed to
achieve the channel objectives
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• Organizing the activities so that the responsibility of performing the
activities is shared among the entities who are meant to perform
these activities
• Developing policy guidelines for the smooth functioning of the
channel on a day to day basis
• Distribution channel management encompasses all activities
dealing with the distribution function of the firm
• The distribution strategy provides guidelines for decision making
• The distribution management function can be viewed as
happening in two phases: the ex ante phase and the ex poste
phase
• The ex ante phase involves all the activities that are associated
with the design and establishment of the distribution channel.
These activities actually take place before the distribution channel
actually starts functioning.
• The ex poste phase involves managing the day to day activities of
the channel wherein the behavior of the individual channel
members are coordinated.
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MARKETING MIX
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MARKETING MIX
The set of controllable tactical tools- product, price, promotion, and place
(4 Ps), that the firm blends to produce the response it wants, in the target
markets. The 4Ps
Product
The main product of the company is the mineral water by the name of
Bisleri Mineral water. Other than mineral water the company has also the
soda water under its brand name called the Bisleri Soda Water. The
concept of bottled mineral water was introduced in India, first by Bisleri,
and that is the reason, it has become a generic name for the mineral
water. Bisleri has become a perfect synonym of the mineral water for the
Indian consumers. The main challenge facing the company or any other
player in this mineral water industry is that there is no scope of invention
and innovation in the product, which can be added as the additional
benefits of the product. It is just water after all. This is what the Indian
customers think of the bottled water. If we are talking about a product
like television we can think that the innovations could provide extra
benefits derived from the product. For example other than its core usage
the product can provide for Internet facilities using conversion.
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Place
Place stands for the company activities that make the product available to
the target customers. To make the product available to the target
consumers a good distribution network has to be there to support the good
quality of the product. Here in the case of the mineral water industry the
distribution network is the important factor in being competitive and the
catch lies in making water available to maximum number of places in the
country.
DISTRIBUTION NETWORK:
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The small-scale players built their sales by piggybacking on the generic
category built up by Bisleri. It’s a battle that Bisleri can win by sheer
distribution muscle. One of the reasons why Bisleri is running strong in
this industry is its strong distribution network built over the years since
its inception. Further, Bisleri plans to increase its distribution network
over the southern and eastern region, where it is behind popular brands
like Team in TamilNadu and in Andhra Pradesh .
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PRICES FOR FOLLOWING PACKAGING VARIANTS
(AN ECONOMIC FACTOR AFFECTING THE BUYER’S BEHAVIOR)
Price is the sum of values that consumer exchange for the benefits of
having or using the product or service. Price is the only element in the
marketing mix that produces revenue. All other elements represent costs.
In India, where the majority of the population comprise of the middle-
income group and lower income groups it is not hard to understand that
pricing is one of the most important factor in the buying decisions.
Bisleri has met the expectations of the consumers in terms of pricing the
product and also making the product available in variations of liters,
making Bisleri both convenient and affordable. The company is following
a very aggressive pricing. Its product is available at a very reasonable
price.
500 ml. Rs. 8/-
1 Ltrs Rs. 15/-
2 Ltrs Rs. 22/-
5 Ltrs Rs. 40/-
20 Liters Rs. 70/-
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PROMOTION
Modern marketing calls for more than just developing a good product,
pricing it attractively, and making it available to the target customers,
companies must also communicate with their customers, and what they
communicate should not be left to chance.
A Company’s total marketing communications program- called its
Promotion Mix consists of specific blend of advertising, personal selling,
sales promotion, and public relations tools that the company uses to
pursue its advertising and marketing objectives .
MESSAGE CONTENT OF THE CAMPAIGN:
Bisleri that was looking for a differentiator decided to make the
breakaway seal the symbol of purity. The tamper-proof seal was
developed, around which the communication was woven. The campaign
stresses the safety provided by the breakaway seal by illustrating the ease
with which conventionally sealed bottles can be refilled and recycled.
The objective with the campaign would have been to highlight the
tamper-proof seal and create doubt in the consumer’s mind of the purity
of the other brands. That is, Bisleri is the only one that guarantees purity
and keeps you Safe.
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To conclude: We find that new advertisement campaign of Bisleri is eye
catching. This is what the company should do. And also the company
should make the message clearer to the customers that it has the patent
right over the breakaway seal. In the survey we found that the
consumers are aware of the breakaway seal but are not aware that the
company has the patent right.
Apart from a high dose of investments on expanding bottling capacities
and an ad budget that’s risen six-fold over last year, if Bisleri wants to
penetrate every possible segment of the market, it can do that by
introducing more pack sizes and establishing the brand strongly with
trendy new packaging.
Apart from creating consumer pull with campaign, the company, to
increase its sales would have to do the sales push as well. For that it would
have to give the retailers and other stockiest high trade margins and
incentives for keeping the product. This is very important in case of this
product because consumers would take up what is available to them at ease
and whatever retailer is giving.
43
COMPETITIONIN
MARKET
44
COMPETITION
The mineral water market is set to explode and hit the Rs.2, 000-crore
mark in the next couple of years. This is drawing the big guns attention.
First Britannia launched Evian. And recently, soft drinks giant Pepsi
entered the fray with Aquafina. Now, Nestle too is reportedly planning a
foray. Meanwhile, Parle Agro’s Bailey has been growing steadily. Small
local players too are breathing down Bisleri’s neck riding on better trade
margins and intensive distribution (in their respective areas of operation).
The competition facing Bisleri can be categorized into a few brand names
like
Parle Bailey
Pepsi Aquafina
Coca Cola Kinley
With Parle’s Bailey being the main competitor and second in market
share in the organized market, Bisleri faces tremendous competition from
the unorganized sector.
45
AQUAFINA
The advantage for Aquafina is that though there are over 300 labels of
bottled water in the Indian market, few can be called brands. It is
necessary to remember that every product with a name is not a brand;
even Bisleri has become generic to this category. It does not have any
emotional values attached to it. So there was no difficulty for Pepsi in
creating space in such a market, which is completely different from the
soft drinks market, where it will be very difficult for any new player to
find a slot. So the creative team at HTA virtually had an empty canvas to
work on. And it came up with a campaign that did have people talking.
First, a series of teasers, followed by a film that showed healthy bodies
and youthful people and, of course, lots of water. In addition to the
tamper proof seal, there is a reliable method of checking whether the
bottle has been refilled. The date of manufacturing has been written on
the cap as well as on the bottle. Thus a person who is refilling it would
46
have to find a matching cap and bottle, the probability of which is very
low.
Coca Cola- Kinley
Coca-Cola joined the race by announcing the imminent launch of its own
brand of water and, in the process, putting to rest rumors of its so-called
takeover of Bisleri. Kinley is targeting institutions.
47
Parle Argo’s- Bailey
Bailley the brand that is owned by Ramesh Chauhan’s brother Prakash
Chauhan is very popular in the southern part of India. Southern part of
India accounts for 20% of the sale of the whole water market industry.
Bisleri would have a tough competition from Bailley since the company
plans to spread its presence in that part of the country. Another thing that
makes the competition difficult for the company is the price at which it’s
competitor is offering the product. It gives the 1 lt. For Rs.10. The only
strength point of the company, which it can capitalize, is its generic
name. And also the company would have to enter that market with a
strong distribution base. We know the fact that Bailley has grown at a
rapid pace using the route of franchising, which Bisleri has not adopted
as yet. This is another point, which the company would have to take care
of to face the competition.
48
SAFETY OF
BOTTLED
DRINKING-WATER
49
PURE BOTTLED DRINKING-WATERIs Dangerous?
The Safety of Bottled Drinking-water
Because of the large number of possible hazards in drinking-water, the
development of standards for drinking-water requires significant resources and
expertise, which many countries are unable to afford. Fortunately, guidance is
available at the international level. The World Health Organization (WHO)
publishes Guidelines for Drinking-water Quality which many countries use as
the basis to establish their own national standards.
International Standards for Bottled Drinking–water
The intergovernmental body for the development of internationally recognized
standards for food is the Codex Alimentarius Commission (CAC). WHO, one of
the co-sponsors of the CAC, has advocated the use of the Guidelines for
Drinking-water Quality as the basis for derivation of standards for all bottled
waters?
CSE Report on pesticide residues in bottled water
The Centre for Science and Environment, a non-governmental organization
based in New Delhi, has set up the Pollution Monitoring Laboratory to monitor
50
environmental pollution. Its main aim is to undertake scientific studies to
generate public awareness about food, water and air contamination.
The bottled water market share of major brands is Bisleri (42%), Kinley (25%),
Aquafina (12%), Kingfisher (9%) followed by Bailley (4%),
Drinking water filled in hermetically sealed containers of various compositions,
form, and capacities that is suitable for direct consumption without further
treatment
FACTS
Bottled drinking water samples of some top brands– Bisleri (Parle Bisleri Pvt.
Ltd.), Bailley (Parle Agro Pvt. Ltd.), Aquafina (Pepsico India Holding Pvt.
Ltd.), and Kinley (Hindustan Coca Cola Beverage Pvt.Ltd.) and of other less
popular brands like Best, Royal Aqua, Seagull etc., which were being sold and
manufactured in Mumbai and nearby areas like Pune and Daman, were
purchased randomly. All the samples were purchased from retail outlets in the
market and from railway station and were checked for proper seal, date of
manufacture and batch number. Even the top brands, which claim to use
treatment methods like purification filtration, activated carbon filtration,
demineralization and reverse osmosis, were found to contain residues of
pesticides. It might be due to the reason that the manufacturers may be by-
51
passing the raw water after partial treatment and remixing it with the fully
treated stream so as to cut down the cost of treatment. On the basis of the results
different brands can be rated in terms of total organochlorine and
organophosphorus pesticides from least to most contaminated as-
Aquafina Macblue
Bailley Kinley
Seagull Sheetal
Bisleri Brilliant
Bally Apurva
52
53
OBJECTIVE
To analyze the marketing strategies of the company in Noida
1. To understand current market scenario in context of packaged drinking
water.
2. To know the various demands of retailers?
3. To know how retailer view product of Bisleri in comparison with other
companies products?
4. To analysis of marketing strategy of mineral water industries
5. To determine the market share of Bisleri Brand of Bottle Water.
6. To find out the preference level of respondents regarding Bisleri Brand of
Bottle.
7. To assess the brand positioning of the Bisleri in the Mineral Water
Segment.
8. To Study the brand positioning of Bisleri.
54
SCOPE OF THE STUDY
1) This report is useful for the researchers who are willing to do research on
the Mineral water Industry and its present competitors in the market.
2) This report shows the problems associated with the Mineral water
industry in the market as it helps in removing these problems.
3) This report can be useful as a secondary data for Mineral water industry.
4) This report helps in knowing the current and future scenario of Mineral
water industry.
5) This report helps in knowing market position of different Mineral water
industry.
55
56
TITLE: ANALYSIS OF MARKETING STRATEGY OF MINERAL WATER INDUSTRY
[RESEARCH ON BISLERI]
Rationale of study:
Water is the most important liquid in the world. Without water, there
would be no life, at least not the way we know it. In today's living
condition, the need for Pure Drinking Water is becoming the issue for the
common Man. Eighty percent of the human metabolism consists of water.
This is the reason why 90% of human diseases are water borne.
Objective:
The objectives of research are as follows:
To analysis of marketing strategy of mineral water industries
To determine the market share of Bisleri Brand of Bottle Water.
To find out the preference level of respondents regarding Bisleri Brand of
Bottle.
To assess the brand awareness of the Bisleri in the Mineral Water
Segment.
To Study the brand positioning of Bisleri.
57
Importance:
1) This report is useful for the researchers who are willing to do research on
the Mineral water Industry and its present competitors in the market.
2) This report shows the problems associated with the Mineral water
industry in the market as it helps in removing these problems.
3) This report can be useful as a secondary data for Mineral water industry.
4) This report helps in knowing the current and future scenario of Mineral
water industry.
5) This report helps in knowing market position of different Mineral water
industry.
58
59
RESEARCH METHODOLOGY
Research is simply define as a search for facts. It is an investigation of any
organization. So Marketing research as the systematic design, collection of data
and findings relevant to specific marketing situation facing the company.
Research methodology is a description, explanation and justification of various
methods of conducting research. The research was carried out through survey
method with the help of questionnaire consisting of closed ended question. Due
to flexibility, questionnaire method is ideally suited for collection of primary
data.
MARKET RESEARCH PROCESS-
Step-1 Define the problem and research objective
Step-2 Collect the information
Step-3 Analyze the information
Step-4 Present the finding
Step-5 Make the decision
RESEARCH INSTRUMENT-
(1) Questionnaire
(2) Psychological tool
(3) Mechanical devices
(4) Qualitative measurement
60
RESEARCH DESIGN
MEANING OF RESEARCH DESIGN
The formidable problem that follows the task of defining the research problem
is the preparation of the design of the research project, popularly known as the
“research design”. Decisions regarding what, where, when, how much by what
means concerning an inquiry or a research study constitute a research design.
“A research design is the arrangement of conditions for collection and analysis
of data in manner that aims to combine relevance to the research purpose with
economy in procedure.” In fact, the research design is the conceptual structure
within which research is conducted; it constitutes the blueprint for the
collection, measurement and analysis of data. As such the design includes on
outline of what the researcher will do from witing the hypothesis and its
operational implications to the final analysis of data. More explicitly, the design
decisions happen to be in respect of:
(i) What is the study about?
(ii) Why is the study being made?
(iii) Where will the study be carried out?
(iv) What type of data is required?
(v) Where can the required data are found?
(vi) What periods of time will the study include?
(vii) What will be the sample design?
(viii) What techniques of data collection will be used?
(ix) How will the data analyzed?
61
TOOLS AND INSTRUMENTS USED FOR THE STUDY
It is necessary for a researcher to define conceptual structure which research
would be conducted. The function of research design is to provide for the
collection of relevant evidence with minimal expenditure of efforts, time and
money. In this research the research design was as follows:-
1) Time available for the research is every Wednesday of the week.
2) The means of obtaining the information is through :
Primary data like questionnaire
Secondary data like magazines, net and Pamphlets etc.
3) There is no cost factor related to researcher.
62
PROCEDURE OF DATA COLLECTION
Data compilation is an intermediate stage between data collection and analysis.
Data compilation involves classification and summarization in order to make
data amenable to analysis.
In dealing with any problem, once the sample has been selected the data must
be collected from the sample population. There are several ways of collecting
appropriate data which differ considerably in context of money cost, time and
other resources. They can be broadly classified in to two categories.
Two sources to collect data are namely:
1. Primary Source
2. Secondary Source
PRIMARY SOURCE OF COLLECTING DATA
Primary data are measurements observed and recorded as part of an original
study, when the data required for a particular study can be found neither in the
internal records of the enterprise, nor in published sources, it may become
necessary to collect original data, i.e. to conduct first band investigation. The
work of collecting original data is usually limited by time, money and
manpower available for the study. When the data to be collected are very large
63
in volume, it is possible to draw reasonably accurate conclusions from the study
of a small portion of the group called sample.
The Primary Data that I collected were the first hand information which I
received through personal interviews with the consumers and through
questionnaires. This data gave the most vital information for making my
analysis of the prevailing purchasing behavior of the consumers.
The actual procedures used in collecting data are essentially the same whether
all the items are to be included or only some items are considered.
There are basically two methods of obtaining primary data, namely:
o Questionnaire
o Observation
Questioning, as the name suggests, is distinguished by the fact that data are
collected by asking questions from people who are through to have the desired.
Questions may be asked in person, or writing. A formal list of such questions is
called a questionnaire.
When data are collected by observation, the investigator asks no questions,
instead, he observe the objects or actions in which he is interested. Sometime
individuals make the observations, on other occasions; mechanical devices
observe and record the desired information.
64
B. Designing the questionnaire
The success of the questionnaire method of collecting information depends
largely on the proper designing of the questionnaire. Designing questionnaire is
a highly specialized job and requires a great deal of skill and experience. It is
difficult to lay hard and fast rules to be followed in this connection. Although
much progress has been made, the designing of questionnaires is still very much
an art.
Most of what is known about making questionnaires is based on experience.
Neither a basic theory nor even fully systematized approach to the problem has
been developed. Nevertheless, the extensive experience of many researchers
and a limited number of organized experiments have let to a considerable
understanding of the problem and to long list of “ do’s and don’ts “ rules of
thumb. These can definitely help a beginning researcher avoid pitfalls, but they
cannot be sustained for creative imagination in designing a questionnaire
procedure. The various areas which have taken into account while developing
the questionnaire to be presented before the consumers of the carbonated soft
drink products are as follows:
The information to be sought.
The type of questionnaire that is requires.
How that questionnaire will be administered?65
The content of individual question.
What form of response of each question will be?
How many questions will be used and how the individual questions
will be sequenced?
Whether the questionnaire will be structured or unstructured?
.SECONDARY SOURCE OF DATA COLLECTION
Secondary Data involved in my research were the information that I collected
through the various broachers and pamphlets of the company, which were
provided to me during the analysis.
A. INTERNAL SOURSES-
Internal data refer to the measurements that are the by-products of routine
business record keeping like accounting, finance, production, personnel, quality
control, sales, R & D etc.
Since the internal data originate within the business, collecting the desired
information does not usually offer much difficulty. The particular procedure
depends largely upon the nature of facts being collected and the form in which
they exist. The problem of collection is primarily that of having the proper
record made at the time the information is secured. The information wanted is
66
frequently to be found in more than one department of the business, which
increases the difficulty of getting just the information one wants.
Company profit-loss statement
Balance sheet
Sales figure, Sales-call report
Invoice, Inventory records
Research reports.
B. GOVERNMENT PUBLICATIONS
Marketing information guide
Country and city data book
Industrial outlook
Statistical abstract of the United State
C. PERIODICALS AND BOOKS
Business periodicals index
Marketing journals
Trade magazines include Advertising Age, Sales & marketing
management.
Business magazines include Business week, Fortune, Forbes, The
Economist
D. COMMERCIAL DATA67
Nielsen Company
MCRA Information Services
Simmons Market Research Bureau
68
SAMPLING
The sampling is the study or research conducted on either a small part of
population or other things (Area, Product) which has to be surveyed.
A brief idea about sampling for this research consisting of its different
parameters like…
SAMPLE UNIT- who is to be surveyed.
SAMPLE SIZE- how many people to surveyed.
SAMPLING PLACE- which area is to be surveyed.
SAMPLING PROCEDURE- how should the respondents be chosen.
SAMPLE DESIGN:
The sample design which has been use in this project report is Convenience
sampling and descriptive in nature
SAMPLING UNIT :
A decision has to be taken concerning a sample unit before selecting the number
of samples. It may be geographical as well as individual.
SAMPLING AREA
Here NOIDA region has been taken as a geographical unit and retailers as an
individual unit.
SIZE OF SAMPLE:
This refers the number of items (Outlets) to be selected from the finite universe
to constitute a sample size. The survey was conducted of 200 outlets.
69
RESEARCH METHODOLOGY
The research conducted by Exploratory Research this type of research is
Qualitative and Quantitative. Qualitative refers to the characters of the data or
process by which the data are gathered.
The research process consists of a series of closely related activities. Why a
research study has been undertaken. Why a research study has been
undertaken, how the research problem has been defined, in what way and why
the hypothesis has been formulated, what data has been collected and what
particular method has been adopted and a host of similar other question are
usually answered when we talk of research methodology concerning a research
problem or study.
Sampling:
The data was to be collected only from the Consumers and Retailers. A
questionnaire was prepared and interviewing with Retailers and Consumers.
A decision has to be taken concerning a sample unit before selecting the number
of samples. It may be geographical as well as individual.
Size of Sample:
This refers the number of items (Outlets) to be selected from the finite universe
to constitute a sample size. The survey was conducted of 200 outlets.
70
MARKET RESEARCH- RETAILER SURVEY IN NOIDA
Retailer Survey was conducted in Noida Region in JUNE&JULY – 2012 under
the guidance of Mr. Arun Sharma (sales officer).
I was required to meet all the C&F’s and 10 Distributors of Noida Region and
then go for Route Riding with the distributors in their vehicles to the various
retailers in Noida. I visited 200 retailers in the month of June and july
questionnaires were also filled by the retailers i visited.
I also took orders from various retailers which were passed to the distributors
and then processed by them. So in this manner I also understood the distribution
channel of the company i.e. how the product was dispatched from the company
to the C&F’s and then to the Distributors and finally to the Retailers.
71
Analysis of the service that was provided to the retailers from Bisleri – You Get Service From Bisleri
Frequen
cy
Percen
t
Valid
Percent
Cumulativ
e Percent
Valid Daily 46 23.0 23.0 23.0
Weekly 72 36.0 36.0 59.0
Fortnightl
y13 6.5 6.5 65.5
Monthly 5 2.5 2.5 68.0
Never 26 13.0 13.0 81.0
On
Demand38 19.0 19.0 100.0
Total 200 100.0 100.0
72
As per the retailer survey that was conducted in Noida Region, 36% retailers
got service from the distributors on weekly basis, 23% retailers got service on
daily basis from the distributors, 6.5% retailers got service on fortnightly basis
and 2.5% retailers got service on monthly basis. 13% retailers complained of
never getting service from the distributors and 19% retailers said that they got
service on demand by the distributors.
It was also observed that some retailers were not satisfied by the service of the
distributors appointed by the company. There were certain instances where the
retailer had placed the order to the distributor and he did not receive it for 1 or 2
days thereby forcing the retailers to buy other brands available in the market if
he did not have enough stock to cater his customers.
73
Analysis of the satisfaction level of the retailers of Bisleri –
Are You Satisfied From The Service
Frequen
cy
Percen
t
Valid
Percent
Cumulativ
e Percent
Valid Yes 124 62.0 62.0 62.0
No 76 38.0 38.0 100.0
Total 200 100.0 100.0
74
As per the retailer survey that was conducted in Noida i Region 62% retailers
said they were satisfied by the service of Bisleri International Pvt. Ltd. And
38% retailers were not satisfied by the service of Bisleri International Pvt. Ltd.
It was found out that dissatisfaction of retailers was mainly due to the following
reasons – irregular visits by the distributor, irregular supply of the product in the
market and lesser margin given by the company to the retailers.
Analysis of the visits of the company representatives to the
retailers -
How Often Do Company Representative Visit You
Frequen
cy
Percen
t
Valid
Percent
Cumulativ
e Percent
Valid Weekly 108 54.0 54.0 54.0
Fortnigh
tly47 23.5 23.5 77.5
Monthly 31 15.5 15.5 93.0
Never 14 7.0 7.0 100.0
Total 200 100.0 100.0
75
As per the retailer survey that was conducted among 200 retailers in Noida
region, 54% retailers were visited weekly by the company representatives,
23.5% retailers were visited fortnightly by the company representatives, 15.5%
retailers were visited monthly by the company representatives and 7% retailers
were never visited by the company representatives in the region.s
While the competitors like Coke and Pepsi Co. and other local brands were very
regular with the visits to the various retailers in the region thereby gaining an
edge and building stronger relationships with the retailers and hence boosting
their sales too.
76
Analysis of satisfaction of the retailers with the company’s margin
You Are Satisfied With Which Of The Following Company's Margin
Frequen
cy
Percen
t
Valid
Percent
Cumulativ
e Percent
Valid Bisleri 113 56.5 56.5 56.5
Kinley 68 34.0 34.0 90.5
Aquafi
na19 9.5 9.5 100.0
Total 200 100.0 100.0
77
As per the survey conducted it was analyzed that 56.5% retailers were satisfied
with the margin of Bisleri, 34% retailers were satisfied with the margin given by
Coke for its Kinley and 9.5% retailers were satisfied with the margin given by
Pepsi Co. for its Aquafina.
It was also found that various schemes given Coke and Pepsi Co. and other
local brands to the retailers added to the satisfaction level of the retailers
thereby forcing the retailers to shift from Bisleri to other brands and thus bisleri
needs to take a step in this direction if it does not want to loose ground.
78
Analysis of the supply of Kinley/Aquafina to the retailers -
How Frequently Kinley/Aquafina Gives Supply
Frequen
cy
Percen
t
Valid
Percent
Cumulativ
e Percent
Valid Daily 106 53.0 53.0 53.0
Weekly 22 11.0 11.0 64.0
Monthly 2 1.0 1.0 65.0
On
Demand8 4.0 4.0 69.0
Never 62 31.0 31.0 100.0
Total 200 100.0 100.0
79
As per the retailer survey conducted in the region it was found out that
53% retailers got service from kinley/aquafina on daily basis, 11%
retailers got service from kinley/aquafina on weekly basis, 1% retailers
got service from kinley/aquafina on monthly basis, 4% retailers were not
regular customers of kinley/aquafina and they got service from Coke &
Pepsi co. whenever they demanded and 31% retailers never got service
from kinley/aquafina.
It was also found out from the survey that the distribution channel of Coke and
Pepsi Co. was excellent and it was very hard for Bisleri to match those levels.
80
Analysis of what people say when they ask for bottled water –
When People Ask For Bottled Water What Do They Say
Frequen
cy
Percen
t
Valid
Percent
Cumulativ
e Percent
Valid Give Me Bisleri 71 35.5 35.5 35.5
Give Me
Aquafina17 8.5 8.5 44.0
Give Me Kinley 23 11.5 11.5 55.5
Give Me Water
Bottle5 2.5 2.5 58.0
Give Me Mineral
Water84 42.0 42.0 100.0
Total 200 100.0 100.0
81
As per the retailer survey that was conducted in Noida , it was observed that
35.5% people say ‘Give me Bisleri’ at the retail counters when they ask for
bottled water, 8.5% people say ‘Give me Aquafina’ at the retail counters, 11.5%
people say ‘Give me Kinley’ at the retail counters, 2.5% people say ‘Give me
Water Bottle’ at the retail counters and 42% people say ‘Give me Mineral
Water’ at the retail counters when they ask for bottled water.
So it is very clear that Brand Recall is max. for Bisleri as compared to other
brands available in the market and people think ‘Bisleri’ when they think about
mineral water or bottled water.
82
Analysis of any promotional material provided to the retailer
from Bisleri -
Has Any Market Input (Promotional Material) Been Provided to You From Bisleri
Frequen
cy
Percen
t
Valid
Percent
Cumulativ
e Percent
Valid Yes 35 17.5 17.5 17.5
No 165 82.5 82.5 100.0
Total 200 100.0 100.0
83
As per the retailer survey that was conducted in Noida only 17.5% retailers said
that they received market input (promotional material) from the company like
banners and display stands, while the rest 82.5% retailers said that they did not
receive any market input i.e. promotional material from Bisleri International
Pvt. Ltd. The retailers were demanding banners, display stands, refrigerators
from the company so that they could advertise Bisleri and in turn boost sales. It
was also learnt from the retailers that rivals Coke and Pepsi Co. provided
refrigerators, banners and display stands quite often and even refrigerators were
provided without any security deposit.
I have also heard from my industry guide that in the month of June and July
Bisleri has increased its advertising budget and has distributed many banners
and stands to the retailers to increase its presence in the market and has also
purchased refrigerators from Voltas to give it to the retailers on a security
deposit of Rs.10000.
Analysis of which pack size the retailers have or prefer to keep the most -Which Pack Size You Have Or You Prefer To Keep The Most
84
Frequen
cy
Percen
t
Valid
Percent
Cumulativ
e Percent
Valid 250
ml1 .5 .5 .5
1 Ltr 153 76.5 76.5 77.0
2 Ltr 26 13.0 13.0 90.0
5 Ltr 2 1.0 1.0 91.0
20 Ltr 18 9.0 9.0 100.0
Total 200 100.0 100.0
85
86
SWOT ANALYSIS
STRENGTHS
Old and famous brand name
Better packaging
Effective distribution network
Famous as pure & safe among consumer
Good product mix
Frequent quality checking
Much used by corporate world
Better management
Give regular follow up to distributor
Indian image
Better sales force
Sponsoring various cultural program
Better visibility
Good intensives to dealer
87
WEAKNESS-:WEAKNESS-:
One liter packs which accounted for 50 per cent of the company’s
turnover has come down to 30 per cent. The two-liter packs, which have
practically disappeared from the shelves, have come down from 20 per
cent to five per cent. The growth has come from the 500 ml and the five-
liter category, which account for 15 per cent and 36 per cent of turnover
respectively.
Earlier, Bisleri was selling at a premium of Rs.13 for the same size. But
beginning last month, it has been selling its one- liter bottles at Rs.15
each. The competitive Rs.15 price tag has been working well for the
brand. In what could be a masterstroke, Aqua Minerals is testing out the
possibility of mass marketing 20-litre Bisleri bottles for an MRP of
Rs.40. That works out to Rs.2 a liter. If the logistics, manufacturing and
distribution do fall in place, it could change the face of the purified water
market for keeps.
OPPORTUNITIESOPPORTUNITIES
So far, Chauhan has not used the franchising route very aggressively
unlike Parle Agro’s Bailley, which has grown very fast using this route.
He has around six franchisees in Mumbai, Delhi, Chennai, Bangalore,
Goa and Rajasthan. “We shunned this route so far because in most areas
88
where we had no presence, it was imperative that we did it ourselves.
Now for further expansion we can afford to use the franchisee route.”
THREATSTHREATS
Bisleri will be taking the packs back and refilling them. But the packs
cannot be sterilized since the material used is PET and cannot withstand
high temperature. So how can he ensure purity?”
STRATEGY TO COUNTER THREATS AND OTHERS?STRATEGY TO COUNTER THREATS AND OTHERS?
We subject the bottles to chlorine washes, hot water washes and ozone
washes before we refill the bottles.The company is betting on the home
segment. The reason being that filters and water purifiers also need to be
cleaned periodically and still do not guarantee absolutely clean water. In
order to service this segment, the five liter packs are being pushed
through the route of fat dealers (wholesale dealers) who are retailers as
well as stockiest and serve as supply points from where customers can
pick up the required quota. In future, consumers will be able to call the
fat dealer and place orders for home delivery of the five-liter pack. The
company has so far appointed 180 such dealers. This is a high turnover,
low-margin retailer who does not keep a store but serves a similar
purpose with other items such as rice or floor.
89
90
91
After the tabulation and analysis of 200 respondents from Noida region:-
Following findings are obtained:
1. According to market share figure, Bisleri is the leading brand which 42%
market share. While Kinley 25%, Kingfisher 9%, Aquafina 12%,Bailey
4% and others 8%.
Interpretation- Bisleri is the leading brand in market share
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2. 80% retailers prefer to sell Bisleri brand because of demand, brand
and profit margin
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Bisleri is the most selling brand in the specific region it is at 45% selling among
the competitors.
3. Retailers those are selling Bisleri brand of bottle water is 50%.
4. There is discrimination in the prices of distributor or the prices at which
retailers directly purchase from the market.
5. Most of the customers first ask for Bisleri bottle water just because of its
Generic name not because of brand loyalty.
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Analysis:
The data was tabulated manually and was also analyzed manually excel was
used to make graphs and pie chart.
According to market share figure, Bisleri is the leading brand which 42%
market share. While Kinley 25%, Kingfisher 9%, Aquafina 12% and others
12%.
1. 80% retailers prefer to sell Bisleri brand because of demand, brand and profit
margin.
2. Bisleri is the most selling brand in the specific region it is at 45% selling
among the competitors.
3. Retailers those are selling Bisleri brand of bottle water is 50%.
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Findings:
1. Bisleri has poor distribution network:
From our survey it has been clearly found out that Bisleri has a poor
distribution network in some of the areas like: Mamura market(sec-66
noida), sec-110 noida,sec-45 nida etc.
Reason:
Negligence of distributor.
Lack of availability of stock with the distributor. E.g. 250ml, 500ml
bottles.
Unable to deliver the stock on time (on a short notice).
Personal grudges of the retailers and the distributors.
2. Bisleri has a big brand name which is maintaining its sales:
Just because of the brand name the Bisleri water is selling.
It was the 1st to start the mineral water business in India and thus it enjoys a
good positioning in the market and with the customers.
3. Higher prices of Bisleri as compared to the competitors brands to the
retailers:
As compared to brands like Aquafina, KingfiHer and Kinley; Bisleri offers
lesser profit margins to the retailers and therefore Bisleri sales are dipping in
the mineral water market.
4. Higher profit margin on local brands:
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As compared to the premium brands like Aquafina, Kinley, one of the major
reason affecting Bisleri sales is selling of local brands like Deer Park,
VOLGA, Aquacool, Kampbell, Oxygizer, Mount Kailash, Aquafresh,
Tulsi water, Shivam, Kwencher, Jal which are the prominent ones among
others.
5. Bisleri lacks tie ups:
As per as our survey we found out that major players in this market have tie
ups with food chains, shops, malls. Bisleri lacks in this. E.g. Spice, Shopprix,
CSM.
6. Poor visibility of Bisleri:
Bisleri has poor advertising as compared to other brands. Ads on channels
like star movies and others should be more frequent.
We hardly see any Bisleri Hoardings on the road nor is the very popular
mode of communication – radio is being made much use of.
7. Bisleri packaging is not good:
The seal is not sturdy. Retailers often complain of broken seal. One reason
for the small retailers not preferring to keep Bisleri is this very seal problem.
8. They are not very customer service oriented:
Bisleri is not very concerned about the brand name, not acting on the views
and suggestions of the customers: leaving customer dissatisfied.
9. Lack of accessories:
Brands like Kinley etc. offer accessories like fridges, ice box, give free bottle
with cartons.
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Conclusion:
The players who will endure will be those who have a strong regional
presence. Take the case of Team, which enjoys immense popularity in
TamilNadu. Similar brands with a regional presence are Siruvani,
and Koday. Thus, new players will be looking for a distinct
positioning. One such brand is Pepsi’s Aquafina, the largest selling
bottled water brand in the US. After its successful test launch in
Mumbai and Bangalore, Aquafina was released in Chennai,
Ahmedabad, Vadodara, and Pune. Pepsi has invested over Rs.5 crore
in the new Aquafina water project in Maharashtra, which is the only
Aquafina plant outside the US.
According to Deepak Jolly, executive vice president, corporate
communications, Pepsi Foods Ltd. “Aquafina will be helped by Pepsi’s
network. Moreover, Aquafina will be served absolutely chilled.” That
makes sense too, since surveys have indicated that an overwhelming
majority of the bottled water that is consumed in India is by people who
are traveling.
With the big players, who have the support of the financial muscle and a
large consumer base in other categories with them, like Pepsi, Britannia,
Nestle and Coke — the battle is the tougher arena of brand building. All
the multinationals are looking at high-octane advertising targeting
specific consumer segments. Sensing troubled waters ahead, Bisleri is
busy working on a strategy to soak up the competition and protect his
water kingdom.
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STRATEGIES WHICH THE COMPANY COULD ADOPT, ARE AS
FOLLOWS:
The soft target
Selling bottled water requires constantly expanding the market. The company
should also target the market for soft drinks. All the soft drinks addresses three
issues: fun, thirst and refreshment followed by status to some degree. The thirst
and the status value of the mineral water are well accepted. There is very little
the mineral water brands can do to add the fun element around the product.
Again here, it becomes important for the company to have a good distribution
network. It should be understood that if the mineral water is easily available
everywhere then it can be said with confidence that it would be able to replace
the soft drinks as thirst quencher. If we try and look at the reasons that why
consumers buy soft drinks as thirst quenchers: we would find the answer as that
either water is not available or if it is available then safety is not assured.
Therefore, backed by a good distribution network mineral water industry can
grow at a rapid rate.
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RECOMMENDATION:
The C grade shops must also be catered as these are the shops from where
most of the people purchase the mineral water bottles while on their way
on the busy streets of the city.
Most importantly the delivery must be made on time. The stock must be
placed well in time to keep the retailers happy. There should be on time
service to win over the retailers and customers. This is where other brands
take over.
Since many retailers are complaining about the broken seal. It is
necessary that the matter is urgently looked upon and the retailers who
have the grievances must be given new bottles and it must be made sure
that it does not happen again.
If more profit margins could be provided to the retailers it will serve for
the better. However if this cannot be worked out, we must work on the
grounds of providing more of accessories to the retailers like fridges on
less security.
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Visibility of Bisleri should be improved so that the customers can get
what they have been looking for. With a strong distribution network the
situation can be improved for sure.
The schemes must be offered quite often and it must be ensured that the
benefit does reach the retailer.
Advertisement to build the brand image that will provide the required
ground to establish the authenticity to the product.
Awareness programs at health club, schools & Nursing homes.
To win over the consumer belief and faith over the genuity of the
product.
Display of hot and cold dispensers and bottles at places like hotels,
clubs and airports where upper class group visits, as they are the
potential customers. Place like departmental stores, petrol pumps
and super bazaars can also be considered.
The company should organize camps at various part of the city also
road show to bring about the difference between mineral water and
filter/purified water and to tell the people how mineral water is
more hygienic than filtered water/purified water.
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To aware people the cost benefit analysis to the customer of how the
mineral water would cost less and benefit more, because people using
purifier system cost too much.
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BIBLOGRAPHY
BOOKS
Marketing Management,Philip Kotler, Pearson Education 2nd ed.
Consumer Behavior,G.Schiffman Leon, Prentice-Hall India 8th ed.
“Marketing Management”, Philip Kotler & Kevin Lane Keller
Pearson Education 4th ed.
NEWS PAPERS
Economic Times, June, 2012
Times of India , June, 2012
Indian Express , July, 2012
MAGAZINES
Business Today, Ed. 2012
A & M, Ed. 2012
Business India, Ed. 2012
Business World, Ed. 2012
Business Standard, Ed. 2012
INTERNET
http://www.bisleri.com 105
http://www.science&environment.com
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QUESTIONNAIRE
1. Which brand of bottle water do you sell more?
a. Kingfisher
b. Kinley
c. Aquafina
d. Bisleri
e. Others
2. What is your monthly sale?
________________________________________________
3. Which brand of bottle water do you prefer to sell more?
________________________________________________
4. Why do you prefer to sell more this particular brand?
a. Easily available
b. More demand
c. Quality Factor
5. Generally which brand of bottle water customer demand?
6. Frequency of services no. of days] between two service of the
company/With in the area / market?
Bisleri Aquafina Kingfisher Kinley Others
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Q. 7 When you talk of drinks, what brands come to your mind?
____________________________________________________
Q. 8 Whether the customers are already aware about this product?
____________________________________________________
Q. 9 Which are the brands available in your shop?
____________________________________________________
Q. 10 Number of buyers who buys this brand per day?
a) 0-5 b) 5-10 d) 10-15 e) Above 15
Q.11 Are you satisfied with the current margins on this brand?
Yes / NO
____________________________________________________
Q.12 whether you are getting any complaints from customers, specify?
____________________________________________________
Q. 13 To which brand and reason?
Brand: _____________________________________
Reason: - _____________________________________
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