TIMELINE (JOURNEY )

• Founder – Signor Felice BisleriItalian entrepreneur

•Prakash Chauhan – Chairman Parle Agro

• Ramesh Chauhan – CEO Parle Bisleri

1965 • Bisleri came to Mumbai

1967 • First plant in Mumbai

1969 • Sold to Parle exports

•Glass bottles•2 variations

Bubbly Still

1971, Italy, Europe

Mumbai, India (Asia)

1992

Packaged water industry –worth 3 billionProduced around 95 million liters Bisleri - Market leader with a 70% market shareSynonymous to branded water

1993-Every 3 months a new brand was launched and another diedBranded mineral water sold in 60 towns1997- 250 towns

Late 1990’s - Launched pure n safe ad campaign(to convince the customers that it’s the only Pure and Safe branded water in the market ‘there is just one bisleri’.)

1998

Over a period of six years- packaged water industry:

Grown upto 424 million liter business Valued at Rs 4 billion200 brands available in the market

Bisleri still a market leader Garnered a market share of only

60% Rest occupied by bailley with 20% Other regional players 20%

MARKET SHARE 1998

BISLERI 60%BAILLEY 20%OTHERS 20%

2000

7 billion industryTamper proof sealed bottles

To face intense competitionQuality alone could no longer be basis for product

differentiationCompetitors also came up with similar tamper proof packagingNew players entered

Pepsi's AquafinaCoca-Cola's Kinley Nestle's Pure Life

Bisleri’s 5 and 20 litres packs in the bulk segment accounted for 20% of its sales

MARKET SHARE 2000

BISLERI 53%BAILLEY 28%OTHERS 19%

2000

Market was segmented intoPremiumPopularBulk segments

The premium brand was least crowded with just 4 brands:

Danone’s EVIANNestle’s PERRIERFERRARELLESAN PELLAGRINO

2000

The popular segment had the most action, popular segment was dominated by:

BisleriBailleyKinleyAquafina

The bulk segment was dominated by Bisleri5 ltrs12 ltrs20ltrs

Bisleri also wanted to target the share of the booming soft-drinks market; planned to add fun element to the product; branded water quenched thirst; had negligible fun element.

Lady in bikini photo

To make it’s brand stand apartSeptember 2000 – Play Safe campaign

Built around the tamper proof seals Trendy Hexagonal Flat-Sleeved bottle

At first only used for 500 ml bottle5 ltrs bottleLater would be used for other

sizesInformation visible from all sidesLabelling became easy

Break away sealsThis was done to create doubt in

the minds of the consumer regarding the purity of other brands

Social message for the youth: Be safe even while having fun.

Hexagonal flat sleeved bottle photo

2001

Bisleri shifted its concentration towards the Bulk Segment Planned to have 75% of its sales from bulk packs

5 liters20 liters

Kinley and Aquafina started making huge investments in bottling plants and distribution to make their presense in the Bulk SegmentBisleri investing on marketing andadvertising for the same 2001 - Mineral water market was worth Rs 10 billion Bisleri’s Aim -Turnover from 4billion in 2000 to 10 billion by 2003

MARKET SHARE-MARCH 2001

BISLERI 51%KINLEY 10%AQUAFINA 4%OTHERS 35%

MARKET SHARE-JUNE 2001

BISLERI 47%KINLEY & AQAFINA 37%OTHERS 18%

2001

August 2001-Coca-Cola’s kinley ‘Bondboond mein vishwas’ campaignAggressive marketing to get at par

with marketing of Bisleri

Late 2001-Coca-Cola wanted to enter Bulk Segment where Bisleri was the dominant playerSanjiv Gupta(senior Vice-President, Coca-Cola India)

Aiming to be #1 or close #2Bisleri estimated to touch a turnover of 10 million by 2003

Considered too late accounted at the growth pace of Kinley and Aquafina

2002

Coca-Cola India planned to double the number of water bottling plants to 16Pepsi announced that it would add 7 more plants to the existing 5Bisleri however had

15 bottling plantsthree franchisees

Kinley had 500,000 outlets compared to Bisleri's 350,000.

2005Looking forward

Coca-Cola planned to invest Rs 700-750 million in its water businessPepsi around Rs 800 million to Rs 1 billion

4P’s photo

PRODUCT

Branded mineral water7 unique pack sizes

Non Returnable packs 250ml cups250ml bottles500ml1L1.2L

Returnable packs5L20L

PACKAGING PRICE (Rs.)20 Litre 60

5 Litre 30

1.2 Litre 12

1 Litre 10

250 ml Bottles 3

250 ml Cups 3

PRICING

15 Bottling Plants

3 Franchisees

Total 350,000 outlets

PLACE

PROMOTION

Late 1990’s •Pure and Safe

2000 •Play Safe

The

HOLE

In the

Bucket

Porters Five Forces Model

Competition &

Problems faced

INDUSTRY RIVALS NEW ENTRANTS

BARGAIN POWER OF CUSTOMER

BARGAIN POWER OF SUPPLIER

SUBSTITUTES

UNORGANISED

PLAYERS

I

INDUSTRY RIVALSORGANISED

•HLL water purifier

•Various new local brands (unorganized players)

•Shaw Wallace is also in a process to enter the bottled market in the premium segment

NEW ENTRANTS

•Soft drinks•Water purifiers•Tap water

•The most economical drink -limbu pani

• The industry estimates that bottled water is the fastest growing beverage segment and is immediately followed by the soft drink/ aerated beverages market

SUBSTITUTES

•When the company’s suppliers are able to:

raise pricereduce quantity then the supplier powerwould be high

•Packaging (PET bottles) •Labeling material

BARGAIN POWER OF SUPPLIER

•Buyer’s demand Better quality or serviceSet competitors against each other

At the expense of sellers profitability

•Reason:Industry where many brands

fighting for existence and their share

Large number of choices available to retailer

Low switching cost for retailer•Prices of other products are more of less the same

Brand Loyalty of customer is very low

BARGAIN POWER OF CUSTOMER

Other threats…Bisleri spreads awareness… other brands enjoy

Distribution problem

SEAL

theHOLE

Distribution strategyFor profitable workPosition your name at their finger tipsDisplay in front of their eyes- ‘JO DHIKHTA HAI WHO BIKTA HAI’This needs to be taken care off as against the well established distribution network of Kinley and Aquafina.

This can be achieved through improving distribution networkImproving services offered

Improving distribution networkPOPULAR SEGMENT

To improve service provided and retain existing customers Bisleri must

Improving servicesBULK SEGMENT

Have their own distributors

Who would look after the services.

Retailer Margin To Be Increased

Bailley Kinley Bisleri Aquafina

500ml 1L 20 500ml 1L 20 500ml 1L 20 500ml 1L

Distributor 25 29 33 46 24 18 45 25 28 - -

Retailer 44 71 - 20 80 - 20 71 - 20 60

•Enter Into Premium Market Segment

• DISTRBUTION NETWORK – • RETAILER MARGIN TO BE INCREASED – • ENTER INTO PREMIUM MARKET SEGMENT –

NEW NAME, PET BOTTLES• INCREASE PRODUCTION CAPACITY WITH NEW

PLANTS• CHANGE IN PACKAGING – EASIER TO HOLD• Price packs –

Recommendation

• BISLERI STANDS AT THE TOLL NAKKA

•One of the way to defend against consumer power would be to develop superior offer that strong buyers cannot refuse.