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.

42

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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