Top Five Brand of Mineral Water

7/29/2019 Top Five Brand of Mineral Water

http://slidepdf.com/reader/full/top-five-brand-of-mineral-water 1/45

Content

CHAPTER 1: INTRODUCTION

1.1 THE PACKAGED DRINKING WATER INDUSTRY - AN OVERVIEW

1.2 Market Share

1.3 Bottled Water Analysis

1.4 Current Players

1.5 COMPANY PROFILE OF BISLERI

Background

The Present

Future Plans

Technology Developments

Purification Process

Product And Packaging

Vision And Mission

Why Bisleri?

The Journey Till Now

CHAPTER 2: REVEIEW LITERATURE

2.1 Objectives

2.2 Data analysis

CHAPTER 3: ANALYSIS AND INTERPRTATION

3.1 Swot & Pest Analysis

CHAPTER 4: RECOMMENDATION

ANNEXURE

Bibliography Consumer Questionnaire

Retailer Questionnaire



INTRODUCTION

To the domestic packaged drinking water market

The concept of bottled mineral is quite a new one for Indian People.

Since we never consider these things as necessity and especially when we are paying for natural

resource like water which is available freely.

The bottled water market has recently seen growth; the reason behind this may be the growing

health consciousness among Indians or non-availability of pure drinking water. Most of the users

are daily travelers, patients or it is used in parties/seminars. Moreover 30% of the whole mineral

water customers are travelers.

When governments spoke about providing drinking water to all, little did one imagine that MNCs

would package it and sell it to us. The advent of the small bottles has increased consumption.

Buying water near the bus stop or at the railway station has become a routine.

Indian water market has many companies selling water, on an whole there are more than 300 big

& small players in the market some of the big players are Bisleri, Aquafina, Kinley, Purelife,

Mcdowell etc. these companies are dealing in same market, same price & also same capacity.

Bisleri is owned by Parle group, Aquafina is owned by Pepsi, Kinley is owned by Coke, Nestle

has Purelife. But some small players also have sufficient market share in their local market, like

prime, silver drop, royal fresh are very popular in the congested region.

Bisleri is most popular brand in North India. Bisleri is having big contracts like with air Indian &

some part of Indian railways.



Since the early 1990s, Indian attitude have changed and people are flocking to the cities at a

frenetic pace - one-third of Indian now live in urban areas.

But in many parts of the country, quality of water is still a major concern. Given the extreme

climatic conditions in India, especially the heat and dust, plus the fact people are now prone to

dehydration because they commute further for work and social activities, the issues of safe

drinking water is more prevalent than ever.

As the mercury soars, so do the sales of bottled water. The advantage it has is unlike the Colas

and other drinks dispensed from vending machines, a bottle fits into a handbag and can be carried

conveniently.

The trend of using mineral water for drinking purpose started as a means to take advantage of the

therapeutic value of water. This trend gained potential momentum during 1970s and ever since

bottled water was exported every year from mineral springs in France and other European

countries.

In western countries, the practice of bottled drinking water started during 1950s. The first launch

of bottled water in India was the launch of 'Bisleri' of Parle company during 1968-69 which was

a major flop as the Indian population was not prepared to accept the concept of purchasing water.

The market of bottled water remained weak and inactive for as long as 20 years. The relaunch of

Bisleri in 1994, however, was a success due to the growing awareness and high consciousness of

health and hygiene among people.

Today many, medical stores in the city are doing very well with the sale of branded bottled

water. The brand name plays an impression on the human mind. Bottled water is available in

quantities of 330ml, 500ml, lit, l lt, 1.5lts, 2 lts, 5 lts, l0 lts, 20 lts and 50 lts.



For a particular brand to be certified as bottled water it requires approval on 4 levels namely the

Central, the state, the trade association, and individual company levels.

ILL EFFECTS OF DRINKING UNTREATED WATER

Typhoid

Bone deformation

Joint pain

Hardening of arteries and muscles

Gastro - stomach upsets

Excess content of fluoride can lead to flourisis

Arsenic Poisoning

COMMONLY FOUND WATER CONTAMINATION SOURCES

Contaminated storage Tanks

Cross contamination at sources

Leaks in distribution network

Improper functioning of Purifiers

Domestic Waste

Borewell or contaminated ground water

Organic matters

Industrial waste



THE PACKAGED DRINKING WATER INDUSTRY – AN OVERVIEW

MARKET SHARE

Currently, Bisleri continues to lead in the Rs 700-1,000 crore organised, packaged water market

with an estimated 40 per cent market share, followed by Kinley at 28 per cent and Aquafina with

an 11 per cent share. Inr terms of volumes, the North and West remain Bisleri's biggest

performing markets, despite the brand's sustained national-level presence. The market has been

growing for the last three years at an unimaginable rate of 80%. The market size of bottled water

is expected to surpass the size of soft drinks market very soon in the near future.

Individual Market Shares:

BISLERI-40%, KINLEY-28%, AQUAFINA-11%, OTHERS-21%

40%

11%

28%

21%

Bisleri

Aquafina

Kinley

Others



Due to the demand for water, a large number of "mineral water manufacturers" have been spawned

selling little more than tap water to the unsuspecting consumer, the majority of whom are still very

native about mineral' water.

Pepsi Co's Aquafina brand, which debuted the bottled water business in September 1999, targets the

youth sector and concentrates on just one pack size, 750ml priced ten rupees.

Coca-Cola is the most recent entrant (May 2000) with its Kinley, brand and in a controversial and

unsuccessful marketing campaign, it obtained an endorsement from the Federation of Family

Physicians' Association of India (FFPAI), a lesser known body of doctors for its brand.

Estimates show that there are around 100 small regional players in the bottle water market and the

number have been growing at an unbelievable 70%-100% per year, year on year, for the past four

years. This has enticed a number of international brands in the market besides Coca-Cola and

PepsiCo-Nestle (Pure Life), Britannia, Lever, United Breweries and Shaw Wallace. Danone Pairs

launched Evian some time back and even imported hundreds of cases for VIP guests celebrating the

Hindu festival, Kumbh Mela.

The government has been forced to sit up, take notice and tighten regulations after comprehensive

sample tests were taken by consumer groups and found that a number of the smaller and more

unscrupulous "opportunistic" players were selling little more than tap water.

Until recently the government of had set standards only for mineral water and even the PFA

(Prevention of Food Adulteration Act) and BIS (Bureau of Indian Standards) were deficient when

compared to international markets.

Under the new regulations 48 specifications are to be met for water to become mineral water and for

packaged drinking water there are 43 specifications. But small players are bound to fall out of the

market by April 1, 2001 when the new regulations were supposed to be enforced.



THE PET RECYCLING PROJECT

Bisleri is extremely conscious of environmental issues, since PET bottles are not biodegradable

and not easy to dispose. The company is currently working on the PET recycling project, where

they will collect bottles from various places, crush and shred them. This shredded material will

then be made into ropes, PET containers for the non-food industry and other PET items like

polyester fibre, flower vase, gift items etc.

BOTTLED WATER ANALYSIS

Bisleri

Spring Water - Still/Sparkling

PARTICULARS Mg/litre

TDS 160

Ph Factor 7.2

CURRENT PLAYERS

The mineral water industry is in a churn. The market is proving to be yet another battlefield

for an ongoing battle between the desis and the MNCs. So far, MNCs have been winning.

Only time will tell what the final outcome will be but I strongly feel that here too, like in all

other markets, MNCs are going to win. Though the fate Indian companies will suffer at the

hands of these MNCs makes me sad, the choices the consumers will have makes me happy.

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.

Calcium 13.6

Chlorides 22

Bicarbonate 58

Magnesium 7.8 Nitrate 2

Sulphates 19.3

Hardness 66.1



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 anuum.

The fact that there were very few players in the market meant that their business grew by

leaps and bounds. Bisleri became a household name and is now generic for bottled water.

The market today has grown to Rsl Ibn. The organised 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, Bisleri is the market leader as it continues to lead in the Rs 700-1,000 crore

organised, packaged water

market with an estimated 40 per cent market share, followed by Kinley at 28 per cent and

Aquaflna with an 11 per cent share. In terms of volumes, the North and West remain Bisleri's

biggest performing markets, despite the brand's sustained national-level presence The boom

in the market has also encouraged unscrupulous players to gain an entry. In the name of

mineral water, a number of regional players have even started selling plain tap water. Many

people have fallen sick after drinking this spurious mineral water.

The common man's faith in the product was shaken. However, not everyone was put off.

Sensing the opportunity that this segment holds, MNCs have begun to draw up plans to enter

the market, but not without testing the waters first. Ifhey carried out the appropriate

feasibility studies. However, among the first to challenge Bisleri's near monopoly was Pepsi's

AquaFina followed by stiff competition from Parle's Bisleri and Coca-Cola India's Kinley.

The first entrant in the bulk water category was Bisleri, while Coke, through Kinley, enteredthe segmen 4 years ago.

Over the past five years or so, Bisleri has become a major player in the bulk water segment

in the water-starved southern states. The 20-litre bulk water packs are targeted at the

institutional and the home segment. Pepsi is aiming to make its brand available throughout



the country soon. The company has also ruled out entering the bulk water segment in India.

Meanwhile, the action is all in Coca-Colas bulk water business. The 20-litre bulk water packs

are targeted at the institutional and the home segment.

Bisleri goes green naturally20 October 2006

The brand that was till now marketed as packaged drinking water (cleaned through reverse

osmosis) will now be available in a natural avatar.Bisleri International will invest Rs lOO crore

for the project which constitutes a Rs40- crore investment in two plants in Uttaranchal and

Himachal Pradesh in line expansion, Bisleri International chairman Ramesh Chauhan said. The

plants will come up next year. Chauhan said the rest of the investment of about Rs60 crore would

go into infrastructure development. The investment would be funded through internal accruals.

Launching 'Bisleri Natural Mountain Water' he said the company was looking for four more

locations from where we look to source natural water. The likely locations would be in South

and West India he said. Bisleri has 23 plants across the country producing bottled water.

Bisleri Natural Mountain water will be available in aqua green packaging against the blue

packaging of old and will be available in six sizes. The company is also planning an aggressive

marketing and advertising campaign with a two-year budget of Rs60 crore.

Chauhan said the new packaging has been adopted in order to stand apart from the others and in

Chauhan's words, "As leader, we want to differentiate ourselves and hence have adopted this ,

aquagreen colour," he said. Priced at a significant premium to packaged water Natural Mountain

Water will be available for Rs20 per litre.

The natural water segment, which accounts for about 5 per cent of the total bottled water

segment, is expected to grow by leaps and bounds as health awareness and disposable incomes

rise. According to the company the foray into spring water will be followed by an entry into the



packaged ice segment (Bisleri Ice) as well into flavoured, vitamin and sparkling water

categories. The company is said to be setting up R&D facilities for ice and studying various

packaging options. Ramesh Chauhan, chairman, Bisleri International expects to sell 10 million

cases of Bisleri Mountain Water over the next two years- a turnover of Rs200 crore.

The bottled water industry is worth Rs 1,000 crore in India and is growing at 40 per cent per

annum. It is projected to reach Rs5,000 crore by 2010. The main players in the spring water

segment are Himalaya, Catch and Leh Berry. At present Himalaya leads the segment with a 50-

per cent market share.

Bisleri claims to have a 40-per cent market share of the organized packaged water market. The

natural spring water market is very small and accounts for 5 per cent of the entire segment.

Bisleri is projecting a turnover of Rs300 crore this financial year, as against Rs220 crore last

year.

Chauhan says he is also preparing for an entry into the US market with his spring water and is

talks with US authorities for this. He would not export India-bottled Bisleri into US, but would

set up a bottling operation there as transportation costs are a huge obstacle in sourcing the

product from India. "We are in the process of getting the regulatory approvals for the venture,"

Chauhan said. He said Bisleri was at par with companies in the developed world as far as

meeting international standards were concerned.



KINLEY

Kinley Water-a product of the Coca-Cola Company-is the established market leader in the

drinking water segement. A product offering of the World's No. 1 beverage company, Kinley

Water is brought to You with the time-tested expertise of the Coca-Cola. Backing Kinley Water,

is the promise of delivering Trust in every Drop'. Kinley Water's 25 litre bubble top containers

made of Lexan- a polycarbonate polymer (plastic) that is made specially for the purpose. Unlike

other brands which use recycled plastic, Kinley bubble tops are made from what is known as

Virgin Plastic.

In addition to this, Kinley offers Kinley water dispensers. These water dispensers come in four

basic models. The water dispensers are ergonomically designed to suit both domestic as well

commercial requirements.

Refrigerator Model with Hot and Cold facility

Hot and Cold Model

Compacta

Elegance

Advantages of Kinley:

Good brand positioning.

Available in different packs like 500 ml, 1 Itr, 2 Itr, 5 Itr and 20 Itr.

Easy availability of product in all over India after Bisleri with solid infrastructure facility.

Benefit as a product of Coca-Cola.

Focusing on institutional sales to create brand awareness aggressively.

Use of technological up gradation. Disadvantage of Kinley:

Lack of proper service to customers.

Lack of strong infrastructure.

Non-availability of a variety of range like Bisleri.

Focus on distributors not on small retailers.



AQUAFINA

Pepsi Co. India launched the packaged water bottle brand Aquafina about five years ago in a

750-ml pack, basically targeting the youth. The brand now retails in conventional retail pack

sizes of 500-ml and 1-litre bottle Aquafina's market share in the retail segment is estimated at

about 12 per cent and it remains to be seen how PepsiCo succeeds in penetrating the bulk water

market. Pepsi Foods, too, expects its Aquafina brand to turn national by the year-end. "Bisleri is

the market leader and a good brand that has been built over the years. But we are gradually

consolidating our bottled water business, even if our positioning is somewhat different," says

Pepsi Food's official spokesperson.

Advantages of Aquafina:

Strong distribution network.

Good brand awareness and brand positioning.

Available in different packs like 500 ml, 750 ml, 1 Itr.

Easy availability of product in all over India.

Benefits as a product of Pepsi.

Focusing on institutional sales to create brand awareness.

Use of technological up gradation.

Disadvantages of Aquafina:

Compared to Bisleri and Kinley the service from Aquafina is not satisfactory.

Lack of strong infrastructure.

Non-availability of a variety of range.

Market coverage is not proper.

Focus on wholesalers not on small retailers.



COMPANY PROFILE OF BISLERI

In 1967, Bisleri an Italian company, started by Signer Felice Bisleri, first brought the idea of

selling bottled water in India. It started a company called Bisleri India. In 1969, Ramesh

Chauhan, the Chairman of Parle Exports, bought over the brand. In those days, Bisleri packaged

drinking water was available in glass bottles.

Being a returnable package owing to various other problems such as breakage and weight, in

1972-73, Bisleri was made available in PVC (Poly Vinyl Chloride) bottles. After this plastic

packaging was introduced, things started to change, and sales increased rapidly.

The upsurge in the sales of Bisleri started in 1993 as Ramesh Chauhan sold off the Parle stableof brands, including Thums Up, Limca and Gold Spot. Recognising the potential of the

packaged drinking water market, he then went on to concentrate on making Bisleri a top selling

brand in India.

:: The Present

It was around the year 1995, when Parle Exports took charge of the brand operations and the

business took off in the market. With factories across India and a strong distribution network,

Bisleri established itself as a force to reckon with in the domestic packaged drinking water

market.

Earlier the packaged drinking water market consisted of five star hotels, tourists and foreigners.

As a marketing strategy, a conscious decision was taken by the company that only 40% of the



sales should come from these outlets and 60% from general market, i.e. paanwallas, street shops,

general stores and even non-tourists.

This brought about a sea change in the perception in the consumer's mind about consumption of

Bisleri. Earlier, drinking bottled water was considered to be more of a status symbol. That

thinking has slowly changed to the point where today, not drinking Bisleri is considered as being

behind the times. Such has been the presence and penetration of the Bisleri brand in the bottled

water segment.

About few years ago, in 1998, a strategy was adopted to concentrate aggressively on the home

market. The habit of boiling water or using electronic gadgets was not adequate, since the source

of water itself was unreliable. The bulk packages like the 2, 5 and 20 litre bottles were

introduced to meet this market need. The price per litre went down as a result, making bottled

water very economical for the consumer.

:: Future Plans

Bisleri was the first to market bottled water in a totally virgin market and naturally people

associate the brand with bottled water. Now Bisleri is perhaps already ten steps ahead of its

competitors and will endeavour to widen its gap in the times to come.

Bisleri's brand positioning stresses on pure, clean and safe drinking water.

Some of the future plans to maintain the top spot that Bisleri commands in the Indian market are:

New pack sizes in bottles and cups

Increase the distribution network with an investment of over 200 crores Strengthen presence in traditionally weak areas by setting up 12 new bottling facilities at

a cost of Rs. 150 crores.



Technology Developments

To make sure that the product that reaches the consumer is always of highest standard and also

meets international standards, Bisleri has always been involved in improving its product

packaging. One such recent development is the tamper proof break away seal. Bisleri also

recognises the need to produce environment friendly products and is working on the PET

project.

The break away seal

Keeping in mind the consumer's need to recognise a genuine product that cannot be tampered

with, Bisleri developed the break away seal. The unique cap has been patented and cannot be

duplicated or tampered with. This technology development in the product ensures that the

consumer will only get a highly safe product when they consume Bisleri packaged drinking

water.

Product packaging

To ensure purity of the bottled water, the bottles that are used are blown and filled at the factory

itself, to avoid contamination.

Purification Process

At BISLERI plants, water undergoes multi - stage purification process to ensure proper blend of

minerals and complete removal of microorganisms and toxic substances. So a habit of drinking

PURE and SAFE BISLERI will ensure a healthy life

What advantages bisleri purification process has over purification done by other methods

Traditional process of boiling water for purification has its limitations. lt is time consuming. For

boiling, water has to be heated to 100 deg. Celsius. Also, to kill microbes water should be boiled

continuously for a minimum of 20 minutes. Boiling may kill the microbes but can not remove

other physical impurities and toxic substances.



Many home appliances are available in market for water purification. These gadgets use either

filtration technique or Ultra Violet rays or a combination of the two techniques. These

techniques do not guarantee 100 % purity of water.

Filtration removes only the visible suspended particles and not the minute , invisible particles ,

toxic substances or microorganisms. The filters are cleaned rarely and all the muck

accumulates inside leading to more contamination. Ideally such filters need to be cleaned

every day which is cumbersome. Ultra Violate rays kill the microbes but cannot ensure

removal of toxic substances and physical impurities.

These purification equipment are incomplete and need continuous monitoring and

maintenance.

At BISLERI, through our multi - stage purification process we ensure removal of toxic

substances as well as physical and microbiological impurities. In our state-of-the-art

processing plants we follow rigorous Good Manufacturing Practices and strict Quality

Assurance norms so each and every bottle of BISLERI is made tasty, pure and safe for the

consumer.

PROTECT YOUR HEALTH WITH BISLERI WHICH USES

6 STAGES OF PURIFICATION

CHLORINATION : Kills micro organisms. Remove organic matter.

ARKAL FI LTER : Removes suspended matter and turbidity.

REVERSE OSMOSIS : Removes organic material. Controls total dissolved solids in the

water.

MICRON FI LTRATION : Additional safety measures of filtration.

OZONATI ON : Ensures water remains bacteria free for longer shelf life.



Product & Packaging

Bisleri is available in a range of sizes.

The Bisleri bottled water range comprises the conventional 500 ml, one litre, 1.2 litre and

two litre bottles; five litre and 20 litre jars for the home segment, and smaller packs sizes of

250 ml cups and 330 ml bottles, though in very limited numbers for now.

Vision

A major, diversified, transitional, integrated consumer product manufacturing company, with

National Leadership and a strong environment conscience, playing a national role in safe

water and Agro based drinks.

Mission

To provide the highest quality product, keeping in mind all aspects including

freshness, purity and safety, and making it easily available to the consumer at a very

affordable price.

To achieve international standards of excellence in all aspects of energy and

diversified business with focus on consumer delight through value and services of

product and cost reduction.

To enhance capital and fixed assets of the group to withstand challenges and tough

market trends.

To attain leadership in developing, adopting and assimilating state or art technology

for competitive advantage.

To provide better quality of product and services through sustained market research

and product development.



To foster a culture of participation and innovation for employee growth and

contribution.

To cultivate high standards of business ethics, and total quality management for a

strong corporate identity and brand equity with continuous and positive growth.

To help enrich the quality of life of all the communities specially the neglected ones

and preserve ecological balance and heritage through a strong environment

conscience.



:: Why Bisleri?

Bisleri is totally safe & protects you from all water borne diseases.

Bisleri is trusted by 50 lakhs households across the country. Bisleri is the brand leader in bottled water category.

The water is purified through six stages of purification process that includes reverse

osmosis and Ozonation.

Where Can We Use Bisleri ? Drinking

Making tea, coffee, lassi, cold drinks, mixing with drinks

Kneading the dough

Cooking

Mixing with baby foods

Mixing with medicines



LITERATURE REVIEW

1969: Buys Bisleri bottled water from an Italian company, Felice Bisleri. It was bottled in glass bottles then.

Early-1980s: Shifts to PVC bottles. Sales surge

Mid-1980s: Switches to PET bottles, which meant more transparency and life for water.

1993: Sells carbonated drink brands like Thums Up, Gold Spot and Limca_to Coca-Cola for Rs.400 crore.

1995: Bisleri launches a 500 ml bottle and sales shoot up by 400 per cent.

2000: Introduces the 20-litre container to bring prices down from Rs 10 a litre to Rs 2 a litre.

1998: Introduces a tamper-proof and tamper-evident seal.

2000: BIS cancels Bisleri's licence of a water bottling in Delhi since some of the bottles did not

carry ISI label; the licence is restored one-and-a-half months later.

2002: Kinley overtakes Bisleri. The national retail stores audit by ORG-MARG show Kinley's

marketshare at 35.1 per cent compared to Bisleri's 34.4 per cent.

2003: Bisleri says it plans to venture out into Europe and America to sell bottled water

2004: water king, Mr Ramesh Chauhan, set to take brand Bisleri across the globe. 2005: Bisleri has announced its plans to foray into the domestic fruit juice market and earmarked

an investment of Rs 100 crore for upgradation of its Chittor plant and setting up of a new facility.

2006:Bisleri Natural Mountain water will be available in aqua green packaging against the blue packaging of old and will be available in six sizes.

2007:Parle Bisleri changed the look introduced a new variant (natural mountain water)and

announced it’s plan to launch the brand in US- a huge market for designer waters.

2008:Bisleri International has decided to register the mango drink brand — Maaza — in easternEuropean countries, and launch the brand through a franchisee operation.

2009: company plans to concentrate on markets such as Jammu and Kashmir,Kerela,Southern

part of Tamil Nadu and Punjab,which are its Weaker links to steer a 40% annual growth in sales.



OBJECTIVE OF THE STUDY

To learn about the domestic packaged drinking water market, its market distribution and

Brand Bisleri in detail.

To find about consumers' and retailers' brand preference

To identify the various threats of the mineral water market

To find the retailers view on the mineral water market

To find the potential of Mineral water market in Panipat.

RESEARCH METHODOLOGY

Research Design

A research design is purely and simply the framework or plan for a study that guides the

collection and analysis of data. The Survey Research was used in this project, because

Retailer’s and consumers feedback was necessary for obtaining the data. Starting a research

project needs a basic preparation regarding the issues related to the topic selected. For this one

needs to do some deskwork. Deskwork includes:

1. Determining the basic objectives of the study undertaken.

2. Collection of secondary data related to the topic from Internet, magazines & newspapers.

3. Study the market, which one wants to cover.

4. Analyze the objective on the basis of information collected by secondary data.

5. All the above activities at the initial stage of the project must be completed & then the main

part follows.

Data sources

a) Primary data: These are those data which are collected afresh and for the first time, and thus

happen to be original in character. I will be using the structured questioners.

b) Secondary data: These are those which have already been collected by someone else and



which have already been passed through the statistical process. I will collect it from the sources

like internet, published data etc.

Population of the study

People from Panipat region will be included in the population.

Sample Size:

I took 100 consumers and 35 retailers as my respondents. They were selected by random

sampling method because in this case systematic sampling is not possible since one cannot say

whether a person is using mineral water or not.

.

Sampling Technique

Random sampling technique will be used in this research project.

Research Instrument

For doing the survey research, structured questionnaire with both open-ended and closed-ended

questions was used.

Mode of Survey

The mode of survey was personal interview with the retailers and consumer’s during the filling

up of the questionnaires.



Preparing the Questionnaire

As per the requirement of our project & to achieve the objective both consumer of mineral

water & retailers of mineral water were studied apart from studying about the domestic

packaged drinking water market, Brand Bisleri in detail.

For that close end questionnaire for the consumer & mix of open end & close end for retailer

were prepared.

Data Processing

Daily data will be entered into MS-Excel sheets. After the exhaustion of the specified

geographical area this data will be analyzed using simple graphical and tabulation techniques.

Analytical Tools

After collection of data another work necessary for any data collector is to correctly analysis that

data. So statistical tools helps us to correctly analysis the data .As I will using here the software

named Ms EXCEL for analysis of the data. I will use following statistical tools:

Hypothesis Testing

Chi-square test will be used when the set of observed frequencies obtained after experimentation

have to be supported by hypothesis or theory. The test is known as χ 2 test of goodness of fit and

is used to test if the deviation between observation (experiment) and hypothesis may be

attributed to chance (fluctuations of sampling).χ 2 also enables us to explain whether or not two

attributes are associated or related to each other.

To test the goodness of fit: It helps to test goodness of fit by using null and alternate hypothesis.



STATISTICAL TOOLS TO BE USED

1. Chi – Square Test

Procedure:

(1) Set up the null hypothesis that there is no significant difference between the observed and

expected value.

(2) We compute the value of CHI- square by using the formula

CHI-square = Σ χ 2=Σ (( Oi- Ei)2/Ei)

O- Observed value

E- Expected value

Degree of freedoms=(R-1)(C-1)

Level of significance=5



And this is how Parle Bisleri began

According to the Bureau of Indian Standards there are 1,200 bottled water factories all over India

(of which 600 are in one state — Tamil Nadu). Over 100 brands are vying for the Rs 1,000-crore

(Rs 10 billion) bottled water market and are hard selling their products in every way possible — better margins to dealers, aggressive advertising, catchy taglines.... In such a scenario, The

Strategist takes a look at how it all started — with Bisleri — and how Ramesh Chauhan,

chairman, Parle Bisleri created a market out of pure water.

Bisleri mineral water was bought from the Italian company, Felice Bisleri, in 1969 — the

company had been unable to market bottled water and wanted to exit the market — Parle too did

not see any potential for the product at that time.

As a soft drinks company, Parle had Thums Up, Gold Spot and Lime a (cola, orange drink and

lemonade) but no soft drink company was complete without a soda. So they merely used the

name and launched Bisleri soda with two variants - carbonated and non-carbonated mineral

water.

But three decades ago, what could they say about a category that had no market? They

didn't know our target group. Then, since bottled water is colourless, tasteless and odourless, it

was not an easy product to advertise.

Thus, the earlier brand building efforts focused on Bisleri being healthy with adequate minerals.

The Italian name added a dash of class to it. The first print ad campaign captured the

international essence and showed a butler with a bow tie, holding two bottles of Bisleri.

The punchline was, "Bisleri is veri veri extraordinari" (the spelling of the punchline was

designed to capture the consumer's attention). The campaign was successful and we were being

noticed as someone who catered to the need for safe, healthy drinking water.



However, the real boost to mineral water came in the early-to-mid-1980s when they switched to

PVC packaging and later to PET bottles. The PET packaging did not just ensure better

transparency — they could now show sparkling clear water to the consumers. It also meant better

life for the water.

Meanwhile, Bisleri soda was doing well but they had to discontinue production as they sold their

soft drink brands to Coca-Cola in 1993. But Ramesh Chauhan's interest was in building brands

and not in bottling soft drinks. That's when he started to concentrate on developing the Bisleri

water brand.

There was a clear opportunity of building a market for bottled water. The quality of water

available in the country was bad. It was similar to what Europe faced before World War II. The

quality of water in Europe was extremely poor, which created the bottled water industry there. In

India, too, not only was water scarce, whatever was available was of bad quality.

Initially, though bottled water was something only foreigners and non-resident Indians

consumed, they still had to increase the distribution, which meant the dealer margins reduced.

And because of limited sales, the dealer margin had to be kept high to compensate low sales.

Now they had to push sales.

Hence, they introduced free sampling of Bisleri at the tables where the elderly guests would sit.

Soon customers were ordering bottled water on special occasions. Currently, the consumption of

bottled water is far in excess of soft drinks on such occasions.

The other major challenge was distribution. Soft drink sales are in glass bottles and the

distribution model is built around picking up empty bottles and getting them back to the factory.

That's not the case with the retail bottled water packs (below 2 litre). But a product that's not

available where it's needed is useless.

The number of outlets where Bisleri is available has increased from 50,000 in 1995 to 2,50,000

at present. But that is not enough — they need to keep looking for different avenues. Take

stationery shops and chemists, for instance. They don't keep soft drinks but sell Bisleri. That is

the kind of exclusivity we look for to get ahead of the distribution network that soft drink

companies talk of.



ANALYSIS AND INTERPRETATION

SWOT ANALYSIS OF BISLERI

Strengths

Core business of company.

First mover in this business since 1969.

Good brand awareness and brand positioning.

Available in different packs like cups, 500 ml, 1 lit, 1.2 lit, 2 lit, 5 lit and 20 lit.

Has become generic name in the mineral water market.

Availability of Bisleri in all over India with solid infrastructure facility.

Focus on customer orientation through low price strategy.

Product differentiation by introducing patented break way seal cap.

Best service and proper response to dealers and customers.

Weakness

Lack of brand loyalty as MNC's are entering the market like Nestle's Purelife, Pepsi's

Aquafina.

Lack of Global Awareness in brand.

Lack of proper advertising to create brand awareness.

Market coverage is not fully utilized.

Institutional sales are not penetrated properly.

Lack of technological up gradation.

Opportunity

Indian bottled water industry is still at growth stage.

Influence of tourists and expatriates.



Bisleri as a daughter company of Parle has a strong presence in India.

Unreliable municipal water quality.

People are becoming health conscious.

Threats

Numbers of players like Kinley and other local players are present in the market have already

captured the market.

Tough competition from MNC's like Coke & Pepsi.

Fluctuation in sales due to seasonality.

Local manufacturers who refill used bottle Hampers the image of the industry.

Water filters and soft drink industry is a major threat to industry.

Coke and Pepsi are already having strong distribution network in bottle water industry with

their own fleet of trucks & vans.

PEST ANALYSIS

Political Analysis

Government failure to provide safe drinking water.

Laws encouraging ground water exploration.

Environmental regulations.

Economic Environment

Developing Economy.

Better infrastructure:



Social Environment

Scarcity of water.

Health conscious people.

Population growth rate.

Technological Environment

Economies of scale.

CONSUMER RELATED



WHICH BRAND DO YOU PREFER WHILE BUYING MINERAL WATER?

NAME OF BRAND CONSUMER PREFERENCES

Bisleri- Most Preffered 60%

Kinley 20%

Aquafina 12%

Others 8%

NUMBER OF RESPONDENTS USING

MINERAL WATER FREQUENTLY

Always Often Sometimes Never Very Often

28% 27% 34% 9% 2%

HYPOTHESIS TESTING

0%20%40%60%

Bisleri-Most

Preffered

Kinley Aquafina Others

60%

20% 12% 8%

% O

f C o n s u m e r

P

r e f e r e n c e

Nos. Of Brands



Step1: State Hypothesis:

Ho: Larger Proportion of people always use mineral water.

Ha: Larger Proportion of people go for an occasional use of mineral water.

Step2: state the rejection criterionDF=5-1=4

At alpha .05 and 4 degrees of freedom, the critical value from the chi square distribution table is

9.49.Preference Observed Expected (O-E) (O-E)^2 (O-E)^2/E

Always 28 20 8 64 3.2

Often 27 20 7 49 2.45

Sometimes 34 20 14 196 9.8

Never 9 20 -11 121 6.05

Very Often 2 20 -18 324 16.2

χ 2=37.7

Interpretation:

As the Chi-square test statistics value 37.7 exceeds the critical value of 9.49 hence nullhypothesis is rejected and hence we reached at the result that our alternative hypothesis is

accepted. Hence it can be concluded that that 34% of the mineral water users go in for anoccasional use while there are still 9% of the respondents who never go for packaged water.

RESPONDENTS CHOICE AMONGST MINERAL WATER AND SOFT DRINKS

57% respondents agree to the fact with 10%, who strongly agree while 5% of the

respondents disagree to the fact while 4% strongly disagree, while 4% consumers were

indifferent towards it.

HYPOTHESIS TESTINGStep1: State Hypothesis:

Ho: People prefer soft drink when thirsty.

Ha: People like to have mineral water in a thirst condition.

Step2: state the rejection criterion

DF=5-1=4

5%

57%

4%

20%

4%0%

10%

20%

30%

40%

50%

60%

Strongly

agree

Agree Strongly

disagree

Disagree indifferent



At alpha .05 and 4 degrees of freedom, the critical value from the chi square distribution table is

9.49.

PREFERENCE OBSERVED EXPECTED O-E (O-E)^2 (O-E)^2/E

Strongly agree 5 20 -7 49 2.45

Agree 57 20 23 529 26.45

Stronglydisagree

4 20 -19 361 18.05

Disagree 20 20 20 400 20

indifferent 4 20 -17 289 14.45

X 2=81.4

Interpretation:

As the Chi-square test statistics value 81.4 exceeds the critical value of 9.49 hence null hypothesis

is rejected and hence we reached at the result that our alternative hypothesis is accepted. Hence itcan be concluded that that 57% of mineral water users go in for when they are thirsty.

BRAND AWARENESS OF MINERAL WATER AMONG RESPONDENTS

Brands Respondents

0-2 40%

3-5 50%

6-10 10%10 and above 0

HYPOTHESIS TESTING


0%

50%

0 to 23 to 5

6 to 1010 & above



Ho: People are aware of all the brands of mineral water.

Ha: People are not aware of all the brands of mineral water.

Step2: state the rejection criterionDF=4-1=3

At alpha .05 and 3 degrees of freedom, the critical value from the chi square distribution table is7.82.

0-2 40 25 15 225 9

3-5 50 25 25 625 25

6-10 10 25 -15 225 9

10 avd above 0 25 -25 625 25

χ 2 =68

Interpretation:

As the Chi-square test statistics value 68 exceeds the critical value of 7.82 hence null hypothesis

is rejected and hence we reached at the result that our alternative hypothesis is accepted. Hence it

can be concluded that most of the people know only about the main brands which are owned by

the big companies and are advertised hugely. Mainly 3 -5 brands only comes to the minds of thecustomer in regards to mineral water.

CUSTOMER PREFERENCES FOR BOTTLE

SIZE OF BOTTLES CONSUMER PREFERENCES

0.5 ltr 60%

0

0.5

1

0.5 Itr 1 ltr 5 Itr 20 Itr

%

O f R e s p o n d e n t s

Size Of Bottle



1 ltr 20%

5 ltr 5%20 ltr 15%

HYPOTHESIS TESTING

Step1: State Hypothesis:Ho: 5 ltr and 10 ltr bottles of mineral water are the most preffered once, by the population .

Ha: 5 ltr and 10 ltr bottles of mineral water are not preffered by the population .

Step2: state the rejection criterion

DF=4-1=3At alpha .05 and 3 degrees of freedom, the critical value from the chi square distribution table is

7.82.

PREFERENCE OBSERVED EXPECTED O-E (O-E)^2 (O-E)^2/E

0.5 ltr 60 25 35 1225 49

1 ltr 20 25 -5 25 1

5 ltr 5 25 -20 400 16

20 ltr 15 25 -10 100 4

χ 2 =70

Interpretation:

As the Chi-square test statistics value 70 exceeds the critical value of 7.82 hence null hypothesisis rejected and hence we reached at the result that our alternative hypothesis is accepted. Hence itcan be concluded that that the 5 Ltr. and 20 Ltr. bottles are usually preferred only during special

occasions such as marriage and Birthday parties. Otherwise the 1 Itr and 500 ml bottles are the

most preferred once.

CUSTOMERS PREFERENCES REGARDING

PRICE WORTH OF MINERAL WATER



Respondent’s view Yes No

% of Respondent’s 42% 58%

The observation shows that most of the people are not happy paying the price, the

companies are charging for the product. They feel that the price should be a little lower.

EFFECT OF ADVERTISING ON PURCHASE

46% agree to the fact with 10%, who strongly agree while 25% of therespondents disagree to the fact while 14% strongly disagree, while 5%consumers were indifferent towards it.respondents

42%

58%Yes

No

10%

46%14%

25%

5%

Strongly agree

Agree

Strongly disagree

Disagree

Indifferent



HYPOTHESIS TESTING


Ho: Advertisement doesn’t affect purchase decision of Mineral Water.

Ha: Advertisement affects purchase decision of Mineral Water.

Step 2: Set the Rejection criteria:

DF = 5-1 = 4 At alpha .05 and 4 degrees of freedom, the critical value from the chi square distributiontable is 9.49

Step 3: Compute the Test Statistics: χ 2 = Σ (O-E)^2 / E

Preference Observed Expected (O-E) (O-E)^2 (O-E)^2/E

Stronglyagree

10 20 -10 100 5

Agree 46 20 26 676 33.8

Stronglydisagree

14 20 -6 36 1.8

Disagree 25 20 5 25 1.25

Indifferent 5 20 -15 225 11.25

2=53.1

Interpretation:

As the Chi-square test statistics 53.1 exceeds the critical value of 9.49 hence null hypothesis is

rejected and hence we reached at the result that our alternative hypothesis is accepted. Hence itcan be concluded that Advertisements affects purchase decision of Mineral Water.

GROWING HEALTH CONSCIOUSNESS

AMONG INDIANS



Yes No

73% 27%

The observation shows that most of the population in Delhi & its NCR now a days is getting

Health Conscious. The reason being the knowledge of the fact that the normal water which

we get is not always very hygienic and may cause many diseases.

RETAILER RELATED OBSERVATIONS AND FINDINGS

TYPES OF BRANDS RETAILERS KEEP

Advertised Non-Advertised Both

35% 5% 60%

According to survey, 35% of retailer go in for advertised products and non-advertised

products do not have any weight Around 60% retailer believe in the combination of both

(advertised and non-advertised version). The survey was based on retailers.

SIZE OF BOTTLE SELLING MORE

73%,YES

27%,NO

Yes

No

0%20%40%60%

%

O f R e t a i l e r s

Types Of Brands



Size of bottle 0.5 Itr 1 ltr 5 Itr 20 Itr

% of respondents 60% 20% 5% 15%

HYPOTHESIS TESTING


Ho: Selling of 5 ltr & 20 ltr bottles occur more frequently.

Ha: Selling of 5 ltr & 20 ltr bottles occur less frequently.

Step 2: Set the Rejection criteria:DF = 4-1 = 3

At alpha .05 and 3 degrees of freedom, the critical value from the chi square distributiontable is 7.82

Step 3: Compute the Test Statistics: χ² = Σ (O-E)^2 / EPreference Observed Expected (O-E) (O-E)^2 (O-E)^2/E

0.5 ltr 60 25 35 1225 49

1 ltr 15 25 -10 100 4

5 ltr 10 25 -15 225 9

20 ltr 15 25 -10 100 4

2=66Interpretation

As the Chi-square test statistics 66 exceeds the critical value of 7.82 hence null hypothesis is rejected

and hence we reached at the result that our alternative hypothesis is accepted. Hence it can beconcluded that both 0.5 Ltr and 1 Ltr version are selling well but 5 Itr are selling very less as

compared to others.

GROWTH DURING THE LAST FIVE YEARS

ACCORDING TO RETAILERS

0

0.2

0.4

0.6

0.5 Itr 1 ltr 5 Itr 20 Itr %

O f R e s p o n d e n t s

Size Of Bottle



The growth rate has been very high as 38% of population has become health

conscious,34% is due to scarcity of drinking water and 28% is due to increased

advertisementsHYPOTHESIS TESTING


Ho: Tremendous growth in mineral water segment is owing to increased health consciousness

and scarcity of portable drinking water amongst the population. Ha: Tremendous growth in mineral water segment is not due to increased health consciousness

and scarcity of portable drinking water amongst the population.Step2: state the rejection criterionDF=3-1=2

At alpha .05 and 2 degrees of freedom, the critical value from the chi square distribution table is9.49.

Preference Observed Expected (O-E) (O-E)^2 (O-E)^2/E

HealthConsciousness

38 33.3 4.7 22.09 .66

Advertisement 28 33.3 -5.3 28.09 .84

Scarcity of portable drinking

water

34 33.3 0.7 0.49 .01

2 =1.51 Interpretation:

As the Chi-square test statistics value 1.51 does not exceeds the critical value of 5.99 hence

alternate hypothesis is rejected and hence we reached at the result that our null hypothesis is

accepted. Hence it can be concluded that Last five year seen a tremendous growth in the mineralwater segment. The growth rate has been very high, owing to increased health consciousness

amongst the population, arising from scarcity of potable drinking water.

FUTURE PROSPECTS OF MINERAL WATER

MARKET

38%

28%

34%Health

Consciosness

Advertisement



Retailer's prediction Excellent Good Average Poor

% of retailers 42% 30% 15% 13%

Saturation for mineral water market is expected with in the next 5 years after which the

market will stabilize from today's point of view the market looks quite disruptive because

of heavy competition.

RECOMMENDATION AND SUGGESTION

Campaign, stalls to beat local brands & create awareness.



Retailers need to concentrate on 5 and 20 litr bottle which can be possible only if properly

advertised & home delivery of jars are done to the end customers.

The market is too congested and confused in the Delhi & its Ncr region, so the company

should properly promote & strengthen the distribution channel to survive the competition.

Can enter into premium segment market.

They can tie up with large commercial complex,hotels & airlines industries as they are the

emerging sector.

They can target the youth segment.

Launching trendy packs to attract more and more customers.

CONCLUSION

After analysis of the data & facts we have collected from consumer & the retailers &

matching them with the objectives one can say that there is very good future for



mineral water market. Soft drink market might be some threat to the mineral water

at present but within few years the scenario is going to change. Trend signifying

increasing health consciousness amongst Indians could also be observed.

Market has seen a tremendous growth from the early nineties & now it is increasing by

70% to 90% every year so one can easily say there is great potential in the mineral water

market.3

It could also be observed that the living standards of the People improving & as they are

becoming health conscious are ready to pay for water now. On the question of survival of

so many companies government has made policies & restrictions from April 2001 which

will force many manufactures to shut down their factories. But due to potential in the

market companies with quality product will survive.

Finally from the data collected at both primary and secondary level one can confidently

say that Bisleri as packaged water brand is the current market leader.

BIBLIOGRAPHY

MAGAZINES –

Business World (Issue 04-10 Dec, 2007)



A & M (Issue Jan 2008)

Business India (Issue 11-17 Dec, 2007)

BOOKS –

Philip Kotler, Marketing Management (9th edition) S H.W. Boyd, R. Westfall and S.F.

Stasch, Marketing Research- Text and Cases (7th Edition)

Richard Tedlow, New and Improved: The Story of Mass Marketing in America

C.R. Kothari, Research Methodology (2nd Edition)

Britannica Encyclopedia

OTHERS –

Cable Network Internet

en.wikipedia.org/wiki/Bisleri

www.finewaters.com/Bottled_Water/India/Bisleri.asp

www.bisleri.com/

CONSUMER QUESTIONNAIRE

Name of the respondent __________________________

Address of the respondent __________________________

Contact no. ________________________________________

Q l. How often do you consume mineral water?

a) Always b) Sometimes

c) Often d) Never

http://www.bisleri.com/

http://www.bisleri.com/



Q 2. When felling thirsty you opt for?

a) Mineral water b) Soft drink

Q 3. How many brands of mineral water are you aware of?

a) 0-2 b) 3-5

c)6-10 d) 10 and above

Q 4. Under what circumstances you opt for mineral water?

a) While traveling

b) During parties, meeting, seminars

c) When drinking water is not available

d) During illness

e) Others

Q 5. Which size of bottle do you prefer?

a) 500 ml b) 1 ltr.

c) 5 Itr d) 20 Itr

Q6. Do you think mineral water is much more hygienic than normal water?

a) Yes b)No

Q7. Do you think the price the companies are charging, is worth the product?

a) Yes b) No

Q8. Does advertising of this product has any effect on your purchase?

a) Yes b)No

Q9. Do you think Indians are getting more health conscious day by day?

a) Yes b) No

Q10. Which brand do you prefer while buying mineral water?

a) Bisleri b) Kinley

c) Aquafina d) other

RETAILER'S QUESTIONNAIREName of the respondent ___________________________

Address of the respondent _________________________

Contact no. ______________________________________

Q l. How many brands of mineral water do you sell (specify)?

a) 2-3 b)3-5



c) More

Q2. What types of brands do you have?a) Advertised b) Non-Advertised

c) Both

Q3. Which brand is selling more?

a) Bisleri b) Aquafina

c) Kinley d) Others

Q4. Which size of bottle is selling more?a) 500 ml b) 1 Itr

c)51tr d) 20 Itr

Q5. On which brand do you get more margins?

a) Bisleri b) Aquafma

c) Kinley d) Others

Q 6. Do you feel there is growth in the mineral water market in the last 5 years?

a) Yes b)No

Q 7. What is the future prospect of this market?

a) Excellent b) Good

c) Unlike d) Poor

Date post:	14-Apr-2018
Category:	Documents
Upload:	ajeet-rajpoot
View:	215 times
Download:	0 times

Top Five Brand of Mineral Water

Documents