BISLERI(MARKETING STRATEGY OF MINERAL WATER INDUSTRIES-
SPECIAL EMPHASIS ON BISLERI)
MARKETING STRATEGY OF MINERAL WATER INDUSTRIES- SPECIAL EMPHASIS ON
BISLERI
INTRODUCTION
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. There are 3 types of water
impurities, which are root cause of water borne diseases.
1. Microbiological-Bacteria / virus.
2. Dissolved impurities - chemical.
3. Imbalance of Mineral Content.
There are rapid changes that are taking place in our environment since long and
the air and the water pollution is on an increase. The main source of drinking
water is river and downstream which also have not been able to escape the
pollution. When a consumer became aware of the problems caused by water
pollution the market saw an advent of ceramic water filters, which filters the dust
and suspended particles but dissolved impurities and microbiological impurities
are not cleared out. The mineral balance is also not maintained.
1980's witnessed more changes by a tap attachment wherein Iodine resin is
used to filter the water. It deactivates microbiological impurities to an extent but
has side effects due to iodine and it does not take care of dissolved impurities
mineral balance.
Late 1980's witnessed Ultra Violent based purifier, which filters dust and
deactivates bacteria to a great extent. It maintains the odor and color of water
but does not clear out the dissolved impurities and mineral particles. Thus came
advent of mineral water.
Historically, the need for purified water within Indian homes had been kept down
to a minimum. Essentially, there were three types of water that was used for
different purposes. The first type was used for rinsing. The second type, which
was used for cooking, was cleaner and kept covered. The third type was the
cleanest – drinking water – and was very often boiled before use.
Since an average family needed a small quantity, not more than five or six liters
a day, boiled and filtered water had been a convenient solution for some
time .The fallouts were obvious. It was very difficult to convince the people that
purification system was worth the price. There was no visible way to
demonstrate the benefit. The otherwise somnolent market began to change once
companies like Eureka Forbes targeted the office segment, while the mineral
water players went after travelers. Ion Exchange was the only company, which
had any measure of success in entering homes with Zero-B. But clean drinking
water returned on the national agenda a little later.
Around 1989, drinking water became an issue again.
“Around early 1990s,Time did a story on India as a key emerging market and
that was the trigger for all the players eyeing this market”.
WATER, WATER EVERYWHERE
Water - the Beverage your Body Needs Most
When we were kids in school, we learned that each molecule of water is made up
of two hydrogen atoms and one oxygen atom. We also learned that it was great
fun to fill up our squirt guns with water, at least until the principal caught us.
What we really didn't learn, however, was how much water we needed in order
to be healthy human beings.
West Europeans, south Asians and Japanese live in the most densely populated
regions of the globe and worry constantly about the quality of their drinking
water drawn from rivers and lakes. Most is polluted and unfit for human
consumption. In North America, people never worried about water quality and
safety until early 1970’s and restaurants always provided iced water free. Some
still do. Then came Perrier, the French mineral water emphasizing how
restaurateurs could increase their revenues by replacing iced water service with
bottled water. Restaurateurs never miss an opportunity to increase their profits,
and soon studies started to surface claiming that serving iced water was costly
and no one benefited. Many restaurants started serving automatically bottled
water, and charged outrageous amounts i.e $ 3.50 for 300 ml. These days, a 750
ml bottle goes for $ 10.- in some restaurants, plus applicable taxes and tip!
Meanwhile, the word savvy bottled water marketers started circulating the myth
that drinking bottled mineral water is safer, never mentioning what their studies
were comparing.
It is said that the inhabitants of seven cities between Switzerland and the
Netherlands consume the water of the Rhine River. In these parts people drink
beer, wine, bottled water or fruit juices and shun tap water. North Americans
have recently begun to drink bottled water, but already the distinction between
spring water, mineral water, and filtered tap water is blurred beyond redemption.
Spring water must come from a natural springs with proven purity of
contaminants; mineral water must contain 2000 parts per million in minerals;
and filtered tap water means just that. Europeans always preferred mineral
water or eau de source (spring water) since their rivers were polluted a long time
ago. Now considerable efforts are made to clean all major European Rivers. The
Rhine River, the Thames, the Loire are clean enough to allow several species of
fish to thrive.
As always, large companies with considerable cash reserves dominate the
market. Groupe Danone, a French conglomerate, markets Evian, Volvic and
Crystal Springs; Nestle, a Swiss food multinational with headquarters in Montreux
markets Perrier, Nestle Pure Life and San Pellegrino. Not to be outdone soft drink
giant Coca-Cola joined the cause with filtered tap water and positioned their
brand as pure, safe, life-style water. Coca Cola markets Dasani and Pepsi Cola
Aquafina. When it comes to mineral water, Voss (Norway); Tynant (Ireland); Vitel,
Cathledon, Volvic, (France); Appolinaris (Germany), Spa (Belgium); Gasteiner
(Austria); San Benedetto, San Pellegrino, Aqua di Nepi, Lete (Italy), Ramlosa
(Sweden);Borsec (Romania) stand out. They display distinct taste profiles that
spring and filtered waters lack, but tend to be more expensive. When it comes to
consumption, Canadians consume approximately 30 litres per capita, Italians
158 litres, French 133, Dutch 119, Germans 101 and Americans 76. The low per
capita consumption can be attributed to the illusion that tap water is safe. In
reality, only large cities control tap water quality regularly and vigorously and
treat it appropriately for safety. In small communities, scarce financial resources
and lacking expertise often make tap water safety questionable. Since the
introduction of PET bottles (polyethylene terephate) bottled water consumption
increased by 16 percent in five years and continuing growth of the market is
forecast by the Canadian Bottled Water Association in Richmond Hill, Ontario.
The question for restaurant patrons remains whether to ask for bottled or
mineral water, or demand ice water.
It all depends on the situation. You can ask politely for ice water, if that is what
you prefer, or a glass of wine, or beer. The cost is almost the same for all the
three, or you can complain to management that prices charged for bottled water
are ridiculous as is the case with wine.
BISLERI - COMPANY PROFILE
Mineral Water under the name 'Bisleri' was first introduced in Mumbai in glass
bottles in two varieties - bubbly & still in 1965 by Bisleri Ltd., a company of
Italian origin. This company was started by Signor Felice Bisleri who first brought
the idea of selling bottle water in India.
Parle bought over Bisleri (India) Ltd. In 1969 & started bottling Mineral water in
glass bottles under the brand name 'Bisleri'. Later Parle switched over to PVC
non-returnable bottles & finally advanced to PET containers. . Parle's taking
charge of Bisleri did not make a dramatic difference to the brand's fortunes
immediately. While it did gain in terms of visibility and reach (piggybacking on
Parle's existing distribution network), efforts to expand the bottled water market
were not exactly painstaking. Parle at that particular time was interested in
making soda water and not mineral water. There were just minor initiatives on
part of the company for making mineral water, as it was not considered to be a
very profitable business at that time as people still considered boiling water to
be a safer and better than mineral water. Moreover they were not ready to pay
for a commodity like water, which was so abundantly available.
In 1972-73 Parle changed the packaging of its bottled water to plastic bottles
and that significantly made a difference in the sales. The buyers, then, were
mainly the upper class - the trendy people.
In 1993, Coca-Cola bought Parle’s soft drink brands- Thumps-up, limca etc. While
Coca-Cola actually bought over Parle's beverages, it agreed to a settlement that
allowed the multinational to bottle and distribute Bisleri soda for a time frame of
five years. The charge of Bisleri water, however, remained with Parle. The
upsurge in the sales of Bisleri started from this point as Parle sold off its stable of
brands to Coca-Cola. This was the time when it started concentrating on making
Bisleri a success in the domestic mineral water market. The reason why Parle
chose to retain the Bisleri name was that Parle saw a fairly lucrative business of
mineral water in Bisleri's equity.
Since 1995 Mr. Ramesh J. Chauhan has started expanding Bisleri operations
substantially and the turn over has multiplied more than 20 times over a period
of 10 years and the average growth rate has been around 40% over this period.
Presently we have 8 plants & 11 franchisees all over India. We have our presence
covering the entire span of India. In our future ventures we look to put up four
more plants in 06-07. We command a 60% market share of the organized
market. Overwhelming popularity of 'Bisleri' & the fact that we pioneered bottled
water in India, has made us synonymous to Mineral water & a household name.
When you think of bottled water, you think Bisleri.
We at Bisleri value our customers & therefore have developed 8 unique pack
sizes to suit the need of every individual. We are present in 250ml cups, 250ml
bottles, 500ml, 1L, 1.5L, 2L which are the non-returnable packs & 5L, 20L which
are the returnable packs. Till date the Indian consumer has been offered Bisleri
water, however in our effort to bring to you something refreshingly new, we have
introduced Bisleri Natural Mountain Water - water brought to you from the
foothills of the mountains situated in Himachal Pradesh. Hence our product range
now comprises of two variants : Bisleri with added minerals & Bisleri Mountain
Water.
It is our commitment to offer every Indian pure & clean drinking water. Bisleri
Water is put through multiple stages of purification, ozonised & finally packed for
consumption. . Rigorous R&D & stringent quality controls has made us a market
leader in the bottled water segment. Strict hygiene conditions are maintained in
all plants.
In our endeavour to maintain strict quality controls each unit purchases performs
& caps only from approved vendors. We produce our own bottles in-house. We
have recently procured the latest world class state of the art machineries that
puts us at par with International standards. This has not only helped us improve
packaging quality but has also reduced raw material wastage & doubled
production capacity. You can be rest assured that you are drinking safe & pure
water when you consume Bisleri. Bisleri is free of impurities & 100% safe. Enjoy
the Sweet taste of Purity.
How Parle Bisleri began…..
June 10, 2005
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. Excerpts from a conversation
with Prerna Raturi:
Can I be honest? When we bought Bisleri mineral water from the Italian
company, Felice Bisleri, in 1969 -- the company had been unable to market
bottled water and wanted to exit the market -- we too did not see any potential
for the product at that time.
As a soft drinks company, we had Thums Up, Gold Spot and Limca (cola, orange
drink and lemonade) but no soft drink company was complete without a soda. So
we merely used the name and launched Bisleri soda with two variants --
carbonated and non-carbonated mineral water.
But three decades ago, what could we say about a category that had no market?
We 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
we switched to PVC packaging and later to PET bottles. The PET packaging did
not just ensure better transparency -- we could now show sparkling clear water
to the consumers. It also meant better life for the water.
Meanwhile, Bisleri soda was doing well but we had to discontinue production as
we sold our soft drink brands to Coca-Cola in 1993. But my interest was in
building brands and not in bottling soft drinks. That's when I 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, we 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 we had to push sales.
But to reach out to the masses, we had to make the category more affordable.
The introduction of a comfortable-to-carry 500-ml bottle for just Rs 5 in 1995 not
only answered that need, but also meant doing away with carrying the excess
water or throwing it away if you were to buy a one-litre bottle.
The idea was a success and gave the company a growth of 400 per cent. We also
introduced the 1.2 litre bottle in 2000, which was aimed at those who share their
water. This also gave us the advantage of higher margins that a crate (12
bottles) generated.
With other brands joining the fray, things were hotting up -- the bottled-water
market was estimated at Rs 300 crore (Rs 3 billion) and was growing at 50 per
cent a year. Bisleri had captured 40 per cent of the market.
We realised it was time to move to the next level -- the bulk segment. Several
commercial establishments had no access to piped water. We tapped into this
segment by introducing the 12-litre container, followed by the 20-litre can. The
bulk segment also helped bring down the price per litre from Rs 10-12 a litre to
about Rs 3 a litre.
At present, the bulk segment constitutes 60 to 70 per cent of our sales and we
intend to increase it to 80 per cent in the next two years. With water scarcity in
several cities, even households are demanding bottled water now.
The home pack was made more user-friendly by introducing pouring spouts and
jars with dispensers. At the same time, we were constantly looking for new ways
to tap the market. We noticed that during wedding receptions, the older guests
(above 50 years of age) generally stayed away from ice cream, soft drinks and
so on.
Hence, we 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. I still have the mindset of a soft drink
seller. 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 2,00,000 at present. But that is not enough -- we 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.
The journey till now
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 sKinley's marketshare at 35.1 per cent compared to Bisleri's 34.4 per cent.
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 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.
India’s largest packaged water company Bisleri International Pvt. Ltd is to enter
value-added water business. The company will launch flavoured packaged
drinking water in the country by March next year.
“We are conducting research and development with at least 12 fruit flavours,
such as nimbu paani, strawberry and orange, for flavoured water. We aim to
launch it by March next year,” said Ramesh Chauhan, chairman, Bisleri.
According to Datamonitor Plc., a UK-based consumer research firm that tracks
various sectors in India, the flavoured water market was estimated to be around
$50 million (Rs196 crore) in 2006 and is expected to grow to $70 million by
2010.
With the move, Bisleri aims to strengthen its position in a space in which other
leading beverage companies have also evinced interest. Companies such as
Coca-Cola India Inc., PepsiCo India Holdings Pvt. Ltd and Tata Tea Ltd, also plan
to enter the flavoured water business. So far, there is only one prominent player,
DS Foods, in the segment. Its brand, Catch, is priced at Rs30. “The flavoured
water market is still at a nascent stage in India. Higher price, limited products
and alternative home-made products are some of the barriers for the growth of
this segment,” said Puneet Bansal, senior analyst with Datamonitor.
Bisleri’s focus on premium segment, however, is part of its strategy to tap
higher-margin opportunities in the packaged water business. Last year, it had
launched a premium water brand Mountain Water, which currently contributes
25-30% to its total sales. The company plans to launch this brand in Europe
soon.
“We are in talks with several distributors in Europe to launch our premium water
there. The deal is expected to go through by December this year,” said Chauhan.
The company also plans to tweak its packaging and look to give it an
international appeal and compete with biggies such as Nestle and Groupe
Danone.
The moves, said Chauhan, are aimed at trebling Bisleri’s sales from around
Rs300 crore now, to Rs1,000 crore by 2009. To push its sales, the company is
also planning to double its distribution network from 800 distributors this year to
around 1,500 in the next six months. Also, the company plans to double its
capacity of one million bottles a day through adding more contract packers and
upgrading its bottling capacity.
Meanwhile, the company continues to rule the conventional bottled water
segment. It said that for October, it registered sale of 2.66 million cases across
the country against 1.79 million cases sold in the same month last year.
Chauhan also dismissed speculation that he may sell out his water business.
He said Bisleri was doing well and he had no plans to sell it out.
“We might have sold our carbonated brands, including Thums-Up, Limca and
Gold Spot, due to a lack of choice. But, now I am in a position to build and
sustain Bisleri and will not sell it at any cost,”he added.
MARKETING STRATEGY
MARKETING STRATEGY
It is complete and an unbeatable plan designed specifically for attaining the
marketing objective of a firm. The marketing objective indicate what the firm
want to achieve. The marketing strategy provides the design for achieving them
the linkage between marketing strategies and over all corporate success is
indeed direct and vital. Realizing the marketing objectives is the purpose of two
generic categories .
1. Price based
2. Differentiation based
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 sale ,
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 .
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-
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.
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.
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.
ADVERTISING CAMPAIGN:
While designing the advertisement campaign, it is necessary to keep in mind the
opinion leaders. Youth are the opinion leaders of the present time. And thus it
becomes necessary to design the campaign keeping the youth in mind. The
opinion leaders would further trickle down the message to the less active
members of the society.
This is exactly what Bisleri is doing. Bisleri has started an advertisement
campaign stressing the point of purity and flaunting the patent right the
company has over the breakaway seal. The company has tried to put the
message across louder, by using the ad campaign that catches the eye of
everyone, specially the youth.
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.
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.
ADVERTISING CAMPAIGN OF BISLERI
Every brand needs a good advertising 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 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 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.
AQUAFINA ADVERTISEMENTS AND BISLERI
A drop-dead gorgeous body flexes its muscles on the screen. This starkly
arresting black and white image is then splashed with water. A voice-over
informs you that 70 per cent of your body is water. Why not give it the purest….
Aquafina Bottled water from Pepsi.
This kind of advertisement campaign used by the competitors is giving the
company a tough time. The competitor, Pepsi, is utilizing the brand image built
by it and is again targeting the “Generation X” maintaining the company image.
It’s an unusual ad for this category. Till now, most marketers have focused on
educating the consumer on how bottled water is a safer option, with the lead of
course, taken by the popular national brand Bisleri.
But Pepsi chose to junk this approach and it could well afford to. Bisleri, after all,
had already done most of the hard work needed to build the bottled water
category. What Pepsi needed was to establish its brand in this crowded,
fragmented market. Our task was made easier because was made easier
because Bisleri had concentrated on educating the consumer, instead of building
its own brand values," says Rohit Ohri, vice president and client services
director, Hindustan Thompson Associates Limited (HTA). We wanted the imagery
to posit~on Aquafina as a youthful, premium and fun brand," says Vibha Rishi,
executive director, Pepsi. The idea, she says, was not to objectify bodies so that
one could drool over them. "Instead, we are talking about your body and the
need for each one to take care of his or her body." The ad copy, which spoke of
the water content in our bodies, was actually trying to establish how important
water was to our well- being and how we need to continuously replenish it.
While the thinking was clear that the imagery had to be built in and around
purity, HTA did toy with a couple of other ideas and situations. Initially, the idea
was to focus more strongly on the fun aspect and create a story line complete
with a smart idea and a twist at the end. "But we gave it up because we felt that
the story might take the mind away from the purity aspect that was a must to
highlight," says Ohri.
So HTA adopted a minimalist approach and created a film with little clutter and
no props, which tried to capture the emotion of "feeling good about yourself'.
While the film and the imagery are completely the work of HT A, the strategic
thinking comes from the Mother Company in the US.
Aquafina, in fact, is the largest-selling bottled water brand in the US with a 12
per cent market share, and India is the first country outside of the US where
Aquafina is being bottled. Even in the US, the ad talks of the percentage of water
in our bodies, but the handling is a little more serious. For example, the film will
show an emotional moment where someone starts crying, and then you will hear
the voice-over, 85 Per cent of xour eye are wa4ep. "There is no internal law that
forces us to follow the international positioning. But seeing the quality of thinking
that has gone into this, we decided to stay with this positioning, though the
statements here are quite different," explains Rishi.
Aquafina, like all offeFings that come from the Pepsi stable, also imbibes the core
values of the mother brand. It addresses the Pepsi-user base, largely the youth,
and like Pepsi ,it is also being positioned as a hip brand. But Aquafina is a lot that
Pepsi is not. It is a little bit older, mature and affluent, and not as mass based as
Pepsi.
Pepsi's role in the communication is that it is the source of credibility for the
product and, of course, establishes the youthfulness of the brand. But Aquafina is
a brand in its own right and with each piece of communication, its personality
will emerge," feels Ohri. But while Aquafina is being given a distinct identity, it is
also being targeted at the Pepsi consumer and is addressing their need for safe
and reliable drinking water. Will this not cannibalize Pepsi sales? "Water does eat
into the cola market," agrees Rishi, "but we can't build a business for Pepsi
based on people's lack of access to safe drinking water.
How can any business be built on deprivation?" Both will have to co-exist and
carve a market out for themselves, And~ while Pepsi targets the 18-25 year olds,
Aquafina also includes the 30-somethings together with the college crowd. Like
Pepsi, Aquafina too is looking to command a premium without being
unaffordable.
It is being positioned as a premium product, not via pricing, but in imagery and
packaging. Priced at Rs. 10 in Delhi for a 750ml. bottle, it is priced marginally
higher than the competition that gives you one liter for Rs. 10. The swirl shaped
PET bottle resembles the Pepsi family and is sturdier and more hip than most
others in the category that take their design cues, it seems, from the one liter
refined oil bottles in the market. The decision to break the norm and come up
with a 750 ml pack size was more driven by the fact that water is fundamentally
consumed on the go and the 750 ml size is easy to carry around. "It is ideal for
an half-an-hour in the sun, one liter gets too bulky," says Rishi. Pepsi's future
plans at the moment don't include commg up with size variants. They have also
ruled out the possibility of catering to the bulk market, which actually constitutes
30 per cent of the total bottled water market that stands at 70 million liters
annually, and is growing anywhere between 30 and 50 per cent.
Pepsi, obviously, is looking for a big slice of this burgeoning market, but as
Subroto Chattopadhyay, executive vice president, marketing, Pepsi, says, "We
have a building blocks approach, first we have to build the brand, and then the
volumes.
Bisleri is tackling the situation by building the brand on the purity plank. Akin to
brand building in soft drinks, an aggressive print-and-TV campaign is being
backed by hoarding, point-of-sale material, and every interface with the
consumer is being used as an opportunity to reinforce the message. For
instance, all the vehicles used for supply have been painted in bright blue, bear
the Bisleri logo and sport catchy baselines like . "Play Safe".
Bisleri with added Minerals:
Bisleri Mineral Water 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 you fit and
energetic at all times.
Bisleri Mountain Water:
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.
PACKAGING
AND
DISTRIBUTION
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 yhe 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 liters 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 liters packs, launched in Dec 1999 in Goa, now available
everywhere.
DISTRIBUTION
It’s obvious that availability holds the key to the market .For any product to be
successful the distribution system has to be really good. Large tracts of the
country have not been explored by the national brands, which explains 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 NETWORK:
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 sTeam in Tamil Nadu and in Andhra Pradesh.
MARKETING MIX
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.
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.
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 litres, making Bisleri both
convenient and affordable. The company is following a very aggressive pricing.
Its product is available at a very reasonable price.
1.2 Ltrs Rs. 10/-
2 Ltrs Rs. 20/-
5 Ltrs Rs. 40/-
20Ltrs Rs. 120/-
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.
COMPETITION
IN
MARKET
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.
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.
Although Aquafina is only available in a 750 ml pet bottle, the pricing, at Rs.10,
is competitive. And it is safe. 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 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.
Parle Agro’s- Bailley
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. Like Bisleri
it also gives the 1 lt. For Rs.10. The only strength point of the company, which it
can capitalize, is it’s 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.
PRODUCT PROFILE
“It’s a compliment being generic to the category, but its not very good when
consumers think any mineral water brand is Bisleri”.Bisleri, a product established
in India by Ramesh Chauhan, Chairman of Parle Aqua Minerals has become a
generic brand. Bisleri was the first marketed bottled water in a totally virgin
market. The brand has become synonymous with mineral water; consumers
accept any brand offered by the retailer when they ask for Bisleri.
So far Ramesh Chauhan’s Bisleri enjoys the largest market share of 56% in the
Rs1100 crores mineral water markets and is growing at the rate of 180% per
annum. Annual sales of Bisleri have touched Rs400 crores. In seventies, 'Bisleri'
was the only mineral water, which had national presence, and the sale was to
the tune of approximately one hundred thousand cases valued at about Rs.60
lacs.
MANUFACTURING
A quick look at Bisleri's manufacturing reach indicates that it is represented
across the country – North accounts for 35% of sales for the industry, West
accounts for 30%, South 20% and the East 15%.
In order to be available in untapped areas Bisleri has setup 16 plants located all
over the country - three-fourths of which are company owned. The balance is run
by franchisees. Bisleri has 5 plants in the North, 5 in the West- two of which were
setup in the last year at Ahmedabad and Surat, 4 in the South and 2 in the East.
The company has bottling units located in Chennai, Bangalore, Goa, Calcutta,
Mumbai, Delhi, Jaipur, Uttar Pradesh, Punjab, Indore and Nepal. The new plants
are being set up in states like Kerala, Orissa, Bihar and North Eastern States,
which hitherto have been unexplored by the company.
It is also changing its production strategy and shifting to a 10-hr production
schedule with sudden increase in demand planned to be met by additional
production.
Bisleri has planned to expand its operations by investing Rs.60 crores in the
upgradation of facilities. The 120-bottles per minute (BPM) capacity of the 16
units across the country will be increased to 240 BPM.
Conscious of the environmental implications of its PET bottles, the company is to
set up recycling plants at Delhi and Chennai, each with an outlay of Rs.50m.
These will process 500 kg of PET per hour. The processed material will be an
input for polyester yarn manufacturers. In centers other than Delhi and Chennai,
the company will set up crushing units to crush the used PET bottles.
The company's expansion plans will see its water bottling capacity go up from
the present 400 million liters to 500 million liters. Parle Bisleri Limited (PBL) is
planning to invest Rs 200 crores to increase its bottling capacity and double its
turnover. The expansion will also increase the number of company's bottling
plants from 16 at present, to 25. The company will set up all the new plants as
green field plants. It doesn’t have any intentions to acquire any existing plants.
PURE BOTTLED DRINKING-WATER
Is 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
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 (51%), Bailley (17%),
Yes (11%) followed by Kinley (10%), Aquafina (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.),
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-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 organ
chlorine and organ phosphorus pesticides from least to most contaminated as-
Aquafina Macblue
Bailley Kinley
Seagull Sheetal
Bisleri Brilliant
Bally Apurva
OBJECTIVE
OBJECTIVE
• TO Study the marketing Strategies of Bisleri in current Scenario.
• To Study the brand positioning of Bisleri.
• To assess the brand awareness of the Bisleri in the Mineral Water Segment.
• To find out the preference level of respondents regarding Bisleri Brand of
Bottle.
RESEARCH METHODOLOGY
Definition of Research:
The word research is derived from the Latin word meaning to know. It is a
systematic and a replicable process which identifies and defines problems, within
specified boundaries. It employs well designed method to collect the data and
analyses the results. It disseminates the findings to contribute to generalize able
knowledge.
The five characteristics of research are:
systematic problem solving which identifies variables and tests relationships
between them
logical, so procedures can be duplicated or understood by others
empirical, so decisions are based on data collected
reductive, so it investigates a small sample which can be generalized to a
larger population
replicable, so others may test the findings by repeating it
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 50 outlets in Aligarh.
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 writing the hypothesis and its operational
implications to the final analysis of data. More explicitly, the design decisions
happen to be in respect of :
What is the study about ?
Why is the study being made ?
Where will the study be carried out ?
What type of data is required ?
Where can the required data be found ?
What periods of time will the study include ?
What will be the sample design ?
What techniques of data collection will be used ?
How will the data analysed ?
In what style will the report be prepared ?
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.
The means of obtaining the information is through :
a) Primary data like questionnaire and mock interview.
b) Secondary data like magzines, news paper and net etc.
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
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.
QUESTIONNAIRE TECHNIQUE
The method of collecting data mailing and personally distributing questionnaire
to the respondents is the most extensively employed technique in various
economical surveys. This method is quit popular, particularly in case of big
inquiries. A typical questionnaire consists of a number of questions arranged and
printed in definite order on a form or a set of forms. The questionnaire is given to
the respondents who are expected to read and understand the questions and
write the response in the given space meant for the purpose in the
questionnaire.
Mock interviews
Mock interviews are basically just to save the time of both the respondents and
the researcher and along with this, it is assumed as a best means for collecting
data where respondents are not so literate to answer to question tailored in the
questionnaire.
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.
RESEARCH DESIGN :
The research design which has been used in the project report is descriptive in
nature.
SAMPLE DESIGN:
The sample design which has been use in this project report is simple random
sampling.
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. Here Aligarh 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 50.outlets.
RESULT
AND
DISCUSSION
FINDINGS
The following findings are obtained and are based on primary data:-
1. Which brand of bottle water do you sale more?
2. The brand customer prefer more:
3. Why do you prefer to sell this particular Brand?
3. On what basis customer prefer to purchase?
4. Do you get any customer complaints for Bisleri?
5. Are your suggestions considered by Bisleri?
6. On what basis you motivate a customer to purchase a particular Brand?
1. When a customer talk of mineral water which brand comes into his mind?
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
• Better management
• Give regular follow up to distributor
• Indian image
• Better sales force
• Sponsoring various cultural program
• Good intcentives to dealer
WEAKNESS
one liter packs which accounted for 50% of the company’s turnover has come
down to 30 %. The two-liter packs, which have practically disappeared from the
shelves, have come down from 20 % to 5 %. 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.12 for the same size. But beginning
last year, it has been selling its one- liter bottles at Rs.15 each. Aqua Minerals
attributes the Price slashing to retailer margins being on the higher side earlier.
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.
OPPORTUNITIES
So far, bisleri 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 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.”
THREATS
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?
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 wheat.
CONCLUSION
Bisleri have developed 8 unique pack sizes to suit the need of every individual. It
is also present in 250ml cups, 250ml bottles, 500ml, 1L, 1.5L, 2L which are the
non-returnable packs & 5L, 20L which are the returnable packs.
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.
RECOMMENDATIONS
RECOMMENDATIONS
Advertisement to build the brand image that will provide the required ground to
establish the authenticity to 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.
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.
LIMITATIONS
• A small segment of the market has been covered for the research purpose, so
the conclusion cannot be generalized.
• The data collected cannot be free from errors, since some of the respondents
failed to give correct information.
• Study accuracy totally based upon the respondents response.
• Stipulated short span of time for doing research.
BIBLIOGRAPHY
BIBLIOGRAPHY
Marketing Management:-
Philip Kotler
Annual Report:-
Bisleri 2007
Business Magazines –
India Today Annual Addition 2008
Business Today,
Business World August 2008
Websites
www.bisleri.com
www.discovery.com
www.google.com
ANNEXURE
QUESTIONNAIRE
1. Which brand of water bottle you sale?
a. Kingfisher.
b. Kinley.
c. Aquafina.
d. Bisleri.
e. Others.
2. The brand customer prefer more:
a. Kingfisher.
b. Kinley.
c. Aquafina.
d. Bisleri.
e. Others.
3. Why do you prefer to sell this particular brand?
a. Availability.
b. Cust. Demand.
c. Quality.
d. Profit Margin.
4. On what basis customer prefer to purchase mineral water?
a. Brand.
b. Quality.
c. Price.
d. Availabilty.
5. Do you get any customer complaints for Bisleri?
a. yes
b. no.
6. Are your suggestions considered by the company?
a. Yes
b. No.
7. On what basis you motivate a customer to purchase a particular brand?
a. Quality.
b. Price.
c. Brand
d. Availabitliy.
8. When a customer talk of mineral water, which brand comes into his mind?
a. Kingfisher.
b. Kinley.
c. Aquafina.
d. Bisleri.
e. Others.