A Comparative Brand Analysis & Market Research of Bisle

8/3/2019 A Comparative Brand Analysis & Market Research of Bisle

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A COMPARATIVE BRAND ANALYSIS & MARKET

RESEARCH OF BISLERI VIS ITS COMPETITORS

(A Report submitted in partial fulfillment of the Requirements for the

Degree of Master of Business Administration in Pondicherry University)

Submitted by:KRISHNA GOPAL PRADHAN

Enrollment No.: 2509430007

MBA: GENERAL

Session- 2009-2011

DIRECTORATE OF DISTANCE EDUCATION

PONDICHERRY UNIVERSITYPONDICHERRY - 605 014.

(APRIL 2011)


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CERTIFICATE OF THE GUIDE

This is certified that the project work titled A COMPARATIVE BRAND ANALYSIS

& MARKET RESEARCH OF BISLERI VIS ITS COMPETITORS is a record ofresearch work done by Krishna Gopal Pradhan Enrollment No. 2509430007 carried

out in partial fulfillment for the ward degree of MBA General of Pondicherry University

under my guidance.

This project work is original and not submitted earlier for the award of any

degree/diploma or associateship of any other University/Institution.

Signature of the Guide

Name and Official Address of the Guide

Guides Academic Qualifications

Mr.Jayant Saniyal

Place:

Date:


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STUDENTS DECLARATION

I, Mr. Krishna Gopal Pradhan hereby declare that the project entitled A

COMPARATIVE BRAND ANALYSIS & MARKET RESEARCH OF BISLERI

VIS ITS COMPETITORS is the original work done by me and submitted to thePondicherry University in partial fulfillment of the requiremnets for the award of Master

of Business Administration in General is a record of original work done by me under the

supervision of Mr. Jayant Saniyal of Asia Pacific Institute of Management Studies.

Enrollment No. 2509430007

Date: 28.04.2011 Krishna Gopal Pradhan

Signature of the Student

.


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ACKNOWLEDGMENT

A Research study cant be completed without the guidance, assistance,

inspiration and cooperation from various quarters. This study also bears

the inspiration of many persons. This project required hard work,

sincerity and devotion which. I tried my best to put in this project and

in turn gained a lot of knowledge and confidence from this project.

I am deeply grateful to my project guide Mr.Jayant Saniyal who has

helped me in completion of this project. He has been a constant guiding

force and source of illumination for me. It entirely goes to his credit

that this project has attained its final shape. I would like to thank him

for his valuable advice and guidance.

I am also thankful to all the respondentswho spared their valuable time

for filling up the questionnaire and helped me out with this project.

Finally, I would like to thank my parents and all my friends, who

provided me with their constant support and took the pain to help me in

completing the project.


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synopsis

1. Desired area of research : comparative analysis of different water companies

2. Title of the thesis :. A comparative brand analysis & marketing research of BISLERI

via its competitors

3. Hypothesis :.The aim of the thesis is to analyze the effect on Bisleri by different

strategies adopted by other players of water industry and to recommend various

possible improvements in the marketing mix.

4. Introduction to the area of research: Being a market leader Bisleri have to

adopt few strategies because previously it was working under an environment

which was equivalent to monopoly because he was the initiator in water trade

business, but as the changing rules of business and market, one has to adopt &

implement different & effective strategies at the right time to attain a position in

this competitive world.

5. Scope of the research: Here the focus is to analyze the challenges in front of the

company. In this process I will identify the incorporated marketing mix adopted by

Bisleri to counter the marketing strategies of the competitors by developing its own

marketing strategies.

6. Research methodology : Most of the data will be collected through the primary

source and whenever obligatory secondary source will be used.

The appropriate research design formulated is detailed below.

Exploratory Research: This kind of research has the primary objective of

development of insights into the problem. It studies the main area where theproblem lies and also tries to evaluate some appropriate courses of action


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7. Justification for choosing a particular research proposal : I have chosen this

topic for doing my thesis because of one main reason that is in my job, I am

handling the business development department which is somehow related to study

the behavior of other competitors or players of water industry and it will

definitely help me to do my thesis in a wider way.

In this research of mine I will try to trace out the Threats caused by other players to

Bisleri and Strategies and measures adopted by Bisleri to counter the competition by its

competitors.


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ABSTRACT

The marketing mix is probably the most famous marketing term. Its elements are the

basic, tactical components of a marketing plan. Also known as the four Ps, th marketing

mix elements are price, place, product and promotion. The offer make to customer can bealtered by varying the mix elements. So for a high profile brand, increase the focus on

promotion and desensitize the weight given to price. Another way to think about the

marketing mix is to use the image of an artists palette. The marketer mixes the primecolours (mix elements) in different quantities to deliver a particular final colour. Every

hand painted picture is original in some way, as is every marketing mix.

Some commentators will increase the marketing mix to the Five Ps, to include people.

Others will increase the mix to seven Ps, to include Physical evidence and process.

Broadly defined, optimizing the marketing mix is the primary responsibility of

marketing. By offering the product with the right combination of the four Ps marketerscan improve their results and marketing effectiveness. Making small changes in the

marketing mix is typically considered to be a tactical change. Making large changes inany of the four Ps can be considered strategic.

The Marketing Mix, originally known as The Four Ps, is a combination of product,price, place [distribution], and promotion activities that are applied to a particular target

market. The general idea is to combine (mix) the variables to generate an optimal,

positive, and desired response in the target market. Diverse and numerous combinationsof marketing methods, modes, and techniques can be selected and applied to create a

marketing mix. The marketing strategy is mostly determined by roles (who focus on the

promotion element of the marketing mix) in the marketing communications departmentwith contributions from other corporate departments, notably the product marketingdepartment. An expanded system based on Seven Ps stresses the importance of Place,

Product, Price, Promotion, People, Process, and Physical evidence.

For a marketing plan to be successful, the mix of the four "Ps" must reflect the wants and

desires of the consumers or Shoppers in the target market. Trying to convince a market

segment to buy something they don't want is extremely expensive and seldom successful.Marketers depend on insights from marketing research, both formal and informal, to

determine what consumers want and what they are willing to pay for. Marketers hope that

this process will give them a sustainable competitive advantage.Marketing management

is the practical application of this process. The offer is also an important addition to the4P's theory.

The marketing mix can be used by marketers as a tool to assist in defining the marketingstrategy. Marketing managers use this method to attempt to generate the optimal response

in the target market by blending 4 variables in an optimal way. The marketing mix can be

adjusted on a frequent basis to meet the changing needs of the target group and the otherdynamics of the market environment.
http://en.wikipedia.org/wiki/Marketing_planhttp://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Target_markethttp://en.wikipedia.org/wiki/Market_segmenthttp://en.wikipedia.org/wiki/Market_segmenthttp://en.wikipedia.org/wiki/Marketing_researchhttp://en.wikipedia.org/wiki/Sustainable_competitive_advantagehttp://en.wikipedia.org/wiki/Marketing_managementhttp://en.wikipedia.org/wiki/Marketing_planhttp://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Target_markethttp://en.wikipedia.org/wiki/Market_segmenthttp://en.wikipedia.org/wiki/Market_segmenthttp://en.wikipedia.org/wiki/Marketing_researchhttp://en.wikipedia.org/wiki/Sustainable_competitive_advantagehttp://en.wikipedia.org/wiki/Marketing_management


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The function of the marketing mix is to help develop a package that will not only satisfy

the needs of the customers within the target markets, but simultaneously to maximize theperformance of the organization. There have been many attempts to increase the number

of Ps in the marketing mix model. The most frequently mentioned one being people or

personnel. The aim of the thesis is to gather information and analyze the key areas ofMarketing Mix strategies.


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TABLE OF CONTENT

Chapter Topics

No.

01 INTRODUCTION

02 LITERATURE REVIEW

03 MARKETING MIX OF BISLERI

04 FINDINGS AND RESEARCH

05 RECOMMENDATIONS

06 CONCLUSION

07 BIBLOGRAPHY

08 ANNEXURE


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CHAPTER 1

INTRODUCTON


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Wateris 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 have also not been able to escape the pollution.

When a consumer became aware of the problems caused by water pollution the market

saw an advent ofceramic 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 does not take care of dissolved impurities mineral balance.

Late 1980's witnessed Ultra Violet based purifier, which filters dust and deactivates

bacteria to a great extent. It maintains the odour and colour 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 litres 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


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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 1990sTime did a story on India as a key emerging market and that

was the trigger for all the players eyeing this market."


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INTRODUCTION TO MINERAL WATER INDUSTRY

CURRENT SCENERIO

The best beverage for India in the new millennium seems to be water. In recent years, the

bottled driving water market has been witnessing high-decibel levels of activity, with a

host of new entrants swelling the clutter. With over 200 players jostling to be the thirst

quenching favourite of the Indian consumer, the business is growing at a rate of over 50

per cent annually. The country's bottled water business is estimated to be around

Rs. 1, 100 crore, of which the branded market accounts for Rs. 700 crore and about 700

million litres in volume.

In India, the core proposition of bottled drinking water lies in hygiene, as the quality of

tap water is bad and is rapidly deteriorating. This is in stark contrast with the West where

'mineral water' indicates the attendant minerals present in the water. Mineral water in

Western countries is obtained from natural springs and is, generally, named after those

springs. Most of the bottled water passed off as mineral water in India, however, is

filtered, boiled or purified by other means such as reverse osmosis. A better description

of bottled drinking water sold in India therefore, would be 'purified bottled water.

The growth of the category indicates the need for this 'mineral water' and the fact that

heavyweights are eyeing the segment points to the potential that is seen in this market.

Coke's Kinley, Pepsi's Aquafina, Brittania, Nestle, Kingfisher, Auswater-are keen on

raising their stakes in the Rs. 700 crore, 700 million litre market. The entry of Danones

brand, Evian, the high-priced mineral water from the French Alps, shows the perceived

potential India presents in this product category. Clearly targeted at the premium segment

of consumers, the brand is being distributed in the country by Britannia Industries.

Currently, Evian has more of an institutional presence (five star hotels) than on the retail

shelves, with a 1-litre bottle being priced a hefty Rs. 80


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The market today has grown to more than Rs15bn. The organised sector -- branded

mineral water -- has only Rs7bn 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.

Today there are more than 200 brands, out of which 10 of them are from top companies.

In the branded segment, Parles' Bisleri 'is the market leader with a share of more than

45%. Parle Agros' Bailey' 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', Prime,' Florida' etc.

MISSION OF BISLERI

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.

MARKETING MIX

The four Ps are:


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In order to achieve your marketing objectives you need to have a strategy that includes

different elements - the various parts of the marketing mix. Calling it a mix reminds youto try and get the balance right between the different elements. It is easy to assume that

one part of the mix is wrong, when in fact it is another.

For example, if take-up of a newly-priced service is poor, it could be that the answer is to

change the service, or to deliver it in a way that is more convenient to the user, or to

improve the quality of the promotion (rather than to cut the price).

the four P's of the marketing mix:

Product Defining the characteristics of your product or service to meet the

customers' needs.

Price: Deciding on a pricing strategy. Even if you decide not to charge for aservice, it is useful to realise that this is still a pricing strategy. Identifying the

total cost to the user (which is likely to be higher than the charge you make) is a

part of the price element.

Promotion This includes advertising, personal selling (eg attending exhibitions),

sales promotions (eg special offers), and atmospherics (creating the rightimpression through the working environment). Public Relations is included withinPromotion by many marketing people (though PR people tend to see it as a

separate discipline).

Place or distribution. Looking at location (eg of a library) and where a service isdelivered (eg are search results delivered to the user's desktop, office, pigeonhole

- or do they have to collect them).


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There are two ways to impress bluffers.

You can extend the number of P's - the two which are usually seen as useful additions for

services (including information services) are:

People Good information services are not likely to be delivered by people who

are unskilled or demotivated; Process The way in which the user gets hold of the service (eg the way in which a

document or a search can be ordered).

The second way to show your marketing knowledge is to dismiss the P's as being as old

fashioned as the 1980s

For example, there are the C's developed by Robert Lauterborn (1) and put forward by

Philip Kotler:

Place becomes Convenience

Price becomes Cost to the user Promotion becomes Communication

Product becomes Customer needs and wants

These C's reflect a more client-oriented marketing philosophy. They provide useful

reminders - for example that you need to bear in mind the convenience of the client when

deciding where to offer a service. Some would argue that the marketing mix is too

product-oriented, and that modern marketing should not focus on it. However, it does

provide a handy framework for marketing analysis. The C's are also not nearly so

memorable as the P-words, and marketing texts still tend to use the latter to describe the

elements of the mix.


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RESEARCH METHODOLGY

A Research Methodology defines the purpose of the research, how it proceeds,

how to measure progress and what constitute success with respect to the

objectives determined for carrying out the research study.

The appropriate research design formulated is detailed below.

Exploratory Research: This kind of research has the primary objective of

development of insights into the problem. It studies the main area where the

problem lies and also tries to evaluate some appropriate courses of action.

The research methodology for the present study has been adopted to reflect these

realties and help reach the logical conclusion in an objective and scientific

manner.

The present study contemplated an exploratory research

RESEARCH OBJECTIVES

The following are the main objectives of my Research study:-

1. To make a brand analysis of Bisleri as a brand.2. To conduct a market survey of Bisleri.

3. The affects on Bisleri sale, profit and market share after the launch of

Acquafina by Pepsi and Kinley by Coca Cola.

4. To find out the current position of Acquafina, Hello and Kinley mineral water.

5. Threats caused by Aquafina, Kinley and Hello to Bisleri.

6. Strategies and measures adopted by Bisleri to counter the competition by

Hello & Kinley.


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NATURE OF DATA

PRIMARY DATA: Data which is collected through direct interviews and by

raising questionnaires to retailers.

SECONDARY DATA: Secondary data that is already available and published.

Various internet sites, newspaper, magazines like A&M

were searched in order to find information useful for

completion of this project.

It could be internal and external source of data.

Internal source: Which originates from the specific field or area where research is

carried out e.g. publish broachers, official reports etc.

External source:This originates outside the field of study like books, periodicals,

journals, newspapers and the Internet.

DATA COLLECTION

Primary Data: The primary data has been collected by conducting a survey in the

following areas.

1. Rajendra place

2. Naraina Industrial area

3. Karolbagh market

4. Janak puri district center

SAMPLE DESIGN


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Sampling unit: Residents & Retailers in the above mentioned

areas.

Sample size: 100 persons

SAMPLING PROCEDURE

Simple Random Sampling to select the sample

DATA COLLECTION

Sources of data: 1) Primary Data which included the input received

from directly the residents through Interview.

2) Secondary data from the Industry manual, policy

manuals, books and internet etc.

Method of collecting data: Interview method


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CHAPTER:2

LITERATURE REVIEW

MARKETING MIX

Marketing is an ongoing process of planning and executing the marketing mix (Product,Price, Place, Promotion) for products, services or ideas to create exchange between

individuals and organizations.

Marketing tends to be seen as a creative industry, which includes advertising, distribution

and selling. It is also concerned with anticipating the customers' future needs and wants,which are often discovered through market research.
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Essentially, marketing is the process of creating or directing an organization to be

successful in selling a product or service that people not only desire, but are willing to

buy.

Therefore good marketing must be able to create a "proposition" or set of benefits for the

end customer that delivers value through products or services.

Its specialist areas include:

advertising and branding

communications

database marketing

direct marketing

event organization

field marketing

global marketing

international marketing internet marketing

industrial marketing

market research

public relations

A market-focused, or customer-focused, organization first determines what its potential

customers desire, and then builds theproduct or service. Marketing theory and practice is

justified in the belief that customers use a product or service because they have a need, or

because it provides a perceived benefit.

Two major factors of marketing are the recruitment of new customers (acquisition) andthe retention and expansion of relationships with existing customers (base management).

Once a marketerhas converted the prospective buyer, base management marketing takesover. The process for base management shifts the marketer to building a relationship,

nurturing the links, enhancing the benefits that sold the buyer in the first place, and

improving the product/service continuously to protect the business from competitive

encroachments.

For a marketing plan to be successful, the mix of the four "Ps" must reflect the wants and

desires of the consumers or Shoppers in the target market. Trying to convince a market

segment to buy something they don't want is extremely expensive and seldom successful.

Marketers depend on insights from marketing research, both formal and informal, todetermine what consumers want and what they are willing to pay for. Marketers hope that

this process will give them a sustainable competitive advantage.Marketing management

is the practical application of this process. The offer is also an important addition to the4P's theory.

When marketing their products firms need to create a successful mix of:
http://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Database_marketinghttp://en.wikipedia.org/wiki/Direct_marketinghttp://en.wikipedia.org/w/index.php?title=Field_marketing&action=edit&redlink=1http://en.wikipedia.org/wiki/Global_marketinghttp://en.wikipedia.org/wiki/International_marketinghttp://en.wikipedia.org/wiki/Internet_marketinghttp://en.wikipedia.org/wiki/Industrial_marketinghttp://en.wikipedia.org/wiki/Market_researchhttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Marketeerhttp://en.wikipedia.org/wiki/Marketing_planhttp://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Target_markethttp://en.wikipedia.org/wiki/Market_segmenthttp://en.wikipedia.org/wiki/Market_segmenthttp://en.wikipedia.org/wiki/Marketing_researchhttp://en.wikipedia.org/wiki/Sustainable_competitive_advantagehttp://en.wikipedia.org/wiki/Marketing_managementhttp://www.thetimes100.co.uk/theory/theory--the-principles-marketing--347.phphttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Database_marketinghttp://en.wikipedia.org/wiki/Direct_marketinghttp://en.wikipedia.org/w/index.php?title=Field_marketing&action=edit&redlink=1http://en.wikipedia.org/wiki/Global_marketinghttp://en.wikipedia.org/wiki/International_marketinghttp://en.wikipedia.org/wiki/Internet_marketinghttp://en.wikipedia.org/wiki/Industrial_marketinghttp://en.wikipedia.org/wiki/Market_researchhttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Marketeerhttp://en.wikipedia.org/wiki/Marketing_planhttp://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Target_markethttp://en.wikipedia.org/wiki/Market_segmenthttp://en.wikipedia.org/wiki/Market_segmenthttp://en.wikipedia.org/wiki/Marketing_researchhttp://en.wikipedia.org/wiki/Sustainable_competitive_advantagehttp://en.wikipedia.org/wiki/Marketing_managementhttp://www.thetimes100.co.uk/theory/theory--the-principles-marketing--347.php


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the right product

sold at the right price

in the right place

using the most suitable promotion.

To create the right marketing mix, businesses have to meet the following conditions:

The product has to have the right features - for example, it must look good and

work well.

The price must be right. Consumer will need to buy in large numbers to produce a

healthy profit.

The goods must be in the right place at the right time. Making sure that the goods

arrive when and where they are wanted is an important operation.

The target group needs to be made aware of the existence and availability of theproduct through promotion. Successful promotion helps a firm to spread costs

over a largeroutput.

Marketing Mix

The marketing mix principles (also known as the 4 ps.) are used by business as tools to

assist them in pursuing their objectives. The marketing mix principles are controllablevariables, which have to be carefully managed and must meet the needs of the defined

target group. The marketing mix is apart of the organizations planning process and

consists of analyzing the defined:

How will you design, package and add value to the product. Product strategies.

What pricing strategy is appropiate to use Price strategies.

Where will the firm locate? Place strategies.

How will the firm promote its product Promotion strategies.
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Introducing the marketing mix

Product- An object or a service that is mass produced or manufactured on a large

scale with a specific volume of units. Price The price is the amount a customer pays for the product. It is determined

by a number of factors including market share, competition, material costs,

product identity and the customer's perceived value of the product. The business

may increase or decrease the price of product if other stores have the sameproduct.

Place Place represents the location where a product can be purchased. It is often

referred to as the distribution channel. It can include any physical store as well asvirtual stores on the Internet.

Promotion Promotion represents all of the communications that a marketer may

use in the marketplace. Promotion has four distinct elements - advertising,public

relations,word of mouth and point of sale. A certain amount of crossover occurswhen promotion uses the four principle elements together, which is common in

film promotion. Advertising covers any communication that is paid for, from

television and cinema commercials, radio and Internet adverts through printmedia and billboards. One of the most notable means of promotion today is the

Promotional Product, as in useful items distributed to targeted audiences with no

obligation attached. This category has grown each year for the past decade whilemost other forms have suffered. It is the only form of advertising that targets all

five senses and has the recipient thanking the giver. Public relations are where the

communication is not directly paid for and includes press releases, sponsorship

deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouthis any apparently informal communication about the product by ordinary

individuals, satisfied customers or people specifically engaged to create word of

mouth momentum. Sales staff often plays an important role in word of mouth andPublic Relations (see Product above).

These four elements are often referred to as the marketing mix,[3] which a marketer can

use to craft a marketing plan. The four Ps model is most useful when marketing low

value consumer products. Industrial products, services, high value consumer products
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require adjustments to this model. Services marketing must account for the unique nature

of services. Industrial or B2B marketing must account for the long term contractual

agreements that are typical in supply chain transactions. Relationship marketing attemptsto do this by looking at marketing from a long term relationship perspective rather than

individual transactions.

Seven Ps

As well as the standard four P's (Product, Pricing, Promotion and Place), servicesmarketing calls upon an extra three, totaling seven and known together as the extended

marketing mix. These are:

People: Any person coming into contact with customers can have an impact on

overall satisfaction. Whether as part of a supporting service to a product orinvolved in a total service, people are particularly important because, in the

customer's eyes, they are generally inseparable from the total service . As a result

of this, they must be appropriately trained, well motivated and the right type ofperson.

Process: This is the process(es) involved in providing a service and thebehaviour

of people, which can be crucial to customer satisfaction.

Physical evidence: Unlike a product, a service cannot be experienced before it is

delivered, which makes it intangible. This, therefore, means that potential

customers could perceive greater risk when deciding whether to use a service. Toreduce the feeling of risk, thus improving the chance for success, it is often vital

to offerpotential customers the chance to see what a service would be like. This is

done by providing physical evidence, such as case studies, testimonials or

demonstrations.

COMPANY PROFILE

The origins ofBisleri lie in Italy, and the brand owes its name to founderFelice Bisleri,

an Italian entrepreneur. In India, Bisleri set up a plant in Mumbai for bottling and

marketing mineral water, which was first of its kind in India. However, it did not quite

work. Among other reasons, the fact that the Indian consumer was unprepared to accept

bottled mineral water was responsible for its failure. Consumer mindsets were more

geared towards boiling water at home.

In 1969, Parle bought over the' Bisleri' brand. In those days Bisleri water was available in

glass bottles. 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
http://en.wikipedia.org/wiki/Services_marketinghttp://en.wikipedia.org/wiki/B2Bhttp://en.wikipedia.org/wiki/B2Bhttp://en.wikipedia.org/wiki/Supply_chainhttp://en.wikipedia.org/wiki/Relationship_marketinghttp://en.wikipedia.org/wiki/Peoplehttp://en.wikipedia.org/wiki/Trainedhttp://en.wikipedia.org/wiki/Motivationhttp://en.wikipedia.org/wiki/Process_(general)http://en.wikipedia.org/wiki/Behaviourhttp://en.wikipedia.org/wiki/Customer_satisfactionhttp://en.wikipedia.org/wiki/Physical_evidencehttp://en.wikipedia.org/wiki/Intangiblehttp://en.wikipedia.org/wiki/Potentialhttp://en.wikipedia.org/wiki/Case_studieshttp://en.wikipedia.org/wiki/Testimonialshttp://en.wikipedia.org/wiki/Demonstrationshttp://en.wikipedia.org/wiki/Services_marketinghttp://en.wikipedia.org/wiki/B2Bhttp://en.wikipedia.org/wiki/Supply_chainhttp://en.wikipedia.org/wiki/Relationship_marketinghttp://en.wikipedia.org/wiki/Peoplehttp://en.wikipedia.org/wiki/Trainedhttp://en.wikipedia.org/wiki/Motivationhttp://en.wikipedia.org/wiki/Process_(general)http://en.wikipedia.org/wiki/Behaviourhttp://en.wikipedia.org/wiki/Customer_satisfactionhttp://en.wikipedia.org/wiki/Physical_evidencehttp://en.wikipedia.org/wiki/Intangiblehttp://en.wikipedia.org/wiki/Potentialhttp://en.wikipedia.org/wiki/Case_studieshttp://en.wikipedia.org/wiki/Testimonialshttp://en.wikipedia.org/wiki/Demonstrations


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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 a people still considered boiling water to be a safer bet 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 parles soft drink brands- thums-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 its 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.

The real shift in companys policy towards mineral water industry came in 1998,

although the conscious efforts had already been started in 1994. This change was

primarily because of the fact that the people, at this time, had started becoming more

health conscious.


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PRODUCT PROFILE

Its 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 Chauhans Bisleri enjoys the largest market share of 56% in the

Rs1100 crore mineral water market 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.


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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 are run by franchisees. Bisleri has 5 plants in the North, 5 in the West- two of

which were setup in the last year at Ahemdabad 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 crore 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 litres to 500 million litres. Parle Bisleri Limited (PBL) is planning to invest

Rs 200 crore to increase its bottling capacity and double its turnover. The expansion willalso 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 doesnt have any intentions to acquire any existing plants.


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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.

Bisleris strategy is to build a direct distribution system at an all-India level.

Currently, Bisleri has around 80000 retail outlets in the country with about 12000

each in the Metros of Delhi and Mumbai. It is intended to increase this number to

10 lakh outlets in order to expand brands reach.

That means serious investments in company-owned trucks and carts. Parle hopes to

double its existing fleet of 1000 trucks. This would make it the largest fleet owner in the

country.

In order to service the home segment, the 5 litre packs are being pushed through the

route of Fat Dealers( wholesale dealers) who are retailers as well as stockist and

serve as supply points from where customer can pick the required quota. The

customer can call the fat dealer and place order for home delivery of the 5 litre pack. 180

of these dealers are already functional, and more are in the process of being appointed.

"The idea is to make Bisleri all-pervasive,".

The company plans to have its own distribution network in places where it has its own

plants. Franchisees would manage the distribution in their respective areas of operation.

PACKAGING

Variety is spice of life. Today for any business organisation to be successful it has to

provide its customers with the differentiated product that is a value buy for them. In order


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to cater to the changing needs of the customers the business has to continuously come out

with the variants of the product so that it can target the maximum segments.

Today, Acqua Minerals offers a variety of packaging options:150 ml, 300 ml, 500 ml, 1

litre, 2 litre, 5 litre, and 20 litre. The 5-litre bottles account for 35 per cent of sales

showing a growing health concern among the Indian society. 1 litre bottles account for 30

percent of the share, whereas the 500 ml bottles taking up 15 per cent. The remaining

sizes share the rest of the contribution.

The 2 litres bottles were introduced to slowly and steadily replace the conventional 1 litre

bottles. This would give them an advantage over others. The 500-ml category was re-

focused as a trendy product, targeted at the teenage crowd and for the roadside

consumers.

Acqua Minerals is currently a supplier to Indian Airlines with 125-ml cups. The five-

litre packs, launched in December 1999 in Goa, are currently available in six cities,

including Delhi, Bombay and Bangalore, and sell over 5,000 bottles a day.


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Following is a quick overview of the various packaging options

provided by bisleri along with the target consumers:

Size of the bottle Price per

bottle

Target consumer

500 ml Rs. 7 Teenagers, college students and roadside

consumers. Also aimed to supply to the Indian

Railways.

1 litre Rs. 10 General consumers and travelers.

1.2 litres Rs. 12 Consumers demanding a little more water at just a

little more price.

2 litres Rs. 18 Small offices, shopkeepers, households5 litres Rs. 20 Households, institutes, offices, retail shops,

showrooms

20 litres Rs. 40 Households, institutes, offices, schools and colleges

In addition to the above mentioned sizes, Bisleri also provides 150 ml cups for

Indian Airlines travellers, and 300 ml cups for marriages and parties.


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The following pie chart clearly shows the sales wise distribution of the

various pack sizes:

% s h a r e o f p a c k s i z

1

3

1

3

1 5 0 0

1 li tr

2 li tr

5 li tr

o t h e r


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CHALLENGES IN FRONT OF THE BISLERI

The company had the share of more than 50% of the national market. But now the share

of the company is going down, in the pie of the national market. Until recently there was

competition with only the unorganized sector. Now, having drowned out by the small-scale emulators with a 40% share of the national market, company now is limbering up

for another contest from the multinationals.

Other than the financial constraints up to an extent, 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 strategies.


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CHAPTER NO 3

MARKET MIX OF BISLERI

MARKETING MIX OF BISLERI


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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

PR

ODUCT

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


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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.

VARIANTS OF THE PRODUCT

The company is offering wide variants of the product. These include the different

quantities available of the product. Starting from the Jumbo pack (18 lt. Jar) to the 500

ml. Bottles. In between, it also has 1 lt., 2 lt. and 5 lt. Packs.

In terms of another variant the company has also come up with small glasses of 300ml.

that are priced at Rs.3. per glass. The company has introduced these glasses for the social

occasions like marriages and get together. This again is very competitive in the price field

and also the customer is getting a convenient product with the benefit of purity at such a

low price. Now the customers would not have to drink impure water served in unhygienic

glasses.

PACKAGING

The packaging of the product is an important factor in the marketing of the product. The

packaging of the product was absolutely accepted by the customers till now. But it has

been along time the company has changed the packaging of 1ltr. mineral water bottle.


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One of the competitors of the company, Pepsi, has mineral water by the name of

Aquafina. The packaging of the Aquafina is creating the need for the company to

change its packaging and make it look sturdier. The brand Aquafina has been

targeted towards the youth and that is why they have made the bottle look more hip.

Bisleri would have to give a new look to its product to stopping Aquafina from

snatching its market share.

To conclude: Looking at the facts above the company according to me should pay

attention on the packaging of the product so that it is able to attract more

customers.

Second, the company should go for Brand Extension. The company should take the

benefit of the brand name it has created over a long period of time. It can introduce

new products in the category of beverages.

PLACE

Place stands for the company activities that make the product available to the target

customers. To make the product available to the target consumers a good distribution

network has to be there to support the good quality of the product. Here in the case of the

mineral water industry the distribution network is the important factor in being

competitive and the catch lies in making water available to maximum number of places in

the country.

DISTRIBUTION NETWORK:

The small-scale players built their sales by piggybacking on the generic category built up

by Bisleri. Its a battle that Bisleri can win by sheer distribution muscle. One of the

reason why Bisleri is running strong in this industry is its strong distribution


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network built over the years since its inception. Further, Bisleri plans to

increase its distribution network over the southern and eastern region,

where it is behind popular brands like Team in Tamil Nadu and in

Andhra Pradesh.

Conclusion : It is very important for the companies to understandthatwinners would

be those who will endure a strong regional presence. Therefore the companies

should take some immediate actions to make presence in the whole

country and more important is every hook and corner of the states

where they are present today.


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PRICE

AN ECONOMIC FACTOR AFFECTING THE BUYERS BEHAVIOUR

Price is the sum of values that consumer exchange for the benefits of having or using theproduct 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. Company charges Re.1for every 100ml. This

strategy by the company is very effective in the Indian context where the consumers are

highly priceconscious. The company has come up with another variant of the product. It

is 1.2 lt. Bottle that is priced at Rs.12 keeping the price fixed at Re.1 per 100 ml. The

company has an edge over its competitor Aquafina recently launched by Pepsi that

has priced its product at Rs.10 for 750 ml.

Conclusion: To conclude from the facts that the pricing strategy of the company is

very competitive and therefore the company is giving value to the customers for

money.

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 Companys total marketing communications program- called its Promotion Mix

consists of specific blend of advertising, personal selling, sales promotion, and public


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relations tools that the company uses to pursue its advertising and marketing

objectives.

PROMOTIONAL ACTIVITY

Advertising Campaign of Bisleri before Launch of Acquafina & Kinley

Every brand needs a good ad campaign to establish itself in the market. So it becomes

very imperative to look at various ad campaigns that Bisleri undertook to build itself as a

brand.

Bisleri started its game-plan with the punch-line of Pure and Safe and used the

same catch-line for advertising. But with the advent of many new players, all

claiming the purity, it became very imperative for Bisleri to differentiate its product

so as to stand out in the market. Bisleri found the answer in sealed cap bottles. It

claimed 100% purity.

While the bottles of the other brands, it claimed, could be refilled with ordinary, or even

germinated water, Bisleris 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.


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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 .

Where as 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 frenzycan not find it.rushes towards the chemists

shop.buys something (keeping the audience in suspenseor 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 campaign is reported to be doing pretty well.

Advertisement Campaign of Competitors:

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.


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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.

Its an unusual ad for this category. Till now, most marketers have focussed 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 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 position 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 offeeling good about yourself. While the film and

the imagery are completely the work of HTA, 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.


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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 your

eyes are water. 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 offerings 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.

Pepsis 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

cant build a business for Pepsi based on peoples 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.

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


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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.

Pepsis future plans at the moment dont include coming 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.


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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. Otherwise, we find

no reason of making an advertisement of mineral water look like an advertisement

of condoms.

MESSAGE CONTENT OF THE CAMPAIGN:

Bisleri that was looking fora 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 consumers mind of the purity of the other brands. That is, Bisleri

is the only one that guarantees purity and keeps you Safe


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Conclusion: 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.

Apart from a high dose of investments on expanding bottling capacities and an ad budget

thats 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. Thisis very important in case of this product because consumers would take up what is

available to them at ease and whatever retailer is giving. Bisleri has introduced

attractive schemes to push the 5ltr. bottles and margins are as high as Rs 8.

Detractors feel that, in the long run, retailers will not push this. They say its a kind

of dart board game. You have to throw again and again till you hit bulls eye.


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3 Cs

CONSUMER:

The central question the company has to understand is: How do consumer respond to

various marketing stimuli the company might use? The company that really understands

how customers will respond to different product features, prices and advertising appeals

has a great advantage over its competitors. The question can be further broken down

to: Who buys? When do they buy? Where do they buy? Why do they buy?

Who buys?

In the survey conducted by us, we found that the middle income and the upper income

groups are the users of the bottled water. The lower income group is still dependent on

the water from wells and hand pumps. In the middle-income group also, people buy

bottled water while travelling.

Among the various income groups, there comprise the students, the office going

executive ,tourists and the retired people. So the company should go in for strategies to

target customer segments based on appeal, prices, convenient packaging and other

characteristics conforming to the customer segment the company is targeting.

When do they buy?

In the survey we found that the middle-income group buys mineral water while

travelling. At home or at the work place they mainly use water filters that are installed.

Or, they use large pack of bottled water like the jumbo pack (18 lt.) by Bisleri. The upper

income group uses mineral water only. So, they constitute a large part of the total market.

Where do they buy from?


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According to the survey conducted by us, the bottled water users buy the water

from retail outlets and also through tie ups with dealers. Large

consumers of bottled water like Hotels, institutions, corporate order

their water requirements through dealers.

The small time but frequent consumer buys bottled water from retail outlets.

Why do they buy?

For obvious reasons, soaring mercury levels are directly proportional to consumption of

purified bottled water. The basic reason consumers ask for bottled water is the safety.

With the growing health hazards in the country and as the people are becoming

more health conscious they are switching over to bottled water. This is the reason

that the industry is growing at fast pace . The other reason after this is, that the bottled

water is convenient to carry. They can throw the bottles after use unlike when they

carry water from home.

Consumer Concerns and Perceptions

The thinking here is that with consumer perceptions about mineral water changing, the

brand Bisleri has to Reinvent itself.Earlier, mineral water used to stand for water

enriched with certain minerals and was picked up by health-conscious consumers.

This no longer holds. Mineral water has come to mean just thatwater. Albeit safe

drinking water that is conveniently available. The consumer does not really care if

the water contains minerals. The most important consideration is purity of the

product.

What the company is doing to take care of the consumers concern.

Tampering of seals:


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Around 76 per cent of consumption happens in transit. Consumer research conducted by

us revealed that the overriding concern for this set of buyers is the tampering of the seal.

Many have witnessed used bottles being refilled at railway stations. So when a consumer

buys mineral water, he would like to be assured that the water has not been tampered

with. Bisleri has rightly introduced the concept of the breakaway seal to reinforce the

purity of Bisleri mineral water and given a surety to its consumers that what they are

consuming is SAFE.

Taste of the mineral water:

Many consumers want the mineral water to taste more like Water. The consumer

research done by us revealed that consumers preferred Bisleri because of its natural taste.


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The competition facing Bisleri can be categorized into a few

brand names like

ParleBailey

Hello

PepsiAquafina

Coca ColaKinley

With Parles 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 1 litre pet bottle, priced 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.


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Coca ColaKinley

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 targetting institutions.

Parle AgrosBailey

Bailey the brand that is owned by Ramesh Chauhans brother PrakashChauhan is

very popular in the southern part of India. Southern part of India accounts for 20% of thesale of the whole water market industry. Bisleri would have a tough competition from

Bailey 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 its

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 its generic name. And

also the company would have to enter that market with a strong distribution base. We

know the fact that Bailley has grown at a rapid pace using the route of franchising which

Bisleri has not adopted as yet. This is another point which the company would have to

take care of to face the competition.


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STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER TO

RETAIN ITS MARKET SHARE:

1.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 is 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 beable 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.

2. Getting in shape :

The another improvement the company needs is in terms of packaging. It is often

seen that the youth are the opinion leaders, therefore it becomes very important for

any consumer product to make a mark in that generation, if it really wants to grow.

The company for that, would have to come with packaging that is more sturdy and

portrays itself as a hep brand.

3. Distribution network:

The need for improving the distribution network is not only when the company wants

to target the soft drinks market. If it wants to enter every part of the country and

would face competition from competitors like Bailley it becomes a prerequisite for

the company to have a strong distribution network. take the example of Bailley, it

can be seen that this company has grown rapidly in the past and is still on that trend.

One of the important reason for this rapid growth is franchising.


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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

they ensure purity?

Strategy to counter threats

Bottles are subjected to chlorine washes, hot water washes and ozone washes before

refilling the bottles.

The company is betting on the home segment. It is often seen that customers are not

satisfied with filters and water purifiers. 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.. 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 .

OPPORTUNITIES

So far, company has not used the franchising route very aggressively unlike Parle Agros

Bailley which has grown very fast using this route. He has around six franchisees in

Mumbai, Delhi, Chennai, Bangalore, Goa and Rajasthan. They shunned this route so


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far because in most areas where they had no presence, it was imperative that they did it

themselves. Now for further expansion they can afford to use the franchisee route.

Price or competition

Pricing is the next most important consideration for the consumer. they have

crashed the prices of the one liter and 500 ml offerings. At Rs.5, that is half the

price of the one liter pack, the 500 ml pack is a steal, says Company.

But what about the smaller pack eating into the one-liter sales? Answers Company,

Interestingly, the smaller pack has pushed up the one liter sales. There has been a

very good rub-off. Schemes for retailers for a combination of both packages are on

create the push. However, one liter packs which accounted for 50 per cent of the

companys turnover has come down to 30 per cent. The two-liter packs, which have

practically disappeared from the shelves, have come down from 20 per cent to five

per cent. The growth has come from the 500 ml and the five-liter category, which

account for 15 per cent and 36 per cent of turnover respectively.

Earlier, Bisleri was selling at a premium of Rs.12 for the same size. But beginning

last year, it has been selling its one- liter bottles at Rs.10 each. Aqua Minerals

attributes the Price slashing to retailer margins being on the higher side earlier.

The competitive Rs.10-price tag has been working well for the brand. Points out

Chauhan, Our sales prove that the Indian consumer is getting smarter by the day. If

he can buy a high- quality product for the same price, why will he opt for an

inferior brand? For frequent consumers, Bisleri introduced a half-liter bottle priced

at Rs.5 some six months back. Theres also a two-liter bottle for Rs.18.

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. In the current scenario, mineral water is picked up

more by travelers, less by households. With its big capacity jar, Aqua Minerals wants

to change that. they are trying to break the home market with the 20-litre jar,

company discloses.


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PURIFICATION PROCESS

Bisleri is producing by painstakingly rigorous process. Source water is put through- 7

stage Purification process. It is then packaged in tamper proof packs with the unique

"breakaway seal" And all is done in completely automated plants to ensure it reaches you

perfectly pure and safe. The process is Natural spring water is drawn from deep wells

then

l. CHLORINATION-Kills microorganisms, removes organic matter.

2. SAND FIL TER---Removes suspended matter and turbidity.

3. CARBON FILTER-Removes residual chlorines and odors

4. ULTRAFICATION-Removes bacteria and make water sparkling clean

5. MICRON FILTERS---Additional safety measures of filtration

6. REVERSE OSMOSIS SYSTEM---Controls total dissolved solids (TDS).

7. 0Z0NATION-Ensures water remains bacteria -free for longer shelf life.


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FUTURE PLANS

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

people associate the brand with bottled water .now Bisleri is perhaps already 10 steps

ahead of its competitors and will endeavors to widen its gap in the times to come, Some

of the future plans of the Bisleri

1. New pack sizes in bottles and cups.

2. Increase the distribution network with an investment of over 200 crores.

3. Strengthen presence in traditionally weak areas by setting up 12 new bottling

facilities at the cost of Rs 150 crores.

4. Bisleri planning to diversify into fruit juice business. It has already set up a fruit

-juice plant in Chittor AP.

5. The company plans to go in the neighbouring countries like Nepal and Bhutan.

6. The company planning to open the Bisleri retail outlets ---these ere the shops

where only Bisleri will be sold.


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SWOT ANALYSIS

STRENGTHS:

Bisleri is the first in the segment has built up a brand name.

A generic product.

Spreaded Distribution network all over India

WEAKNESS:

Less margins of retailers or distributors, so they avoid it.

High cost of production than the competitors.

OPPORTUNITIES:

In flavoured water segment.

In neighbouring countries.

THREATS:

Local players entering in to the market & selling at a very low price.

Duplicity resulting in bringing down the Brand name.

Heavy market potential in this segment invite the big players and the competition

increases.


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CHAPTER:4

FINDING AND ANALYSIS


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FINDINGS OF RESEARCH

1. Out of 100 retailers, everyone stored mineral water andbasically these

shops were centrally located to the market and were basically general store,

confectionery shop and small kirana shop.

The survey revealed that almost every shop stored mineral water, therefore it

can be interpreted that mineral water in current market scenario is on general

demand and retailer enjoy selling it, as the get good margin out of it.

2. Brand of mineral water kept by the retailers

The survey revealed that out of 100 retailers surveyed, all over Delhi, 70% of the

retailers kept Bailey's mineral water, 25% Kinley, 30% Aquafina, 40% Yes and

50% the retailer kept Hello mineral water.

However it can be noted that retailers prefer Bisleri mineral water which has got a

share of 70% this is so because people or customer recalls mineral water with the

brand name of Bisleri. The new entrants basically Aquafna and Kinley is been

kept by 30% and 26% of the retailers and they consider that this product will

soon capture market share as the brand name will speak its quality.

Pie chart showing percentage of different mineral water being kept by

the retailers


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3. Weekly sales of mineral water from the outlet

Out of 100 shopkeepers surveyed all over Delhi, the weekly sales of the mineral

water averaged approx 225 bottles of 1 lit. each which means that a total number of

bottles case or cases sold froSSm the single outlet averaged around 15 cases . Out of

this Bisleri mineral water is sold most i .e. approx . 45% of the cases sold from the

single outlet belongs to Bisleri mineral water, whereas Kinley acquired average of 7-

8% of the total sale. Aquafina sale constitute of 10%, Bailey's sale on an average

constitute of 20% of the total sale. However other mineral water sales comprised of

18% of the total sale.

Thus from the above analysis it is very clear that Bisleri still holds on dominant position

in the mineral water market, but at the same time new entrants like Aquafina and Kinley

with market share of 10% and 8% respectively may pose threat to Bisleri in the long run.


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Piechart showing percentage sales of following mineral water in a week

45%

10%8%

20%

17%

Bisleri Aquafina Kinley Hello Others


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4. Frequency of distribution visit

Distribution is an important p

A Comparative Brand Analysis & Market Research of Bisle

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