a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

55
A COMPARATIVE PRODUCT ANALYSIS & MARKETING RESEARCH OF BISLERI ITS COMPETITORS: AQUAFINA & KINLEY Submitted in partial fulfillment of MMS degree of University of Mumbai, Mumbai SUBMITTED BY: MR. YOGESH JAYWANT PATIL MMS SEM-2 ROLL NO.04

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Transcript of a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

Page 1: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

A COMPARATIVE PRODUCT ANALYSIS amp

MARKETING RESEARCH OF

BISLERI

ITS COMPETITORS

AQUAFINA amp KINLEY

Submitted in partial fulfillment of MMS degree of

University of Mumbai Mumbai

SUBMITTED BY

MR YOGESH JAYWANT PATIL

MMS SEM-2

ROLL NO04

ACKNOWLEDGEMENT

The present work is an effort to throw some light on ―Brand Analysis amp Market

Research Of Bisleri A comparative analysis with three competitors Acquafina amp

kinley The work would not have been possible to come to the present shape without

the able guidance supervision and help to me by number of people

With deep sense of gratitude I acknowledge the encouragement and guidance received by

my organizational guide

I convey my heartful affection to all those people who helped and supported me during

the course for completion of my Project Report

EXECUTIVE SUMMARY

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 todays living condition the need for Pure Drinking

Water is becoming the issue for the common man

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 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

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

The following are the main objectives of my Research study-

To make a brand analysis of Bisleri as a Brand To conduct a market survey of Bisleri

The affects on Bisleri sale profit and market share after the launch of Acquafinalsquo by

Pepsi and Kinleylsquo by coca cola To find out the current position of Acquafina hello

and Kinley mineral water Threats caused by Aquafina Kinley and hello to Bisleri

Strategies and measures adopted by Bisleri to counter the competition by hello amp

Kinley

TABLE OF CONTENTS

1 INTRODUCTION

11 Mineral water industry

12 Genesis

13 Expansion

14 Bisleri today

15 Vision

16 mission

2 PURPOSE AND OBJECTIVE

21 Scope of study

22 Objective of study

23 Problem definition

24 Rationale of study

3 RESEARCH AND METHODOLOGY

31 Research objective

32 Nature of data

33 Distribution

34 Packaging

35 Challenges in front of bisleri

4 COMPANY PROFILE

41 Industry profile

42 Manufacturing

43 Distribution

44 Packaging

45 Challenges in front of bisleri

5 ANNALYSIS OF THE COMPANY

51 Consumers point of view

52 Consumers habits and practices

53 Competitors annyalysis

54 Purification process

6 FUTURE PLANS

7 SWOT ANNYALYSIS

8 FINDING OF RESEARCH

CONCLUSION

BIBLIOGRAPHY

ANNEXURE

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 todays 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 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

1980s 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 1980s 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 ndash drinking

water ndash 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 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

11 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 countrys 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

Cokes Kinley Pepsis Aquafina Brittania Nestle Kingfisher Auswater-are keen on

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

Danonelsquos 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

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 ndash 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 Parlelsquos Bisleri is the market leader with a share of more than

45 Parle Agrolsquos 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

12 GENESIS

The name that epitomizes mineral water today was first introduced in Mumbai in the

early 60s In 1965 Signor Felice Bisleri an Italian by origin came up with the idea of

selling bottled water in India His company Bisleri Ltd offered mineral water in two

Variants- bubbly and still

In 1969 Parle bought over Bisleri (India) Ltd and started bottling Mineral water in

glass bottles under the brand name Bisleri In due course Parle switched over to PVC

non-returnable bottles and finally advanced to PET containers

13 EXPANSION

Under the leadership and vision of Mr Ramesh J Chauhan Bisleri has undergone

significant expansion in their operations The company has witnessed an exponential

growth with their turnover multiplying more than twenty times in a short span of 10

years The average growth rate over this period has been around 40 with Bisleri

enjoying more than 60 of the market share in the organized mineral water segment

Currently Bisleri has 11 franchisees and 8 plants across India with plans of setting up

4 new plants on the anvil The overwhelming popularity of Bisleri and the fact that it

was the pioneer of the bottled water industry in India has made it synonymous to

Mineral water and a household name So naturally When you think of bottled water

you think Bisleri

Rigorous Research and Development and stringent quality controls have made it

market leaders in the bottled water segment Bisleri has always been committed to

offering every Indian pure and clean drinking water Hence Bisleri water is put

through multiple stages of purification ozonisation and is hygienically packed for

final consumption

To maintain strict quality controls in every unit Bisleri not only purchase caps from

approved vendors but also manufacture own bottles in-house To be at par with

International standards they have recently procured the latest state-of-the-art

machinery which has not only helped them improve packaging quality but has also

reduced raw material wastage and doubled production capacity One can rest assured

that they are drinking safe and pure water when they consume Bisleri Bisleri is free

of impurities and is 100 safe Enjoy the sweet taste of Purity

14 BISLERI TODAY

The Indian consumer today enjoys the sweet and pure taste of Bisleri mineral water

However in an effort to offer something special to there loyal consumers they have

recently introduced Bisleri Natural Mountain Water - water brought to consumers

from the foothills of the mountains situated in Himachal Pradesh This newly

launched offering has widened Bisleris product range to two variants Bisleri with

added minerals and Bisleri Mountain Water Bislerilsquos registered office is in Mumbai

15 VISION

Our vision is to be the dominant player in the branded water business where the

second player is less than 20 of our business

16MISSION

We are in the business to serve the customer He is the most important person He is the only one who

pays He deserves the best quality and presentation at a worth of the price We must have world class

quality at the lowest production amp distribution cost This will make us an unbeatable leader and will

have satisfied loyal customers

―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

21 SCOPE OF STUDY

Marketing is a subject where a person can learn from anybody As I was into retailers

survey work of countrylsquos leading packaged drinking water company Bisleri I was

feeling myself to be a part of organizations family I had a very good market exposure

while undergoing this project because every person came forward with a different

opinion and that was very important to know the perception of the retailers And

being my first real exposure to the corporate environment the training period proved

to be very educating and offered me a great chance to learn the practical workings of

the FMCG industry

22 OBJECTIVE OF STUDY

The primary objectives of the introduction of Retailers scheme card and research

project titled ―RETAILERS SURVEY IN MULUND WITH SPECIAL REFERENCE

TO BISLERI are as follows-

- Understand current market scenario in context of packaged drinking water

- What attracts retailers most in selection of packaged drinking water

- What are the various issues related to distribution in various markets

- What are the various schemes and strategies used by competitors to capture market

- What are the various demands of retailers

- How retailer view product of Bisleri in comparison with other companies products

- To increase secondary sales of the company

To study and to check upon and thereby to cater to the above set objectives of the

project a structured questionnaire was designed and it was approved by the

supervising faculty and the companies DGM

23 PROBLEM DEFINATION

To understand the basis of what services does a retailer makes his choice in

buying a packaged drinking water

To understand various problems associated with distribution of product

24 RATIONALE OF STUDY

Being a project for my partial fulfillment of my MBA degree I was motivated

to finish this project to the best of my ability

My interest in the field of marketing of products was a motivation factor

towards this research

Stability in operations of fmcg companies irrespective of changing financial

conditions was a factor that brought me interest in knowing more about the

internal workings of the fmcg industry

31 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

32 RESEARCH OBJECTIVES

The following are the main objectives of my Research study-

1 To make a brand analysis of Bisleri as a brand and product

2 To conduct a market survey of Bisleri

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

Acquafinalsquo by Pepsi and Kinleylsquo by Coca Cola

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

5 Threats caused by Aquafina Kinley and Bisleri

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

amp Kinley

33 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 AampM

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 eg publish broachers official reports etc

External source This originates outside the field of study like books

periodicals journals newspapers and the Internet

34 DATA COLLECTION

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

the following areas

1 Mulund station area

2 Mulund panch Rasta market

SAMPLE DESIGN

Sampling unit Residents customers amp Retailers in the above

mentioned areas

Sample size 10 persons

35 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

COMPANY PROFILE

41Industrial profile

The origins of Bisleri lie in Italy and the brand owes its name to founder Felice

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 Parles taking charge of Bisleri did not make a dramatic

difference to the brands fortunes immediately While it did gain in terms of visibility

and reach (piggybacking on Parles 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 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 parlelsquos soft drink brands- thums-up limca etc While

Coca-Cola actually bought over Parles 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 Bisleris

equity

The real shift in companylsquos 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

42 PRODUCT PROFILE

―Itlsquos 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 Chauhanlsquos 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 Rs60 lacs

43 MANUFACTURING

A quick look at Bisleris manufacturing reach indicates that it is represented across the

country ndash 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 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 Rs50m 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 companys 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 will also increase the number of companys bottling plants from 16 at

present to 25 The company will set up all the new plants as green field plants It

doesnlsquot have any intentions to acquire any existing plants

44 DISTRIBUTION

Its 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 brandswhich explains the proliferation of

smaller brands

Bislerilsquos 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 brandlsquos 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

45 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 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 options150 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 5000 bottles a day

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

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

little more price

2 litres Rs 18 Small offices shopkeepers households

5 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 ndash for

Indian Airlines travellers and 300 ml cups ndash for marriages and parties

The following pie chart clearly shows the sales wise distribution of the various pack sizes

15

30

10

35

10

share of pack sizes in sales

500 ml

1 litre

2 litres

5 litres

others

46 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 ndash 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

51 CONSUMER POINT OF VIEW

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

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 thatmdashwater 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

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 2: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

ACKNOWLEDGEMENT

The present work is an effort to throw some light on ―Brand Analysis amp Market

Research Of Bisleri A comparative analysis with three competitors Acquafina amp

kinley The work would not have been possible to come to the present shape without

the able guidance supervision and help to me by number of people

With deep sense of gratitude I acknowledge the encouragement and guidance received by

my organizational guide

I convey my heartful affection to all those people who helped and supported me during

the course for completion of my Project Report

EXECUTIVE SUMMARY

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 todays living condition the need for Pure Drinking

Water is becoming the issue for the common man

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 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

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

The following are the main objectives of my Research study-

To make a brand analysis of Bisleri as a Brand To conduct a market survey of Bisleri

The affects on Bisleri sale profit and market share after the launch of Acquafinalsquo by

Pepsi and Kinleylsquo by coca cola To find out the current position of Acquafina hello

and Kinley mineral water Threats caused by Aquafina Kinley and hello to Bisleri

Strategies and measures adopted by Bisleri to counter the competition by hello amp

Kinley

TABLE OF CONTENTS

1 INTRODUCTION

11 Mineral water industry

12 Genesis

13 Expansion

14 Bisleri today

15 Vision

16 mission

2 PURPOSE AND OBJECTIVE

21 Scope of study

22 Objective of study

23 Problem definition

24 Rationale of study

3 RESEARCH AND METHODOLOGY

31 Research objective

32 Nature of data

33 Distribution

34 Packaging

35 Challenges in front of bisleri

4 COMPANY PROFILE

41 Industry profile

42 Manufacturing

43 Distribution

44 Packaging

45 Challenges in front of bisleri

5 ANNALYSIS OF THE COMPANY

51 Consumers point of view

52 Consumers habits and practices

53 Competitors annyalysis

54 Purification process

6 FUTURE PLANS

7 SWOT ANNYALYSIS

8 FINDING OF RESEARCH

CONCLUSION

BIBLIOGRAPHY

ANNEXURE

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 todays 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 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

1980s 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 1980s 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 ndash drinking

water ndash 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 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

11 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 countrys 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

Cokes Kinley Pepsis Aquafina Brittania Nestle Kingfisher Auswater-are keen on

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

Danonelsquos 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

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 ndash 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 Parlelsquos Bisleri is the market leader with a share of more than

45 Parle Agrolsquos 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

12 GENESIS

The name that epitomizes mineral water today was first introduced in Mumbai in the

early 60s In 1965 Signor Felice Bisleri an Italian by origin came up with the idea of

selling bottled water in India His company Bisleri Ltd offered mineral water in two

Variants- bubbly and still

In 1969 Parle bought over Bisleri (India) Ltd and started bottling Mineral water in

glass bottles under the brand name Bisleri In due course Parle switched over to PVC

non-returnable bottles and finally advanced to PET containers

13 EXPANSION

Under the leadership and vision of Mr Ramesh J Chauhan Bisleri has undergone

significant expansion in their operations The company has witnessed an exponential

growth with their turnover multiplying more than twenty times in a short span of 10

years The average growth rate over this period has been around 40 with Bisleri

enjoying more than 60 of the market share in the organized mineral water segment

Currently Bisleri has 11 franchisees and 8 plants across India with plans of setting up

4 new plants on the anvil The overwhelming popularity of Bisleri and the fact that it

was the pioneer of the bottled water industry in India has made it synonymous to

Mineral water and a household name So naturally When you think of bottled water

you think Bisleri

Rigorous Research and Development and stringent quality controls have made it

market leaders in the bottled water segment Bisleri has always been committed to

offering every Indian pure and clean drinking water Hence Bisleri water is put

through multiple stages of purification ozonisation and is hygienically packed for

final consumption

To maintain strict quality controls in every unit Bisleri not only purchase caps from

approved vendors but also manufacture own bottles in-house To be at par with

International standards they have recently procured the latest state-of-the-art

machinery which has not only helped them improve packaging quality but has also

reduced raw material wastage and doubled production capacity One can rest assured

that they are drinking safe and pure water when they consume Bisleri Bisleri is free

of impurities and is 100 safe Enjoy the sweet taste of Purity

14 BISLERI TODAY

The Indian consumer today enjoys the sweet and pure taste of Bisleri mineral water

However in an effort to offer something special to there loyal consumers they have

recently introduced Bisleri Natural Mountain Water - water brought to consumers

from the foothills of the mountains situated in Himachal Pradesh This newly

launched offering has widened Bisleris product range to two variants Bisleri with

added minerals and Bisleri Mountain Water Bislerilsquos registered office is in Mumbai

15 VISION

Our vision is to be the dominant player in the branded water business where the

second player is less than 20 of our business

16MISSION

We are in the business to serve the customer He is the most important person He is the only one who

pays He deserves the best quality and presentation at a worth of the price We must have world class

quality at the lowest production amp distribution cost This will make us an unbeatable leader and will

have satisfied loyal customers

―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

21 SCOPE OF STUDY

Marketing is a subject where a person can learn from anybody As I was into retailers

survey work of countrylsquos leading packaged drinking water company Bisleri I was

feeling myself to be a part of organizations family I had a very good market exposure

while undergoing this project because every person came forward with a different

opinion and that was very important to know the perception of the retailers And

being my first real exposure to the corporate environment the training period proved

to be very educating and offered me a great chance to learn the practical workings of

the FMCG industry

22 OBJECTIVE OF STUDY

The primary objectives of the introduction of Retailers scheme card and research

project titled ―RETAILERS SURVEY IN MULUND WITH SPECIAL REFERENCE

TO BISLERI are as follows-

- Understand current market scenario in context of packaged drinking water

- What attracts retailers most in selection of packaged drinking water

- What are the various issues related to distribution in various markets

- What are the various schemes and strategies used by competitors to capture market

- What are the various demands of retailers

- How retailer view product of Bisleri in comparison with other companies products

- To increase secondary sales of the company

To study and to check upon and thereby to cater to the above set objectives of the

project a structured questionnaire was designed and it was approved by the

supervising faculty and the companies DGM

23 PROBLEM DEFINATION

To understand the basis of what services does a retailer makes his choice in

buying a packaged drinking water

To understand various problems associated with distribution of product

24 RATIONALE OF STUDY

Being a project for my partial fulfillment of my MBA degree I was motivated

to finish this project to the best of my ability

My interest in the field of marketing of products was a motivation factor

towards this research

Stability in operations of fmcg companies irrespective of changing financial

conditions was a factor that brought me interest in knowing more about the

internal workings of the fmcg industry

31 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

32 RESEARCH OBJECTIVES

The following are the main objectives of my Research study-

1 To make a brand analysis of Bisleri as a brand and product

2 To conduct a market survey of Bisleri

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

Acquafinalsquo by Pepsi and Kinleylsquo by Coca Cola

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

5 Threats caused by Aquafina Kinley and Bisleri

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

amp Kinley

33 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 AampM

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 eg publish broachers official reports etc

External source This originates outside the field of study like books

periodicals journals newspapers and the Internet

34 DATA COLLECTION

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

the following areas

1 Mulund station area

2 Mulund panch Rasta market

SAMPLE DESIGN

Sampling unit Residents customers amp Retailers in the above

mentioned areas

Sample size 10 persons

35 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

COMPANY PROFILE

41Industrial profile

The origins of Bisleri lie in Italy and the brand owes its name to founder Felice

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 Parles taking charge of Bisleri did not make a dramatic

difference to the brands fortunes immediately While it did gain in terms of visibility

and reach (piggybacking on Parles 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 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 parlelsquos soft drink brands- thums-up limca etc While

Coca-Cola actually bought over Parles 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 Bisleris

equity

The real shift in companylsquos 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

42 PRODUCT PROFILE

―Itlsquos 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 Chauhanlsquos 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 Rs60 lacs

43 MANUFACTURING

A quick look at Bisleris manufacturing reach indicates that it is represented across the

country ndash 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 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 Rs50m 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 companys 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 will also increase the number of companys bottling plants from 16 at

present to 25 The company will set up all the new plants as green field plants It

doesnlsquot have any intentions to acquire any existing plants

44 DISTRIBUTION

Its 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 brandswhich explains the proliferation of

smaller brands

Bislerilsquos 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 brandlsquos 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

45 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 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 options150 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 5000 bottles a day

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

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

little more price

2 litres Rs 18 Small offices shopkeepers households

5 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 ndash for

Indian Airlines travellers and 300 ml cups ndash for marriages and parties

The following pie chart clearly shows the sales wise distribution of the various pack sizes

15

30

10

35

10

share of pack sizes in sales

500 ml

1 litre

2 litres

5 litres

others

46 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 ndash 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

51 CONSUMER POINT OF VIEW

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

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 thatmdashwater 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

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 3: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

EXECUTIVE SUMMARY

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 todays living condition the need for Pure Drinking

Water is becoming the issue for the common man

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 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

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

The following are the main objectives of my Research study-

To make a brand analysis of Bisleri as a Brand To conduct a market survey of Bisleri

The affects on Bisleri sale profit and market share after the launch of Acquafinalsquo by

Pepsi and Kinleylsquo by coca cola To find out the current position of Acquafina hello

and Kinley mineral water Threats caused by Aquafina Kinley and hello to Bisleri

Strategies and measures adopted by Bisleri to counter the competition by hello amp

Kinley

TABLE OF CONTENTS

1 INTRODUCTION

11 Mineral water industry

12 Genesis

13 Expansion

14 Bisleri today

15 Vision

16 mission

2 PURPOSE AND OBJECTIVE

21 Scope of study

22 Objective of study

23 Problem definition

24 Rationale of study

3 RESEARCH AND METHODOLOGY

31 Research objective

32 Nature of data

33 Distribution

34 Packaging

35 Challenges in front of bisleri

4 COMPANY PROFILE

41 Industry profile

42 Manufacturing

43 Distribution

44 Packaging

45 Challenges in front of bisleri

5 ANNALYSIS OF THE COMPANY

51 Consumers point of view

52 Consumers habits and practices

53 Competitors annyalysis

54 Purification process

6 FUTURE PLANS

7 SWOT ANNYALYSIS

8 FINDING OF RESEARCH

CONCLUSION

BIBLIOGRAPHY

ANNEXURE

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 todays 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 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

1980s 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 1980s 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 ndash drinking

water ndash 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 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

11 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 countrys 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

Cokes Kinley Pepsis Aquafina Brittania Nestle Kingfisher Auswater-are keen on

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

Danonelsquos 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

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 ndash 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 Parlelsquos Bisleri is the market leader with a share of more than

45 Parle Agrolsquos 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

12 GENESIS

The name that epitomizes mineral water today was first introduced in Mumbai in the

early 60s In 1965 Signor Felice Bisleri an Italian by origin came up with the idea of

selling bottled water in India His company Bisleri Ltd offered mineral water in two

Variants- bubbly and still

In 1969 Parle bought over Bisleri (India) Ltd and started bottling Mineral water in

glass bottles under the brand name Bisleri In due course Parle switched over to PVC

non-returnable bottles and finally advanced to PET containers

13 EXPANSION

Under the leadership and vision of Mr Ramesh J Chauhan Bisleri has undergone

significant expansion in their operations The company has witnessed an exponential

growth with their turnover multiplying more than twenty times in a short span of 10

years The average growth rate over this period has been around 40 with Bisleri

enjoying more than 60 of the market share in the organized mineral water segment

Currently Bisleri has 11 franchisees and 8 plants across India with plans of setting up

4 new plants on the anvil The overwhelming popularity of Bisleri and the fact that it

was the pioneer of the bottled water industry in India has made it synonymous to

Mineral water and a household name So naturally When you think of bottled water

you think Bisleri

Rigorous Research and Development and stringent quality controls have made it

market leaders in the bottled water segment Bisleri has always been committed to

offering every Indian pure and clean drinking water Hence Bisleri water is put

through multiple stages of purification ozonisation and is hygienically packed for

final consumption

To maintain strict quality controls in every unit Bisleri not only purchase caps from

approved vendors but also manufacture own bottles in-house To be at par with

International standards they have recently procured the latest state-of-the-art

machinery which has not only helped them improve packaging quality but has also

reduced raw material wastage and doubled production capacity One can rest assured

that they are drinking safe and pure water when they consume Bisleri Bisleri is free

of impurities and is 100 safe Enjoy the sweet taste of Purity

14 BISLERI TODAY

The Indian consumer today enjoys the sweet and pure taste of Bisleri mineral water

However in an effort to offer something special to there loyal consumers they have

recently introduced Bisleri Natural Mountain Water - water brought to consumers

from the foothills of the mountains situated in Himachal Pradesh This newly

launched offering has widened Bisleris product range to two variants Bisleri with

added minerals and Bisleri Mountain Water Bislerilsquos registered office is in Mumbai

15 VISION

Our vision is to be the dominant player in the branded water business where the

second player is less than 20 of our business

16MISSION

We are in the business to serve the customer He is the most important person He is the only one who

pays He deserves the best quality and presentation at a worth of the price We must have world class

quality at the lowest production amp distribution cost This will make us an unbeatable leader and will

have satisfied loyal customers

―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

21 SCOPE OF STUDY

Marketing is a subject where a person can learn from anybody As I was into retailers

survey work of countrylsquos leading packaged drinking water company Bisleri I was

feeling myself to be a part of organizations family I had a very good market exposure

while undergoing this project because every person came forward with a different

opinion and that was very important to know the perception of the retailers And

being my first real exposure to the corporate environment the training period proved

to be very educating and offered me a great chance to learn the practical workings of

the FMCG industry

22 OBJECTIVE OF STUDY

The primary objectives of the introduction of Retailers scheme card and research

project titled ―RETAILERS SURVEY IN MULUND WITH SPECIAL REFERENCE

TO BISLERI are as follows-

- Understand current market scenario in context of packaged drinking water

- What attracts retailers most in selection of packaged drinking water

- What are the various issues related to distribution in various markets

- What are the various schemes and strategies used by competitors to capture market

- What are the various demands of retailers

- How retailer view product of Bisleri in comparison with other companies products

- To increase secondary sales of the company

To study and to check upon and thereby to cater to the above set objectives of the

project a structured questionnaire was designed and it was approved by the

supervising faculty and the companies DGM

23 PROBLEM DEFINATION

To understand the basis of what services does a retailer makes his choice in

buying a packaged drinking water

To understand various problems associated with distribution of product

24 RATIONALE OF STUDY

Being a project for my partial fulfillment of my MBA degree I was motivated

to finish this project to the best of my ability

My interest in the field of marketing of products was a motivation factor

towards this research

Stability in operations of fmcg companies irrespective of changing financial

conditions was a factor that brought me interest in knowing more about the

internal workings of the fmcg industry

31 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

32 RESEARCH OBJECTIVES

The following are the main objectives of my Research study-

1 To make a brand analysis of Bisleri as a brand and product

2 To conduct a market survey of Bisleri

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

Acquafinalsquo by Pepsi and Kinleylsquo by Coca Cola

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

5 Threats caused by Aquafina Kinley and Bisleri

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

amp Kinley

33 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 AampM

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 eg publish broachers official reports etc

External source This originates outside the field of study like books

periodicals journals newspapers and the Internet

34 DATA COLLECTION

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

the following areas

1 Mulund station area

2 Mulund panch Rasta market

SAMPLE DESIGN

Sampling unit Residents customers amp Retailers in the above

mentioned areas

Sample size 10 persons

35 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

COMPANY PROFILE

41Industrial profile

The origins of Bisleri lie in Italy and the brand owes its name to founder Felice

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 Parles taking charge of Bisleri did not make a dramatic

difference to the brands fortunes immediately While it did gain in terms of visibility

and reach (piggybacking on Parles 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 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 parlelsquos soft drink brands- thums-up limca etc While

Coca-Cola actually bought over Parles 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 Bisleris

equity

The real shift in companylsquos 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

42 PRODUCT PROFILE

―Itlsquos 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 Chauhanlsquos 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 Rs60 lacs

43 MANUFACTURING

A quick look at Bisleris manufacturing reach indicates that it is represented across the

country ndash 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 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 Rs50m 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 companys 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 will also increase the number of companys bottling plants from 16 at

present to 25 The company will set up all the new plants as green field plants It

doesnlsquot have any intentions to acquire any existing plants

44 DISTRIBUTION

Its 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 brandswhich explains the proliferation of

smaller brands

Bislerilsquos 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 brandlsquos 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

45 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 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 options150 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 5000 bottles a day

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

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

little more price

2 litres Rs 18 Small offices shopkeepers households

5 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 ndash for

Indian Airlines travellers and 300 ml cups ndash for marriages and parties

The following pie chart clearly shows the sales wise distribution of the various pack sizes

15

30

10

35

10

share of pack sizes in sales

500 ml

1 litre

2 litres

5 litres

others

46 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 ndash 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

51 CONSUMER POINT OF VIEW

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

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 thatmdashwater 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

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 4: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

TABLE OF CONTENTS

1 INTRODUCTION

11 Mineral water industry

12 Genesis

13 Expansion

14 Bisleri today

15 Vision

16 mission

2 PURPOSE AND OBJECTIVE

21 Scope of study

22 Objective of study

23 Problem definition

24 Rationale of study

3 RESEARCH AND METHODOLOGY

31 Research objective

32 Nature of data

33 Distribution

34 Packaging

35 Challenges in front of bisleri

4 COMPANY PROFILE

41 Industry profile

42 Manufacturing

43 Distribution

44 Packaging

45 Challenges in front of bisleri

5 ANNALYSIS OF THE COMPANY

51 Consumers point of view

52 Consumers habits and practices

53 Competitors annyalysis

54 Purification process

6 FUTURE PLANS

7 SWOT ANNYALYSIS

8 FINDING OF RESEARCH

CONCLUSION

BIBLIOGRAPHY

ANNEXURE

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 todays 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 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

1980s 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 1980s 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 ndash drinking

water ndash 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 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

11 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 countrys 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

Cokes Kinley Pepsis Aquafina Brittania Nestle Kingfisher Auswater-are keen on

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

Danonelsquos 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

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 ndash 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 Parlelsquos Bisleri is the market leader with a share of more than

45 Parle Agrolsquos 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

12 GENESIS

The name that epitomizes mineral water today was first introduced in Mumbai in the

early 60s In 1965 Signor Felice Bisleri an Italian by origin came up with the idea of

selling bottled water in India His company Bisleri Ltd offered mineral water in two

Variants- bubbly and still

In 1969 Parle bought over Bisleri (India) Ltd and started bottling Mineral water in

glass bottles under the brand name Bisleri In due course Parle switched over to PVC

non-returnable bottles and finally advanced to PET containers

13 EXPANSION

Under the leadership and vision of Mr Ramesh J Chauhan Bisleri has undergone

significant expansion in their operations The company has witnessed an exponential

growth with their turnover multiplying more than twenty times in a short span of 10

years The average growth rate over this period has been around 40 with Bisleri

enjoying more than 60 of the market share in the organized mineral water segment

Currently Bisleri has 11 franchisees and 8 plants across India with plans of setting up

4 new plants on the anvil The overwhelming popularity of Bisleri and the fact that it

was the pioneer of the bottled water industry in India has made it synonymous to

Mineral water and a household name So naturally When you think of bottled water

you think Bisleri

Rigorous Research and Development and stringent quality controls have made it

market leaders in the bottled water segment Bisleri has always been committed to

offering every Indian pure and clean drinking water Hence Bisleri water is put

through multiple stages of purification ozonisation and is hygienically packed for

final consumption

To maintain strict quality controls in every unit Bisleri not only purchase caps from

approved vendors but also manufacture own bottles in-house To be at par with

International standards they have recently procured the latest state-of-the-art

machinery which has not only helped them improve packaging quality but has also

reduced raw material wastage and doubled production capacity One can rest assured

that they are drinking safe and pure water when they consume Bisleri Bisleri is free

of impurities and is 100 safe Enjoy the sweet taste of Purity

14 BISLERI TODAY

The Indian consumer today enjoys the sweet and pure taste of Bisleri mineral water

However in an effort to offer something special to there loyal consumers they have

recently introduced Bisleri Natural Mountain Water - water brought to consumers

from the foothills of the mountains situated in Himachal Pradesh This newly

launched offering has widened Bisleris product range to two variants Bisleri with

added minerals and Bisleri Mountain Water Bislerilsquos registered office is in Mumbai

15 VISION

Our vision is to be the dominant player in the branded water business where the

second player is less than 20 of our business

16MISSION

We are in the business to serve the customer He is the most important person He is the only one who

pays He deserves the best quality and presentation at a worth of the price We must have world class

quality at the lowest production amp distribution cost This will make us an unbeatable leader and will

have satisfied loyal customers

―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

21 SCOPE OF STUDY

Marketing is a subject where a person can learn from anybody As I was into retailers

survey work of countrylsquos leading packaged drinking water company Bisleri I was

feeling myself to be a part of organizations family I had a very good market exposure

while undergoing this project because every person came forward with a different

opinion and that was very important to know the perception of the retailers And

being my first real exposure to the corporate environment the training period proved

to be very educating and offered me a great chance to learn the practical workings of

the FMCG industry

22 OBJECTIVE OF STUDY

The primary objectives of the introduction of Retailers scheme card and research

project titled ―RETAILERS SURVEY IN MULUND WITH SPECIAL REFERENCE

TO BISLERI are as follows-

- Understand current market scenario in context of packaged drinking water

- What attracts retailers most in selection of packaged drinking water

- What are the various issues related to distribution in various markets

- What are the various schemes and strategies used by competitors to capture market

- What are the various demands of retailers

- How retailer view product of Bisleri in comparison with other companies products

- To increase secondary sales of the company

To study and to check upon and thereby to cater to the above set objectives of the

project a structured questionnaire was designed and it was approved by the

supervising faculty and the companies DGM

23 PROBLEM DEFINATION

To understand the basis of what services does a retailer makes his choice in

buying a packaged drinking water

To understand various problems associated with distribution of product

24 RATIONALE OF STUDY

Being a project for my partial fulfillment of my MBA degree I was motivated

to finish this project to the best of my ability

My interest in the field of marketing of products was a motivation factor

towards this research

Stability in operations of fmcg companies irrespective of changing financial

conditions was a factor that brought me interest in knowing more about the

internal workings of the fmcg industry

31 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

32 RESEARCH OBJECTIVES

The following are the main objectives of my Research study-

1 To make a brand analysis of Bisleri as a brand and product

2 To conduct a market survey of Bisleri

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

Acquafinalsquo by Pepsi and Kinleylsquo by Coca Cola

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

5 Threats caused by Aquafina Kinley and Bisleri

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

amp Kinley

33 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 AampM

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 eg publish broachers official reports etc

External source This originates outside the field of study like books

periodicals journals newspapers and the Internet

34 DATA COLLECTION

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

the following areas

1 Mulund station area

2 Mulund panch Rasta market

SAMPLE DESIGN

Sampling unit Residents customers amp Retailers in the above

mentioned areas

Sample size 10 persons

35 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

COMPANY PROFILE

41Industrial profile

The origins of Bisleri lie in Italy and the brand owes its name to founder Felice

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 Parles taking charge of Bisleri did not make a dramatic

difference to the brands fortunes immediately While it did gain in terms of visibility

and reach (piggybacking on Parles 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 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 parlelsquos soft drink brands- thums-up limca etc While

Coca-Cola actually bought over Parles 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 Bisleris

equity

The real shift in companylsquos 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

42 PRODUCT PROFILE

―Itlsquos 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 Chauhanlsquos 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 Rs60 lacs

43 MANUFACTURING

A quick look at Bisleris manufacturing reach indicates that it is represented across the

country ndash 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 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 Rs50m 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 companys 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 will also increase the number of companys bottling plants from 16 at

present to 25 The company will set up all the new plants as green field plants It

doesnlsquot have any intentions to acquire any existing plants

44 DISTRIBUTION

Its 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 brandswhich explains the proliferation of

smaller brands

Bislerilsquos 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 brandlsquos 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

45 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 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 options150 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 5000 bottles a day

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

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

little more price

2 litres Rs 18 Small offices shopkeepers households

5 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 ndash for

Indian Airlines travellers and 300 ml cups ndash for marriages and parties

The following pie chart clearly shows the sales wise distribution of the various pack sizes

15

30

10

35

10

share of pack sizes in sales

500 ml

1 litre

2 litres

5 litres

others

46 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 ndash 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

51 CONSUMER POINT OF VIEW

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

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 thatmdashwater 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

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 5: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

5 ANNALYSIS OF THE COMPANY

51 Consumers point of view

52 Consumers habits and practices

53 Competitors annyalysis

54 Purification process

6 FUTURE PLANS

7 SWOT ANNYALYSIS

8 FINDING OF RESEARCH

CONCLUSION

BIBLIOGRAPHY

ANNEXURE

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 todays 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 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

1980s 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 1980s 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 ndash drinking

water ndash 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 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

11 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 countrys 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

Cokes Kinley Pepsis Aquafina Brittania Nestle Kingfisher Auswater-are keen on

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

Danonelsquos 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

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 ndash 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 Parlelsquos Bisleri is the market leader with a share of more than

45 Parle Agrolsquos 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

12 GENESIS

The name that epitomizes mineral water today was first introduced in Mumbai in the

early 60s In 1965 Signor Felice Bisleri an Italian by origin came up with the idea of

selling bottled water in India His company Bisleri Ltd offered mineral water in two

Variants- bubbly and still

In 1969 Parle bought over Bisleri (India) Ltd and started bottling Mineral water in

glass bottles under the brand name Bisleri In due course Parle switched over to PVC

non-returnable bottles and finally advanced to PET containers

13 EXPANSION

Under the leadership and vision of Mr Ramesh J Chauhan Bisleri has undergone

significant expansion in their operations The company has witnessed an exponential

growth with their turnover multiplying more than twenty times in a short span of 10

years The average growth rate over this period has been around 40 with Bisleri

enjoying more than 60 of the market share in the organized mineral water segment

Currently Bisleri has 11 franchisees and 8 plants across India with plans of setting up

4 new plants on the anvil The overwhelming popularity of Bisleri and the fact that it

was the pioneer of the bottled water industry in India has made it synonymous to

Mineral water and a household name So naturally When you think of bottled water

you think Bisleri

Rigorous Research and Development and stringent quality controls have made it

market leaders in the bottled water segment Bisleri has always been committed to

offering every Indian pure and clean drinking water Hence Bisleri water is put

through multiple stages of purification ozonisation and is hygienically packed for

final consumption

To maintain strict quality controls in every unit Bisleri not only purchase caps from

approved vendors but also manufacture own bottles in-house To be at par with

International standards they have recently procured the latest state-of-the-art

machinery which has not only helped them improve packaging quality but has also

reduced raw material wastage and doubled production capacity One can rest assured

that they are drinking safe and pure water when they consume Bisleri Bisleri is free

of impurities and is 100 safe Enjoy the sweet taste of Purity

14 BISLERI TODAY

The Indian consumer today enjoys the sweet and pure taste of Bisleri mineral water

However in an effort to offer something special to there loyal consumers they have

recently introduced Bisleri Natural Mountain Water - water brought to consumers

from the foothills of the mountains situated in Himachal Pradesh This newly

launched offering has widened Bisleris product range to two variants Bisleri with

added minerals and Bisleri Mountain Water Bislerilsquos registered office is in Mumbai

15 VISION

Our vision is to be the dominant player in the branded water business where the

second player is less than 20 of our business

16MISSION

We are in the business to serve the customer He is the most important person He is the only one who

pays He deserves the best quality and presentation at a worth of the price We must have world class

quality at the lowest production amp distribution cost This will make us an unbeatable leader and will

have satisfied loyal customers

―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

21 SCOPE OF STUDY

Marketing is a subject where a person can learn from anybody As I was into retailers

survey work of countrylsquos leading packaged drinking water company Bisleri I was

feeling myself to be a part of organizations family I had a very good market exposure

while undergoing this project because every person came forward with a different

opinion and that was very important to know the perception of the retailers And

being my first real exposure to the corporate environment the training period proved

to be very educating and offered me a great chance to learn the practical workings of

the FMCG industry

22 OBJECTIVE OF STUDY

The primary objectives of the introduction of Retailers scheme card and research

project titled ―RETAILERS SURVEY IN MULUND WITH SPECIAL REFERENCE

TO BISLERI are as follows-

- Understand current market scenario in context of packaged drinking water

- What attracts retailers most in selection of packaged drinking water

- What are the various issues related to distribution in various markets

- What are the various schemes and strategies used by competitors to capture market

- What are the various demands of retailers

- How retailer view product of Bisleri in comparison with other companies products

- To increase secondary sales of the company

To study and to check upon and thereby to cater to the above set objectives of the

project a structured questionnaire was designed and it was approved by the

supervising faculty and the companies DGM

23 PROBLEM DEFINATION

To understand the basis of what services does a retailer makes his choice in

buying a packaged drinking water

To understand various problems associated with distribution of product

24 RATIONALE OF STUDY

Being a project for my partial fulfillment of my MBA degree I was motivated

to finish this project to the best of my ability

My interest in the field of marketing of products was a motivation factor

towards this research

Stability in operations of fmcg companies irrespective of changing financial

conditions was a factor that brought me interest in knowing more about the

internal workings of the fmcg industry

31 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

32 RESEARCH OBJECTIVES

The following are the main objectives of my Research study-

1 To make a brand analysis of Bisleri as a brand and product

2 To conduct a market survey of Bisleri

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

Acquafinalsquo by Pepsi and Kinleylsquo by Coca Cola

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

5 Threats caused by Aquafina Kinley and Bisleri

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

amp Kinley

33 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 AampM

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 eg publish broachers official reports etc

External source This originates outside the field of study like books

periodicals journals newspapers and the Internet

34 DATA COLLECTION

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

the following areas

1 Mulund station area

2 Mulund panch Rasta market

SAMPLE DESIGN

Sampling unit Residents customers amp Retailers in the above

mentioned areas

Sample size 10 persons

35 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

COMPANY PROFILE

41Industrial profile

The origins of Bisleri lie in Italy and the brand owes its name to founder Felice

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 Parles taking charge of Bisleri did not make a dramatic

difference to the brands fortunes immediately While it did gain in terms of visibility

and reach (piggybacking on Parles 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 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 parlelsquos soft drink brands- thums-up limca etc While

Coca-Cola actually bought over Parles 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 Bisleris

equity

The real shift in companylsquos 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

42 PRODUCT PROFILE

―Itlsquos 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 Chauhanlsquos 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 Rs60 lacs

43 MANUFACTURING

A quick look at Bisleris manufacturing reach indicates that it is represented across the

country ndash 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 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 Rs50m 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 companys 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 will also increase the number of companys bottling plants from 16 at

present to 25 The company will set up all the new plants as green field plants It

doesnlsquot have any intentions to acquire any existing plants

44 DISTRIBUTION

Its 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 brandswhich explains the proliferation of

smaller brands

Bislerilsquos 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 brandlsquos 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

45 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 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 options150 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 5000 bottles a day

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

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

little more price

2 litres Rs 18 Small offices shopkeepers households

5 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 ndash for

Indian Airlines travellers and 300 ml cups ndash for marriages and parties

The following pie chart clearly shows the sales wise distribution of the various pack sizes

15

30

10

35

10

share of pack sizes in sales

500 ml

1 litre

2 litres

5 litres

others

46 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 ndash 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

51 CONSUMER POINT OF VIEW

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

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 thatmdashwater 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

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 6: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

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 todays 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 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

1980s 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 1980s 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 ndash drinking

water ndash 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 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

11 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 countrys 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

Cokes Kinley Pepsis Aquafina Brittania Nestle Kingfisher Auswater-are keen on

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

Danonelsquos 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

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 ndash 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 Parlelsquos Bisleri is the market leader with a share of more than

45 Parle Agrolsquos 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

12 GENESIS

The name that epitomizes mineral water today was first introduced in Mumbai in the

early 60s In 1965 Signor Felice Bisleri an Italian by origin came up with the idea of

selling bottled water in India His company Bisleri Ltd offered mineral water in two

Variants- bubbly and still

In 1969 Parle bought over Bisleri (India) Ltd and started bottling Mineral water in

glass bottles under the brand name Bisleri In due course Parle switched over to PVC

non-returnable bottles and finally advanced to PET containers

13 EXPANSION

Under the leadership and vision of Mr Ramesh J Chauhan Bisleri has undergone

significant expansion in their operations The company has witnessed an exponential

growth with their turnover multiplying more than twenty times in a short span of 10

years The average growth rate over this period has been around 40 with Bisleri

enjoying more than 60 of the market share in the organized mineral water segment

Currently Bisleri has 11 franchisees and 8 plants across India with plans of setting up

4 new plants on the anvil The overwhelming popularity of Bisleri and the fact that it

was the pioneer of the bottled water industry in India has made it synonymous to

Mineral water and a household name So naturally When you think of bottled water

you think Bisleri

Rigorous Research and Development and stringent quality controls have made it

market leaders in the bottled water segment Bisleri has always been committed to

offering every Indian pure and clean drinking water Hence Bisleri water is put

through multiple stages of purification ozonisation and is hygienically packed for

final consumption

To maintain strict quality controls in every unit Bisleri not only purchase caps from

approved vendors but also manufacture own bottles in-house To be at par with

International standards they have recently procured the latest state-of-the-art

machinery which has not only helped them improve packaging quality but has also

reduced raw material wastage and doubled production capacity One can rest assured

that they are drinking safe and pure water when they consume Bisleri Bisleri is free

of impurities and is 100 safe Enjoy the sweet taste of Purity

14 BISLERI TODAY

The Indian consumer today enjoys the sweet and pure taste of Bisleri mineral water

However in an effort to offer something special to there loyal consumers they have

recently introduced Bisleri Natural Mountain Water - water brought to consumers

from the foothills of the mountains situated in Himachal Pradesh This newly

launched offering has widened Bisleris product range to two variants Bisleri with

added minerals and Bisleri Mountain Water Bislerilsquos registered office is in Mumbai

15 VISION

Our vision is to be the dominant player in the branded water business where the

second player is less than 20 of our business

16MISSION

We are in the business to serve the customer He is the most important person He is the only one who

pays He deserves the best quality and presentation at a worth of the price We must have world class

quality at the lowest production amp distribution cost This will make us an unbeatable leader and will

have satisfied loyal customers

―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

21 SCOPE OF STUDY

Marketing is a subject where a person can learn from anybody As I was into retailers

survey work of countrylsquos leading packaged drinking water company Bisleri I was

feeling myself to be a part of organizations family I had a very good market exposure

while undergoing this project because every person came forward with a different

opinion and that was very important to know the perception of the retailers And

being my first real exposure to the corporate environment the training period proved

to be very educating and offered me a great chance to learn the practical workings of

the FMCG industry

22 OBJECTIVE OF STUDY

The primary objectives of the introduction of Retailers scheme card and research

project titled ―RETAILERS SURVEY IN MULUND WITH SPECIAL REFERENCE

TO BISLERI are as follows-

- Understand current market scenario in context of packaged drinking water

- What attracts retailers most in selection of packaged drinking water

- What are the various issues related to distribution in various markets

- What are the various schemes and strategies used by competitors to capture market

- What are the various demands of retailers

- How retailer view product of Bisleri in comparison with other companies products

- To increase secondary sales of the company

To study and to check upon and thereby to cater to the above set objectives of the

project a structured questionnaire was designed and it was approved by the

supervising faculty and the companies DGM

23 PROBLEM DEFINATION

To understand the basis of what services does a retailer makes his choice in

buying a packaged drinking water

To understand various problems associated with distribution of product

24 RATIONALE OF STUDY

Being a project for my partial fulfillment of my MBA degree I was motivated

to finish this project to the best of my ability

My interest in the field of marketing of products was a motivation factor

towards this research

Stability in operations of fmcg companies irrespective of changing financial

conditions was a factor that brought me interest in knowing more about the

internal workings of the fmcg industry

31 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

32 RESEARCH OBJECTIVES

The following are the main objectives of my Research study-

1 To make a brand analysis of Bisleri as a brand and product

2 To conduct a market survey of Bisleri

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

Acquafinalsquo by Pepsi and Kinleylsquo by Coca Cola

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

5 Threats caused by Aquafina Kinley and Bisleri

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

amp Kinley

33 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 AampM

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 eg publish broachers official reports etc

External source This originates outside the field of study like books

periodicals journals newspapers and the Internet

34 DATA COLLECTION

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

the following areas

1 Mulund station area

2 Mulund panch Rasta market

SAMPLE DESIGN

Sampling unit Residents customers amp Retailers in the above

mentioned areas

Sample size 10 persons

35 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

COMPANY PROFILE

41Industrial profile

The origins of Bisleri lie in Italy and the brand owes its name to founder Felice

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 Parles taking charge of Bisleri did not make a dramatic

difference to the brands fortunes immediately While it did gain in terms of visibility

and reach (piggybacking on Parles 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 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 parlelsquos soft drink brands- thums-up limca etc While

Coca-Cola actually bought over Parles 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 Bisleris

equity

The real shift in companylsquos 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

42 PRODUCT PROFILE

―Itlsquos 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 Chauhanlsquos 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 Rs60 lacs

43 MANUFACTURING

A quick look at Bisleris manufacturing reach indicates that it is represented across the

country ndash 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 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 Rs50m 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 companys 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 will also increase the number of companys bottling plants from 16 at

present to 25 The company will set up all the new plants as green field plants It

doesnlsquot have any intentions to acquire any existing plants

44 DISTRIBUTION

Its 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 brandswhich explains the proliferation of

smaller brands

Bislerilsquos 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 brandlsquos 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

45 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 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 options150 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 5000 bottles a day

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

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

little more price

2 litres Rs 18 Small offices shopkeepers households

5 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 ndash for

Indian Airlines travellers and 300 ml cups ndash for marriages and parties

The following pie chart clearly shows the sales wise distribution of the various pack sizes

15

30

10

35

10

share of pack sizes in sales

500 ml

1 litre

2 litres

5 litres

others

46 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 ndash 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

51 CONSUMER POINT OF VIEW

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

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 thatmdashwater 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

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 7: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

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 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

11 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 countrys 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

Cokes Kinley Pepsis Aquafina Brittania Nestle Kingfisher Auswater-are keen on

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

Danonelsquos 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

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 ndash 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 Parlelsquos Bisleri is the market leader with a share of more than

45 Parle Agrolsquos 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

12 GENESIS

The name that epitomizes mineral water today was first introduced in Mumbai in the

early 60s In 1965 Signor Felice Bisleri an Italian by origin came up with the idea of

selling bottled water in India His company Bisleri Ltd offered mineral water in two

Variants- bubbly and still

In 1969 Parle bought over Bisleri (India) Ltd and started bottling Mineral water in

glass bottles under the brand name Bisleri In due course Parle switched over to PVC

non-returnable bottles and finally advanced to PET containers

13 EXPANSION

Under the leadership and vision of Mr Ramesh J Chauhan Bisleri has undergone

significant expansion in their operations The company has witnessed an exponential

growth with their turnover multiplying more than twenty times in a short span of 10

years The average growth rate over this period has been around 40 with Bisleri

enjoying more than 60 of the market share in the organized mineral water segment

Currently Bisleri has 11 franchisees and 8 plants across India with plans of setting up

4 new plants on the anvil The overwhelming popularity of Bisleri and the fact that it

was the pioneer of the bottled water industry in India has made it synonymous to

Mineral water and a household name So naturally When you think of bottled water

you think Bisleri

Rigorous Research and Development and stringent quality controls have made it

market leaders in the bottled water segment Bisleri has always been committed to

offering every Indian pure and clean drinking water Hence Bisleri water is put

through multiple stages of purification ozonisation and is hygienically packed for

final consumption

To maintain strict quality controls in every unit Bisleri not only purchase caps from

approved vendors but also manufacture own bottles in-house To be at par with

International standards they have recently procured the latest state-of-the-art

machinery which has not only helped them improve packaging quality but has also

reduced raw material wastage and doubled production capacity One can rest assured

that they are drinking safe and pure water when they consume Bisleri Bisleri is free

of impurities and is 100 safe Enjoy the sweet taste of Purity

14 BISLERI TODAY

The Indian consumer today enjoys the sweet and pure taste of Bisleri mineral water

However in an effort to offer something special to there loyal consumers they have

recently introduced Bisleri Natural Mountain Water - water brought to consumers

from the foothills of the mountains situated in Himachal Pradesh This newly

launched offering has widened Bisleris product range to two variants Bisleri with

added minerals and Bisleri Mountain Water Bislerilsquos registered office is in Mumbai

15 VISION

Our vision is to be the dominant player in the branded water business where the

second player is less than 20 of our business

16MISSION

We are in the business to serve the customer He is the most important person He is the only one who

pays He deserves the best quality and presentation at a worth of the price We must have world class

quality at the lowest production amp distribution cost This will make us an unbeatable leader and will

have satisfied loyal customers

―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

21 SCOPE OF STUDY

Marketing is a subject where a person can learn from anybody As I was into retailers

survey work of countrylsquos leading packaged drinking water company Bisleri I was

feeling myself to be a part of organizations family I had a very good market exposure

while undergoing this project because every person came forward with a different

opinion and that was very important to know the perception of the retailers And

being my first real exposure to the corporate environment the training period proved

to be very educating and offered me a great chance to learn the practical workings of

the FMCG industry

22 OBJECTIVE OF STUDY

The primary objectives of the introduction of Retailers scheme card and research

project titled ―RETAILERS SURVEY IN MULUND WITH SPECIAL REFERENCE

TO BISLERI are as follows-

- Understand current market scenario in context of packaged drinking water

- What attracts retailers most in selection of packaged drinking water

- What are the various issues related to distribution in various markets

- What are the various schemes and strategies used by competitors to capture market

- What are the various demands of retailers

- How retailer view product of Bisleri in comparison with other companies products

- To increase secondary sales of the company

To study and to check upon and thereby to cater to the above set objectives of the

project a structured questionnaire was designed and it was approved by the

supervising faculty and the companies DGM

23 PROBLEM DEFINATION

To understand the basis of what services does a retailer makes his choice in

buying a packaged drinking water

To understand various problems associated with distribution of product

24 RATIONALE OF STUDY

Being a project for my partial fulfillment of my MBA degree I was motivated

to finish this project to the best of my ability

My interest in the field of marketing of products was a motivation factor

towards this research

Stability in operations of fmcg companies irrespective of changing financial

conditions was a factor that brought me interest in knowing more about the

internal workings of the fmcg industry

31 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

32 RESEARCH OBJECTIVES

The following are the main objectives of my Research study-

1 To make a brand analysis of Bisleri as a brand and product

2 To conduct a market survey of Bisleri

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

Acquafinalsquo by Pepsi and Kinleylsquo by Coca Cola

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

5 Threats caused by Aquafina Kinley and Bisleri

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

amp Kinley

33 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 AampM

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 eg publish broachers official reports etc

External source This originates outside the field of study like books

periodicals journals newspapers and the Internet

34 DATA COLLECTION

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

the following areas

1 Mulund station area

2 Mulund panch Rasta market

SAMPLE DESIGN

Sampling unit Residents customers amp Retailers in the above

mentioned areas

Sample size 10 persons

35 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

COMPANY PROFILE

41Industrial profile

The origins of Bisleri lie in Italy and the brand owes its name to founder Felice

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 Parles taking charge of Bisleri did not make a dramatic

difference to the brands fortunes immediately While it did gain in terms of visibility

and reach (piggybacking on Parles 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 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 parlelsquos soft drink brands- thums-up limca etc While

Coca-Cola actually bought over Parles 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 Bisleris

equity

The real shift in companylsquos 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

42 PRODUCT PROFILE

―Itlsquos 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 Chauhanlsquos 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 Rs60 lacs

43 MANUFACTURING

A quick look at Bisleris manufacturing reach indicates that it is represented across the

country ndash 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 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 Rs50m 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 companys 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 will also increase the number of companys bottling plants from 16 at

present to 25 The company will set up all the new plants as green field plants It

doesnlsquot have any intentions to acquire any existing plants

44 DISTRIBUTION

Its 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 brandswhich explains the proliferation of

smaller brands

Bislerilsquos 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 brandlsquos 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

45 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 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 options150 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 5000 bottles a day

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

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

little more price

2 litres Rs 18 Small offices shopkeepers households

5 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 ndash for

Indian Airlines travellers and 300 ml cups ndash for marriages and parties

The following pie chart clearly shows the sales wise distribution of the various pack sizes

15

30

10

35

10

share of pack sizes in sales

500 ml

1 litre

2 litres

5 litres

others

46 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 ndash 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

51 CONSUMER POINT OF VIEW

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

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 thatmdashwater 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

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 8: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

11 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 countrys 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

Cokes Kinley Pepsis Aquafina Brittania Nestle Kingfisher Auswater-are keen on

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

Danonelsquos 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

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 ndash 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 Parlelsquos Bisleri is the market leader with a share of more than

45 Parle Agrolsquos 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

12 GENESIS

The name that epitomizes mineral water today was first introduced in Mumbai in the

early 60s In 1965 Signor Felice Bisleri an Italian by origin came up with the idea of

selling bottled water in India His company Bisleri Ltd offered mineral water in two

Variants- bubbly and still

In 1969 Parle bought over Bisleri (India) Ltd and started bottling Mineral water in

glass bottles under the brand name Bisleri In due course Parle switched over to PVC

non-returnable bottles and finally advanced to PET containers

13 EXPANSION

Under the leadership and vision of Mr Ramesh J Chauhan Bisleri has undergone

significant expansion in their operations The company has witnessed an exponential

growth with their turnover multiplying more than twenty times in a short span of 10

years The average growth rate over this period has been around 40 with Bisleri

enjoying more than 60 of the market share in the organized mineral water segment

Currently Bisleri has 11 franchisees and 8 plants across India with plans of setting up

4 new plants on the anvil The overwhelming popularity of Bisleri and the fact that it

was the pioneer of the bottled water industry in India has made it synonymous to

Mineral water and a household name So naturally When you think of bottled water

you think Bisleri

Rigorous Research and Development and stringent quality controls have made it

market leaders in the bottled water segment Bisleri has always been committed to

offering every Indian pure and clean drinking water Hence Bisleri water is put

through multiple stages of purification ozonisation and is hygienically packed for

final consumption

To maintain strict quality controls in every unit Bisleri not only purchase caps from

approved vendors but also manufacture own bottles in-house To be at par with

International standards they have recently procured the latest state-of-the-art

machinery which has not only helped them improve packaging quality but has also

reduced raw material wastage and doubled production capacity One can rest assured

that they are drinking safe and pure water when they consume Bisleri Bisleri is free

of impurities and is 100 safe Enjoy the sweet taste of Purity

14 BISLERI TODAY

The Indian consumer today enjoys the sweet and pure taste of Bisleri mineral water

However in an effort to offer something special to there loyal consumers they have

recently introduced Bisleri Natural Mountain Water - water brought to consumers

from the foothills of the mountains situated in Himachal Pradesh This newly

launched offering has widened Bisleris product range to two variants Bisleri with

added minerals and Bisleri Mountain Water Bislerilsquos registered office is in Mumbai

15 VISION

Our vision is to be the dominant player in the branded water business where the

second player is less than 20 of our business

16MISSION

We are in the business to serve the customer He is the most important person He is the only one who

pays He deserves the best quality and presentation at a worth of the price We must have world class

quality at the lowest production amp distribution cost This will make us an unbeatable leader and will

have satisfied loyal customers

―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

21 SCOPE OF STUDY

Marketing is a subject where a person can learn from anybody As I was into retailers

survey work of countrylsquos leading packaged drinking water company Bisleri I was

feeling myself to be a part of organizations family I had a very good market exposure

while undergoing this project because every person came forward with a different

opinion and that was very important to know the perception of the retailers And

being my first real exposure to the corporate environment the training period proved

to be very educating and offered me a great chance to learn the practical workings of

the FMCG industry

22 OBJECTIVE OF STUDY

The primary objectives of the introduction of Retailers scheme card and research

project titled ―RETAILERS SURVEY IN MULUND WITH SPECIAL REFERENCE

TO BISLERI are as follows-

- Understand current market scenario in context of packaged drinking water

- What attracts retailers most in selection of packaged drinking water

- What are the various issues related to distribution in various markets

- What are the various schemes and strategies used by competitors to capture market

- What are the various demands of retailers

- How retailer view product of Bisleri in comparison with other companies products

- To increase secondary sales of the company

To study and to check upon and thereby to cater to the above set objectives of the

project a structured questionnaire was designed and it was approved by the

supervising faculty and the companies DGM

23 PROBLEM DEFINATION

To understand the basis of what services does a retailer makes his choice in

buying a packaged drinking water

To understand various problems associated with distribution of product

24 RATIONALE OF STUDY

Being a project for my partial fulfillment of my MBA degree I was motivated

to finish this project to the best of my ability

My interest in the field of marketing of products was a motivation factor

towards this research

Stability in operations of fmcg companies irrespective of changing financial

conditions was a factor that brought me interest in knowing more about the

internal workings of the fmcg industry

31 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

32 RESEARCH OBJECTIVES

The following are the main objectives of my Research study-

1 To make a brand analysis of Bisleri as a brand and product

2 To conduct a market survey of Bisleri

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

Acquafinalsquo by Pepsi and Kinleylsquo by Coca Cola

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

5 Threats caused by Aquafina Kinley and Bisleri

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

amp Kinley

33 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 AampM

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 eg publish broachers official reports etc

External source This originates outside the field of study like books

periodicals journals newspapers and the Internet

34 DATA COLLECTION

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

the following areas

1 Mulund station area

2 Mulund panch Rasta market

SAMPLE DESIGN

Sampling unit Residents customers amp Retailers in the above

mentioned areas

Sample size 10 persons

35 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

COMPANY PROFILE

41Industrial profile

The origins of Bisleri lie in Italy and the brand owes its name to founder Felice

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 Parles taking charge of Bisleri did not make a dramatic

difference to the brands fortunes immediately While it did gain in terms of visibility

and reach (piggybacking on Parles 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 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 parlelsquos soft drink brands- thums-up limca etc While

Coca-Cola actually bought over Parles 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 Bisleris

equity

The real shift in companylsquos 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

42 PRODUCT PROFILE

―Itlsquos 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 Chauhanlsquos 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 Rs60 lacs

43 MANUFACTURING

A quick look at Bisleris manufacturing reach indicates that it is represented across the

country ndash 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 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 Rs50m 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 companys 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 will also increase the number of companys bottling plants from 16 at

present to 25 The company will set up all the new plants as green field plants It

doesnlsquot have any intentions to acquire any existing plants

44 DISTRIBUTION

Its 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 brandswhich explains the proliferation of

smaller brands

Bislerilsquos 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 brandlsquos 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

45 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 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 options150 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 5000 bottles a day

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

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

little more price

2 litres Rs 18 Small offices shopkeepers households

5 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 ndash for

Indian Airlines travellers and 300 ml cups ndash for marriages and parties

The following pie chart clearly shows the sales wise distribution of the various pack sizes

15

30

10

35

10

share of pack sizes in sales

500 ml

1 litre

2 litres

5 litres

others

46 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 ndash 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

51 CONSUMER POINT OF VIEW

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

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 thatmdashwater 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

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 9: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

hotels) than on the retail shelves with a 1-litre bottle being priced a hefty Rs 80

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 ndash 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 Parlelsquos Bisleri is the market leader with a share of more than

45 Parle Agrolsquos 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

12 GENESIS

The name that epitomizes mineral water today was first introduced in Mumbai in the

early 60s In 1965 Signor Felice Bisleri an Italian by origin came up with the idea of

selling bottled water in India His company Bisleri Ltd offered mineral water in two

Variants- bubbly and still

In 1969 Parle bought over Bisleri (India) Ltd and started bottling Mineral water in

glass bottles under the brand name Bisleri In due course Parle switched over to PVC

non-returnable bottles and finally advanced to PET containers

13 EXPANSION

Under the leadership and vision of Mr Ramesh J Chauhan Bisleri has undergone

significant expansion in their operations The company has witnessed an exponential

growth with their turnover multiplying more than twenty times in a short span of 10

years The average growth rate over this period has been around 40 with Bisleri

enjoying more than 60 of the market share in the organized mineral water segment

Currently Bisleri has 11 franchisees and 8 plants across India with plans of setting up

4 new plants on the anvil The overwhelming popularity of Bisleri and the fact that it

was the pioneer of the bottled water industry in India has made it synonymous to

Mineral water and a household name So naturally When you think of bottled water

you think Bisleri

Rigorous Research and Development and stringent quality controls have made it

market leaders in the bottled water segment Bisleri has always been committed to

offering every Indian pure and clean drinking water Hence Bisleri water is put

through multiple stages of purification ozonisation and is hygienically packed for

final consumption

To maintain strict quality controls in every unit Bisleri not only purchase caps from

approved vendors but also manufacture own bottles in-house To be at par with

International standards they have recently procured the latest state-of-the-art

machinery which has not only helped them improve packaging quality but has also

reduced raw material wastage and doubled production capacity One can rest assured

that they are drinking safe and pure water when they consume Bisleri Bisleri is free

of impurities and is 100 safe Enjoy the sweet taste of Purity

14 BISLERI TODAY

The Indian consumer today enjoys the sweet and pure taste of Bisleri mineral water

However in an effort to offer something special to there loyal consumers they have

recently introduced Bisleri Natural Mountain Water - water brought to consumers

from the foothills of the mountains situated in Himachal Pradesh This newly

launched offering has widened Bisleris product range to two variants Bisleri with

added minerals and Bisleri Mountain Water Bislerilsquos registered office is in Mumbai

15 VISION

Our vision is to be the dominant player in the branded water business where the

second player is less than 20 of our business

16MISSION

We are in the business to serve the customer He is the most important person He is the only one who

pays He deserves the best quality and presentation at a worth of the price We must have world class

quality at the lowest production amp distribution cost This will make us an unbeatable leader and will

have satisfied loyal customers

―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

21 SCOPE OF STUDY

Marketing is a subject where a person can learn from anybody As I was into retailers

survey work of countrylsquos leading packaged drinking water company Bisleri I was

feeling myself to be a part of organizations family I had a very good market exposure

while undergoing this project because every person came forward with a different

opinion and that was very important to know the perception of the retailers And

being my first real exposure to the corporate environment the training period proved

to be very educating and offered me a great chance to learn the practical workings of

the FMCG industry

22 OBJECTIVE OF STUDY

The primary objectives of the introduction of Retailers scheme card and research

project titled ―RETAILERS SURVEY IN MULUND WITH SPECIAL REFERENCE

TO BISLERI are as follows-

- Understand current market scenario in context of packaged drinking water

- What attracts retailers most in selection of packaged drinking water

- What are the various issues related to distribution in various markets

- What are the various schemes and strategies used by competitors to capture market

- What are the various demands of retailers

- How retailer view product of Bisleri in comparison with other companies products

- To increase secondary sales of the company

To study and to check upon and thereby to cater to the above set objectives of the

project a structured questionnaire was designed and it was approved by the

supervising faculty and the companies DGM

23 PROBLEM DEFINATION

To understand the basis of what services does a retailer makes his choice in

buying a packaged drinking water

To understand various problems associated with distribution of product

24 RATIONALE OF STUDY

Being a project for my partial fulfillment of my MBA degree I was motivated

to finish this project to the best of my ability

My interest in the field of marketing of products was a motivation factor

towards this research

Stability in operations of fmcg companies irrespective of changing financial

conditions was a factor that brought me interest in knowing more about the

internal workings of the fmcg industry

31 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

32 RESEARCH OBJECTIVES

The following are the main objectives of my Research study-

1 To make a brand analysis of Bisleri as a brand and product

2 To conduct a market survey of Bisleri

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

Acquafinalsquo by Pepsi and Kinleylsquo by Coca Cola

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

5 Threats caused by Aquafina Kinley and Bisleri

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

amp Kinley

33 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 AampM

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 eg publish broachers official reports etc

External source This originates outside the field of study like books

periodicals journals newspapers and the Internet

34 DATA COLLECTION

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

the following areas

1 Mulund station area

2 Mulund panch Rasta market

SAMPLE DESIGN

Sampling unit Residents customers amp Retailers in the above

mentioned areas

Sample size 10 persons

35 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

COMPANY PROFILE

41Industrial profile

The origins of Bisleri lie in Italy and the brand owes its name to founder Felice

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 Parles taking charge of Bisleri did not make a dramatic

difference to the brands fortunes immediately While it did gain in terms of visibility

and reach (piggybacking on Parles 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 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 parlelsquos soft drink brands- thums-up limca etc While

Coca-Cola actually bought over Parles 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 Bisleris

equity

The real shift in companylsquos 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

42 PRODUCT PROFILE

―Itlsquos 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 Chauhanlsquos 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 Rs60 lacs

43 MANUFACTURING

A quick look at Bisleris manufacturing reach indicates that it is represented across the

country ndash 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 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 Rs50m 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 companys 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 will also increase the number of companys bottling plants from 16 at

present to 25 The company will set up all the new plants as green field plants It

doesnlsquot have any intentions to acquire any existing plants

44 DISTRIBUTION

Its 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 brandswhich explains the proliferation of

smaller brands

Bislerilsquos 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 brandlsquos 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

45 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 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 options150 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 5000 bottles a day

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

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

little more price

2 litres Rs 18 Small offices shopkeepers households

5 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 ndash for

Indian Airlines travellers and 300 ml cups ndash for marriages and parties

The following pie chart clearly shows the sales wise distribution of the various pack sizes

15

30

10

35

10

share of pack sizes in sales

500 ml

1 litre

2 litres

5 litres

others

46 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 ndash 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

51 CONSUMER POINT OF VIEW

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

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 thatmdashwater 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

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 10: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

enjoying more than 60 of the market share in the organized mineral water segment

Currently Bisleri has 11 franchisees and 8 plants across India with plans of setting up

4 new plants on the anvil The overwhelming popularity of Bisleri and the fact that it

was the pioneer of the bottled water industry in India has made it synonymous to

Mineral water and a household name So naturally When you think of bottled water

you think Bisleri

Rigorous Research and Development and stringent quality controls have made it

market leaders in the bottled water segment Bisleri has always been committed to

offering every Indian pure and clean drinking water Hence Bisleri water is put

through multiple stages of purification ozonisation and is hygienically packed for

final consumption

To maintain strict quality controls in every unit Bisleri not only purchase caps from

approved vendors but also manufacture own bottles in-house To be at par with

International standards they have recently procured the latest state-of-the-art

machinery which has not only helped them improve packaging quality but has also

reduced raw material wastage and doubled production capacity One can rest assured

that they are drinking safe and pure water when they consume Bisleri Bisleri is free

of impurities and is 100 safe Enjoy the sweet taste of Purity

14 BISLERI TODAY

The Indian consumer today enjoys the sweet and pure taste of Bisleri mineral water

However in an effort to offer something special to there loyal consumers they have

recently introduced Bisleri Natural Mountain Water - water brought to consumers

from the foothills of the mountains situated in Himachal Pradesh This newly

launched offering has widened Bisleris product range to two variants Bisleri with

added minerals and Bisleri Mountain Water Bislerilsquos registered office is in Mumbai

15 VISION

Our vision is to be the dominant player in the branded water business where the

second player is less than 20 of our business

16MISSION

We are in the business to serve the customer He is the most important person He is the only one who

pays He deserves the best quality and presentation at a worth of the price We must have world class

quality at the lowest production amp distribution cost This will make us an unbeatable leader and will

have satisfied loyal customers

―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

21 SCOPE OF STUDY

Marketing is a subject where a person can learn from anybody As I was into retailers

survey work of countrylsquos leading packaged drinking water company Bisleri I was

feeling myself to be a part of organizations family I had a very good market exposure

while undergoing this project because every person came forward with a different

opinion and that was very important to know the perception of the retailers And

being my first real exposure to the corporate environment the training period proved

to be very educating and offered me a great chance to learn the practical workings of

the FMCG industry

22 OBJECTIVE OF STUDY

The primary objectives of the introduction of Retailers scheme card and research

project titled ―RETAILERS SURVEY IN MULUND WITH SPECIAL REFERENCE

TO BISLERI are as follows-

- Understand current market scenario in context of packaged drinking water

- What attracts retailers most in selection of packaged drinking water

- What are the various issues related to distribution in various markets

- What are the various schemes and strategies used by competitors to capture market

- What are the various demands of retailers

- How retailer view product of Bisleri in comparison with other companies products

- To increase secondary sales of the company

To study and to check upon and thereby to cater to the above set objectives of the

project a structured questionnaire was designed and it was approved by the

supervising faculty and the companies DGM

23 PROBLEM DEFINATION

To understand the basis of what services does a retailer makes his choice in

buying a packaged drinking water

To understand various problems associated with distribution of product

24 RATIONALE OF STUDY

Being a project for my partial fulfillment of my MBA degree I was motivated

to finish this project to the best of my ability

My interest in the field of marketing of products was a motivation factor

towards this research

Stability in operations of fmcg companies irrespective of changing financial

conditions was a factor that brought me interest in knowing more about the

internal workings of the fmcg industry

31 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

32 RESEARCH OBJECTIVES

The following are the main objectives of my Research study-

1 To make a brand analysis of Bisleri as a brand and product

2 To conduct a market survey of Bisleri

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

Acquafinalsquo by Pepsi and Kinleylsquo by Coca Cola

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

5 Threats caused by Aquafina Kinley and Bisleri

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

amp Kinley

33 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 AampM

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 eg publish broachers official reports etc

External source This originates outside the field of study like books

periodicals journals newspapers and the Internet

34 DATA COLLECTION

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

the following areas

1 Mulund station area

2 Mulund panch Rasta market

SAMPLE DESIGN

Sampling unit Residents customers amp Retailers in the above

mentioned areas

Sample size 10 persons

35 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

COMPANY PROFILE

41Industrial profile

The origins of Bisleri lie in Italy and the brand owes its name to founder Felice

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 Parles taking charge of Bisleri did not make a dramatic

difference to the brands fortunes immediately While it did gain in terms of visibility

and reach (piggybacking on Parles 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 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 parlelsquos soft drink brands- thums-up limca etc While

Coca-Cola actually bought over Parles 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 Bisleris

equity

The real shift in companylsquos 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

42 PRODUCT PROFILE

―Itlsquos 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 Chauhanlsquos 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 Rs60 lacs

43 MANUFACTURING

A quick look at Bisleris manufacturing reach indicates that it is represented across the

country ndash 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 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 Rs50m 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 companys 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 will also increase the number of companys bottling plants from 16 at

present to 25 The company will set up all the new plants as green field plants It

doesnlsquot have any intentions to acquire any existing plants

44 DISTRIBUTION

Its 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 brandswhich explains the proliferation of

smaller brands

Bislerilsquos 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 brandlsquos 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

45 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 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 options150 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 5000 bottles a day

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

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

little more price

2 litres Rs 18 Small offices shopkeepers households

5 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 ndash for

Indian Airlines travellers and 300 ml cups ndash for marriages and parties

The following pie chart clearly shows the sales wise distribution of the various pack sizes

15

30

10

35

10

share of pack sizes in sales

500 ml

1 litre

2 litres

5 litres

others

46 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 ndash 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

51 CONSUMER POINT OF VIEW

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

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 thatmdashwater 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

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 11: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

15 VISION

Our vision is to be the dominant player in the branded water business where the

second player is less than 20 of our business

16MISSION

We are in the business to serve the customer He is the most important person He is the only one who

pays He deserves the best quality and presentation at a worth of the price We must have world class

quality at the lowest production amp distribution cost This will make us an unbeatable leader and will

have satisfied loyal customers

―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

21 SCOPE OF STUDY

Marketing is a subject where a person can learn from anybody As I was into retailers

survey work of countrylsquos leading packaged drinking water company Bisleri I was

feeling myself to be a part of organizations family I had a very good market exposure

while undergoing this project because every person came forward with a different

opinion and that was very important to know the perception of the retailers And

being my first real exposure to the corporate environment the training period proved

to be very educating and offered me a great chance to learn the practical workings of

the FMCG industry

22 OBJECTIVE OF STUDY

The primary objectives of the introduction of Retailers scheme card and research

project titled ―RETAILERS SURVEY IN MULUND WITH SPECIAL REFERENCE

TO BISLERI are as follows-

- Understand current market scenario in context of packaged drinking water

- What attracts retailers most in selection of packaged drinking water

- What are the various issues related to distribution in various markets

- What are the various schemes and strategies used by competitors to capture market

- What are the various demands of retailers

- How retailer view product of Bisleri in comparison with other companies products

- To increase secondary sales of the company

To study and to check upon and thereby to cater to the above set objectives of the

project a structured questionnaire was designed and it was approved by the

supervising faculty and the companies DGM

23 PROBLEM DEFINATION

To understand the basis of what services does a retailer makes his choice in

buying a packaged drinking water

To understand various problems associated with distribution of product

24 RATIONALE OF STUDY

Being a project for my partial fulfillment of my MBA degree I was motivated

to finish this project to the best of my ability

My interest in the field of marketing of products was a motivation factor

towards this research

Stability in operations of fmcg companies irrespective of changing financial

conditions was a factor that brought me interest in knowing more about the

internal workings of the fmcg industry

31 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

32 RESEARCH OBJECTIVES

The following are the main objectives of my Research study-

1 To make a brand analysis of Bisleri as a brand and product

2 To conduct a market survey of Bisleri

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

Acquafinalsquo by Pepsi and Kinleylsquo by Coca Cola

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

5 Threats caused by Aquafina Kinley and Bisleri

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

amp Kinley

33 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 AampM

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 eg publish broachers official reports etc

External source This originates outside the field of study like books

periodicals journals newspapers and the Internet

34 DATA COLLECTION

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

the following areas

1 Mulund station area

2 Mulund panch Rasta market

SAMPLE DESIGN

Sampling unit Residents customers amp Retailers in the above

mentioned areas

Sample size 10 persons

35 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

COMPANY PROFILE

41Industrial profile

The origins of Bisleri lie in Italy and the brand owes its name to founder Felice

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 Parles taking charge of Bisleri did not make a dramatic

difference to the brands fortunes immediately While it did gain in terms of visibility

and reach (piggybacking on Parles 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 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 parlelsquos soft drink brands- thums-up limca etc While

Coca-Cola actually bought over Parles 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 Bisleris

equity

The real shift in companylsquos 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

42 PRODUCT PROFILE

―Itlsquos 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 Chauhanlsquos 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 Rs60 lacs

43 MANUFACTURING

A quick look at Bisleris manufacturing reach indicates that it is represented across the

country ndash 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 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 Rs50m 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 companys 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 will also increase the number of companys bottling plants from 16 at

present to 25 The company will set up all the new plants as green field plants It

doesnlsquot have any intentions to acquire any existing plants

44 DISTRIBUTION

Its 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 brandswhich explains the proliferation of

smaller brands

Bislerilsquos 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 brandlsquos 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

45 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 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 options150 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 5000 bottles a day

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

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

little more price

2 litres Rs 18 Small offices shopkeepers households

5 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 ndash for

Indian Airlines travellers and 300 ml cups ndash for marriages and parties

The following pie chart clearly shows the sales wise distribution of the various pack sizes

15

30

10

35

10

share of pack sizes in sales

500 ml

1 litre

2 litres

5 litres

others

46 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 ndash 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

51 CONSUMER POINT OF VIEW

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

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 thatmdashwater 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

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 12: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

21 SCOPE OF STUDY

Marketing is a subject where a person can learn from anybody As I was into retailers

survey work of countrylsquos leading packaged drinking water company Bisleri I was

feeling myself to be a part of organizations family I had a very good market exposure

while undergoing this project because every person came forward with a different

opinion and that was very important to know the perception of the retailers And

being my first real exposure to the corporate environment the training period proved

to be very educating and offered me a great chance to learn the practical workings of

the FMCG industry

22 OBJECTIVE OF STUDY

The primary objectives of the introduction of Retailers scheme card and research

project titled ―RETAILERS SURVEY IN MULUND WITH SPECIAL REFERENCE

TO BISLERI are as follows-

- Understand current market scenario in context of packaged drinking water

- What attracts retailers most in selection of packaged drinking water

- What are the various issues related to distribution in various markets

- What are the various schemes and strategies used by competitors to capture market

- What are the various demands of retailers

- How retailer view product of Bisleri in comparison with other companies products

- To increase secondary sales of the company

To study and to check upon and thereby to cater to the above set objectives of the

project a structured questionnaire was designed and it was approved by the

supervising faculty and the companies DGM

23 PROBLEM DEFINATION

To understand the basis of what services does a retailer makes his choice in

buying a packaged drinking water

To understand various problems associated with distribution of product

24 RATIONALE OF STUDY

Being a project for my partial fulfillment of my MBA degree I was motivated

to finish this project to the best of my ability

My interest in the field of marketing of products was a motivation factor

towards this research

Stability in operations of fmcg companies irrespective of changing financial

conditions was a factor that brought me interest in knowing more about the

internal workings of the fmcg industry

31 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

32 RESEARCH OBJECTIVES

The following are the main objectives of my Research study-

1 To make a brand analysis of Bisleri as a brand and product

2 To conduct a market survey of Bisleri

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

Acquafinalsquo by Pepsi and Kinleylsquo by Coca Cola

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

5 Threats caused by Aquafina Kinley and Bisleri

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

amp Kinley

33 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 AampM

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 eg publish broachers official reports etc

External source This originates outside the field of study like books

periodicals journals newspapers and the Internet

34 DATA COLLECTION

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

the following areas

1 Mulund station area

2 Mulund panch Rasta market

SAMPLE DESIGN

Sampling unit Residents customers amp Retailers in the above

mentioned areas

Sample size 10 persons

35 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

COMPANY PROFILE

41Industrial profile

The origins of Bisleri lie in Italy and the brand owes its name to founder Felice

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 Parles taking charge of Bisleri did not make a dramatic

difference to the brands fortunes immediately While it did gain in terms of visibility

and reach (piggybacking on Parles 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 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 parlelsquos soft drink brands- thums-up limca etc While

Coca-Cola actually bought over Parles 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 Bisleris

equity

The real shift in companylsquos 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

42 PRODUCT PROFILE

―Itlsquos 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 Chauhanlsquos 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 Rs60 lacs

43 MANUFACTURING

A quick look at Bisleris manufacturing reach indicates that it is represented across the

country ndash 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 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 Rs50m 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 companys 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 will also increase the number of companys bottling plants from 16 at

present to 25 The company will set up all the new plants as green field plants It

doesnlsquot have any intentions to acquire any existing plants

44 DISTRIBUTION

Its 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 brandswhich explains the proliferation of

smaller brands

Bislerilsquos 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 brandlsquos 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

45 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 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 options150 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 5000 bottles a day

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

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

little more price

2 litres Rs 18 Small offices shopkeepers households

5 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 ndash for

Indian Airlines travellers and 300 ml cups ndash for marriages and parties

The following pie chart clearly shows the sales wise distribution of the various pack sizes

15

30

10

35

10

share of pack sizes in sales

500 ml

1 litre

2 litres

5 litres

others

46 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 ndash 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

51 CONSUMER POINT OF VIEW

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

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 thatmdashwater 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

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 13: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

23 PROBLEM DEFINATION

To understand the basis of what services does a retailer makes his choice in

buying a packaged drinking water

To understand various problems associated with distribution of product

24 RATIONALE OF STUDY

Being a project for my partial fulfillment of my MBA degree I was motivated

to finish this project to the best of my ability

My interest in the field of marketing of products was a motivation factor

towards this research

Stability in operations of fmcg companies irrespective of changing financial

conditions was a factor that brought me interest in knowing more about the

internal workings of the fmcg industry

31 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

32 RESEARCH OBJECTIVES

The following are the main objectives of my Research study-

1 To make a brand analysis of Bisleri as a brand and product

2 To conduct a market survey of Bisleri

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

Acquafinalsquo by Pepsi and Kinleylsquo by Coca Cola

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

5 Threats caused by Aquafina Kinley and Bisleri

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

amp Kinley

33 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 AampM

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 eg publish broachers official reports etc

External source This originates outside the field of study like books

periodicals journals newspapers and the Internet

34 DATA COLLECTION

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

the following areas

1 Mulund station area

2 Mulund panch Rasta market

SAMPLE DESIGN

Sampling unit Residents customers amp Retailers in the above

mentioned areas

Sample size 10 persons

35 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

COMPANY PROFILE

41Industrial profile

The origins of Bisleri lie in Italy and the brand owes its name to founder Felice

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 Parles taking charge of Bisleri did not make a dramatic

difference to the brands fortunes immediately While it did gain in terms of visibility

and reach (piggybacking on Parles 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 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 parlelsquos soft drink brands- thums-up limca etc While

Coca-Cola actually bought over Parles 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 Bisleris

equity

The real shift in companylsquos 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

42 PRODUCT PROFILE

―Itlsquos 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 Chauhanlsquos 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 Rs60 lacs

43 MANUFACTURING

A quick look at Bisleris manufacturing reach indicates that it is represented across the

country ndash 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 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 Rs50m 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 companys 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 will also increase the number of companys bottling plants from 16 at

present to 25 The company will set up all the new plants as green field plants It

doesnlsquot have any intentions to acquire any existing plants

44 DISTRIBUTION

Its 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 brandswhich explains the proliferation of

smaller brands

Bislerilsquos 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 brandlsquos 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

45 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 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 options150 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 5000 bottles a day

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

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

little more price

2 litres Rs 18 Small offices shopkeepers households

5 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 ndash for

Indian Airlines travellers and 300 ml cups ndash for marriages and parties

The following pie chart clearly shows the sales wise distribution of the various pack sizes

15

30

10

35

10

share of pack sizes in sales

500 ml

1 litre

2 litres

5 litres

others

46 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 ndash 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

51 CONSUMER POINT OF VIEW

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

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 thatmdashwater 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

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 14: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

31 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

32 RESEARCH OBJECTIVES

The following are the main objectives of my Research study-

1 To make a brand analysis of Bisleri as a brand and product

2 To conduct a market survey of Bisleri

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

Acquafinalsquo by Pepsi and Kinleylsquo by Coca Cola

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

5 Threats caused by Aquafina Kinley and Bisleri

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

amp Kinley

33 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 AampM

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 eg publish broachers official reports etc

External source This originates outside the field of study like books

periodicals journals newspapers and the Internet

34 DATA COLLECTION

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

the following areas

1 Mulund station area

2 Mulund panch Rasta market

SAMPLE DESIGN

Sampling unit Residents customers amp Retailers in the above

mentioned areas

Sample size 10 persons

35 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

COMPANY PROFILE

41Industrial profile

The origins of Bisleri lie in Italy and the brand owes its name to founder Felice

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 Parles taking charge of Bisleri did not make a dramatic

difference to the brands fortunes immediately While it did gain in terms of visibility

and reach (piggybacking on Parles 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 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 parlelsquos soft drink brands- thums-up limca etc While

Coca-Cola actually bought over Parles 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 Bisleris

equity

The real shift in companylsquos 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

42 PRODUCT PROFILE

―Itlsquos 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 Chauhanlsquos 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 Rs60 lacs

43 MANUFACTURING

A quick look at Bisleris manufacturing reach indicates that it is represented across the

country ndash 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 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 Rs50m 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 companys 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 will also increase the number of companys bottling plants from 16 at

present to 25 The company will set up all the new plants as green field plants It

doesnlsquot have any intentions to acquire any existing plants

44 DISTRIBUTION

Its 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 brandswhich explains the proliferation of

smaller brands

Bislerilsquos 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 brandlsquos 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

45 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 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 options150 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 5000 bottles a day

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

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

little more price

2 litres Rs 18 Small offices shopkeepers households

5 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 ndash for

Indian Airlines travellers and 300 ml cups ndash for marriages and parties

The following pie chart clearly shows the sales wise distribution of the various pack sizes

15

30

10

35

10

share of pack sizes in sales

500 ml

1 litre

2 litres

5 litres

others

46 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 ndash 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

51 CONSUMER POINT OF VIEW

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

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 thatmdashwater 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

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 15: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

33 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 AampM

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 eg publish broachers official reports etc

External source This originates outside the field of study like books

periodicals journals newspapers and the Internet

34 DATA COLLECTION

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

the following areas

1 Mulund station area

2 Mulund panch Rasta market

SAMPLE DESIGN

Sampling unit Residents customers amp Retailers in the above

mentioned areas

Sample size 10 persons

35 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

COMPANY PROFILE

41Industrial profile

The origins of Bisleri lie in Italy and the brand owes its name to founder Felice

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 Parles taking charge of Bisleri did not make a dramatic

difference to the brands fortunes immediately While it did gain in terms of visibility

and reach (piggybacking on Parles 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 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 parlelsquos soft drink brands- thums-up limca etc While

Coca-Cola actually bought over Parles 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 Bisleris

equity

The real shift in companylsquos 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

42 PRODUCT PROFILE

―Itlsquos 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 Chauhanlsquos 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 Rs60 lacs

43 MANUFACTURING

A quick look at Bisleris manufacturing reach indicates that it is represented across the

country ndash 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 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 Rs50m 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 companys 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 will also increase the number of companys bottling plants from 16 at

present to 25 The company will set up all the new plants as green field plants It

doesnlsquot have any intentions to acquire any existing plants

44 DISTRIBUTION

Its 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 brandswhich explains the proliferation of

smaller brands

Bislerilsquos 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 brandlsquos 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

45 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 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 options150 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 5000 bottles a day

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

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

little more price

2 litres Rs 18 Small offices shopkeepers households

5 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 ndash for

Indian Airlines travellers and 300 ml cups ndash for marriages and parties

The following pie chart clearly shows the sales wise distribution of the various pack sizes

15

30

10

35

10

share of pack sizes in sales

500 ml

1 litre

2 litres

5 litres

others

46 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 ndash 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

51 CONSUMER POINT OF VIEW

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

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 thatmdashwater 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

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 16: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

35 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

COMPANY PROFILE

41Industrial profile

The origins of Bisleri lie in Italy and the brand owes its name to founder Felice

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 Parles taking charge of Bisleri did not make a dramatic

difference to the brands fortunes immediately While it did gain in terms of visibility

and reach (piggybacking on Parles 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 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 parlelsquos soft drink brands- thums-up limca etc While

Coca-Cola actually bought over Parles 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 Bisleris

equity

The real shift in companylsquos 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

42 PRODUCT PROFILE

―Itlsquos 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 Chauhanlsquos 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 Rs60 lacs

43 MANUFACTURING

A quick look at Bisleris manufacturing reach indicates that it is represented across the

country ndash 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 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 Rs50m 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 companys 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 will also increase the number of companys bottling plants from 16 at

present to 25 The company will set up all the new plants as green field plants It

doesnlsquot have any intentions to acquire any existing plants

44 DISTRIBUTION

Its 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 brandswhich explains the proliferation of

smaller brands

Bislerilsquos 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 brandlsquos 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

45 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 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 options150 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 5000 bottles a day

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

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

little more price

2 litres Rs 18 Small offices shopkeepers households

5 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 ndash for

Indian Airlines travellers and 300 ml cups ndash for marriages and parties

The following pie chart clearly shows the sales wise distribution of the various pack sizes

15

30

10

35

10

share of pack sizes in sales

500 ml

1 litre

2 litres

5 litres

others

46 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 ndash 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

51 CONSUMER POINT OF VIEW

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

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 thatmdashwater 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

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 17: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

COMPANY PROFILE

41Industrial profile

The origins of Bisleri lie in Italy and the brand owes its name to founder Felice

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 Parles taking charge of Bisleri did not make a dramatic

difference to the brands fortunes immediately While it did gain in terms of visibility

and reach (piggybacking on Parles 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 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 parlelsquos soft drink brands- thums-up limca etc While

Coca-Cola actually bought over Parles 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 Bisleris

equity

The real shift in companylsquos 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

42 PRODUCT PROFILE

―Itlsquos 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 Chauhanlsquos 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 Rs60 lacs

43 MANUFACTURING

A quick look at Bisleris manufacturing reach indicates that it is represented across the

country ndash 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 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 Rs50m 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 companys 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 will also increase the number of companys bottling plants from 16 at

present to 25 The company will set up all the new plants as green field plants It

doesnlsquot have any intentions to acquire any existing plants

44 DISTRIBUTION

Its 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 brandswhich explains the proliferation of

smaller brands

Bislerilsquos 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 brandlsquos 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

45 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 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 options150 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 5000 bottles a day

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

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

little more price

2 litres Rs 18 Small offices shopkeepers households

5 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 ndash for

Indian Airlines travellers and 300 ml cups ndash for marriages and parties

The following pie chart clearly shows the sales wise distribution of the various pack sizes

15

30

10

35

10

share of pack sizes in sales

500 ml

1 litre

2 litres

5 litres

others

46 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 ndash 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

51 CONSUMER POINT OF VIEW

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

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 thatmdashwater 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

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 18: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

name was that Parle saw a fairly lucrative business of mineral water in Bisleris

equity

The real shift in companylsquos 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

42 PRODUCT PROFILE

―Itlsquos 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 Chauhanlsquos 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 Rs60 lacs

43 MANUFACTURING

A quick look at Bisleris manufacturing reach indicates that it is represented across the

country ndash 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 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 Rs50m 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 companys 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 will also increase the number of companys bottling plants from 16 at

present to 25 The company will set up all the new plants as green field plants It

doesnlsquot have any intentions to acquire any existing plants

44 DISTRIBUTION

Its 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 brandswhich explains the proliferation of

smaller brands

Bislerilsquos 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 brandlsquos 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

45 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 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 options150 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 5000 bottles a day

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

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

little more price

2 litres Rs 18 Small offices shopkeepers households

5 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 ndash for

Indian Airlines travellers and 300 ml cups ndash for marriages and parties

The following pie chart clearly shows the sales wise distribution of the various pack sizes

15

30

10

35

10

share of pack sizes in sales

500 ml

1 litre

2 litres

5 litres

others

46 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 ndash 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

51 CONSUMER POINT OF VIEW

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

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 thatmdashwater 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

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 19: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

42 PRODUCT PROFILE

―Itlsquos 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 Chauhanlsquos 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 Rs60 lacs

43 MANUFACTURING

A quick look at Bisleris manufacturing reach indicates that it is represented across the

country ndash 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 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 Rs50m 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 companys 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 will also increase the number of companys bottling plants from 16 at

present to 25 The company will set up all the new plants as green field plants It

doesnlsquot have any intentions to acquire any existing plants

44 DISTRIBUTION

Its 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 brandswhich explains the proliferation of

smaller brands

Bislerilsquos 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 brandlsquos 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

45 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 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 options150 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 5000 bottles a day

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

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

little more price

2 litres Rs 18 Small offices shopkeepers households

5 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 ndash for

Indian Airlines travellers and 300 ml cups ndash for marriages and parties

The following pie chart clearly shows the sales wise distribution of the various pack sizes

15

30

10

35

10

share of pack sizes in sales

500 ml

1 litre

2 litres

5 litres

others

46 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 ndash 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

51 CONSUMER POINT OF VIEW

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

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 thatmdashwater 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

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 20: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

43 MANUFACTURING

A quick look at Bisleris manufacturing reach indicates that it is represented across the

country ndash 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 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 Rs50m 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 companys 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 will also increase the number of companys bottling plants from 16 at

present to 25 The company will set up all the new plants as green field plants It

doesnlsquot have any intentions to acquire any existing plants

44 DISTRIBUTION

Its 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 brandswhich explains the proliferation of

smaller brands

Bislerilsquos 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 brandlsquos 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

45 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 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 options150 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 5000 bottles a day

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

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

little more price

2 litres Rs 18 Small offices shopkeepers households

5 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 ndash for

Indian Airlines travellers and 300 ml cups ndash for marriages and parties

The following pie chart clearly shows the sales wise distribution of the various pack sizes

15

30

10

35

10

share of pack sizes in sales

500 ml

1 litre

2 litres

5 litres

others

46 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 ndash 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

51 CONSUMER POINT OF VIEW

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

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 thatmdashwater 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

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 21: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

44 DISTRIBUTION

Its 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 brandswhich explains the proliferation of

smaller brands

Bislerilsquos 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 brandlsquos 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

45 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 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 options150 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 5000 bottles a day

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

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

little more price

2 litres Rs 18 Small offices shopkeepers households

5 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 ndash for

Indian Airlines travellers and 300 ml cups ndash for marriages and parties

The following pie chart clearly shows the sales wise distribution of the various pack sizes

15

30

10

35

10

share of pack sizes in sales

500 ml

1 litre

2 litres

5 litres

others

46 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 ndash 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

51 CONSUMER POINT OF VIEW

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

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 thatmdashwater 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

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 22: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

45 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 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 options150 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 5000 bottles a day

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

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

little more price

2 litres Rs 18 Small offices shopkeepers households

5 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 ndash for

Indian Airlines travellers and 300 ml cups ndash for marriages and parties

The following pie chart clearly shows the sales wise distribution of the various pack sizes

15

30

10

35

10

share of pack sizes in sales

500 ml

1 litre

2 litres

5 litres

others

46 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 ndash 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

51 CONSUMER POINT OF VIEW

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

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 thatmdashwater 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

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 23: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

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

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

little more price

2 litres Rs 18 Small offices shopkeepers households

5 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 ndash for

Indian Airlines travellers and 300 ml cups ndash for marriages and parties

The following pie chart clearly shows the sales wise distribution of the various pack sizes

15

30

10

35

10

share of pack sizes in sales

500 ml

1 litre

2 litres

5 litres

others

46 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 ndash 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

51 CONSUMER POINT OF VIEW

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

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 thatmdashwater 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

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 24: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

The following pie chart clearly shows the sales wise distribution of the various pack sizes

15

30

10

35

10

share of pack sizes in sales

500 ml

1 litre

2 litres

5 litres

others

46 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 ndash 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

51 CONSUMER POINT OF VIEW

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

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 thatmdashwater 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

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 25: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

46 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 ndash 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

51 CONSUMER POINT OF VIEW

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

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 thatmdashwater 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

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 26: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

51 CONSUMER POINT OF VIEW

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

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 thatmdashwater 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

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 27: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

Where do they buy from

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 thatmdashwater 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

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 28: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

52 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their

drinking habits

Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf same as that of soft drinks and fruit beverages

Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions

While there is no aversion to consumption of mineral water by any age group this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them

Consumers often drink bottled water as an alternative to tap water They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality They also

look for security food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumerslsquo attitudes Consumers buy bottled

water to feel well and to lose weight Bottled water is perceived as a healthy

alternative to other beverages Thus for the aerated beverages bottled water offers a

potential threat

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 29: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

Moreover increasing urbanization causing declines in tap-water quality can also

explain the popularity Because it is untreated natural mineral water is perceived as

―natural by city dwellers looking for genuine products Higher living standards and

auto usage enable people to easily bring home more and heavier bottles of water At

the office a bottle of water is now a common sight on the desk next to the computer

and the telephone Drinking bottled water is a sign of a rise in the social scale Above

all bottled water has become a huge marketing success

What the company is doing to take care of the consumerrsquos concern

Tampering of seals

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

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 30: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

53 COMPETITOR ANALYSIS

COMPETITION

The mineral water market is set to explode and hit the Rs2000-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 Agrolsquos Bailley has been

growing steadily Small local players too are breathing down Bislerilsquos 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

Hello

Pepsi Aquafina

Coca Cola Kinley

With Parlelsquos 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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 31: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

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 Rs10 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

Aquafina uses PepsiCos own seven-step purification system which it calls HydRO-7

which includes pre-filtration treatment to remove larger particles two stages of

polishing filtering charcoal filtration reverse osmosis ultraviolet and ozone

sterilization [1]

PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water

Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns

established distribution network

Now when we talk about the market there are various startegies used by Aquafina in

Rajasthan Like they are giving away free water bottles to retailers with purchase of cola

cartons and they are not letting any other drink to be stored inside the refrigerators provided

by them to the retailers In that case small retailers are unable too keep Bisleri bottles cold and

propsing one of the major reason to not to buy Bisleri then to buy any other water

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 32: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

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 targetting institutions

Parle Agrorsquos Bailey

Bailey the brand that is owned by Ramesh Chauhanlsquos 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 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 itlsquos competitor is offering the product Like Bisleri it also gives the 1 lt For

Rs10 The only strength point of the company which it can capitalize is itlsquos 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

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 33: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER

TO RETAIN ITS MARKET SHARE

1The 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 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

1 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

2 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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 34: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

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

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 35: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

OPPORTUNITIES

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

Agrolsquos 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 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 Rs5 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

companylsquos 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 Rs12 for the same size But beginning last

year it has been selling its one- liter bottles at Rs10 each Aqua Minerals attributes

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

The competitive Rs10-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 Rs5

some six months back Therelsquos also a two-liter bottle for Rs18

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 36: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

In what could be a masterstroke Aqua Minerals is testing out the possibility of mass

marketing 20-litre Bisleri bottles for an MRP of Rs40 That works out to Rs2 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

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 37: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

54 PURIFICATION PROCESS

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

ndashstage 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

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 38: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

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 6 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

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 39: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

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 amp 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

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 40: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

FINDINGS OF RESEARCH

1 Out of 10 retailers everyone stored mineral water and basically 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 Baileys 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

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 41: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

Pie chart showing percentage of different mineral water being kept by the

retailers

70

50

30 26 40

50

45

Bisleri Bailleys Aquafina Kinley Yes Hello Others

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 42: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

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 from 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 Baileys 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

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 43: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

Piechart showing percentage sales of following mineral water in a week

45

10 8

20

17

Bisleri Aquafina Kinley Hello Others

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 44: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

4 Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fast-

moving consumer goods as the sale of this particular type of product highly depend on

distribution network and its availability also frequency of distribution is taken into

consideration for the sale of this kind of product Therefore it can be interpreted that

sale of any product depend on its distribution and thus we can say that distribution

and sales are interrelated

The total number of retailers covered for the purpose of my analysis is 100 and out of

this almost every shop considered gets the mineral water of each brand on a regular

basis ie on a daily basis therefore linkage is always there with the company

regarding the demand for mineral water This is good sign for an almost all the

company as they are in regular touch with the retailers

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 45: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

Bargraph showing frequency of distributor visit to retailers

0

10

20

30

40

50

60

70

80

90

100

Bisleri Aquafina Kinley Baileys Hello Others

100 100 100 100 100 100

0 0 0 0 0 0 0 0 0 0 0 0

Daily Alternatively Weekly

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 46: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

5 Analysis on the credit policy of the distributorcompany

It was found out that no company gives the mineral water to the retailers on the credit

basis that is basically they like to sell there products on a cash However this can one

of the area where one can come and find a way to capture longer chunk of market

share by offering credit to the small retailers who doesnt have sufficient liquid to

invest in items like this there if credit policy is being offered by any one of this

companies for small period of time say for a day or two then this small retailers

combined together may able to push the product in the market in a successful manner

The company must think in this content and should follow push strategy where by

they will able to have larger chunk of market size from a limited market share

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 47: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

CONCLUSION

The players who will endure will be those who have a strong regional presence Take

the case of Team which enjoys immense popularity in Maharashtra Similar brands

with a regional presence are pune and mumbai Thus new players will be looking for

a distinct positioning One such brand is Pepsilsquos Aquafina the largest selling bottled

water brand in the US After its successful test launch in Mumbai and Bangalore

Aquafina was released in Chennai Ahmedabad Vadodara and Pune Pepsi has

invested over Rs5 crore in the new Aquafina water project in Maharashtra which is

the only Aquafina plant outside the US

According to the executive vice president corporate communications Pepsi Foods

Ltd ―Aquafina will be helped by Pepsilsquos network Moreover Aquafina will be served

absolutely chilled That makes sense too since surveys have indicated that an

overwhelming majority of the bottled water that is consumed in India is by people

who are travelling

With the big players who have the support of the financial muscle and a large

consumer base in other categories with them like Pepsi Britannia Nestle and Coke

mdash the battle is the tougher arena of brand building All the multinationals are looking

at high-octane advertising targeting specific consumer segments Sensing troubled

waters ahead

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 48: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

Bisleri is busy working on a strategy to soak up the competition and

protect his water kingdom

At the end I would like to say that being a market leader Bisleri have to adopt few

things as follows 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 amp implement different amp

effective strategies at the right time to attain a position in this competitive world

I would recommend the few things to the company

Develop new marketing strategies due to raising competition in water trade

Give more margins to the retailers and distributors so that they eagerly participate

in increasing the company revenue by rising sales

Reducing the cost of production by finding changing amp adopting new advance

technologies

Should respond to the competitors when they give some thing new to the

consumer by giving the same or better

Should give more stress amp attention to the media and advertising

Should give proper service to the existing consumers

Reducing the delivery time and the water will be refilled with in half an hour of

the phone call

Awareness programmes about the hygiene water in schools amp colleges

Displays of hot amp cold dispensers and bottles at places like airports metro

stations

The company should organize camps at various parts of the city Also road shows

to bring about the difference between mineral water and purified water

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 49: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

RECOMMENDATIONS

1 Advertisement to build the brand image that will provide the required ground to

establish the authenticity to the product

2 Flavoured water without sugar and artificial ingredients could be introduced so

that the consumers also has a healthy substitute to the softdrinks

3 Bulk water delivery to home at no additional cost

4 Company like Acquafina amp Kinley should come up with other big bottles variant

5 POP (Point of Purchase) displaying the cost of water at Rs 2 per mlt as the

perception of the people is that mineral water cost Rs 10 per Lt

6 Awareness programs at health club schools amp Nursing homes

7 To win over the consumer belief and faith over the genuity of the product

8 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

9 Mineral water in polybags like milk be more convenient to the consumers

10 The company should organise camps at various part of the city also road show to

bring about the difference between mineral water and filterpurified water and to

tell the people how mineral water is more hygienic than filtered waterpurified

water

11 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

12 From the study it has been found that majority of the people does not have any

brand preference The company should establish brand image in mineral water

with the help of advertisement amp better service to the customers

13 To win over the consumer faith over the genuinety of the product the company

should have redressal forums where people can convey their grievance

14 Water storing fridges should be provided to retailers by big brands

15 Buy two bottles get one like offers can also be introduced by big brands

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 50: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

BIBLIOGRAPHY

BOOKS amp JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

BUISNESS WORLD BUISNESS TODAY

MARKET RESEARCH BY KOTHARI

VARIOUS ISSUES BUSINESS WORLD BUSINESS TODAY

WEBSITES

WWWBISLERICOM

WWWCOKECOM

WWWPEPSICOM

WWWPARLECOM

WWWGOOGLECOM

WWWREDIFFCOM

wwwmanagementcasescom

wwwicricom

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 51: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

ANNEXURE

Questionnaire for Retailer

Name of the Retailer

1) Which brand does customer prefer when it comes to mineral water

a) aquafina

b) bisleri

2) Between these 2 which brand you prefer personally

a) aquafina

b) bisleri

3) Amongst these two brands which given you more profit marginwhy

4) Does market fluctuation hampers the price range of these products

5)do the natural calamities affect any of the brand good or bad

( calamities like improper rain or extreme summer )

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 52: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

6)which brand in better in market supply amp which brand provides the exiting

offers

7) Do you get paid for promoting or advertising the product

8) when the festival season or marriage season which brand work

more

9) when the customer ask you for mineral water which brand you generally put

forward why

10) Is any complaints about any of the brand amp what are those

Signature

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

Signature

Page 53: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

Questionnaire For Customer

Name

1) when it comes to thirst which company brand product comes to your mind

a) aquafina

b) bisleri

c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer

3) Is there a particular time spam in a year when you consume more mineral

water

4 ) as now days aquaguard is almost reaching every home so it stills gives you

urge to consume mineral water

5) amongst these two brand ( bisleri and aquafina ) which more reliable

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

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Page 54: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley

6) which mineral water product is more customers satisfactory amp in what sense

7) which product of mineral water makes you feel satisfactory

8) when you consume a mineral water product what will you prefer brand of that

mineral water product or price of that mineral water product why

9)which mineral water product satisfy your each and every need of thirstiness why

10)any suggestion from your side to these two mineral water product

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Page 55: a Comparative Product Analysis Marketing Research of Bisleri Its Competitors Aquafina Kinley