Ab Competitor Analysis

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CompetitorAnalysisBottled Water Industry


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Agenda


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Introduction

As a new entrant to the bottled water industry weidentified some bigwigs of the industry which couldprovide healthy competition to us and those are

Bisleri

Aquafina

Kinley

Manikchand Oxyrich

We have done the analysis by considering Bislerias our main competitor.


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a

nCompetitor

Bisleri


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History

Bisleri came to India in year 1965 with head

quarters in Mumbai.

It opened first plant in Mumbai in year 1967 In 1969 it was brought by Parle exports.

Before1980 Bisleri was mainly using glass bottle

but later on they started using PVC packing in

mid 1980.

In year1995 introduce 500ml bottle


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Changed Packaging Color


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Launched Vedica- NaturalMountain Water


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Mission: To provide every Indian access to

scientifically purified and fortifieddrinking water that is readily availableand easily affordable; and to supportinitiatives that rejuvenate the Earth's

natural sources of pristine drinking water.Vision:

An India in which everyperson has uninterruptedaccess to scientificallypurified and fortifieddrinking water, irrespectiveof geographical barriers oreconomic limitations.


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Future goals

Stated Financial goal is 30-35% growth

Parle Bisleri is slowly phasing out its premiumbrand Natural Mountain Water and will launch a

new product Bisleri Vedica, which will havemedicinal properties.

Parle Bisleri Private Limited is set to launch afruit juice brand Alfa in five to six flavours, in

the course of the next one year with an investmentof Rs 100 crore.

Bisleri had drawn up an aggressive expansionplan for eastern India and appointed Orient

Beverages Limited as its sole franchisee for WestBengal, Jharkhand and Orissa.


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Future goals

In future the thrust areas of the company wouldbe direct home delivery for safer delivery andprevention of counterfeiting.

In future Bisleri would invest Rs 6 crore indeveloping and introducing coloured capswhich would be difficult to replicate for the 20 litrewater units.

It had also planned to invest Rs 10 crore infilling and capping facilities and upgradeproduction facility from 4500 bottles per minuteto 6000 bottles per minute in the next 18 months.

Leadership:Everything is done in consultation ofMr Ramesh Chouhan, CMD Bisleri Ltd. ; Of the


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Star

Modest cash flow

Question Mark

Large negativecash flow

Cash CowLarge positivecash flow

DogModest cash flow

Growth

Relative market share

High

Low

High Low

PORTFOLIOANALYSIS


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Assumptions


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Competitors belief about its relativeposition -

Considers itself as Market leader.

Competitor s historical or emotionalidentification with particular products

Packaged water has got a very strongemotional identification at Bisleri.

There are no cultural and regional


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Competitors belief about future demand andabout industry trends-

Bisleri is quite confident of growing demand and as

well as of industry growth which is evident from MrRamesh Chouhans interview to CNBC recently inwhich he said Water is the safest to bet on afterwhich he also said bisleri aiming for 35 to 40 %growth.

Try to Remain on same price .

Distribution network .

Joint venture.

Acquire small players .


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CAPABILITIES


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Core capabilities Product, Brand, Distributionnetwork

Ability to grow Very bright

Quick response capability- Weak Ability to adapt changes- Weak

Staying power Strong (emotional, growing

market) Our Unique Selling Proposition (USP) is the Break

away seal. Also, our double ozonisation process isa major USP


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STRENGTH:

Extensive Range ofProducts

Patented Tamper ProofSeal

Strong Brand Image

High Quality Standard Increased Popularity

Distribution Channels

Experienced Leadership

WEAKNESS:

Unable to fulfillcustomer demand

Reuse of bottle byillegal manufacturers

Faults in Production


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CURRENTstrategy


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CURRENT STRATEGY

Aggressive market penetration strategy which is adual distribution plan - penetrating newer markets- including townships and rural India (includingsmaller and interior markets) and aggressively

looking at entering newer territories andincreasing shelf presence in the metros andexisting markets.

They plan to set up 25 new bottling plants across

India in the next two years, and this will be a panIndia coverage namely in the states likeMaharashtra, Kerala, Jammu & Kashmir, HimachalPradesh, Tamil Nadu, Karnataka, UP, Orissa,

Jharkhand, and North Bengal states. They are alsosetting up channels for 20L jars in order to fill


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CURRENT STRATEGYcontd..

Maintaining social responsibility by recycling usedPET bottles with the help of rag pickers.

Promoting social initiatives such as rain waterharvesting.

Bisleri Kinley Aquafina

Market Share 38% 21% 14%

ManufacturingCost

10 12.25 8

Selling Price 12 15 10

Profit Margin 2 1.75 2.75 2


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COMPETITOR RESPONSEPROFILE Bisleri is satisfied with the current position as it is

still enjoying the largest market share.

Likely Moves / Strategy Shifts include Expansion &Diversification.

Vulnerability- Its strength i.e., the distributionnetwork is a vulnerable area, given right schemesand margin the same distributors can work forrival company simultaneously.

Greatest & Most effective retaliation by Bisleri willbe provoked by a National Level Marketingcampaign by other market players or CostDifferentiation.


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Bibliography

Bisleris Chauhan sees big business in small packs.Retrieved on 3rd April 2010 from

http://www.financialexpress.com/printer/news/151843/

Bottled water of India. Retrieved on 3rd April 2010from

http://www.finewaters.com/Bottled_Water/India/index.a

Bottled water- India. (2009) Country sectorbriefing: Euromonitor International.

Commitment. Retrieved on 3rd April 2010 from
http://www.financialexpress.com/printer/news/151843/http://www.finewaters.com/Bottled_Water/India/index.asphttp://www.finewaters.com/Bottled_Water/India/index.asphttp://www.financialexpress.com/printer/news/151843/


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Group-4

Thank

AshishVarma

BharatSharma

Deepshikha

Ishita

Competitive

Analysis :Bottled WaterIndustry

Ab Competitor Analysis

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