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