Actual Bisleri

8/6/2019 Actual Bisleri

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COMPANY 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. Parle's taking charge of Bisleri did not make a dramatic difference to the brand's

fortunes immediately. While it did gain in terms of visibility and reach (piggybacking onParle's existing distribution network), efforts to expand the bottled water market were not

exactly painstaking. Parle at that particular time was interested in making soda water and not

mineral water. There were just minor initiatives on part of the company for making mineral

water as it was not considered to be a very profitable business at that time 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 thatsignificantly made a difference in the sales. The buyers, then, were mainly the upper class -

the trendy people.

In 1993, Coca-Cola bought parle¶s soft drink brands- thums-up, limca etc. While Coca-Cola

actually bought over Parle's beverages, it agreed to a settlement that allowed the

multinational to bottle and distribute Bisleri soda for a time frame of five years. The charge

of Bisleri water, however, remained with Parle as it sold its stable brands to Coco-Cola. This

was the time when its started concentrating on making Bisleri a success in the domestic

mineral water market. The reason why Parle chose to retain the Bisleri name was that Parle

saw a fairly lucrative business of mineral water in Bisleri's equity as people were becoming

more health conscious.



THE JOURNEY TILL NOW

1969: Buys Bisleri bottled water from an Italian company, Felice Bisleri. It was bottled in

glass bottles then.

Early-1980s: Shifts to PVC bottles. Sales surge

Mid-1980s: Switches to PET bottles, which meant more transparency and life for water.

1993: Sells carbonated drink brands like Thums Up, Gold Spot and Limca to Coca-Cola for

Rs 400 crore.

1995: Bisleri launches a 500 ml bottle and sales shoot up by 400 per cent.

1998: Introduces a tamper-proof and tamper-evident seal.

2000: Introduces the 20-litre container to bring prices down from Rs 10 a litre to Rs 2 a litre.

BIS cancels Bisleri's licence of a water bottling in Delhi since some of the bottles did not

carry ISI label; the licence is restored one-and-a-half months later.

2002: Kinley overtakes Bisleri. The national retail stores audit by ORG-MARG show

Kinley's marketshare at 35.1 per cent compared to Bisleri's 34.4 per cent.

2005 : Bisleri Launches its µBreak Away Seal¶, µFear Factor¶ and µPlay Safe Campaigns¶ ,

which established its purity and safety. It has the largest stock keeping unit (SKU) of 500ml,

1ltr, 1.2ltr, 5ltr and 20ltr.

2006: Bisleri changes its packaging and design from blue to green to differentiate itself from

its competitors. Launches natural water from the Himalays and made available in all its

purity.

2010: Launches a limited edition of celebration and celebrate its cricket labels in 250ml and

500ml. Launches Vedica natural mineral water from the Himalayas.



4 P¶s

PRICE - AN ECONOMIC FACTOR AFFECTING THE BUYER¶S BEHAVIOUR

Price is the sum of values that consumer exchange for the benefits of having or using the

product or service. Price is the only element in the marketing mix that produces revenue.

All other elements represent costs. In India, where the majority of the population

comprise of the middle-income group and lower income groups it is not hard to

understand that pricing is one of the most important factor in the buying decisions.

Bisleri has met the expectations of the consumers in terms of pricing the product and also

making the product available in variations of litres, making Bisleri both convenient and

affordable. The company was following a very aggressive pricing. Its product were

available at a very reasonable price. Company charged Re.1for every 100ml. This

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

highly price conscious. The company had come up with another variant of the product. It

was 1.2 lt, priced at Rs.12 keeping the price fixed at Re.1 per 100 ml. The company had

an edge over its competitors because at that time Aquafina which was recently launched by

Pepsi had priced its product at Rs.10 for 750 ml. Later the company changed its pricing

policy from Rs 12 to Rs 15 because of increased excise duty. Now the Bisleri products are

available from Minimum of Rs 8 to maximum of Rs 60 i.e. 250ml bottles to 20lt cans.

In 2010, Bisleri launched a limited edition of celebration for the cricket fans, by

introducing its cricket labels in 250ml and 500ml.They even launched Vedica natural

mineral water from the Himalayas, targeting the premium segment, which is priced at

Rs 20 for 500ml and Rs 30 for 1lt.



PRODUCT

BISLERI values their customers & therefore have developed 8 unique pack sizes to suit the

need of every individual.

Products Produced by BISLERI

Bisleri includes two types: Bisleri mineral water and Bisleri Natural Mountain water named

as Vedica.

BISLERI MINERAL WATER :

BISLERI with added Minerals BISLERI Mineral Water contains minerals such as

magnesium sulphate and potassium bicarbonate which are essential minerals for healthy

living. They not only maintain the pH balance of the body but also help in keeping you fit

and energetic at all times. They presently have 250ml cups, 250ml bottles, 500ml, 1L and 2L

which are the non-returnable packs & 5L, 20L which are the returnable packs.



Bisleri Natural Mountain Water

BISLERI Natural Mountain emanates from a natural spring, located in Uttaranchal and

Himachal nestled in the vast Shivalik Mountain ranges. The Natural Water is bottled in its

two plants in Uttaranchal and Himachal Pradesh and is available in six different pack sizes of

250ml, 500ml, 1 litre, 2 litre and 5 litres. Nearly two years after the Launch of natural

mineral water, Mountain Water from the Himalayas, got into a legal tussle with Tata

Tea¶sHimalayan over patent infringement so and decided to relaunch it as a premium

segment brand. The second reason for Vedica to be launched is Bisleri wanted to have a

separate brand for mountain water as there was confusion even within the company

between Bisleri and Bisleri Mountain. Vedica is the new name of our Mountain water and

will continue to use the tagline µfrom the Himlayas' on the packaging. Priced at Rs 20 for 500

ml pack, Vedica is positioned as a premium brand with medical value.

Bisleri International now has the onus of building the new Vedica Mountain Water brand and

will continue to sell it under the umbrella of Bisleri.And now the customers, will get every

drop of purity, right here, in this bottle , opined by MD Ramesh Chauhan. BISLERI

Mountain Water is available in 500ml. bottles & 1 litre bottles.

PLACE:

In order to be available in untapped areas Bisleri has setup 16 plants located all over the

country - three-fourths of which are company owned. The balance are run by franchisees.

Bisleri has 5 plants in the North, 5 in the West- two of which were setup in the last year at

Ahemdabad and Surat, 4 in the South and 2 in the East. The company has bottling units

located in Chennai, Bangalore, Goa, Calcutta, Mumbai, Delhi, Jaipur, Uttar Pradesh, Punjab,

Indore and Nepal. The new plants are being set up in states like Kerala, Orissa, Bihar and

North Eastern States, which hitherto have been unexplored by the company. It is also

changing its production strategy and shifting to a 10-hr production schedule with sudden

increase in demand planned to be met by additional production.

Bisleri has planned to expand its operations by investing Rs 60 crore in the upgradation of

facilities. The 120-bottles per minute (BPM) capacity of the 16 units across the country will

be increased to 240 BPM. It is planing to set up 11 new franchisee and 8 new plantsin india.



Conscious of the environmental implications of its PET bottles, the company is to set up

recycling plants at Delhi and Chennai, each with an outlay of Rs.50m. These will process 500

kg of PET per hour. The processed material will be an input for polyester yarn manufacturers.

In centers other than Delhi and Chennai, the company will set up crushing units to crush the

used PET bottles.

DISTRIBUTION

It's obvious that availability holds the key to the market. For any product to be successful the

distribution system has to be really good. Large tracts of the country have not been explored

by the national brands,which explains the proliferation of smaller brands.

Bisleri¶s strategy is to build a direct distribution system at an all-India level. 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 brand¶s reach by 2013.

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

of ³Fat 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,". [ FIGURE].

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.



PROMOTIONAL ACTIVITY

Advertising Campaign of Bisleri:

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

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

Bisleri started its game-plan with the punch-line of µBisleri veri veri extraordinari¶ and

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

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

as to stand out in the market. Bisleri found the answer in µsealed cap bottles¶. It claimed

100% purity and came up with the campaign of µPure and Safe¶.

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

germinated water, Bisleri¶s seal capped bottles ensured the consumer of purity of water and

single-used ness of the bottles.

The ad showed a milk-man and a child showering their buffaloes and filling the µso-

called¶ mineral water bottles with the same water and packing them with the simple

polythene seal and the consumer not knowing about the µpurity¶ of the water he is

drinking. Next clip shows the Bisleri bottles being sealed with plastic caps and ensuring

the purity of water. The ad did work for Bisleri and it got its much needed product

differentiation.

In 2000, some giant brands like Pepsi and coca-cola entered the mineral water industry

with a big bang. Bisleri now had a big threat of maintaining its market cap. While Coca-cola

introducing its brand µKinley¶ as a health care product, Pepsi projected µAquafina¶ as

something as pure as µYour own body¶. Pepsi targeted the young generation and introduced

Aquafina as a fancy product to carry.

Bisleri, to counter-attack the new µFeel-Young¶ fever by Aquafina had to take even bolder

steps. They first changed their base-line from µPure and Safe¶ to µPlay Safe¶. They tried a

brand new ad campaign to catch the fancy of consumer.

The new ad showed a young romantic couple on a marooned island, when the girl seductively

attracts the guy and he follows her in trance. The moment he gets hold of her, she whispers



something in his ears. The next few shots show the guy looking for something in frenzy«can

not find it«.rushes towards the chemist¶s shop«.buys µsomething¶ (keeping the audience in

suspense«or rather implicitly pointing for µ««¶). The girl opens it and«.POOF«.takes

out a bottle of Bisleri and quenches her thirst. Caption: ³Play Safe´. This campaign was to

catch the attention of youth and a new Indian society which is supposed to be µnot-so-

prudish¶. Thus Bisleri has taken a very bold step. The T.V. ads have been complimented by

print ads also. The campaign is reported to be doing pretty well.

PACKAGING

Today, Bisleri offers a variety of packaging options: 250 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.

Promotion for Vedica :

As the product is aimed for niche and not for the masses the promotion of it

is carried in premium Newspapers and Magazines like lonely planet etc. The marketing team

of the product also carries its promotion in parties of corporates and VVIP people. Also it is

kept in premium hotels and restaurants.



Following is a quick overview of the various packaging options provided by bisleri alongwith the target consumers:

Size of the bottle Price per

bottle

Target consumer

250 ml Rs 6 Convienence and easy to handle. Make it available

for functions, conferences and institutional

seminars.

500 ml Rs. 8 Teenagers, college students and roadside

consumers.

1 litre Rs. 15 General consumers and travelers.

2 litres Rs. 25 Small offices, shopkeepers, households

% share of bottle sizes

5 Lt

1 Lt

500 ml

Others



5 litres Rs. 45 Mainly for household purposes

20 litres Rs. 60 Households, institutes, offices, schools and colleges

3 Cs

CONSUMER:

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

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

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

great advantage over its competitors. The question can be further broken down to: Who

buys? When do they buy? Where do they buy? Why do they buy?

Who buys?

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

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

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

travelling.

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

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

segments based on appeal, prices, convenient packaging and other characteristics conforming

to the customer segment the company is targeting.

When do they buy?

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

home or at the work place they mainly use water filters that are installed. Or, they use large



pack of bottled water like the jumbo pack (18 lt.) by Bisleri. The upper income group uses

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

Where do they buy from?

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 that²water. Albeit safe drinking water

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

minerals. The most important consideration is purity of the product.

What the company is doing to take care of the consumer¶s 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 ³Water´. The consumer research

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

Actual Bisleri

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