Analysis of Marketing Strategy of Mineral Water Industry

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ANALYSIS OF MARKETING STRATEGY OF MINERAL WATER INDUSTRY [A CASE STUDY OF BISLERI] A RESEARCH REPORT SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION TO INDRAPRASTHA UNIVERSITY, DELHI (2004- 06) Submitted To : Submitted By : Mrs. Harpreet Kaur Nitesh Kumar

Transcript of Analysis of Marketing Strategy of Mineral Water Industry

Page 1: Analysis of Marketing Strategy of Mineral Water Industry

ANALYSIS OF MARKETING STRATEGY OF MINERAL WATER INDUSTRY

[A CASE STUDY OF BISLERI]

A

RESEARCH REPORT

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE

OF

MASTER OF BUSINESS ADMINISTRATIONTO

INDRAPRASTHA UNIVERSITY, DELHI (2004-06)

Submitted To : Submitted By :Mrs. Harpreet Kaur Nitesh Kumar

BLS INSTITUTE OF MANAGEMENT MOHAN NAGAR GHAZIABAD

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CONTENTS

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CONTENTS

Acknowledgement

Executive Summary

INTRODUCTION

About the industryMineral Water Industry- Current Market Scenario Company Profile

Marketing Strategy

Advertising Campaign of Bisleri

Packaging and Distribution

Marketing Mix

Competition in Market

Product Profile

Manufacturing

Objective

METHOD OF STUDY

Research Design

Tools and Instrument Used for the Study

Procedure and data collection

RESULT AND DISCUSSION

Findings and Statistical Analysis

SWOT analysis Conclusion

Recommendation

Limitations

Bibliography

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Annexures

ACKNOWLEDGE

MENT

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ACKNOWLEDGEMENT

The accomplishment of my research was possible only due to the

cooperation, coordination and united efforts of different individuals, several

sources of material, knowledge and time. Pertaining to this I therefore take

this opportunity to express my deep sense of gratitude to entire staff and

employees of the Bisleri Ltd.

I am very grateful to Mrs. Harpreet Kaur (Faculty) for his guidance and

encouragement for his Kind Cooperation.

The moving spirit behind this research was all of them, without their

constant encouragement and support this research would not have been a

successful outcome.

NITESH KUMAR MBA IVth Sem.

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EXECUTIVE SUMMARY

TITLE: ANALYSIS OF MARKETING STRATEGY OF MINERAL WATER INDUSTRY

[A CASE STUDY OF BISLERI]

Rationale of study:

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 today's living

condition, the need for Pure Drinking Water is becoming the issue for

the common Man.

Eighty percent of the human metabolism consists of water. This is the

reason why 90% of human diseases are water borne.

Objective:

The objective of research are as follows :

To determine the market share of Bisleri Brand of Bottle

Water.

To find out the preference level of respondents regarding

Bisleri Brand of Bottle.

To assess the brand awareness of the Bisleri in the Mineral

Water Segment.

To Study the brand positioning of Bisleri.

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Importance:

1) This report is useful for the researchers who are willing to do research

on the Mineral water Industry and its present competitors in the

market.

2) This report shows the problems associated with the Mineral water

industry in the market as it helps in removing these problems.

3) This report can be useful as a secondary data for Mineral water

industry.

4) This report helps in knowing the current and future scenario of

Mineral water industry.

5) This report helps in knowing market position of different Mineral water

industry.

Research Methodology:

The research conducted by Exploratory Research this type of research is

Qualitative and Quantitative. Qualitative refers to the characters of the

data or process by which the data are gathered.

The research process consists of a series of closely related activities. Why

a research study has been undertaken. Why a research study has been

undertaken, how the research problem has been defined, in what way and

why the hypothesis has been formulated, what data has been collected

and what particular method has been adopted and a host of similar other

question are usually answered when we talk of research methodology

concerning a research problem or study.

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Sampling:

The data was to be collected only from the Consumers and Retailers. A

questionnaire was prepared and interviewing with Retailers and

Consumers.

A decision has to be taken concerning a sample unit before selecting the

number of samples. It may be geographical as well as individual.

Size of Sample:

This refers the number of items (Outlets) to be selected from the finite

universe to constitute a sample size. The survey was conducted of 50

outlets.

Analysis:

The data was tabulated manually and was also analyzed manually excel

was used to make graphs and pie chart.

According to market share figure, Bisleri is the leading brand which 55.45%

market share. While Kinley 23.33%, Kingfisher 3.97%, Aquafina 13.95%

and others 6.30%.

1. 80% retailers prefer to sell Bisleri brand because of demand, brand and

profit margin.

2. Bisleri is the most selling brand in the specific region it is at 45% selling

among the competitors.

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3. Retailers those are selling Bisleri brand of bottle water is 50%.

4. The company has recently launched “Bada Bisleri, Same Price ” at Rs.

10/- for 1.2 Ltrs means 2% extra.

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 TamilNadu. Similar brands with a regional presence are Siruvani,

and Koday. Thus, new players will be looking for a distinct

positioning. One such brand is Pepsi’s 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 Rs.5 crore

in the new Aquafina water project in Maharashtra, which is the only

Aquafina plant outside the US.

According to Deepak Jolly, executive vice president, corporate

communications, Pepsi Foods Ltd. “Aquafina will be helped by Pepsi’s

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 traveling.

Recommendations :

Advertisement to build the brand image that will provide the

required ground to establish the authenticity to the product.

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POP (Point of Purchase) displaying the cost of water at Rs. 2 per

liter, as the perception of the people is that mineral water cost

Rs. 10 per half Lt.

Awareness programs at health club, schools & Nursing homes.

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

product.

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INTRODUCTION

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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 today's living

condition, the need for Pure Drinking Water is becoming the issue for

the common Man.

Eighty percent of the human metabolism consists of water. This is the

reason why 90% of human diseases are water borne. There are 3

types of water impurities, which are root cause of water borne

diseases.

1. Microbiological-Bacteria / virus.

2. Dissolved impurities - chemical.

3. Imbalance of Mineral Content.

There are rapid changes that are taking place in our environment

since long and the air and the water pollution is on an increase. The

main source of drinking water is river and downstream which also

have 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.

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1980's witnessed more changes by a tap attachment wherein Iodine

resin is used to filter the water. It deactivates microbiological

impurities to an extent but has side effects due to iodine and it does

not take care of dissolved impurities mineral balance.

Late 1980's witnessed Ultra Violent based purifier, which filters dust

and deactivates bacteria to a great extent. It maintains the odor and

color of water but does not clear out the dissolved impurities and

mineral particles. Thus came advent of mineral water.

Historically, the need for purified water within Indian homes had been

kept down to a minimum. Essentially, there were three types of water

that was used for different purposes. The first type was used for

rinsing. The second type, which was used for cooking, was cleaner

and kept covered. The third type was the cleanest – drinking water –

and was very often boiled before use.

Since an average family needed a small quantity, not more than five

or six liters 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

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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 1990s,Time did a story on India as a key emerging

market and that was the trigger for all the players eyeing this market”.

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WATER, WATER EVERYWHERE

West Europeans, south Asians and Japanese live in the most densely

populated regions of the globe and worry constantly about the quality of

their drinking water drawn from rivers and lakes. Most is polluted and unfit

for human consumption. In North America, people never worried about

water quality and safety until early 1970’s and restaurants always provided

iced water free. Some still do. Then came Perrier, the French mineral water

emphasizing how restaurateurs could increase their revenues by replacing

iced water service with bottled water. Restaurateurs never miss an

opportunity to increase their profits, and soon studies started to surface

claiming that serving iced water was costly and no one benefited. Many

restaurants started serving automatically bottled water, and charged

outrageous amounts i.e $ 3.50 for 300 ml. These days, a 750 ml bottle

goes for $ 10.- in some restaurants, plus applicable taxes and tip!

Meanwhile, the word savvy bottled water marketers started circulating the

myth  that drinking bottled mineral water is safer, never mentioning what

their  studies were comparing.

It is said that the inhabitants of seven cities between Switzerland and the

Netherlands consume the water of the Rhine River. In these parts people

drink beer, wine, bottled water or fruit juices and shun tap water. North

Americans have recently begun to drink bottled water, but already the

distinction between spring water, mineral water, and filtered tap water is

blurred beyond redemption. Spring water must come from a natural springs

with proven purity of contaminants; mineral water must contain 2000 parts

per million in minerals; and filtered tap water means just that. Europeans

always preferred mineral water or eau de source (spring water) since their

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rivers were polluted a long time ago. Now considerable efforts are made to

clean all major European Rivers. The Rhine River, the Thames, the Loire

are clean enough to allow several species of fish to thrive.

As always, large companies with considerable cash reserves dominate the

market. Groupe Danone, a French conglomerate, markets Evian, Volvic

and Crystal Springs; Nestle, a Swiss food multinational with headquarters

in Montreux markets Perrier, Nestle Pure Life and San Pellegrino. Not to be

outdone soft drink giant Coca-Cola joined the cause with filtered tap water

and positioned their brand as pure, safe, life-style water. Coca Cola

markets Dasani and Pepsi Cola Aquafina. When it comes to mineral water,

Voss (Norway); Tynant (Ireland); Vitel, Cathledon, Volvic, (France);

Appolinaris (Germany), Spa (Belgium); Gasteiner (Austria); San Benedetto,

San Pellegrino, Aqua di Nepi, Lete (Italy), Ramlosa (Sweden);Borsec

(Romania) stand out. They display distinct taste profiles that spring and

filtered waters lack, but tend to be more expensive. When it comes to

consumption, Canadians consume approximately 30 litres per capita,

Italians 158 litres, French 133, Dutch 119, Germans 101 and Americans 76.

The low per capita consumption can be attributed to the illusion that tap

water is safe. In reality, only large cities control tap water quality regularly

and vigorously and treat it appropriately for safety. In small communities,

scarce financial resources and lacking expertise often make tap water

safety questionable. Since the introduction of PET bottles (polyethylene

terephate) bottled water consumption increased by 16 percent in five years

and continuing growth of the market is forecast by the Canadian Bottled

Water Association in Richmond Hill, Ontario. The question for restaurant

patrons remains whether to ask for bottled or mineral water, or demand ice

water.

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It all depends on the situation. You can ask politely for ice water, if that is

what you prefer, or a glass of wine, or beer. The cost is almost the same for

all the three, or you can complain to management that prices charged for

bottled water are ridiculous as is the case with wine.

    

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MINERAL WATER INDUSTRY

“CURRENT MARKET SCENARIO”

A few years back, the mineral water market had been crawling at the

rate of 3-4%, or even a lower figure. Indians carried drinking water in

earthen pitchers, plastic or PUF bottles. But increasing cases of

typhoid and other waterborne diseases began to be reported. In

addition to this, liberalization happened and the mineral water

industry began to be stirred and shaken. The market started growing

an astounding rate of over 100% per annum. The fact that there were

very few players in the market meant that their business grew by

leaps and bounds.

The market today has grown to Rs11bn. The organized sector --

branded mineral water -- has only Rs5bn of market share. The rest is

accounted for by the unorganized sector, which is dominated by small

regional players. The market is still growing – at a rate greater than

80% per annum.

In the branded segment, Parle’s Bisleri is the market leader with a

share of more than 45%. Parle Agro’s Bailley comes a close second

with market share of 15%. Other major players in the market are Yes

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of Kotharis, Ganga of T-Series, Himalayan, Hello, Nestlé’s Pure Life,

Pepsi’s Aquafina, Coca-Cola’s -Kinley Prime, and Florida etc.

Sensing the opportunity that this segment holds, MNCs began to draw

up plans to enter the market. Today the market is proving to be yet

another battlefield for an ongoing battle between the Desi’s and

MNC’s. Last year the industry had around 170 brands. This figure is

over 300 presently. The major foreign players are Coca-Cola

promoted Kinley, Pepsi’s Aquafina, Britannia’s Evian, Nestlé’s Perrier,

Herbert sons and Danone International.

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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 1967, Bisleri set up

a plant in Mumbai for bottling and marketing mineral water, which was

first of its kind in India. However, it didn’t work well. Among other

reasons, the fact that the Indian consumer was unprepared to accept

bottled mineral water was responsible for its failure. Consumer

mindsets were more geared towards boiling water at home.

In 1969, Parle bought over the Bisleri brand. In those days Bisleri

water was available in glass bottles. Parle's taking charge of Bisleri

did not make a dramatic difference to the brand's fortunes

immediately. While it did gain in terms of visibility and reach

(piggybacking on Parle's existing distribution network), efforts to

expand the bottled 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 as people still considered boiling

water to be a safer and better 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 Parle’s soft drink brands- Thumps-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

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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 it started concentrating on making Bisleri

a success in the domestic mineral water market. The reason why Parle

chose to retain the Bisleri name was that Parle saw a fairly lucrative

business of mineral water in Bisleri's equity.

The real shift in company’s policy towards mineral water industry came

in 1998,although the conscious efforts had already been started in

1994. This change was primarily because of the fact that the people, at

this time, had started becoming more health conscious.

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MARKETING STRATEGY

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MARKETING STRATEGY

It is complete and an unbeatable plan designed specifically for attaining

the marketing objective of a firm. The marketing objective indicate what the

firm want to achieve. The marketing strategy provides the design for

achieving them the linkage between marketing strategies and over all

corporate success is indeed direct and vital. Realizing the marketing

objectives is the purpose of two generic categories .

1. price based

2. Differentiation based

price based marketing strategy

a business that opts for the price route in its competitive battle will enjoy

certain flexibilities in matter of its product and use prices as main

competitive level . it will price its product to suit the varying competitive

demands . it will be enjoying certain inherent cost advantages , which

permits it to resort a price based fight . the major forms where such cost

advantage can occurs are economies of sale , absolute cost advantages ,.

Benefits of early entry a large market share build over a time . it provides

freedom in the matter of pricing but after producing a particular product

and getting stuck in the face of the competition , one can not successfully

opt for a price led strategy .

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The differentiation based strategy

marketing strategy based on differentiation works on the principle that any

aspect of the offer and any activity of the firm can be made distinctive

compared with the competiting offers. Right from technology, plant location

to post sale and service a company can perceptibly differentiate and many

buyer values. Companies usually choose those functions , Which give them

the greatest relative advantage.

Different firms adopts different strategy stances as their situational design

differ-

Broadly strategy stances can be classified under three heads-

1- Offensive Strategy -

Offensive Strategy also known as confrontation

strategy , is a strategy of aggression. A firm that is not presently the

leader usually employs it, but it aspires to leadership position in the

Industry.

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2- Defensive Strategy -

The leader who has the compulsion to defend

his position against the confrontation of powerful existing competitors or

to dislodge the leader from his topmost position usually employs it.

3- Niche Strategy-

A firm pactising the niche strategy neither confronts

other nor defends itself. It cultivates a small market segment for itself

with unique products / services supported by a unique marketing mix.

Formulating the Marketing Strategy-

Formulating the marketing strategy consists of two main steps-

1- Selecting the target market -

It doesnot fully bring out yhe import of

the inseperable linkage between the two. When the selection of the

target market is over an important part of the markting strategy of the

firm is already determined, defined and expressed.

2- Assembling the marketing mix-

Assembling the marketing mix means

assembling the four p’s of marketing in the right combination.

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The firm has to find out how it can generate the best sales and profit. It

plans different marketing mixes with varying levels of expenditure on

each element and tries to figure out the effectiveness of each

combination in terms of the possible sales and profit.

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ADVERTISING

CAMPAIGN OF

BISLERI

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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 ‘Pure and Safe’ and

used the same catch-line for advertising. But with the advent of many

new players, all claiming the purity, it became very imperative for

Bisleri to differentiate its product so as to stand out in the market.

Bisleri found the answer in ‘sealed cap bottles’. It claimed 100%

purity. While the bottles of the other brands, it claimed, could be

refilled with ordinary, or even germinated water, 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 ‘so-called’ mineral water bottles with the same

water and packing them with the simple polythene seal and the

consumer not knowing about the ‘purity’ of the water he is drinking.

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

ensuring the purity of water. The ad did work for Bisleri and it got its

much needed product differentiation.

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

mineral water industry with a big bang. Bisleri now had a big threat of

maintaining its market cap. While Coca-cola introducing its brand

‘Kinley’ as a health care product, Pepsi projected ‘Aquafina’ as

something as pure as ‘Your own body’. Pepsi targeted the young

generation and introduced Aquafina as a fancy product to carry.

The ad campaign of Aquafina emphasized as ‘70% of your body is

water’ and thus give your body the purest water. The ad showed

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young vibrant models and created the atmosphere of youthfulness.

Water, Pepsi claimed, was no longer a simple beverage, but was

something highly fashionable. They complimented it by giving their

bottles an attractive look. This soon caught the eye of the consumer.

All these factors made Pepsi the biggest upcoming competitor of

Bisleri (whereas Kinley lagged behind the race, showing a doctor

advising a family to take Kinley for pure water – not a very attractive

ad campaign).

Bisleri, to counter-attack the new ‘Feel-Young’ fever had to even bolder

steps. They first changed their base line from ‘Pure and Safe’ to ‘Play

Safe’. They tried a brand new ad campaign to catch the fancy of consumer.

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

the girl seductively attracts the guy and he follows her in trance. The

moment he gets hold of her, she whispers something in his ears. The next

few shots show the guy looking for something in frenzy…can not find

it….rushes towards the chemist’s shop….buys ‘something’ (keeping the

audience in suspense…or rather implicitly pointing for ‘……’). The girl

opens it and….POOF….takes out a bottle of Bisleri and quenches her

thirst. Caption: “Play Safe”. This campaign was to catch the attention of

youth and a new Indian society which is supposed to be ‘not-so-prudish’.

Thus Bisleri has taken a very bold step. The T.V. ads have been

complimented by print ads also. The 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.

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AQUAFINA ADVERTISEMENTS AND BISLERI

A drop-dead gorgeous body flexes its muscles on the screen. This starkly

arresting black and white image is then splashed with water. A voice-over

informs you that 70 per cent of your body is water. Why not give it the

purest…. Aquafina Bottled water from Pepsi.

This kind of advertisement campaign used by the competitors is giving the

company a tough time. The competitor, Pepsi, is utilizing the brand image

built by it and is again targeting the “Generation X” maintaining the

company image. It’s an unusual ad for this category. Till now, most

marketers have focused on educating the consumer on how bottled water

is a safer option, with the lead of course, taken by the popular national

brand Bisleri.

But Pepsi chose to junk this approach and it could well afford to. Bisleri,

after all, had already done most of the hard work needed to build the

bottled water category. What Pepsi needed was to establish its brand in

this crowded, fragmented market. Our task was made easier because was

made easier because Bisleri had concentrated on educating the consumer,

instead of building its own brand values," says Rohit Ohri, vice president

and client services director, Hindustan Thompson Associates Limited

(HTA). We wanted the imagery to posit~on Aquafina as a youthful,

premium and fun brand," says Vibha Rishi, executive director, Pepsi. The

idea, she says, was not to objectify bodies so that one could drool over

them. "Instead, we are talking about your body and the need for each one

to take care of his or her body." The ad copy, which spoke of the water

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content in our bodies, was actually trying to establish how important water

was to our well- being and how we need to continuously replenish it.

While the thinking was clear that the imagery had to be built in and around

purity, HTA did toy with a couple of other ideas and situations. Initially, the

idea was to focus more strongly on the fun aspect and create a story line

complete with a smart idea and a twist at the end. "But we gave it up

because we felt that the story might take the mind away from the purity

aspect that was a must to highlight," says Ohri.

So HTA adopted a minimalist approach and created a film with little clutter

and no props, which tried to capture the emotion of "feeling good about

yourself'. While the film and the imagery are completely the work of HT A,

the strategic thinking comes from the Mother Company in the US.

Aquafina, in fact, is the largest-selling bottled water brand in the US with a

12 per cent market share, and India is the first country outside of the US

where Aquafina is being bottled. Even in the US, the ad talks of the

percentage of water in our bodies, but the handling is a little more serious.

For example, the film will show an emotional moment where someone

starts crying, and then you will hear the voice-over, "85 per cent of your

eyes are water.

"There is no internal law that forces us to follow the international

positioning. But seeing the quality of thinking that has gone into this, we

decided to stay with this positioning, though the statements here are quite

different," explains Rishi.

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Aquafina, like all offeFings that come from the Pepsi stable, also imbibes

the core values of the mother brand. It addresses the Pepsi-user base,

largely the youth, and like Pepsi ,it is also being positioned as a hip brand.

But Aquafina is a lot that Pepsi is not. It is a little bit older, mature and

affluent, and not as mass based as Pepsi.

Pepsi's role in the communication is that it is the source of credibility for the

product and, of course, establishes the youthfulness of the brand. But

Aquafina is a brand in its own right and with each piece of communication,

its personality will emerge," feels Ohri. But while Aquafina is being given a

distinct identity, it is also being targeted at the Pepsi consumer and is

addressing their need for safe and reliable drinking water. Will this not

cannibalize Pepsi sales? "Water does eat into the cola market," agrees

Rishi, "but we can't build a business for Pepsi based on people's lack of

access to safe drinking water.

How can any business be built on deprivation?" Both will have to co-exist

and carve a market out for themselves, And~ while Pepsi targets the 18-25

year olds, Aquafina also includes the 30-somethings together with the

college crowd. Like Pepsi, Aquafina too is looking to command a premium

without being unaffordable.

It is being positioned as a premium product, not via pricing, but in imagery

and packaging. Priced at Rs. 10 in Delhi for a 750ml. bottle, it is priced

marginally higher than the competition that gives you one liter for Rs. 10.

The swirl shaped PET bottle resembles the Pepsi family and is sturdier and

more hip than most others in the category that take their design cues, it

seems, from the one liter refined oil bottles in the market. The decision to

break the norm and come up with a 750 ml pack size was more driven by

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the fact that water is fundamentally consumed on the go and the 750 ml

size is easy to carry around. "It is ideal for an half-an-hour in the sun, one

liter gets too bulky," says Rishi. Pepsi's future plans at the moment don't

include commg up with size variants. They have also ruled out the

possibility of catering to the bulk market, which actually constitutes 30 per

cent of the total bottled water market that stands at 70 million liters

annually, and is growing anywhere between 30 and 50 per cent.

Pepsi, obviously, is looking for a big slice of this burgeoning market, but as

Subroto Chattopadhyay, executive vice president, marketing, Pepsi, says,

"We have a building blocks approach, first we have to build the brand, and

then the volumes.

Bisleri is tackling the situation by building the brand on the purity plank.

Akin to brand building in soft drinks, an aggressive print-and-TV campaign

is being backed by hoarding, point-of-sale material, and every interface with

the consumer is being used as an opportunity to reinforce the message.

For instance, all the vehicles used for supply have been painted in bright

blue, bear the Bisleri logo and sport catchy baselines like . "Play Safe".

Page 35: Analysis of Marketing Strategy of Mineral Water Industry

PACKAGING

AND DISTRIBUTI

ON

Page 36: Analysis of Marketing Strategy of Mineral Water Industry

Packaging

Variety is spices of life. Today for any business organization to be

successful it has to provide its customer with the differentiated product that

is a value buy for them. In order to cater to yhe changing needs of the

customer the business has to continuously come out with the variants of

the products so that it can target the maximum segments.

Today Aqua Minerals offers a variety of packaging options: 1 lit, 2 lit, 5 liy,

20 lit. The 5 litre bottles account for 35 % of sales showing a growing health

concern among the Indian society. 1 litre bottles account for 30% of the

share .

The 2 litres bottle introduced to slowly and steadily replace the conventional

1 litre bottle.

The 5 litre packs, launched in dec 1999 in Goa, now available everywhere.

Distribution

It’s obvious that availability holds the key to the market .For any product to

be successful yhe 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

that means serious investment In company owned trucks and carts, this

Page 37: Analysis of Marketing Strategy of Mineral Water Industry

would make it the largest fleet owner in the country. Bisleri has around

80,000 retail outlets in the country with about 12,000 each in the delhi and

Mumbai. It is intended to be increased this no. to 10,00,000 in order to

expand brands reach.

The company will invest approximately Rs.200 cr. to procure 2000 trucks

and hire same no. of sales people . the company plans to have its own

distribution network in places where it has its own plant

Page 38: Analysis of Marketing Strategy of Mineral Water Industry

MARKETIN

G MIX

Page 39: Analysis of Marketing Strategy of Mineral Water Industry

MARKETING MIX

The set of controllable tactical tools- product, price, promotion, and

place (4 Ps), that the firm blends to produce the response it wants, in

the target markets.

The 4Ps

Product

The main product of the company is the mineral water by the name of

Bisleri Mineral water. Other than mineral water the company has also

the soda water under its brand name called the Bisleri Soda Water.

The concept of bottled mineral water was introduced in India, first by

Bisleri, and that is the reason, it has become a generic name for the

mineral water. Bisleri has become a perfect synonym of the mineral

water for the Indian consumers.

The main challenge facing the company or any other player in this

mineral water industry is that there is no scope of invention and

innovation in the product, which can be added as the additional

benefits of the product.

It is just water after all. This is what the Indian customers think of the

bottled water. If we are talking about a product like television we can

Page 40: Analysis of Marketing Strategy of Mineral Water Industry

think that the innovations could provide extra benefits derived from

the product. For example other than its core usage the product can

provide for Internet facilities using conversion.

Place

Place stands for the company activities that make the product

available to the target customers. To make the product available to

the target consumers a good distribution network has to be there to

support the good quality of the product. Here in the case of the

mineral water industry the distribution network is the important factor

in being competitive and the catch lies in making water available to

maximum number of places in the country.

DISTRIBUTION NETWORK:

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

generic category built up by Bisleri. It’s a battle that Bisleri can win by

sheer distribution muscle. One of the reasons why Bisleri is running

strong in this industry is its strong distribution network built over the

years since its inception. Further, Bisleri plans to increase its

distribution network over the southern and eastern region, where it is

Page 41: Analysis of Marketing Strategy of Mineral Water Industry

behind popular brands like Team in Tamil Nadu and in Andhra

Pradesh.

Prices for following packaging variants

(AN ECONOMIC FACTOR AFFECTING THE BUYER’S BEHAVIOR)

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 is

following a very aggressive pricing. Its product is available at a very

reasonable price.

1.2 Ltrs Rs. 10/-

2 Ltrs Rs. 20/-

5 Ltrs Rs. 40/-

Page 42: Analysis of Marketing Strategy of Mineral Water Industry

Promotion

Modern marketing calls for more than just developing a good product,

pricing it attractively, and making it available to the target customers,

companies must also communicate with their customers, and what

they communicate should not be left to chance.

A Company’s total marketing communications program- called its

Promotion Mix consists of specific blend of advertising, personal

selling, sales promotion, and public relations tools that the company

uses to pursue its advertising and marketing objectives.

ADVERTISING CAMPAIGN:

While designing the advertisement campaign, it is necessary to keep

in mind the opinion leaders. Youth are the opinion leaders of the

present time. And thus it becomes necessary to design the campaign

keeping the youth in mind. The opinion leaders would further trickle

down the message to the less active members of the society.

This is exactly what Bisleri is doing. Bisleri has started an

advertisement campaign stressing the point of purity and flaunting the

patent right the company has over the breakaway seal. The company

has tried to put the message across louder, by using the ad campaign

that catches the eye of everyone, specially the youth.

Page 43: Analysis of Marketing Strategy of Mineral Water Industry

CONTENT OF THE CAMPAIGN:

Bisleri that was looking for a differentiator decided to make the

breakaway seal the symbol of purity. The tamper-proof seal was

developed, around which the communication was woven. The

campaign stresses the safety provided by the breakaway seal by

illustrating the ease with which conventionally sealed bottles can be

refilled and recycled.

The objective with the campaign would have been to highlight the

tamper-proof seal and create doubt in the consumer’s mind of the

purity of the other brands. That is, Bisleri is the only one that

guarantees purity and keeps you Safe.

To conclude: We find that new advertisement campaign of Bisleri is

eye catching. This is what the company should do. And also the

company should make the message clearer to the customers that it

has the patent right over the breakaway seal. In the survey we found

that the consumers are aware of the breakaway seal but are not aware

that the company has the patent right.

Apart from a high dose of investments on expanding bottling capacities

and an ad budget that’s risen six-fold over last year, if Bisleri wants to

penetrate every possible segment of the market, it can do that by

introducing more pack sizes and establishing the brand strongly with

trendy new packaging.

Apart from creating consumer pull with campaign, the company, to

increase its sales would have to do the sales push as well. For that it

would have to give the retailers and other stockiest high trade margins

Page 44: Analysis of Marketing Strategy of Mineral Water Industry

and incentives for keeping the product. This is very important in case

of this product because consumers would take up what is available to

them at ease and whatever retailer is giving.

COMPETITION IN

MARKET

Page 45: Analysis of Marketing Strategy of Mineral Water Industry

COMPETITION

The mineral water market is set to explode and hit the Rs.2,000-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 Agro’s Bailey has been

growing steadily. Small local players too are breathing down Bisleri’s

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

Pepsi Aquafina

Coca Cola Kinley

With Parle’s Bailey being the main competitor and second in market

share in the organized market, Bisleri faces tremendous competition

from the unorganized sector.

Page 46: Analysis of Marketing Strategy of Mineral Water Industry

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 750 ml pet bottle, the pricing,

at Rs.10, is competitive. And it is safe. In addition to the tamper proof

seal, there is a reliable method of checking whether the bottle has

been refilled. The date of manufacturing has been written on the cap

as well as on the bottle. Thus a person who is refilling it would have

to find a matching cap and bottle, the probability of which is very low.

Page 47: Analysis of Marketing Strategy of Mineral Water Industry

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 targeting institutions.

Parle Agro’s- Bailley

Bailley the brand that is owned by Ramesh Chauhan’s 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 Bailley

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 it’s competitor is offering the product.

Like Bisleri it also gives the 1 lt. For Rs.10. The only strength point of

the company, which it can capitalize, is it’s 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.

Page 48: Analysis of Marketing Strategy of Mineral Water Industry

PRODUCT PROFILE

“It’s 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 Chauhan’s Bisleri enjoys the largest market share of 56%

in the Rs1100 crores mineral water markets and is growing at the rate of

180% per annum. Annual sales of Bisleri have touched Rs400 crores. In

seventies, 'Bisleri' was the only mineral water, which had national

presence, and the sale was to the tune of approximately one hundred

thousand cases valued at about Rs.60 lacs.

Page 49: Analysis of Marketing Strategy of Mineral Water Industry

MANUFACTURING

A quick look at Bisleri's manufacturing reach indicates that it is represented

across the country – North accounts for 35% of sales for the industry, West

accounts for 30%, South 20% and the East 15%.

In order to be available in untapped areas Bisleri has setup 16 plants

located all over the country - three-fourths of which are company

owned. The balance is run by franchisees. Bisleri has 5 plants in the

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

Ahmedabad 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 crores

in the upgradation of facilities. The 120-bottles per minute (BPM)

Page 50: Analysis of Marketing Strategy of Mineral Water Industry

capacity of the 16 units across the country will be increased to 240

BPM.

Conscious of the environmental implications of its PET bottles, the

company is to set up recycling plants at Delhi and Chennai, each with

an outlay of Rs.50m. These will process 500 kg of PET per hour. The

processed material will be an input for polyester yarn manufacturers.

In centers other than Delhi and Chennai, the company will set up

crushing units to crush the used PET bottles.

The company's expansion plans will see its water bottling capacity go

up from the present 400 million liters to 500 million liters. Parle Bisleri

Limited (PBL) is planning to invest Rs 200 crores to increase its

bottling capacity and double its turnover. The expansion will also

increase the number of company's bottling plants from 16 at present,

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

plants. It doesn’t have any intentions to acquire any existing plants.

Page 51: Analysis of Marketing Strategy of Mineral Water Industry

PURE BOTTLED DRINKING-WATER

Is Dangerous

The Safety of Bottled Drinking-water

Because of the large number of possible hazards in drinking-water, the

development of standards for drinking-water requires significant resources

and expertise, which many countries are unable to afford. Fortunately,

guidance is available at the international level.

The World Health Organization (WHO) publishes Guidelines for Drinking-

water Quality which many countries use as the basis to establish their own

national standards.

International Standards for Bottled Drinking–water

The intergovernmental body for the development of internationally

recognized standards for food is the Codex Alimentarius Commission

(CAC). WHO, one of the co-sponsors of the CAC, has advocated the use of

the Guidelines for Drinking-water Quality as the basis for derivation of

standards for all bottled waters.

CSE Report on pesticide residues in bottled water

The Centre for Science and Environment, a non-governmental organization

based in New Delhi, has set up the Pollution Monitoring Laboratory to

monitor environmental pollution. Its main aim is to undertake scientific

studies to generate public awareness about food, water and air

contamination.

Page 52: Analysis of Marketing Strategy of Mineral Water Industry

The bottled water market share of major brands is Bisleri (51%), Bailley

(17%), Yes (11%) followed by Kinley (10%), Aquafina (4%).

Drinking water filled in hermetically sealed containers of various

compositions, form, and capacities that is suitable for direct consumption

without further treatment

FACTS

Bottled drinking water samples of some top brands– Bisleri (Parle Bisleri

Pvt. Ltd.), Bailley (Parle Agro Pvt. Ltd.), Aquafina (Pepsico India Holding

Pvt. Ltd.), Kinley (Hindustan Coca Cola Beverage Pvt.

Ltd.) and of other less popular brands like Best, Royal Aqua, Seagull etc.,

which were being sold and manufactured in Mumbai and nearby areas like

Pune and Daman, were purchased randomly. All the samples were

purchased from retail outlets in the market and from railway station and

were checked for proper seal, date of manufacture and batch number.

Even the top brands, which claim to use treatment methods like purification

filtration, activated carbon filtration, demineralization and reverse osmosis

were found to contain residues of pesticides. It might be due to the reason

that the manufacturers may be by-passing the raw water after partial

treatment and remixing it with the fully treated stream so as to cut down the

cost of treatment. On the basis of the results different brands can be rated

in terms of total organochlorine and organophosphorus pesticides from

least to most contaminated as-

Page 53: Analysis of Marketing Strategy of Mineral Water Industry

Aquafina Macblue

Bailley Kinley

Seagull Sheetal

Bisleri Brilliant

Bally Apurva

Page 54: Analysis of Marketing Strategy of Mineral Water Industry

OBJECTIVE

Page 55: Analysis of Marketing Strategy of Mineral Water Industry

OBJECTIVE

To analyze the marketing strategies of the company with

To determine the market share of Bisleri Brand of Bottle

Water.

To find out the preference level of respondents regarding

Bisleri Brand of Bottle.

To assess the brand awareness of the Bisleriin the Mineral

Water Segment.

To Study the brand positioning of Bisleri.

Page 56: Analysis of Marketing Strategy of Mineral Water Industry

RESEARCH METDHOL

OGY

Page 57: Analysis of Marketing Strategy of Mineral Water Industry

RESEARCH DESIGN

MEANING OF RESEARCH DESIGN

The formidable problem that follows the task of defining the research

problem is the preparation of the design of the research project, popularly

known as the “research design”. Decisions regarding what, where, when,

how much by what means concerning an inquiry or a research study

constitute a research design. “A research design is the arrangement of

conditions for collection and analysis of data in manner that aims to

combine relevance to the research purpose with economy in procedure.” In

fact, the research design is the conceptual structure within which research

is conducted; it constitutes the blueprint for the collection, measurement

and analysis of data. As such the design includes on outline of what the

researcher will do from witing the hypothesis and its operational

implications to the final analysis of data. More explicitly, the design

decisions happen to be in respect of :

(i) What is the study about ?

(ii) Why is the study being made ?

(iii) Where will the study be carried out ?

(iv) What type of data is required ?

(v) Where can the required data be found ?

(vi) What periods of time will the study include ?

(vii) What will be the sample design ?

(viii) What techniques of data collection will be used ?

(ix) How will the data analysed ?

(x) In what style will the report be prepared ?

Page 58: Analysis of Marketing Strategy of Mineral Water Industry

TOOLS AND INSTRUMENTS USED FOR THE STUDY

It is necessary for a researcher to define conceptual structure which

research would be conducted. The function of research design is to

provide for the collection of relevant evidence with minimal expenditure

of efforts, time and money. In this research the research design was as

follows:-

1) Time available for the research is every Wednesday of the week.

2) The means of obtaining the information is through :

Primary data like questionnaire

Secondary data like magzines, net and Pumplets etc.

3) There is no cost factor related to researcher.

Page 59: Analysis of Marketing Strategy of Mineral Water Industry

PROCEDURE OF DATA COLLECTION

Data compilation is an intermediate stage between data collection and

analysis. Data compilation involves classification and summarization in

order to make data amenable to analysis.

In dealing with any problem, once the sample has been selected the data

must be collected from the sample population. There are several ways of

collecting appropriate data which differ considerably in context of money

cost, time and other resources. They can be broadly classified in to two

categories.

Two sources to collect data are namely:

1. Primary Source

2. Secondary Source

PRIMARY SOURCE OF COLLECTING DATA

The Primary Data that I collected were the first hand information which

I received through personal interviews with the consumers and through

questionnaires. This data gave the most vital information for making my

analysis of the prevailing purchasing behavior of the consumers.

Page 60: Analysis of Marketing Strategy of Mineral Water Industry

QUESTIONNAIRE TECHNIQUE

The method of collecting data mailing and personally distributing

questionnaire to the respondents is the most extensively employed

technique in various economical surveys. This method is quit popular,

particularly in case of big inquiries. A typical questionnaire consists of a

number of questions arranged and printed in definite order on a form or a

set of forms. The questionnaire is given to the respondents who are

expected to read and understand the questions and write the response in

the given space meant for the purpose in the questionnaire.

Page 61: Analysis of Marketing Strategy of Mineral Water Industry

SECONDARY SOURCE OF DATA COLLECTION

Secondary Data involved in my research were the information that I

collected through the various broachers and pamphlets of the company

which were provided to me during the analysis.

RESEARCH DESIGN :

The research design which has been used in the project report is

descriptive in nature.

SAMPLE DESIGN:

The sample design which has been use in this project report is simple

random sampling.

SAMPLING UNIT :

A decision has to be taken concerning a sample unit before selecting the

number of samples. It may be geographical as well as individual. Here all

NCR region has been taken as a geographical unit and retailers as an

individual unit.

SIZE OF SAMPLE:

This refers the number of items (Outlets) to be selected from the finite

universe to constitute a sample size. The survey was conducted of 200

outlets.

Page 62: Analysis of Marketing Strategy of Mineral Water Industry

RESULTAND

DISCUSSION

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FINDING

After the tabulation and analysis of 50 respondents from Ghaziabad city:-

He following findings are obtained:

1. According to market share figure, Bisleri is the leading brand which

55.45% market share. While Kinley 23.33%, Kingfisher 3.97%, Aquafina

13.95% and others 6.30%.

Page 64: Analysis of Marketing Strategy of Mineral Water Industry

2. 80% retailers prefer to sell Bisleri brand because of demand, brand

and profit margin.

Page 65: Analysis of Marketing Strategy of Mineral Water Industry

3. Bisleri is the most selling brand in the specific region it is at 45%

selling among the competitors.

4. Retailers those are selling Bisleri brand of bottle water is 50%.

5. The company has recently launched “Bada Bisleri, Same Price ” at

Rs. 10/- for 1.2 Ltrs means 2% extra.

6. There is discrimination in the prices of distributor or the prices at

which retailers directly purchase from the market.

7. Most of the customers first ask for Bisleri bottle water just because of

its Generic name not because of brand loyalty.

Page 66: Analysis of Marketing Strategy of Mineral Water Industry

SWOT ANALYSIS

STRENGTHS

Old and famous brand name

Better packaging

Effective distribution network

Famous as pure & safe among consumer

Good product mix

Frequent quality checking

Much used by corporate world

Better management

Give regular follow up to distributor

Indian image

Better sales force

Sponsoring various cultural program

Better visibility

Good intensives to dealer

Page 67: Analysis of Marketing Strategy of Mineral Water Industry

WEAKNESS-:WEAKNESS-:

one liter packs which accounted for 50 per cent of the company’s

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

have practically disappeared from the shelves, have come down from

20 per cent to five per cent. The growth has come from the 500 ml

and the five-liter category, which account for 15 per cent and 36 per

cent of turnover respectively.

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

But beginning last year, it has been selling its one- liter bottles at

Rs.15 each. Aqua Minerals attributes the Price slashing to retailer

margins being on the higher side earlier.

The competitive Rs.15 price tag has been working well for the brand.

In what could be a masterstroke, Aqua Minerals is testing out the

possibility of mass marketing 20-litre Bisleri bottles for an MRP of

Rs.40. That works out to Rs.2 a liter. If the logistics, manufacturing

and distribution do fall in place, it could change the face of the

purified water market for keeps.

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OPPORTUNITIESOPPORTUNITIES

So far, Chauhan has not used the franchising route very aggressively

unlike Parle Agro’s Bailley which has grown very fast

using this route. He has around six franchisees in Mumbai, Delhi,

Chennai, Bangalore, Goa and Rajasthan. “We shunned this route so

far because in most areas where we had no presence, it was

imperative that we did it ourselves. Now for further expansion we can

afford to use the franchisee route.”

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THREATSTHREATS

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 he ensure purity?”

Strategy to counter threats and others?

We subject the bottles to chlorine washes, hot water washes and

ozone washes before we refill the bottles.

The company is betting on the home segment. 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. The company has

so far appointed 180 such dealers. 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 or atta.

Page 70: Analysis of Marketing Strategy of Mineral Water Industry

CONCLUSI

ON

Page 71: Analysis of Marketing Strategy of Mineral Water Industry

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 TamilNadu. Similar brands with a regional presence are Siruvani,

and Koday. Thus, new players will be looking for a distinct

positioning. One such brand is Pepsi’s 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 Rs.5 crore

in the new Aquafina water project in Maharashtra, which is the only

Aquafina plant outside the US.

According to Deepak Jolly, executive vice president, corporate

communications, Pepsi Foods Ltd. “Aquafina will be helped by Pepsi’s

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 traveling.

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 — the battle is the tougher arena of brand

Page 72: Analysis of Marketing Strategy of Mineral Water Industry

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.

Strategy which the company could adopt, are as follows:

1.The soft target

Selling bottled water requires constantly expanding the market. The

company should also target the market for soft drinks. All the soft

drinks addresses three issues: fun, thirst and refreshment followed by

status to some degree. The thirst and the status value of the mineral

water are 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.

Page 73: Analysis of Marketing Strategy of Mineral Water Industry

RECOMMEND

ATIONS

Page 74: Analysis of Marketing Strategy of Mineral Water Industry

RECOMMENDATIONS

Advertisement to build the brand image that will provide the

required ground to establish the authenticity to the product.

POP (Point of Purchase) displaying the cost of water at Rs. 2 per

liter, as the perception of the people is that mineral water cost

Rs. 10 per half Lt.

Awareness programs at health club, schools & Nursing homes.

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

product.

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.

The company should organize camps at various part of the city

also road show to bring about the difference between mineral

water and filter/purified water and to tell the people how mineral

water is more hygienic than filtered water/purified water.

To aware people the cost benefit analysis to the customer of how

the mineral water would cot less and benefit more, because

people using purifier system cost too much.

Page 75: Analysis of Marketing Strategy of Mineral Water Industry

LIMITATIO

NS

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LIMITATIONS

A small segment of the market has been covered only, so the conclusion

cannot be generalized.

The data collected cannot be free from errors, since some of the

respondents failed to give correct information.

Study accuracy totally based upon the respondents response.

Stipulated short span of time for survey.

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BIBLIOGRA

PHY

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BIBLIOGRAPHY

Marketing Management Philip Kotlar

Annual Report, Bisleri 2001

Business Magazines – India Today Annual Addition 2004

Business Today, Business World August

2004

Websites

www.bisleri.com

www.discovery.com

www.google.com

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ANNEXURE

S

Page 82: Analysis of Marketing Strategy of Mineral Water Industry
Page 83: Analysis of Marketing Strategy of Mineral Water Industry

QUESTIONNAIRE

1. Which brand of bottle water do you sale more?

a. Kingfisher

b. Kinlery

c. Aquafina

d. Bisleri

e. Others

2. What is your monthly sale?

________________________________________________

3. Which brand of bottle water do you prefer to sell more?

________________________________________________

4. Why do you prefer to sell more this particular brand?

a. Easily available

b. More demand

c. Quality Factor

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5. Generally which brand of bottle water customer demand?

________________________________________________

6. Frequency of services no. of days] between two service of the

company/WD in the area / market?

Bisleri Aquafina Kingfisher Kinley Others

Q. 7 When you talk of drinks, what brands come to your mind?

____________________________________________________

Q. 8 Whether the customers are already aware about this product?

____________________________________________________

Q. 9 Which are the brands available in your shop?

____________________________________________________

Q. 10 Number of buyers who buys this brand per day?

a) 0-5 b) 5-10 d) 10-15 e) Above 15

Q.11 Are you satisfied with the current margins on this brand?

Yes / NO

____________________________________________________

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Q.12 Whether you are getting any complaints from customers, specify?

____________________________________________________

Q. 13 To which brand and reason?

Brand:- _____________________________________Reason:- _____________________________________