Bisleri Tonic Water

8/4/2019 Bisleri Tonic Water

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Bisleri H2Q-

Mareketing Strategy

B

P r e s e n t e d B y :

T e j a s B a l d e v ( 4 0 5 )

H i t e s h D u d a n i ( 4 0 7 )

A a s h u t o s h G u p t a ( 4 1 0 )

N a t a s h a J i l l a ( 4 1 3 )

H a n u M i s h r a ( 5 1 3 )

R a h u l S r i d h a r ( 5 2 4 )

Marketing Management

Project report



Table of Contents

1. Packaging Design………………………………………………………………………………………… ..…1

2. Executive Summary………………………………………………………………………………………….2

3. Product Description………………………………………………………………………………………… 44. Analysis of Bisleri………………………………………………………………………………………… .…4

5. SWOT Analysis…………………………………………………………………………………………………5

6. PESTLE Analysis…………………………………………………………………………………………… .…6

7. Market Segmentation…………………………………………………………………………………… ..7

8. Competitors………………………………………………………………………………………………….… 7

9. Positioning………………………………………………………………………………………………………8

10. Market Strategies for Bilseri H2Q………………………………………………………………….…8

11. 4 P marketing Mix……………………………………………………………………………………………9

12. Projected P&L Statement……………………………………………………………………………….11

13. Breakeven Analysis and Forecasting………………………………………………………………12



1. Packaging design



2. Executive Summary

This objective of this report is to give a briefing about the marketing plan that has to be adopted

for the promotion and sales of a new product variant of Bisleri. Bisleri is all set to enter a new

market with Quinine based carbonated tonic water namedBISLERI H2Q.

The product is to be

positioned on health by stating clearly the advantages of quinine as a preventive measure against

malaria, curing nocturnal cramps and aiding digestion. This product is to be launched in two

flavours namely ‘Lemon’ and ‘Peach’. This report describes the activities and the promotional

campaigns that will be undertaken to establish this product in the beverage market. We will be

promoting this product through various advertisement campaigns on media like television and

radio and also through public display using posters. The target segments are identified and

distinguished using a research methodological approach wherein by means of a survey form we

found out the preferences of the masses with respect to the concept of the product and the

flavours in which it is being launched. The flavours were finalised only on the basis of the

information gathered using this survey form. We will be promoting this product in upper and

upper middle class of the society. It is also directed more towards the young generation. The

packaging and the promotional campaigns have also been specifically designed keeping these

factors in mind. The idea is to initially keep the product exclusive, and it is intended to be a niche

product. The placement of the product will be typically across all metros in retail stores as well as

college canteens and nearby locations. Also, special attention will be given in order to place the

product along the tourism chain and in particular those involving foreign tourists. This is because

the concept of this product is widely accepted in the west.



3. Product Description

Bisleri H2q is a quinine based carbonated tonic water and is being launched in two flavors namely

Lemon and Peach. The choice of these flavours is based on a survey conducted across various age

groups in Mumbai. Quinine, which forms the USP ingredient of the product has many medicinal

benefits including a preventive measure against malaria, relief from nocturnal cramps and alsoaids digestion. The quinine is mixed with carbonated water in appropriate proportions as specified

by the FDA of India. The flavours are added since quinine increases the bitterness of the water. It’s

is packaged in two SKU’s each of both flavours. The product specifications are mentioned below

o Quinine proportion 83mg/litre

o SKU’s 200ml and 500 ml

o Flavours- Lemon and Peach

o Packaging- Plastic bottles

4. Analysis of Bisleri

Mineral Water under the name 'Bisleri' was first introduced in Mumbai in glass bottles in two varieties -

bubbly & still in 1965 by Bisleri Ltd., a company of Italian origin. This company was started by Signor Felice

Bisleri who first brought the idea of selling bottled water in India. It currently comes under Parle agro Foods

and has a commanding market share of 60% in the packaged water segment.

Segmentation & Targeting

Bisleri has a multi-pack and a multi-price strategy. It offers 7 packaging options; a 250-ml cup and bottles in

500 ml, 1-litre, 2-litre, 5-litre, 12-litre and 20-litre packs.

Bisleri has targeted the household segment with the large pack sizes of 20 & 25 litres

Bisleri is priced to benefit volume purchase. The 1-litre bottle is priced at Rs 12, the 2-litre bottle is priced at

Rs 20 (Rs 10 per litre), the 5-litre pack at Rs 30 (Rs 6 per litre) and the 20-litre pack at 70 (Rs 3.50 per litre).

Positioning: From "Pure and Safe" to "Play Safe"

Sales Force Management

The distributor employs their own salesmen. The salesmen are divided among the territories defined by the

distributor. The distributor has 5 routes. Out of the 5 routes, one is the main route and the other four are

sub routes. The salesmen are divided amongst these routes

Flow of Cash and Credit:

The company doesn’t give any credit schemes to the Distributors. The Distributor either have to make

Advance Payment or else the day on which company delivers stock to them the company people collects

the payment. But the distributor offers credit of a maximum period of 3 days to the retailers.



Critical Analysis:

After discussion with the Distributors it came out that the Distributors are not happy with the company’s

policy. Many distributors have left the distributorship of Bisleri due to this. Since the Distributors need to

bear the transportation cost of delivering the goods to the retailers, only big Distributors who have other

distributorship also are having the Bisleri distributorship

It seems that the market of Bisleri is entirely PULL driven. There is no effort from the company of any form

of PUSH to sell its product. This unique advantage of Bisleri is due to the fact that it was the earliest entrant

into this packaged drinking water segment so has almost converted its brand name as a generic name for

the product supported by its aggressive advertising. But the Distributors feel in terms of quality Aquafina

and Kinley are far better than Bisleri.

5. SWOT ANALYSYIS

SWOT

Quality standard:-

Trust for brand:-

Large range of products:-

Marketing:-

Distribution system

Bulk – segment is useful for households

Growing popularity:-

The break away seal:-

Strong distribution channel of the

other manufacturers like Coke

Illegal manufacturers

Water filter manufacturers

Market entry is very easy

Market eyes by foreign majors

Fast growing field

Bisleri can utilise its

distribution chain

Expansion in Europe

Launch of premium

pack

Change of image

Increase in

production Introduction of

variants in the

market

Method adopted for distribution

Reuse of bottle by local sellers and

illegal manufacturers

Faults in production

Pressure by government authority

Bisleri has become a generic brand



• Government failure to provide safe drinking water• Laws encouraging ground water exploration

Political

• The bottled water segment is growing at 40% in India.

• The Indian economy is growing at around 9%

Economical

• Bisleri has an advance purification system in place which will be taken advantage of.

• The break off seal is most secure in the packaging offered by Bisleri, implyingabsolute guarantee of purity.

Social

• The concept of tonic water will be accepted across all classes of the society becauseof its preventive measures against malaria.

• Health consciousness is now becoming a huge market opportunity and Bisleri H2Q

clearly encourages the masses to do a bit for a very important health issue- Malaria• Since the product will be available in different flavours it is expected to be

enthusiastically accepted by the young generation typically in the age groups of 18-25.

Technological

• Like any other industry bottled water industry also affects the environment

• However using the right kind of materials forr packaging and ensuring quality

standards could help in efficently handling the environment parameters.• Recycling of the bottles is done on a braoder scale nowadays.

Environmetal

• Quinine proportions are closely monitored by FDA and can lead to seriousconsequences in case any misproption occurs.

• the government is also setting up more stringent laws to curb the rampant use of plastic in the country

Legal

6. PESTLE Analysis



• Lifestyle: Targetconsumers are theupper middle class andthe high class society .

• Personality: Healthconscious people welleducated class andYoung generation.

• Occasions: regular.• Benefits: health

• User status: uppermiddle class and higherclass.

• Usage rate: light tomoderate.

• Age: in the range of 16

to 40 yrs.• Education: well

educated people.

• Social class: uppermiddle class and higherclass.

•Country : India

•Cities: Mumbai, Pune,Delhi , Calcutta ,Chennai ,Bangalore , Hyderabad etc.Cities with high standard of living.

•Regions / place: Airports,hotels, airline industry, Co-corporate offices, gyms,clubs, railways, railwaystations and hospitals.

7. Market Segmentation

8. Our competitors

Direct Competitors Indirect Competitors

Catch

Schwepps

JKS foods and flavours

Q-tonic water

Aerated drinks

Canned and un-canned fruit juices.

Energy drinks like Gatorade



9. Positioning

Positioning by attributes

Quinine and flavour are the two main attributes that the product is focused on. Both are

directed towards attracting high end health conscious users. Positioning by benefits

Benefits of quinine are multirole including prevention against malaria, reduction of

nocturnal cramps and aiding digestion. These medicinal benefits are to be positioned

focusing on health issues.

Positioning by price

The price of the product will be initially anywhere between Rs 15 and Rs 30. The idea is to

keep the product exclusive initially and is not meant for everyone.

Positioning by users

The users are typically the upper middle class and the high class of the society since they

are more health conscious and can be targeted using the USP of the product

10. Marketing strategy for Tonic water

Market dominance: Bisleri Tonic Water H2Q would be niche product in the market considering its

market share. Tonic water in the introduction stage would be solely based to cater the upper class,

and upper middle class.

Porter’s strategy: We would be aiming at product differentiation. Bisleri’s H2Q is uniquely

positioned as a health product and target audience would clearly make out a difference in the

product from the current packaged water products

Innovation strategy: In India being the sole producer as other tonic water products are imported,

Bisleri’s can prove to be a pioneer considering the fact that its distribution and production would

be at the same place

Aggressiveness strategy: Bisleri is known for its aggressive marketing and should concentrate on

building up on the product and should be investing a lot on promotions and advertising.

Warfare based strategy: Bisleri’s H2Q would be following a defensive strategy, and continue to

enjoy the first mover advantage. Along with this it should also be vigilant and forecast other

variants in the same area before other companies try and introduce a competitive product



Line stretching strategy: H2Q targets at a target audience who is ready to spend and along with

health benefits also aims at proving a lifestyle oriented drink. Once the product gains a good

amount of hold in the market the price can be reduced.

11. 4P marketing Mix

Product:

H2Q is a variant of packaged drinking water, that contains quinine and contains added

natural flavours. Positioning of the product is mainly on health along with it H2Q has been

strategically positioned as a high end packaged water mainly for the consumption of higher

and higher middle class. Care has been taken to make it an exclusive product and not to be

used by anyone and everyone. Highlights of the products are as follows

Peach and lemon flavour to be introduced initially

SKU’s of 200ml and 500ml to be introduced in two flavours being 2*2=4

(Product Line)

Positioned as a prime ingredient of cocktails

83 mg of quinine content per litre

The highest quality quinine comes from chinchona succirubra from Assam

Packaging is the main concern for this product. An attractive cover is designed exclusively

for H2Q, smart shape of the bottle, and attractive colours are used. Serving different needs

and by tracking the consumer behaviour bisleri’s H2Q would also be available in a pack of 4

at a 10% discount.

Price:

The market is not price sensitive as fast as tonic water is concerned. With hardly any

intervention of existing players and Bisleri’s strong network would make sure that the price

kept is feasible. 200ml of Bottle is priced at Rs15/- and 500ml is priced at Rs30/-.

The price is deliberately kept higher to maintain the exclusivity of the product in initial

stages and is strategically priced a above 500ml bottle of cold drink.

Place:

Bisleri is well known for its extensive distribution network. They even maintain the

punctuality and timeliness as a ritual. It is often said that you can set your watch by the

Bisleri Logistics truck that leaves in the morning. The plant directly provides to institutional

organizations as well as distributors and distributors in turn sell it to retailers.



For maintaining the channel motivation the distributor would be given 5% margin and the

retailer would be given 25%. All the distributors making sales above 40 Lakhs per annum

only in the tonic water section would be given a free trip to one destination in India.

Bisleri would try to reduce the distributorship in the areas of reach to increase its market

share and only in areas like Alibaug which are out of reach from the main city,

distributorship would be implemented. We will be mainly concentrating on Tier 1 and tier 2 cities.

Promotion:

Being a question mark on BCG matrix, Bisleri’s H2Q would require extensive advertising

and promotions. Large amount of free samples to be introduced in the beginning and

launch of the product. Tapping the high end consumers and collaborating with airlines,

hotels, corporate, supermarkets and malls. Bisleri already has provided the retailers with the refrigerators and its widespread network

can be very useful for promotional purposes

Bisleri to continue with its brand advertising and there is no requirement of brand

ambassador, the tag line would be “Its Quinine, Its Unique”

Promotions would be very aggressive as we are aiming to capture a share of aerated drinks

also. Social Networking websites, prime slots in TV shows (pertaining to youth), official

sponsors of domestic cricket events are some of the major advertisement tools.



12. Projected P&L

Particulars year 1 year 2 year 3 year 4 year 5

Market Share(Target)(In %) 0.2 0.5 1 1.5 2

Sales 10.08 26.08 56.37 91.26 131

Total Income 10.08 26.08 56.37 91.26 131

Raw Material Consumed 1.68 4.41 8.452 12.67 16.95

Power and Fuel Cost 0.8046 0.96 1.248 1.742 3.5

Employee Cost 0.643 1.84 3.51 5.694 8.17

Other Manufacturing Expenses 0.429 1.08 2.34 3.79 5.44

Selling and Admin Expenses 2.62 6.64 14.36 23.25 33.37

Miscellaneous Expenses 0.643 1.62 3.51 5.694 8.17

Maintenance 0.214 0.542 1.17 1.898 2.72

Total Expenses 7.045 17.092 34.59 54.738 78.32

Operating Profit 3.035 8.988 21.78 36.522 52.68

Depreciation 0.07 0.07 0.07 0.07 0.07

PBIT 2.965 8.918 21.71 36.452 52.61

Interest nil nil Nil nil nil

PBT 2.965 8.918 21.71 36.452 52.61

Tax 0.97845 2.94294 7.1643 12.02916 17.3613

Profit After Tax 1.98655 5.97506 14.5457 24.42284 35.2487

Remark value in Crore



13. Breakeven analysis and Forecasting

The road ahead

The segment of aerated drinking water has a long way to go as far as the Indian

Subcontinent is concerned. With the advancement in living standards Bisleri’s H2Q needs

to make a unique stand in the market and is also planning to make its foothold in major

global cities in the neighbouring countries like Dhaka, Lahore, Colombo, Kathmandu etc.

With the internet penetration increasing day by day, a distribution partner would be

selected based upon the bids, which would be solely responsible for internet sales. Major

SKU tapped would be 4 pack bottles. It would be sales based incentive program Currently it has been following a defensive strategy, but if other international brands enter

India in the segment of aerated water, Bisleri can go for Offensive marketing schemes

Currently the market size of packaged drinking is increasing at 40%, but aerated drink

market is increasing only at 7-8%. By the end of 5 years Bisleri’s H2Q forecasts to make

sales of approximately 130 crores.

Introduction of new flavours is certainly a future plan of action once the product gets

reasonable amount of foothold in the market.

Keeping in mind the environmental factors Bisleri also plans to make an agreement with

rag pickers to sell the plastic bottles back directly to Bisleri which in turn can be recycled.

Bisleri Tonic Water

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