Final Report on Bisleri-By S ARYAN

8/12/2019 Final Report on Bisleri-By S ARYAN

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INTRODUCTION

Consumer behaviour is the study of when, why, how, and where people do or do not buy

product.

It blends elements frompsychology, sociology, socialanthropologyand economics. It

attempts to understand the buyer decision making process, both individually and in

groups. It studies characteristics of individual consumers such as demographicsand

behavioural variables in an attempt to understand people's wants. It also tries to assess

influences on the consumerfrom groups such as family, friends, reference groups, and

society in general.

Customer behaviour study is based on consumer buying behaviour, with the customer

playing the three distinct roles of user, payer and buyer.Relationship marketingis an

influential asset for customer behaviour analysis as it has a keen interest in the re-

discovery of the true meaning of marketing through the re-affirmation of the importance

of the customer or buyer. A greater importance is also placed on consumer retention,

customer relationship management, personalisation, customisation and one-to-one

marketing. ocial functions can be categori!ed into social choice and welfare functions.

Consumer products such as shampoo or tomato sauce are designed so that they appeal

to consumers, encouraging them to buy those products. "o that end, the industrial R#$

organisation tends to focus on understanding and manipulating product attributes.

%owever, buying behaviour is not only a function of the product& it is also, and in some

cases perhaps more so, a function of the consumer, his social environment of other

consumers, the competing products in the marketplace, and the brand marketing strategy.

In order to design the best product, it is necessary to understand not ust the physics and

chemistry of the product, but also the psychology of consumers and the sociology of

consumer groups or networks.

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http://en.wikipedia.org/wiki/Psychologyhttp://en.wikipedia.org/wiki/Sociologyhttp://en.wikipedia.org/wiki/Social_Anthropologyhttp://en.wikipedia.org/wiki/Anthropologyhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Demographichttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Relationship_marketinghttp://en.wikipedia.org/wiki/Psychologyhttp://en.wikipedia.org/wiki/Sociologyhttp://en.wikipedia.org/wiki/Social_Anthropologyhttp://en.wikipedia.org/wiki/Anthropologyhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Demographichttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Relationship_marketing


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"he goal of this study is to have a model of the marketplace that describes certain aspects

of consumer buying behaviour. "here are two main parts to such a model&

( A description of a population of )consumers*, who each choose +buy repeatedly one

of a number of competing )brands* +we can ignore the difference between product and

brand for these purposes. "his subdivides into a description of the behavior of a single

consumer +)psychology*, and of the collective behaviour of a group, in other words of

the interactions between consumers +)sociology*.

( A description of )brand management*, i.e. the strategy of brand managers when

changing the attributes of a brand such as price or uality in response to events in the

marketplace.

"raditional marketing models tend to focus on the second element, and treat the large

number of consumers in a macroscopic, averaged way. Alternatively, one can look at

individual consumers and their buying behaviour, and try to derive observable large scale

effects, like changes in market share. Ideally one would like to connect the )microscopic*

consumer viewpoint to the )macroscopic* viewpoint of the brand manager.

ater is the most important liuid in the world. ithout water, there would be no life, at

least not the way we know it. In today's living condition, the need for /ure $rinking

ater is becoming the issue for the common 0an.

1ighty percent of the human metabolism consists of water. "his is the reason why 234

of human diseases are water borne. "here are 5 types of water impurities, which are root

cause of water borne diseases.

6. 0icrobiological-7acteria 8 virus.9. $issolved impurities - chemical.5. Imbalance of 0ineral Content.

"here are rapid changes that are taking place in our environment since long and the air

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and the water pollution is on an increase. "he main source of drinking water is river and

downstream which also have not been able to escape the pollution. hen 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. "he mineral balance is also

not maintained.

62:3's witnessed more changes by a tap attachment wherein Iodine resin is used to filter

the water. It deactivates microbiological impurities to an e;tent but has side effects due

to iodine and it does not take care of dissolved impurities mineral balance.


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company, which had any measure of success in entering homes with ero-7. 7ut clean

drinking water returned on the national agenda a little later.

Around 62:2, drinking water became an issue again.

BAround early 6223s,"ime did a story on India as a key emerging market and that was

the trigger for all the players eyeing this market

Factors in the models

"he main features which were included in the various models are&

Loyalty


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Sociology

ociology in this conte;t is concerned with how one person*s buying is inFuenced by

that of others. ith some sort of tendency of people to buy the same brands, there is a

possibility of )lock-in*, with one product dominating the market, even if its competitors

have more or less identical )ualities* +including price. "his effect and its opposite,

people wanting to be different, are easily modelled by E$1 and discrete-time models.

Psychology

/sychology covers what, and how, aspects of the actual items on the shelves inFuence

people to make their choices, possibly buying something different from previously.

+Advertising might be subsumed into these characteristics but could also possibly be

considered as part of the sociological inFuences, especially if the advertising takes the

form of a well known Hgure endorsing a product. 0ore speciHcally, the following four

properties have been identiHed by =nilever as being important and their inFuences were

included in one or more models&

6. 0inimise anticipated regret. "his refers to how ust two products compare with each

other as regards different ualities, which can include price +or )affordability* 68price.

A consumer might udge one item to be superior to another in all respects. "he Hrst is

then a safe choice for the consumer.

9. Attribute change. "he introduction of a new product onto the market can change the

way consumers, or at least some of them, view established brands. "his might be by

drawing attention to some uality which was not previously much regarded, or it might

make people give diff

erent weightings to the +established ualities when making their

decisions. "he former can be considered to be a special case of the latter.

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5. Eutlier avoidance. hen a number of products are in many aspects uite similar, there

can be a tendency for people to avoid )strange* ones, i.e. others which are substantially

diff

erent from the maority in price or some other respect. Items near the average can be

favoured.

J. $ecision process change. A straight choice between two items might be relatively

easyD they can be compared according to price, si!e etc. and a decision made.

ith three or more, comparisons might be made between two things at a time, one could

be eliminated and then the winner contrasted with a third.

Possible predicted effects

"he models which were looked at during the course of the tudy Kroup were intended

to shed light on&

6. %ow a )decoy* product might inFuence the market. "he appearance of a third product

might signiHcantly change the market shares of two others, while getting minimal sales

itself. "his effect is one of the most robust biases in consumer choice, and has been

observed in product classes from chocolate bars to "> sets to beer. "he decoy e ffect

illustrates the importance of consumer psychology, of understanding how consumers

perceive products, and how consumers udge uality prior to purchasing the product.

9. "he dynamics of market shareD how sales of products can vary over time. @or e;ample,

even if two products are eual in all relevant aspects, then after a long time of consumer

activity it might be that each product takes L34 market share +preserving the symmetry,

or one product takes nearly 6334 market share +breaking the symmetry, or that there is

no steady state, with market dominance alternating between the two brands. "he second

of these three cases is called )lock-in*, corresponding to one brand obtaining a virtual

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monopoly, which is almost impossible to break.

5. %ow a new product will fare, given its uality proHle compared with e;isting brands.

"his uestion is complementary to that of the decoy, asking what market share a new

product will gain rather than how it will affect the market shares of e;isting products.

J. )Choice overload*& when there are ust too many possible options for potential

consumers to pick from, and many will walk out of the shop without making a purchase.

"his possibility was considered only brieFy during the tudy Kroup, since the focus was

on market share and it was assumed that the types of product being modelled were

)consumer staples*, so that every consumer would make some purchase.

The models

"he main thrusts of the week*s activities were in building a handful of uite speciHc

models, into which the above psychological and sociological inFuences could be fed, and

in seeing how these aspects 7 and C.6 ? C.J should be represented. >arious types of

overall model were looked at. "he sorts which might be considered could be mainly +but

probably not e;clusively categorised according to whether they were&

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Allowing for continuous or discrete agents, this already gives 2M types of model.

Needless to say, only a few were looked at. As well as the basic types of model

mentioned above, they can e;clude or include sociological influences +making 629 types

of model, or 9:: if )drivers*, people of significantly more than average influence, are

allowed for

WT!R" WT!R !#!R$W%!R!

Water - the Beverage your Body Needs Most

hen we were kids in school, we learned that each molecule of water is made up of two

hydrogen atoms and one o;ygen atom. e also learned that it was great fun to fill up our

suirt guns with water, at least until the principal caught us. hat we really didn't learn,

however, was how much water we needed in order to be healthy human beings.

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est 1uropeans, south Asians and Oapanese live in the most densely populated regions of

the globe and worry constantly about the uality of their drinking water drawn from

rivers and lakes. 0ost is polluted and unfit for human consumption. In North America,

people never worried about water uality and safety until early 62P3*s and restaurants

always provided iced water free. ome still do. "hen came /errier, the @rench mineral

water emphasi!ing 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. 0any restaurants started serving automatically bottled

water, and charged outrageous amounts i.e Q 5.L3 for 533 ml. "hese days, a PL3 ml bottle

goes for Q 63.- in some restaurants, plus applicable ta;es and tip

0eanwhile, 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 wit!erland and the Netherlands

consume the water of the Rhine River. In these parts people drink beer, wine, bottled

water or fruit uices 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. pring water must come from a natural

springs with proven purity of contaminantsD mineral water must contain 9333 parts per

million in mineralsD and filtered tap water means ust that. 1uropeans always preferred

mineral water or eau de source +spring water since their rivers were polluted a long time

ago. Now considerable efforts are made to clean all maor 1uropean Rivers. "he Rhine

River, the "hames, the


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Kroupe$anone, a @rench conglomerate, markets 1vian, >olvic and Crystal pringsD

Nestle, a wiss food multinational with headuarters in 0ontreu; markets /errier, Nestle

/ure oss +NorwayD "ynant +IrelandD >itel, Cathledon, >olvic, +@ranceD Appolinaris

+Kermany, pa +7elgiumD Kasteiner +AustriaD an 7enedetto, an /ellegrino, Aua di

Nepi,


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O&'!CTI#! OF T%! STUD$

O&'!CTI#!S OF T%! STUD$

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"he following are the main obectives of my Research study&-

6. "o do a brand analysis of 7isleri as a brand.

9. "o conduct a market survey of 7isleri.

5. "o know the affects on 7isleri sale, profit and market share

J. "o find out the current market position of 7isleri mineral water.

L. "o know the trategies and measures adopted by 7isleri to counter the

competition by Auafina.

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INDUSTR$ PROFIL!

INDUSTR$ PROFIL!

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(CURR!NT )R*!T SC!NRIO+

A few years back, the mineral water market had been crawling at the rate of 5-J4, or

even a lower figure. Indians carried drinking water in earthen pitchers, plastic or /=@

bottles. 7ut increasing cases of typhoid and other waterborne diseases began to be

reported. In addition to this, liberali!ation happened and the mineral water industry

began to be stirred and shaken. "he market started growing an astounding rate of over

6334 per annum. "he fact that there were very few players in the market meant that their

business grew by leaps and bounds.

"he market today has grown to Rs66bn. "he organi!ed sector -- branded mineral water --

has only RsLbn of market share. "he rest is accounted for by the unorgani!ed sector,

which is dominated by small regional players.

"he market is still growing ? at a rate greater than :34 per annum.

In the branded segment, /arle*s 7isleri is the market leader with a share of more than

JL4. /arle Agro*s7ailley comes a close second with market share of 6L4. Ether maor

players in the market are Ses of Totharis, Kanga of "-eries, %imalayan, %ello, NestlU*s

/ure


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India*s largest packaged water company 7isleri International /vt.


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"he deal is e;pected to go through by $ecember this year, said Chauhan. "he company

also plans to tweak its packaging and look to give it an international appeal and compete

with biggies such as Nestle and Kroupe$anone.

"he moves, said Chauhan, are aimed at trebling 7isleri*s sales from around Rs533 crore

now, to Rs6,333crore by 9332. "o push its sales, the company is also planning to double

its distribution network from :33 distributors this year to around 6,L33 in the ne;t si;

months. Also, the company plans to double its capacity of one million bottles a day

through adding more contract packers and upgrading its bottling capacity.

0eanwhile, the company continues to rule the conventional bottled water segment. It

said that for Ectober, it registered sale of 9.MM million cases across the country against

6.P2 million cases sold in the same month last year.

Chauhan also dismissed speculation that he may sell out his water business.

%e said 7isleri was doing well and he had no plans to sell it out.

Be might have sold our carbonated brands, including "hums-=p,


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CO)PN$ PROFIL!

CO)PN$ PROFIL!

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0ineral ater under the name '7isleri' was first introduced in 0umbai in glass bottles in

two varieties - bubbly # still in 62ML by 7isleri


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multinational to bottle and distribute 7isleri soda for a time frame of five years. "he

charge of 7isleri water, however, remained with /arle. "he upsurge in the sales of 7isleri

started from this point as /arle sold off its stable of brands to Coca-Cola. "his was the

time when it started concentrating on making 7isleri a success in the domestic mineral

water market. "he reason why /arle chose to retain the 7isleri name was that /arle saw a

fairly lucrative business of mineral water in 7isleri's euity.

ince 622L 0r. Ramesh O. Chauhan has started e;panding 7isleri operations

substantially and the turnover has multiplied more than 93 times over a period of 63

years and the average growth rate has been around J34 over this period. /resently we

have : plants # 66 franchisees all over India. e have our presence covering the entire

span of India. In our future ventures we look to put up four more plants in 3M-3P. e

command a M34 market share of the organi!ed market. Everwhelming popularity of

'7isleri' # the fact that we pioneered bottled water in India, has made us synonymous to

0ineral water # a household name. hen you think of bottled water, you think 7isleri.

7isleri value customers # therefore have developed : uniue pack si!es to suit the need

of every individual. e are present in 9L3ml cups, 9L3ml bottles, L33ml, 6


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Rigorous R#$ # stringent uality controls has made us a market leader in the bottled

water segment. trict hygiene conditions are maintained in all plants.

In endeavour to maintain strict uality controls each unit purchases performs # caps

only from approved vendors. e produce our own bottles in-house. e have recently

procured the latest world class state of the art machineries that puts us at par with

International standards. "his has not only helped us improve packaging uality but has

also reduced raw material wastage # doubled production capacity. Sou can be rest

assured that you are drinking safe # pure water when you consume 7isleri. 7isleri is free

of impurities # 6334 safe. 1noy the weet taste of /urity.

%istory o, &ISL!RI

"he origin of 7I


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pure water. 1;cerpts from a conversation with /rerna Raturi&

hen we bought 7isleri mineral water from the Italian company, @elice 7isleri, in 62M2

-- the company had been unable to market bottled water and wanted to e;it the market --

we too did not see any potential for the product at that time.

As a soft drinks company, we had "hums =p, Kold pot and


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not in bottling soft drinks. "hat's when I started to concentrate on developing the 7isleri

water brand.

"here was a clear opportunity of building a market for bottled water. "he uality of water

available in the country was bad. It was similar to what 1urope faced before orld ar

II. "he uality of water in 1urope was e;tremely poor, which created the bottled water

industry there. In India, too, not only was water scarce, whatever was available was of

bad uality.

Initially, though bottled water was something only foreigners and non-resident Indians

consumed, we still had to increase the distribution, which meant the dealer margins

reduced. And because of limited sales, the dealer margin had to be kept high to

compensate low sales. Now we had to push sales.

7ut to reach out to the masses, we had to make the category more affordable. "he

introduction of a comfortable-to-carry L33-ml bottle for ust Rs L in 622L not only

answered that need, but also meant doing away with carrying the e;cess water or

throwing it away if you were to buy a one-litre bottle.

"he idea was a success and gave the company a growth of J33 per cent. e also

introduced the 6.9 litre bottle in 9333, which was aimed at those who share their water.

"his also gave us the advantage of higher margins that a crate +69 bottles generated.

ith other brands oining the fray, things were hotting up -- the bottled-water market was

estimated at Rs 533 crore +Rs 5 billion and was growing at L3 per cent a year. 7isleri

had captured J3 per cent of the market.

It was time to move to the ne;t level -- the bulk segment. everal commercial

establishments had no access to piped water. e tapped into this segment by introducing

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the 69-litre container, followed by the 93-litre can. "he bulk segment also helped bring

down the price per litre from Rs 63-69 a litre to about Rs 5 a litre.

At present, the bulk segment constitutes M3 to P3 per cent of our sales and we intend to

increase it to :3 per cent in the ne;t two years. ith water scarcity in several cities, even

households are demanding bottled water now.

"he home pack was made more user-friendly by introducing pouring spouts and ars with

dispensers. At the same time, we were constantly looking for new ways to tap the

market. e noticed that during wedding receptions, the older guests +above L3 years of

age generally stayed away from ice cream, soft drinks and so on.

%ence, introduced free sampling of 7isleri at the tables where the elderly guests would

sit. oon customers were ordering bottled water on special occasions. Currently, the

consumption of bottled water is far in e;cess of soft drinks on such occasions.

"he other maor challenge was distribution. I still have the mindset of a soft drink seller.

oft drink sales are in glass bottles and the distribution model is built around picking up

empty bottles and getting them back to the factory.

"hat's not the case with the retail bottled water packs +below 9 litre. 7ut a product that's

not available where it's needed, is useless.

"he number of outlets where 7isleri is available has increased from L3,333 in 622L to

9,33,333 at present. 7ut that is not enough -- we need to keep looking for different

avenues. "ake stationery shops and chemists, for instance. "hey don't keep soft drinks

but sell 7isleri. "hat is the kind of e;clusivity we look for to get ahead of the distribution

network that soft drink companies talk of.

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The 'o.rney o, &isleri

/010& 7uys 7isleri bottled water from an Italian company, @elice7isleri. It was bottled in

glass bottles then.

!arly2/034s& hifts to />C bottles. ales surge

)id2/034s& witches to /1" bottles, which meant more transparency and life for water.

/005& ells carbonated drink brands like "hums =p, Kold pot and


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to design the campaign keeping the youth in mind. "he opinion leaders would further

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

"his is e;actly what 7isleri is doing. 7isleri has started an advertisement campaign

stressing the point of purity and flaunting the patent right the company has over the

breakaway seal. "he company has tried to put the message across louder, by using the ad

campaign that catches the eye of everyone, specially the youth.

CONT!NT OF T%! C)PI9N8

7isleri that was looking for a differentiator decided to make the breakaway seal the

symbol of purity. "he tamper-proof seal was developed, around which the

communication was woven. "he campaign stresses the safety provided by the breakaway

seal by illustrating the ease with which conventionally sealed bottles can be refilled and

recycled.

"he obective 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. "hat is, 7isleri is

the only one that guarantees purity and keeps you safe.

To concl.de8

@ind that new advertisement campaign of 7isleri is eye catching. "his 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 e;panding bottling capacities and an ad budget

that*s risen si;-fold over last year, if 7isleri wants to penetrate every possible segment of

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In 9333, some giant brands like /epsi and coca-cola entered the mineral water industry

with a big bang. 7isleri now had a big threat of maintaining its market cap. hile Coca-

cola introducing its brand )Tinley* as a health care product, /epsi proected )Auafina* as

something as pure as )Sour own body*. /epsi targeted the young generation and

introduced Auafina as a fancy product to carry.

"he ad campaign of Auafina emphasi!ed as )P34 of your body is water* and thus give

your body the purest water. "he ad showed young vibrant models and created the

atmosphere of youthfulness. ater, /epsi claimed, was no longer a simple beverage, but

was something highly fashionable. "hey complimented it by giving their bottles an

attractive look. "his soon caught the eye of the consumer. All these factors made /epsi

the biggest upcoming competitor of 7isleri +whereas Tinley lagged behind the race,

showing a doctor advising a family to take Tinley for pure water ? not a very attractive

ad campaign.

7isleri, to counter-attack the new )@eel-Soung* fever had to even bolder steps. "hey first

changed their base line from )/ure and afe* to )/lay afe*. "hey tried a brand new ad

campaign to catch the fancy of consumer. "he new ad showed a young romantic couple

on a marooned island, when the girl seductively attracts the guy and he follows her in

trance. "he moment he gets hold of her, she whispers something in his ears. "he ne;t few

shots show the guy looking for something in fren!yXcan not find itX.rushes towards

the chemist*s shopX.buys )something* +keeping the audience in suspenseXor rather

implicitly pointing for )XX*. "he girl opens it andX./[email protected] out a bottle of

7isleri and uenches her thirst. Caption& B/lay afe. "his campaign was to catch the

attention of youth and a new Indian society which is supposed to be )not-so-prudish*.

"hus 7isleri has taken a very bold step. "he ".>. ads have been complimented by print

ads also. "he company has to focus on the marketing management of the product. In

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light of the challenge in front of the company and its current strengths and position, we

have incorporated the marketing mi; to counter the marketing strategies of the

competitors by developing its own marketing.

:UFIN D#!RTIS!)!NTS ND &ISL!RI

A drop-dead gorgeous body fle;es its muscles on the screen. "his starkly arresting black

and white image is then splashed with water. A voice-over informs you that P3 per cent

of your body is water. hy not give it the purestX. Auafina 7ottled water from /epsi.

"his kind of advertisement campaign used by the competitors is giving the company a

tough time. "he competitor, /epsi, is utili!ing the brand image built by it and is again

targeting the BKeneration Y maintaining the company image. It*s an unusual ad for this

category. "ill 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 7isleri.

7ut /epsi chose to unk this approach and it could well afford to. 7isleri, after all, had

already done most of the hard work needed to build the bottled water category. hat

/epsi needed was to establish its brand in this crowded, fragmented market. Eur task was

made easier because was made easier because 7isleri had concentrated on educating the

consumer, instead of building its own brand values,W says RohitEhri, vice president and

client services director, %industan "hompson Associates


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how we need to continuously replenish it.

hile the thinking was clear that the imagery had to be built in and around purity, %"A

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. W7ut 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,W says Ehri.

o %"A adopted a minimalist approach and created a film with little clutter and no props,

which tried to capture the emotion of Wfeeling good about yourself'. hile the film and

the imagery are completely the work of %" A, the strategic thinking comes from the

0other Company in the =.

Auafina, in fact, is the largest-selling bottled water brand in the = with a 69 per cent

market share, and India is the first country outside of the = where Auafina is being

bottled. 1ven in the =, the ad talks of the percentage of water in our bodies, but the

handling is a little more serious. @or e;ample, the film will show an emotional moment

where someone starts crying, and then you will hear the voice-over, :L /er cent of ;our

eye are waJep. W"here is no internal law that forces us to follow the international

positioning. 7ut seeing the uality of thinking that has gone into this, we decided to stay

with this positioning, though the statements here are uite different,W e;plains Rishi.

Auafina, like all offe@ings that come from the /epsi stable, also imbibes the core values

of the mother brand. It addresses the /epsi-user base, largely the youth, and like /epsi ,it

is also being positioned as a hip brand. 7ut Auafina is a lot that /epsi is not. It is a little

bit older, mature and affluent, and not as mass based as /epsi.

/epsi's role in the communication is that it is the source of credibility for the product

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and, of course, establishes the youthfulness of the brand. 7ut Auafina is a brand in its

own right and with each piece of communication, its personality will emerge,W feels

Ehri. 7ut while Auafina is being given a distinct identity, it is also being targeted at the

/epsi consumer and is addressing their need for safe and reliable drinking water. ill

this not cannibali!e /epsi salesV Water does eat into the cola market,W agrees Rishi, Wbut

we can't build a business for /epsi based on people's lack of access to safe drinking

water.

%ow can any business be built on deprivationVW 7oth will have to co-e;ist and carve a

market out for themselves, AndZ while /epsi targets the 6:-9L year olds, Auafina also

includes the 53-somethings together with the college crowd.


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ubrotoChattopadhyay, e;ecutive vice president, marketing, /epsi, says, We have a

building blocks approach, first we have to build the brand, and then the volumes.

7isleri is tackling the situation by building the brand on the purity plank. Akin to brand

building in soft drinks, an aggressive print-and-"> 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. @or instance, all the vehicles used for supply

have been painted in bright blue, bear the 7isleri logo and sport catchy baselines like.

W/lay afeW.

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PRODUCT PROFIL!

3263

64


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PRODUCT PROFIL!

&isleri -ith added )inerals8

7isleri 0ineral ater contains minerals such as magnesium sulphate and potassium

bicarbonate which are essential minerals for healthy living. "hey not only maintain the

p% balance of the body but also help in keeping you fit and energetic at all times.

&isleri )o.ntain Water8

7isleri Natural 0ountain emanates from a natural spring, located in =ttaranchal and

%imachal nestled in the vast hivalik 0ountain ranges.


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=/assion =


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Indian society. 6 liter bottles account for 534 of the share .

"he 9 liters bottle introduced to slowly and steadily replace the conventional 6 liter

bottle. "he L liters packs, launched in $ec 6222 in Koa, now available everywhere.

DISTRI&UTION

It*s obvious that availability holds the key to the market .@or any product to be successful

the distribution system has to be really good.


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)R*!TIN9 )I>&

"he set of controllable tactical tools- product, price, promotion, and place +J /s, that the

firm blends to produce the response it wants, in the target markets.

The ?Ps

PRODUCT&

"he main product of the company is the mineral water by the name of 7isleri 0ineral

water. Ether than mineral water the company has also the soda water under its brand

name called theFizzyoda ater. "he concept of bottled mineral water was introduced in

India, first by 7isleri, and that is the reason, it has become a generic name for the mineral

water. 7isleri has become a perfect synonym of the mineral water for the Indian

consumers.

"he 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 ust water after all. "his is what the

Indian customers think of the bottled water. If we are talking about a product like

television we can think that the innovations could provide e;tra benefits derived from the

product. @or e;ample other than its core usage the product can provide for Internet

facilities using conversion

PLC!&

/lace stands for the company activities that make the product available to the target

customers. "o make the product available to the target consumers a good distribution

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network has to be there to support the good uality of the product. %ere 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 ma;imum number of places

in the country.

PRIC!S FOR FOLLOWIN9 PC*9IN9 #RINTS

+An 1conomic @actor Affecting "he 7uyer*s 7ehavior

/rice is the sum of values that consumer e;change for the benefits of having or using the

product or service. /rice is the only element in the marketing mi; that produces revenue.

All other elements represent costs.

In India, where the maority 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.

7isleri has met the e;pectations of the consumers in terms of pricing the product and also

making the product available in variations of litres, making 7isleri both convenient and

affordable. "he company is following a very aggressive pricing. Its product is available

at a very reasonable price.

6.9


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communicate with their customers, and what they communicate should not be left to

chance.

A Company*s total marketing communications program- called its /romotion 0i;

consists of specific blend of advertising, personal selling, sales promotion, and public

relations tools that the company uses to pursue its advertising and marketing obectives.

CO)P!TITION IN )R*!T

CO)P!TITION8

"he mineral water market is set to e;plode and hit the Rs.9,333-crore mark in the ne;t

couple of years. "his is drawing the big guns attention. @irst 7ritannia launched 1vian.

And recently, soft drinks giant /epsi entered the fray with Auafina. Now, Nestle too is

reportedly planning a foray. 0eanwhile, /arle Agro*s 7ailey has been growing steadily.

mall local players too are breathing down 7isleri*s neck riding on better trade margins

and intensive distribution +in their respective areas of operation.

"he competition facing 7isleri can be categori!ed into a few brand names like

/arle 7ailey

/epsi Auafina

Coca Cola Tinley

ith /arle*s 7ailey being the main competitor and second in market share in the

organi!ed market, 7isleri faces tremendous competition from the unorgani!ed sector.

:UFIN&

"he advantage for Auafina is that though there are over 533 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 brandD even 7isleri has become generic to this category.

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It does not have any emotional values attached to it. o there was no difficulty for /epsi

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. o the creative

team at %"A virtually had an empty canvas to work on. And it came up with a campaign

that did have people talking. @irst, a series of teasers, followed by a film that showed

healthy bodies and youthful people and, of course, lots of water.

Although Auafina is only available in a PL3 ml pet bottle, the pricing, at Rs.63, 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. "he date of manufacturing has been

written on the cap as well as on the bottle. "hus a person who is refilling it would have to

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

COC COL2 *INL!$

Coca-Cola oined 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 7isleri. Tinley is

targeting institutions.

Parle gro;s2 &ailley&

7ailley the brand that is owned by Ramesh Chauhan*s brother /rakashChauhan is very

popular in the southern part of India. outhern part of India accounts for 934 of the sale

of the whole water market industry. Another thing that makes the competition difficult

for the company is the price at which it*s competitor is offering the product.


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which the company would have to take care of to face the BIt*s a compliment being

generic to the category, but its not very good when consumers think any mineral water

brand is 7isleri.7isleri, a product established in India by Ramesh Chauhan, Chairman of

/arle Aua 0inerals has become a generic brand. 7isleri was the first marketed bottled

water in a totally virgin market. "he brand has become synonymous with mineral waterD

consumers accept any brand offered by the retailer when they ask for 7isleri.

o far Ramesh Chauhan*s7isleri enoys the largest market share of LM4 in the Rs6633

crores mineral water markets and is growing at the rate of 6:34 per annum. Annual sales

of 7isleri have touched RsJ33 crores. In seventies, '7isleri' was the only mineral water,

which had national presence, and the sale was to the tune of appro;imately one hundred

thousand cases valued at about Rs.M3 lacs.

)NUFCTURIN982

A uick look at 7isleri's manufacturing reach indicates that it is represented across the

country ? North accounts for 5L4 of sales for the industry, est accounts for 534, outh

934 and the 1ast 6L4.

In order to be available in untapped areas 7isleri has setup 6M plants located all over the

country - three-fourths of which are company owned. "he balance is run by franchisees.

7isleri has L plants in the North, L in the est- two of which were setup in the last year

at Ahmedabad and urat, J in the outh and 9 in the 1ast. "he company has bottling

units located in Chennai, 7angalore, Koa,

Calcutta, 0umbai, $elhi, Oaipur, =ttar /radesh, /unab, Indore and Nepal. "he new

plants are being set up in states like Terala, Erissa, 7ihar and North 1astern tates,

which hitherto have been une;plored by the company.

It is also changing its production strategy and shifting to a 63-hr production schedule

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with sudden increase in demand planned to be met by additional production.

7isleri has planned to e;pand its operations by investing Rs.M3 crores in the upgradation

of facilities. "he 693-bottles per minute +7/0 capacity of the 6M units across the

country will be increased to 9J3 7/0.

Conscious of the environmental implications of its /1" bottles, the company is to set up

recycling plants at $elhi and Chennai, each with an outlay of Rs.L3m. "hese will process

L33 kg of /1" per hour. "he processed material will be an input for polyester yarn

manufacturers. In centers other than $elhi and Chennai, the company will set up

crushing units to crush the used /1" bottles.

"he company's e;pansion plans will see its water bottling capacity go up from the

present J33 million liters to L33 million liters. /arle 7isleri


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International Standards ,or &ottled Drin@ingA-ater

"he intergovernmental body for the development of internationally recogni!ed standards

for food is the Code; Alimentarius Commission +CAC. %E, one of the co-sponsors of

the CAC, has advocated the use of the Kuidelines for $rinking-water [uality as the basis

for derivation of standards for all bottled waters.

CS! Report on pesticide resid.es in bottled -ater

"he Centre for cience and 1nvironment, a non-governmental organi!ation based in

New $elhi, has set up the /ollution 0onitoring


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activated carbon filtration, deminerali!ation 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 remi;ing it with the fully treated stream

so as to cut down the cost of treatment. En the basis of the results different brands can be

rated in terms of total organ chlorine and organ phosphorus pesticides from least to most

contaminated as-

B.a,ina )acbl.e

&ailley*inley

Seag.ll Sheetal

&isleri &rilliant

&ally p.r


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)R*!TIN9 STRT!9$

)R*!TIN9 STRT!9$

It is complete and an unbeatable plan designed specifically for attaining the marketing

obective of a firm. "he marketing obective indicate what the firm want to achieve. "he

marketing strategy provides the design for achieving them the linkage between

marketing strategies and over all corporate success is indeed direct and vital. Reali!ing

the marketing obectives is the purpose of two generic categories

6. /rice based

9. $ifferentiation based

PRIC! &S!D )R*!TIN9 STRT!9$

A business that opts for the price route in its competitive battle will enoy certain

fle;ibilities 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 enoying certain inherent

cost advantages , which permits it to resort a price based fight . the maor forms where

such cost advantage can occurs are economies of scale , absolute cost advantages ,.

7enefits 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 cannot successfully opt for a price led strategy

T%! DIFF!R!NTITION &S!D STRT!9$

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0arketing 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 , hich give them the greatest relative advantage

$ifferent firms adopts different strategy stances as their situational design differ-

7roadly strategy stances can be classified under three heads-

O,,ensi


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It does not fully bring out the import of the inseparable linkage between the two. hen

the selection of the target market is over an important part of the marketing strategy of

the firm is already determined, defined and e;pressed.

72ssembling the mar@eting mi2

Assembling the marketing mi; means assembling the four /*s of marketing in the right

combination.

"he firm has to find out how it can generate the best sales and profit. It plans different

marketing mi;es with varying levels of e;penditure 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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R!S!RC% )!T%ODOLO9$

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R!S!RC% )!T%ODOLO9$

De,inition o, Research8

"he word research is derived from the


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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 uestion are usually answered when we talk of research methodology

concerning a research problem or study.

Sampling82

"he data was to be collected only from the Consumers and Retailers. A uestionnaire

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.

Sie o, Sample82

"his refers the number of items +Eutlets to be selected from the finite universe to

constitute a sample si!e. "he survey was conducted of 6L3 outlets in Noida.

R!S!RC% D!SI9N

)!NIN9 OF R!S!RC% D!SI9N&

"he formidable problem that follows the task of defining the research problem is the

preparation of the design of the research proect, popularly known as the Bresearch

design. $ecisions regarding what, where, when, how much by what means concerning

an inuiry or a research study constitute a research design. BA 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 conductedD it

constitutes the blueprint for the collection, measurement and analysis of data. As such the

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design includes on outline of what the researcher will do from writing the hypothesis and

its operational implications to the final analysis of data. 0ore e;plicitly, the design

decisions happen to be in respect of&

[uestions Ans.

Concept "his study is all about B0arket Researchand Consumer 7ehavior Ef 7I


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analysis.

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

collected from the sample population. "here are several ways of collecting appropriate

data which differ considerably in conte;t of money cost, time and other resources. "hey

can be broadly classified in to two categories.

"wo sources to collect data are namely&

6. /rimary ource

9. econdary ource

PRI)R$ SOURC! OF COLL!CTIN9 DT

"he /rimary $ata that I collected were the first hand information which I received

through personal interviews with the consumers and through uestionnaires. "his data

gave the most vital information for making my analysis of the prevailing purchasing

behavior of the consumers.

:U!STIONNIR! T!C%NI:U!

"he method of collecting data mailing and personally distributing uestionnaire to the

respondents is the most e;tensively employed techniue in various economical surveys.

"his method is uit popular, particularly in case of big inuiries. A typical uestionnaire

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

set of forms. "he uestionnaire is given to the respondents who are e;pected to read and

understand the uestions and write the response in the given space meant for the purpose

in the uestionnaire.

S!CONDR$ SOURC! OF DT COLL!CTION

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econdary $ata 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.

R!S!RC% D!SI9N8

"he research design which has been used in the proect report is descriptive in nature.

S)PL! D!SI9N8

"he sample design which has been use in this proect report is simple random

ampling.

S)PLIN9 UNIT 8

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

samples. It may be geographical as well as individual. %ere Noida region has been taken

as a geographical unit and retailers as an individual unit.

SIE! OF S)PL!8

"his refers the number of items +Eutlets to be selected from the finite universe to

constitute a sample si!e. "he survey was conducted of 6L3 outlets.

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SWOT NL$SIS

Strength8

/Tr.st ,or &rand

7isleri is 9ndmost trusted brand in beverage industry in India.

7isleri is Jthtrusted brand in 0umbai and Mthin $elhi in beverage industry.

0ore than 6 crore people trust the 7I


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L.Large Range o, prod.ct8

7I


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7I


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the company is unable to meet the demand of the consumers. "his is affecting the

demand for the product. o /eople are forced to use other brands of mineral water.

Opport.nity8

/Fast gro-ing ,ield8

"he best beverage for India in the new millennium seems to be water. In recent years, the

bottled drinking water market has been witnessing high decibel level of activity, with a

host of new entrants. "he bottled water market which worth Rs. J333 crore is e;pected to

be Rs. :333 crore by 936L. "his will increase a lot of scope for bottled water market.

79ro-th in demand o, -ater8

Now a day people are more conscious about their health. "hey prefer the mineral water

than simple water. o the demand of mineral water is increasing day by day.

5&isleri can .tilie its distrib.tion channel8

ith 7I


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6 C%N9! OF I)9!82

"he company has changed the colour of the product. It has changed from blue to green.

7y changing the colour, the company has provided a new product to the consumersD they

will be getting a new and a refreshing product.

Threat8

/)ar@et is eyed by big players8

"he demand of water is increasing day by day. It means mineral water market is

e;panding day by day. Coke, /epsi, 7ritannia, Nestle ? are trying to raise the market

stake. o 7I


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the water purifier manufacturer. ith a strong marketing network ater /urifiers

manufacturer like ? Tent, Aua guard etc. has decreased the sell of bottled water and ar

supply to homely customers.

GILL!9L )NUFCTUR!RS82

Company is facing a tough competition from illegal manufacturers in the rural areas. "he

illegal manufacturers provide water at a very cheaper rate then the branded

manufacturers. "here are 6333*s of illegal manufacturers which are providing the water

at a very cheaper rate. "his is a serious problem for branded manufacturers. "his

companies also use the fake name of branded bottled water i.e. 7I


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FINDIN9S H NL$SIS

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FINDIN9S H NL$SIS

"he following findings are obtained and are based on primary data&-

6. "he brand customer prefer moreV

Fig /

Interpretation8

J34 respondent prefer 7isleri, :4 prefer Auafina # Tingfisher both, 694 prefer

Tinley and 594 prefer others company of water.

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9. hich brand of bottle water do you sale moreV

Fig 7

Interpretation8

L24 respondent bottle water do you sale 7isleri, :4 bottle water do you sale Auafina

# 664 bottle water do you sale Tingfisher both, 654 bottle water do you sale Tinley

and 24 bottle water do you sale others company of water.

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5. hy do you prefer to sell this particular 7randV

Ans& 0ost of the retailers has said that 7isleri is a brand name for mineral water. It is

easy to sell the 7isleri than any other.

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J. En what basis customer prefer to purchaseV

Ans&

Fig 5

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Interpretation8

5L4 respondent basis customer prefer uality to purchase, 694 basis customer prefer

availability to purchase, JL4 basis customer prefer price to purchase and :4 basis

customer prefer to 7rand purchase.

L. $o you get any customer complaints for 7isleriV

Ans.

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Fig ?

Interpretation8

5L4 customer complaints for 7isleri and ML4 customer no complaints for 7isleri.

M. Are your suggestions considered by 7isleriV

Ans&

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130


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Fig 6

Interpretation8

5L4 suggestions considered by 7isleri and ML4 are not suggestions considered by

7isleri.

M. En what basis you motivate a customer to purchase a particular 7randV

Ans&

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Fig 1

Interpretation8

L34 say brand motivate a customer to purchase a particular 7rand, 5L4 say uality

motivate a customer to purchase a particular 7rand, 634 say availability motivate a

customer to purchase a particular 7rand and L4 say price motivate a customer to

purchase a particular 7rand.

:. hen a customer talk of mineral water which brand comes into his mindV

Ans&

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Fig G

Interpretation8

P54 customer talk of mineral water of 7isleri comes into his mind, 24 customer talk of

mineral water of Auafina # Tinley both comes into his mind,J4 customer talk of

mineral water of Tingfisher comes into his mind and L4 customer talk of mineral water

of other company comes into his mind.

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CONCLUSION

CONCLUSION

7isleri has developed : uniue pack si!es to suit the need of every individual. It is also

present in 9L3ml cups, 9L3ml bottles, L33ml, 6


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packs # L


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SU99!STIONS

SU99!STIONS

0ore focus on new customer as well as retaining old customer.

1ffective co- ordination and communication within the departments.

Competitive price.

"ry to make the 7I


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7isleri should launch a new product to raise its market share like- flavored water.

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LI)ITTIONS

LI)ITTIONS

( A small segment of the market has been covered for the research purpose, so the

conclusion cannot be generali!ed.

( "he data collected cannot be free from errors, since some of the respondents failed to

give correct information.

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( tudy accuracy totally based upon the respondents response.

( tipulated short span of time for doing research.

NN!>UR!

:U!STIONNIR!

6. hich brand of water bottle you saleV

a. Tingfisher.

b. Tinley.

c. Auafina.

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d. 7isleri.

e. Ethers.

9. "he brand customer prefer more&

a. Tingfisher.

b. Tinley.

c. Auafina.

d. 7isleri.

e. Ethers.

5. hy do you prefer to sell this particular brandV

a. Availability.

b. Cust. $emand.

c. [uality.

d. /rofit 0argin.

J. En what basis customer prefer to purchase mineral waterV

a. 7rand.

b. [uality.

c. /rice.

d. Availabilty.

L. $o you get any customer complaints for 7isleriV

a. yes

b. no.

M. Are your suggestions considered by the companyV

a. Ses

b. No.

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P. En what basis you motivate a customer to purchase a particular brandV

a. [uality.

b. /rice.

c. 7rand

d. Availabitliy.

:. hen a customer talk of mineral water, which brand comes into his mindV

a. Tingfisher.

b. Tinley.

c. Auafina.

d. 7isleri.

e. Ether.

Final Report on Bisleri-By S ARYAN

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