Project Report on Bisleri

7/14/2019 Project Report on Bisleri

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PROJECT REPORT

ON

To study the Indian packaged water industry with focus

onBISLERI

Submitted To: - Submitted By:

Dr. Supriya Choudhary Rahul Dhingra

Reader 05914901810

BBA (B&I) 6th Sem

In partial fulfillment of the Requirements for the award of Degree of

Bachelor of Business Administration

Maharaja Surajmal Institute

Affiliated To:-

Guru Gobind Singh Indraprastha University

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ACKNOWLEDGEMENT

First of all I am deeply indebted to Department of Management,

Maharaja Surajmal Institute, Janakpuri , New Delhi for allowing me

to complete my research study on

To study the Indian packaged water industry with focus on

BISLERI

It gives me immense pleasure to express my heartfelt gratitude to

my respected guide Ms. Supriya (Assistant Professor) for providing

me articulate guidance and ceaseless encouragement throughout

study. I shall be failing in my duty if I do not acknowledge the

contribution of my family for their constructive cooperation.

MEGHA JAIN

ROLL NO. 06914901710

BBA (GEN) 3rd SEM

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CERTIFICATE

This is to certify that the research work entitled To study theIndian packaged water industry with focus on BISLERIhas been

undertaken by Ms. Megha Jain under my supervision in the partial

fulfillment of requirement of the graduate course (BBA). The

research work is candidates original work & this project report has

not been submitted to any other university for any course.

This is also certified that Ms. Megha Jain is the student of

BBA 2nd year in Maharaja Surajmal Institute, Janakpuri (Affiliated

to GGSIPU University).

Project Guide:

Ms. Supriya

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CONTENTS

OBJECTIVES OF THE STUDY

RESEARCH METHODOLOGY

Sample Size

Analysis

INTRODUCTION

To the domestic packaged drinking water market

MARKET SHARE

COMPANY PROFILE OF BISLERI

Background

The Present

Future Plans

Technology Developments

Purification Process

Product & Packaging

BOTTLED WATER ANALYSIS

WHY BISLERI?

EXCERPTS

And this is how Parle Bisleri began

THE JOURNEY TILL NOW

VISION AND MISSION

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CURRENT PLAYERS

SWOT ANALYSIS

ANALYSIS AND INTERPRETATION

Consumer Related

Retailer Related

RECOMMENDATION AND SUGGESTION

CONCLUSION

ANNEXURE

Consumers Questionnaire

Retailers Questionnaire

BIBLIOGRAPHY

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OBJECTIVE OF THE STUDY:

To learn about the domestic packaged drinking water market, its

market distribution and Brand Bisleri in detail.

To find about consumers and retailers brand preference

To see whether there is a threat to the mineral water market from

water purifiers and soft drinks.

Whether the people of Delhi & its NCR and happy, paying for

water.

Whether the people of Delhi & its NCR are getting health

conscious.

To find the retailers view on the mineral water market and to

assess the future prospect of the market.

To find the potential of Mineral water market in Delhi & its NCR.

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RESEARCH METHODOLOGY:

Starting a research project needs a basic preparation regarding the

issues related to the topic selected. For this one needs to do some

deskwork. Deskwork includes:

1. Determining the basic objectives of the study undertaken.

2. Collection of secondary data related to the topic from Internet,

magazines & newspapers.

3. Study the market, which one wants to cover.

4. Analyze the objective on the basis of information collected by

secondary data.

5. All the above activities at the initial stage of the project must be

completed & then the main part follows.

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Sample Size

Regions of Delhi & its NCR were covered for the study. I took 50

consumers and 10 retailers as my respondents. They were selected

by random sampling method because in this case systematic

sampling is not possible since one cannot say whether a person is

using mineral water or not.

Analysis

Then analysis of the questionnaire filled by the consumers & the

retailers is done on the percentage base analysis & theoretical base

analysis. On the bases of this analysis graphs were prepared showing

the relationship between two variables. The analysis formed the

bases of the inferences drawn and reaching the conclusion of the

study.

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INTRODUCTION:

To the domestic packaged drinking water market

The concept of bottled mineral is quite a new one for Indian People.

Since we never consider these things as necessity and especially

when we are paying for natural resource like water which is

available freely.

The bottled water market has recently seen growth; the reason

behind this may be the growing health consciousness among Indians

or non-availability of pure drinking water. Most of the users aredaily travelers, patients or it is used in parties/seminars. Moreover

30% of the whole mineral water customers are travelers.

When governments spoke about providing drinking water to all,

little did one imagine that MNCs would package it and sell it to us.

The advent of the small bottles has increased consumption. Buying

water near the bus stop or at the railway station has become a

routine.

Indian water market has many companies selling water, on an whole

there are more than 300 big & small players in the market some of

the big players are Bisleri, Aquafina, Kinley, Purelife, Mcdowell

etc. these companies are dealing in same market, same price & also

same capacity. Bisleri is owned by Parle group, Aquafina is owned

by Pepsi, Kinley is owned by Coke, Nestle has Purelife. But some

small players also have sufficient market share in their local market,

like prime, silver drop, royal fresh are very popular in the congested

region.

Bisleri is most popular brand in North India. Bisleri is having big

contracts like with air Indian & some part of Indian railways.

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Since the early 1990s, Indian attitude have changed and people are

flocking to the cities at a frenetic pace - one-third of Indian now live

in urban areas.But in many parts of the country, quality of water is still a major

concern. Given the extreme climatic conditions in India, especially

the heat and dust, plus the fact people are now prone to dehydration

because they commute further for work and social activities, the

issues of safe drinking water is more prevalent than ever.

As the mercury soars, so do the sales of bottled water. The

advantage it has is unlike the Colas and other drinks dispensed from

vending machines, a bottle fits into a handbag and can be carried

conveniently.

The trend of using mineral water for drinking purpose started as a

means to take advantage of the therapeutic value of water. This trend

gained potential momentum during 1970s and ever since bottled

water was exported every year from mineral springs in France and

other European countries.

In western countries,the practice of bottled drinking water startedduring 1950s. The first launch of bottled water in India was the

launch of Bisleri of Parle company during 1968-69 which was a

major flop as the Indian population was not prepared to accept

the concept of purchasing water. The market of bottled water

remained weak and inactive for as long as 20 years. The relaunch of

Bisleri in 1994, however, was a success due to the growing

awareness and high consciousness of health and hygiene among

people.

Today many medical stores in the city are doing very well with the

sale of branded bottled water. The brand name plays an impression

on the human mind. Bottled water is available in quantities of

330ml, 500ml, 1lt, 1.5lt, 2lts, 5lts, 10lts, 20lts and 50lts.

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For a particular brand to be certified as bottled water it requires approval on 4 levels

namely the Central, the state, the trade association, and individual company levels.

ILL EFFECTS OF DRINKING UNTREATED WATER

Typhoid

Bone deformation

Joint pain

Hardening of arteries and muscles

Gastro stomach upsets

Excess content of fluoride can lead to flourisis

Arsenic Poisoning

COMMONLY FOUND WATER CONTAMINATIONSOURCES

Contaminated storage Tanks

Cross contamination at sources

Leaks in distribution network

Improper functioning of Purifiers

Domestic Waste

Borewell or contaminated ground water

Organic matters

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Industrial waste

DISTRIBUTION NETWORK OF BISLERI

And this is how Parle Bisleri began

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According to the Bureau of Indian Standards there are 1,200 bottled

water factories all over India (of which 600 are in one state -- Tamil

Nadu). Over 100 brands are vying for the Rs 1,000-crore (Rs 10

billion) bottled water market and are hard selling their products in

every way possible -- better margins to dealers, aggressiveadvertising, catchy taglines.... In such a scenario, The Strategist

takes a look at how it all started -- with Bisleri -- and how Ramesh

Chauhan, chairman, Parle Bisleri created a market out of pure

water.

Bisleri mineral water was bought from the Italian company, Felice

Bisleri, in 1969 -- the company had been unable to market bottled

water and wanted to exit the market -- Parle too did not see any

potential for the product at that time.

As a soft drinks company, Parle had Thums Up, Gold Spot and

Limca (cola, orange drink and lemonade) but no soft drink company

was complete without a soda. So they merely used the name and

launched Bisleri soda with two variants -- carbonated and non-

carbonated mineral water.

But three decades ago, what could they say about a category that

had no market? They didn't know our target group. Then, sincebottled water is colourless, tasteless and odourless, it was not an

easy product to advertise.

Thus, the earlier brand building efforts focused on Bisleri being

healthy with adequate minerals. The Italian name added a dash of

class to it. The first print ad campaign captured the international

essence and showed a butler with a bow tie, holding two bottles of

Bisleri.

The punchline was, "Bisleri is veri veri extraordinari" (the

spelling of the punchline was designed to capture the consumer's

attention). The campaign was successful and we were being noticed

as someone who catered to the need for safe, healthy drinking water.

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However, the real boost to mineral water came in the early-to-mid-

1980s when they switched to PVC packaging and later to PET

bottles. The PET packaging did not just ensure better transparency --

they could now show sparkling clear water to the consumers. It also

meant better life for the water.

Meanwhile, Bisleri soda was doing well but they had to discontinue

production as they sold their soft drink brands to Coca-Cola in 1993.

But Ramesh Chauhans interest was in building brands and not in

bottling soft drinks. That's when he started to concentrate on

developing the Bisleri water brand.

There was a clear opportunity of building a market for bottled water.

The quality of water available in the country was bad. It was similarto what Europe faced before World War II. The quality of water in

Europe was extremely poor, which created the bottled water industry

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

available was of bad quality.

Initially, though bottled water was something only foreigners

and non-resident Indians consumed, they 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 compensatelow sales. Now they had to push sales.

Hence, they introduced free sampling of Bisleri at the tables where

the elderly guests would sit. Soon customers were ordering bottled

water on special occasions. Currently, the consumption of bottled

water is far in excess of soft drinks on such occasions.

The other major challenge was distribution. Soft drink sales are in

glass bottles and the distribution model is built around picking upempty bottles and getting them back to the factory. That's not the

case with the retail bottled water packs (below 2 litre). But a product

that's not available where it's needed, is useless.

The number of outlets where Bisleri is available has increased from 50,000 in 1995 to

2,50,000 at present. But that is not enough -- they need to keep looking for different

avenues. Take stationery shops and chemists, for instance. They don't keep soft drinks but

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sell Bisleri. That is the kind of exclusivity we look for to get ahead of the distribution

network that soft drink companies talk of.

MARKET SHARE:

Currently, Bisleri continues to lead in the Rs 700-1,000 crore

organised, packaged water market with an estimated 40 per cent

market share, followed by Kinley at 28 per cent and Aquafina with

an 11 per cent share. In terms of volumes, the North and West

remain Bisleri's biggest performing markets, despite the brand's

sustained national-level presence. The market has been growing for

the last three years at an unimaginable rate of 80%. The market sizeof bottled water is expected to surpass the size of soft drinks market

very soon in the near future.

Individual Market Shares:

BISLERI-40%, KINLEY-28%, AQUAFINA-11%, OTHERS-

21%

15

Others

21%

Bislery

40%

Kinley

28%

Aquafina

11%

Others

Bislery

Kinley

Aquafina


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Some of the specifications as per the latest notification

(which were effective from April 01).

The location of packaging should be close to the source or place

of origin of water.

Only water obtained directly from natural or drilled underground

sources can be sold as mineral water.

For water to be called mineral water it should also not be subject

to any chemical treatments.

For water to be categorized as packaged bottle water, it can be

sourced from any places. The water has to be treated and disinfected in accordance with

specifications for it to be categorized as packaged bottle water.

Till December 2000 only six players have applied for license for

packaged drinking water and no company has applied for license

in mineral water category. But around 16 applications in

packaged water category and 6 applications in the mineral water

category are still in the pipeline. The new regulations also prohibit any claims relating to

beneficial properties of the product and the immediate casualty

will be Coca-Cola with its FFPAI endorsement. Furthermore in a

bit to provide standards for both drinking water and mineral water

and to regulate the quality and price of bottled water, BIS

approval was made mandatory from the end of 1999.

However the BIS does not lay down any guidelines or practices

for processing water and there is no specific industrial licensing

policy for the bottled-water sector. So in effect anyone can set up

a plant without establishing the source of the water and the

technology used to purify it.

Till recently India was not a potential consumer for packaged water

hence the prospects are now huge. But with regulations somewhat

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confusing and contradictory it is likely to be a while before the

manufacturers are able to realize their full market potential in a

country, which is fast becoming one of the principal global markets

in bottle water.

COMPANY PROFILE OF BISLERI:

:: Background

In 1967, Bisleri an Italian company, started by Signor Felice Bisleri,

first brought the idea of selling bottled water in India. It started a

company called Bisleri India. In 1969, Ramesh Chauhan, theChairman of Parle Exports, bought over the brand. In those days,

Bisleri packaged drinking water was available in glass bottles.

Being a returnable package owing to various other problems such as

breakage and weight, in 1972-73, Bisleri was made available in

PVC (Poly Vinyl Chloride) bottles. After this plastic packaging was

introduced, things started to change, and sales increased rapidly.

The upsurge in the sales of Bisleri started in 1993 as Ramesh

Chauhan sold off the Parle stable of brands, including Thums Up,

Limca and Gold Spot. Recognising the potential of the packaged

drinking water market, he then went on to concentrate on making

Bisleri a top selling brand in India.

:: The Present

It was around the year 1995, when Parle Exports took charge of the

brand operations and the business took off in the market. With

factories across India and a strong distribution network, Bisleri

established itself as a force to reckon with in the domestic packaged

drinking water market.

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Earlier the packaged drinking water market consisted of five star

hotels, tourists and foreigners. As a marketing strategy, a conscious

decision was taken by the company that only 40% of the sales

should come from these outlets and 60% from general market. i.e.paanwallas, street shops, general stores and even non-tourists.

This brought about a sea change in the perception in the consumer's

mind about consumption of Bisleri. Earlier, drinking bottled water

was considered to be more of a status symbol. That thinking has

slowly changed to the point where today, not drinking Bisleri is

considered as being behind the times. Such has been the presence

and penetration of the Bisleri brand in the bottled water segment.

About few years ago, in 1998, a strategy was adopted to concentrate

aggressively on the home market. The habit of boiling water or

using electronic gadgets was not adequate, since the source of water

itself was unreliable. The bulk packages like the 2, 5 and 20 litre

bottles were introduced to meet this market need. The price per litre

went down as a result, making bottled water very economical for the

consumer.

:: Future Plans

Bisleri was the first to market bottled water in a totally virgin market

and naturally people associate the brand with bottled water. Now

Bisleri is perhaps already ten steps ahead of its competitors and will

endeavour to widen its gap in the times to come.

Bisleri's brand positioning stresses on pure, clean and safe drinkingwater.

Some of the future plans to maintain the top spot that Bisleri

commands in the Indian market are:

New pack sizes in bottles and cups

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Increase the distribution network with an investment of over

200 crores

Strengthen presence in traditionally weak areas by setting up

12 new bottling facilities at a cost of Rs. 150 crores

:: Technology Developments

To make sure that the product that reaches the consumer is always of

highest standard and also meets international standards, Bisleri has

always been involved in improving its product packaging. One such

recent development is the tamper proof break away seal. Bislerialso recognises the need to produce environment friendly products

and is working on the PET project.

The break away seal:

Keeping in mind the consumer's need to recognise a genuine product

that cannot be tampered with, Bisleri developed the break away seal.

The unique cap has been patented and cannot be duplicated ortampered with. This technology development in the product ensures

that the consumer will only get a highly safe product when they

consume Bisleri packaged drinking water.

Product packaging:

To ensure purity of the bottled water, the bottles that are used are

blown and filled at the factory itself, to avoid contamination.

The PET Recycling Project:

Bisleri is extremely conscious of environmental issues, since PET

bottles are not biodegradable and not easy to dispose. The company

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is currently working on the PET recycling project, where they will

collect bottles from various places, crush and shred them. This

shredded material will then be made into ropes , PET containers for

the non-food industry and other PET items like polyester fibre,

flower vase, gift items etc.

WHY BISLERI?

Bisleri is totally safe & protects you from all water borne

diseases.

Bisleri is trusted by 50 lakhs households across the country.

Bisleri is the brand leader in bottled water category.

The water is purified through six stages of purification process thatincludes reverse osmosis and Ozonation.

Why Bisleri is pure?

At BISLERI plants , water undergoes multi stage purification

process to ensure proper blend of minerals and complete removal of

microorganisms and toxic substances. So a habit of drinking PURE

and SAFE BISLERI will ensure a healthy life

WHAT ADVANTAGES BISLERI PURIFICATION

PROCESS HAS OVER PURIFICATION DONE BY

OTHER METHODS?

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Traditional process of boiling water for purification has its

limitations.It is time consuming. For boiling , water has to be heated

to 100 deg.Celsius. Also , to kill microbes water should be boiled

continuously for a minimum of 20 minutes. Boiling may kill the

microbes but can not remove other physical impurities and toxicsubstances.

Many home appliances are available in market for water

purification. These gadgets use either filtration technique or Ultra

Violet rays or a combination of the two techniques. These

techniques do not guarantee 100 % purity of water.

Filtration removes only the visible suspended particles and not theminute , invisible particles , toxic substances or microorganisms.

The filters are cleaned rarely and all the muck accumulates inside

leading to more contamination. Ideally such filters need to be

cleaned every day which is cumbersome. Ultra Violate rays kill the

microbes but cannot ensure removal of toxic substances and

physical impurities.

These purification equipment are incomplete and need continuousmonitoring and maintenance.

At BISLERI , through our multi stage purification process we

ensure removal of toxic substances as well as physical and

microbiological impurities. In our state-of-the-art processing plants

we follow rigorous Good Manufacturing Practices and strict Quality

Assurance norms so each and every bottle of BISLERI is made

tasty, pure and safe for the consumer.

PROTECT YOUR HEALTH WITHPROTECT YOUR HEALTH WITH BISLERI WHICH USESBISLERI WHICH USES 66

STAGESTAGESS OF PURIFIOF PURIFICATIONCATION

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CHLORINATION: Kills micro organisms. Remove organic matter.

ARKAL FILTER : Removes suspended matter and turbidity.

CARBON FILTER :Removes residual chlorine & odours

REVERSE OSMOSIS: Removes organic material.Controls total

dissolved solids in the water.

MICRON FILTRATION:Additional safety measures of filtration.

OZONATION :Ensures water remains bacteria free for longer shelf

life.

:: Product & Packaging

Bisleri is available in a range of sizes.

The Bisleri bottled water range comprises the conventional

500 ml, one litre, 1.2 litre and two litre bottles; five litre

and 20 litre jars for the home segment, and smaller packssizes of 250 ml cups and 330 ml bottles, though in very

limited numbers for now.

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BOTTLED WATER ANALYSIS

Bisleri

Spring Water - Still/Sparkling

PARTICULARS Mg/litre

TDS 160

Ph Factor 7.2Calcium 13.6

Chlorides 22

Bicarbonate 58

Magnesium 7.8

Nitrate 2

Sulphates 19.3

Hardness 66.1

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WHERE CAN WE USE BISLERI ?

Drinking

Making tea, coffee, lassi, cold drinks, mixing with drinks

Kneading the dough

Cooking

Mixing with baby foods

Mixing with medicines .

THE JOURNEY TILL NOW:

1969: Buys Bisleri bottled water from an Italian company, Felice

Bisleri. It was bottled in glass bottles then.

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

Mid-1980s: Switches to PET bottles, which meant more

transparency and life for water.

1993: Sells carbonated drink brands like Thums Up, Gold Spot and

Limca to Coca-Cola for Rs 400 crore.

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

per cent.

2000: Introduces the 20-litre container to bring prices down from

Rs 10 a litre to Rs 2 a litre.

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

2000: BIS cancels Bisleri's licence of a water bottling in Delhi

since some of the bottles did not carry ISI label; the licence is

restored one-and-a-half months later.2002: Kinley overtakes Bisleri. The national retail stores audit by

ORG-MARG show Kinley's marketshare at 35.1 per cent

compared to Bisleri's 34.4 per cent.

2003:Bisleri says it plans to venture out into Europe and America to sell bottled water

:: Vision

A major, diversified, transitional, integrated consumer product

manufacturing company, with National Leadership and a strong

environment conscience, playing a national role in safe water

and Agro based drinks.

:: Mission

To provide the highest quality product, keeping in mind all

aspects including freshness, purity and safety, and making

it easily available to the consumer at a very affordable price.

To achieve international standards of excellence in all aspects

of energy and diversified business with focus on consumer

delight through value and services of product and cost

reduction.

To enhance capital and fixed assets of the group to withstand

challenges and tough market trends.

To attain leadership in developing, adopting and assimilating

state or art technology for competitive advantage.

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To provide better quality of product and services through

sustained market research and product development.

To foster a culture of participation and innovation for

employee growth and contribution.

To cultivate high standards of business ethics, and total

quality management for a strong corporate identity and brand

equity with continuous and positive growth.

To help enrich the quality of life of all the communities

specially the neglected ones and preserve ecological balance

and heritage through a strong environment conscience.

CURRENT PLAYERS:

The mineral water industry is in a churn. The market is proving to

be yet another battlefield for an ongoing battle between the desis

and the MNCs. So far, MNCs have been winning. Only time will

tell what the final outcome will be but I strongly feel that here too,

like in all other markets, MNCs are going to win. Though the fate

Indian companies will suffer at the hands of these MNCs makes

me sad, the choices the consumers will have makes me happy.

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

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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 anuum. The

fact that there were very few players in the market meant that their

business grew by leaps and bounds. Bisleri became a household

name and is now generic for bottled water. The market today has

grown to Rs11bn. The organised 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, Bisleri is the market leader as it continues

to lead in the Rs 700-1,000 crore organised, packaged water

market with an estimated 40 per cent market share, followed by

Kinley at 28 per cent and Aquafina with an 11 per cent share. In

terms of volumes, the North and West remain Bisleri's biggest

performing markets, despite the brand's sustained national-level

presence The boom in the market has also encouraged

unscrupulous players to gain an entry. In the name of mineral

water, a number of regional players have even started selling plaintap water. Many people have fallen sick after drinking this

spurious mineral water. The common mans faith in the product

was shaken. However, not everyone was put off. Sensing the

opportunity that this segment holds, MNCs have begun to draw up

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plans to enter the market, but not without testing the waters first.

They carried out the appropriate feasibility studies. However,

among the first to challenge Bisleri's near monopoly was Pepsi's

AquaFina followed by stiff competition from Parles Bisleri and

Coca-Cola Indias Kinley.

The first entrant in the bulk water category was Bisleri, while

Coke, through Kinley, entered the segmen 4 years ago. Over the

past five years or so, Bisleri has become a major player in the bulk

water segment in the water-starved southern states. The 20-litre

bulk water packs are targeted at the institutional and the home

segment. Pepsi is aiming to make its brand available throughout

the country soon. The company has also ruled out entering the bulk

water segment in India. Meanwhile, the action is all in Coca-Colas

bulk water business. The 20-litre bulk water packs are targeted at

the institutional and the home segment

SWOT ANALYSIS:

BISLERI

Bisleri announced the re-launch of its 20-litre home pack with a

more consumer-friendly format in thread fitting and valve cap,

against the conventional snap-on fittings. The existing 20-litre

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Bisleri packs are now being withdrawn and the rollout of the new

jars, priced between Rs 40-60, is on.

Bisleris focus on the bulk water market has grown in the past few

years, mainly owing to the stiff competition posed by innumerable

brands in the packaged bottled water market. Not only are there big

multinational players like Coke with their huge distribution

networks, regional players exist side by side, enjoying local clout.

Bisleri continues to lead in the Rs 700-1,000 crore organised,

packaged water market with an estimated 40 per cent market share,

followed by Kinley at 28 per cent and Aquafina with an 11 per

cent share. In terms of volumes, the North and West remain

Bisleri's biggest performing markets, despite the brand's sustained

national-level presence the fact remains that the new kids on the

block are nibbling away at Bisleri's stranglehold over the bottled

water segment. Only three years ago, the bottled water market was

estimated at about Rs 300 crore, of which Bisleri commanded a

dominant 80 per cent share.

To ensure Bisleri packaged drinking water is held safe free from

contaminations, ultraviolet treatment and ozonisation process is

carried out. Ozone is unstable trivalent oxygen, a very powerfulbactericide with no side effect, as it disintegrates into oxygen

within couple of hours Sterilization effect of ozonised water

continues even after water is packaged, thereby ensuring safety of

Bisleri up to its final packing. To ensure high quality of packing

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materials, components like caps and bottles are manufactured in-

house from resins of quality suppliers.

Good Manufacturing Practices are stringently followed at all times.

Processing is religiously monitored at every stage. Testing source

water, processing parameters, microbial quality, packaging

material integrity and finally, shelf life studies, forms an integral

part of quality and safety assurance plan.

Strengths:

Core business of company.

First mover in this business since 1969.

Good brand awareness and brand positioning.

Available in different packs like cups, 500 ml, 1 lit, 1.2 lit, 2 lit,

5 lit and 20 lit.

Has become generic name in the mineral water market.

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Availability of Bisleri in all over India with solid infrastructure

facility.

Focus on customer orientation through low price strategy.

Product differentiation by introducing patented break way seal

cap.

Best service and proper response to dealers and customers.

Weakness:

Lack of brand loyalty as MNCs are entering the market like

Nestles Purelife, Pepsis Aquafina.

Lack of Global Awareness in brand.

Lack of proper advertising to create brand awareness.

Market coverage is not fully utilized.

Institutional sales are not penetrated properly.

Lack of technological up gradation.

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Opportunity:

Indian bottled water industry is still at growth stage.

Influence of tourists and expatriates.

Bisleri as a daughter company of Parle has a strong presence in

India.

Unreliable municipal water quality.

People are becoming health conscious.

Threats:

Numbers of players like Kinley and other local players are

present in the market have already captured the market.

Tough competition from MNC's like Coke & Pepsi.

Fluctuation in sales due to seasonality.

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Local manufacturers who refill used bottle Hampers the image

of the industry.

Water filters and soft drink industry is a major threat to

industry.

Coke and Pepsi are already having strong distribution network

in bottle water industry with their own fleet of trucks & vans.

Bisleri goes green naturally20 October 2006

New Delhi: The Ramesh Chauhan-promoted Bisleri International,which pioneered the packaged drinking water business in India,

catering to consumers' need to have hygienic drinking water while

on the move or even at home, is literally changing its colours and

going for a makeover.

The brand that was till now marketed as packaged drinking water

(cleaned through reverse osmosis) will now be available in a

naturalavatar.

Bisleri International will invest Rs100 crore for the project which

constitutes a Rs40- crore investment in two plants in Uttaranchal

and Himachal Pradesh in line expansion, Bisleri International

chairman Ramesh Chauhan said. The plants will come up next

year. Chauhan said the rest of the investment of about Rs60 crore

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would go into infrastructure development. The investment would

be funded through internal accruals.

Launching 'Bisleri Natural Mountain Water' he said the company

was looking for four more locations from where we look to sourcenatural water. The likely locations would be in South and West

India he said. Bisleri has 23 plants across the country producing

bottled water.

Bisleri Natural Mountain water will be available in aqua green

packaging against the blue packaging of old and will be available

in six sizes. The company is also planning an aggressive marketing

and advertising campaign with a two-year budget of Rs60 crore.

Chauhan said the new packaging has been adopted in order to

stand apart from the others and in Chauhan's words, "As leader, we

want to differentiate ourselves and hence have adopted this

aquagreen colour," he said. Priced at a significant premium to

packaged water Natural Mountain Water will be available for Rs20

per litre.

The natural water segment, which accounts for about 5 per cent of

the total bottled water segment, is expected to grow by leaps andbounds as health awareness and disposable incomes rise.

According to the company the foray into spring water will be

followed by an entry into the packaged ice segment (Bisleri Ice) as

well into flavoured, vitamin and sparkling water categories. The

company is said to be setting up R&D facilities for ice and

studying various packaging options. Ramesh Chauhan, chairman,

Bisleri International expects to sell 10 million cases of Bisleri

Mountain Water over the next two years- a turnover of Rs200

crore. The bottled water industry is worth Rs1,000 crore in India

and is growing at 40 per cent per annum. It is projected to reach

Rs5,000 crore by 2010. The main players in the spring water

segment are Himalaya, Catch and Leh Berry. At present Himalaya

leads the segment with a 50-per cent market share.

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Bisleri claims to have a 40-per cent market share of the organized

packaged water market. The natural spring water market is very

small and accounts for 5 per cent of the entire segment. Bisleri is

projecting a turnover of Rs300 crore this financial year, as against

Rs220 crore last year.

Chauhan says he is also preparing for an entry into the US market

with his spring water and is talks with US authorities for this. He

would not export India-bottled Bisleri into US, but would set up a

bottling operation there as transportation costs are a huge obstacle

in sourcing the product from India. "We are in the process of

getting the regulatory approvals for the venture," Chauhan said.

He said Bisleri was at par with companies in the developed world

as far as meeting international standards were concerned.

KINLEY

Kinley Watera product of the Coca-Cola Company-is the

established market leader in the drinking water segement. Aproduct offering of the Worlds No. 1 beverage company, Kinley

Water is brought to You with the time-tested expertise of the Coca-

Cola. Backing Kinley Water, is the promise of delivering Trust in

every Drop. Kinley Waters 25 litre bubble top containers made

of Lexan- a polycarbonate polymer (plastic) that is made specially

for the purpose. Unlike other brands which use recycled plastic,

Kinley bubble tops are made from what is known as Virgin

Plastic.

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In addition to this, Kinley offers Kinley water dispensers. These

water dispensers come in four basic models. The water dispensers

are ergonomically designed to suit both domestic as well

commercial requirements.

Refrigerator Model with Hot and Cold facility

Hot and Cold Model

Compacta

Elegance

Advantages of Kinley:

Good brand positioning.

Available in different packs like 500 ml, 1 ltr, 2 ltr, 5 ltr and

20 ltr.

Easy availability of product in all over India after Bisleri with

solid infrastructure facility.

Benefit as a product of Coca-Cola.

36
http://www.srwater.com/html/products-2.htmhttp://www.srwater.com/html/products-3.htmhttp://www.srwater.com/html/products-4.htmhttp://www.srwater.com/html/products-5.htmhttp://www.srwater.com/html/products-2.htmhttp://www.srwater.com/html/products-3.htmhttp://www.srwater.com/html/products-4.htmhttp://www.srwater.com/html/products-5.htm


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Focusing on institutional sales to create brand awareness

aggressively.

Use of technological up gradation.

Disadvantage of Kinley:

Lack of proper service to customers.

Lack of strong infrastructure.

Non-availability of a variety of range like Bisleri.

Focus on distributors not on small retailers.

AQUAFINA

PepsiCo India launched the packaged water bottle brand Aquafina

about five years ago in a 750-ml pack, basically targeting the

youth. The brand now retails in conventional retail pack sizes of

500-ml and 1-litre bottle

Aquafinas market share in the retail segment is estimated at about

12 per cent and it remains to be seen how PepsiCo succeeds in

penetrating the bulk water market. Pepsi Foods, too, expects its

Aquafina brand to turn national by the year-end. "Bisleri is the

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market leader and a good brand that has been built over the years.

But we are gradually consolidating our bottled water business,

even if our positioning is somewhat different," says Pepsi Food's

official spokesperson.

Advantages of Aquafina:

Strong distribution network.

Good brand awareness and brand positioning.

Available in different packs like 500 ml, 750 ml, 1 ltr.

Easy availability of product in all over India.

Benefits as a product of Pepsi.

Focusing on institutional sales to create brand awareness.

Use of technological up gradation.

Disadvantages of Aquafina:

Compared to Bisleri and Kinley the service from Aquafina is

not satisfactory.

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Lack of strong infrastructure.

Non-availability of a variety of range.

Market coverage is not proper.

Focus on wholesalers not on small retailers.

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ANALYSIS AND INTERPRETATION

CONSUMER RELATED

WHICH BRAND DO YOU PREFERWHILE BUYING MINERAL WATER?

Name of Brand Consumer preferences

Bisleri Most Preffered 60%

Kinley 20%

Aquafina 12%

Others 8%

40

0%

10%

20%

30%

40%

50%

60%

Bisleri Kinley Aqufina Others


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NUMBER OF RESPONDENTS USINGMINERAL WATER FREQUENTLY

Always Often Sometimes Never

20% 27% 38% 15%

According to the survey conducted in Delhi &its Ncr it was analyzed that 38% of the mineralwater users go in for an occasional use while

there are still 15% of the respondents whonever go for packaged water.

RESPONDENTS CHOICE AMONGST

MINERAL WATER AND SOFT DRINKS

41

0%

5%

10%

15%

20%

25%

30%

35%

40%

Always Often Sometimes Never


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Mineral water Soft drink

55% 45%

Determining whether, in a thirst condition, anaverage individual opts for mineral water orsoft drink, one can observe that the ratio isquite similar still more preferring Mineralwater.

BRAND AWARENESS OF MINERALWATER AMONG RESPONDENTS

42

0%

10%

20%

30%

40%

50%

60%

Mineral Water Soft Drinks

0%

10%

20%

30%

40%

50%

0 to 2 3 to 5 6 to 10 10 & above


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Brands Respondents

0 2 40%3 5 50%

6 10 10%

10 and above 0

The observation shows that most of the people

know only about the main brands which areowned by the big companies and areadvertised hugely. Mainly 3 5 brands onlycomes to the minds of the customer in regardsto mineral water.

CUSTOMER PREFERENCES FOR

BOTTLE

430%

10%

20%

30%

40%

50%

60%

0.5 ltr 1 ltr 5 ltr 20 ltr


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SIZE

Size of Bottle (in ltrs.) Consumer preferences

0.5 ltr 60%

1 ltr 20%

5 ltr 5%

20 ltr 15%

Total 100%

CUSTOMERS PREFERENCES REGARDING

PRICE WORTH OF MINERAL WATER

440%

10%

20%

30%

40%

50%

60%

Yes No


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Respondents view Yes No

% of respondents 42% 58%

The observation shows that most of the peopleare not happy paying the price, the companies

are charging for the product. They feel that theprice should be a little lower.

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EFFECT OF ADVERTISING ON

PURCHASE

The observation shows that most of thepopulations buy the Mineral water just for thesake of buying it rather than buying it due toits advertising. Very few people are actuallyaffected by the advertisement of the product.In the interior parts, people who do not watchmuch of a TV generally does not know theimportance of ads. So they buy it only for thesake of buying it.

46

Respondents

perception

Yes No

% of respondents 46% 54%

42%

44%

46%

48%

50%

52%

54%

Yes No


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GROWING HEALTH CONSCIOUSNESS

AMONG INDIANS

Yes No

73% 27%

The observation shows that most of thepopulation in Delhi & its NCR now a days isgetting Health Conscious. The reason being the

knowledge of the fact that the normal waterwhich we get is not always very hygienic andmay cause many diseases.

47

0%

10%

20%

30%

40%

50%

60%

70%

80%

Yes No


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RETAILER RELATED OBSERVATIONS

AND FINDINGS

TYPES OF BRANDS RETAILERS KEEP

Advertised Non-Advertised Both

35% 5% 60%

According to survey, 35% of retailer go in foradvertised products and non-advertisedproducts do not have any weight Around 60%

retailer believe in the combination of both(advertised and non-advertised version). Thesurvey was based on retailers.

48

0%

10%

20%

30%

40%

50%

60%

70%

Advertised Non-advertised Both


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SIZE OF BOTTLE SELLING MORE

Size of bottle 0.5 ltr 1 ltr 5 ltr 20 ltr

% of respondents 60% 20% 5% 15%

Surprisingly both 0.5 Ltr and 1 Ltr version areselling well but 5 ltr are selling very less as

compared to others.

49

0%

10%

20%

30%

40%

50%

60%

0.5 Ltr 1 Ltr 5 Ltr 20 Ltr


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GROWTH DURING THE LAST FIVE

YEARS ACCORDING TO RETAILERS

Retailers view Yes No

% of retailer 67% 33%

Last five year seen a tremendous growth in themineral water segment. The growth rate hasbeen very high, owing to increased health

consciousness amongst the population, arisingfrom scarcity of potable drinking water.

50

0%

10%

20%

30%

40%

50%

60%

Advertised Non-

advertised

Both


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FUTURE PROSPECTS OF MINERAL

WATER MARKET

Retailers

prediction

Excellent Good Average Poor

% of retailers 42% 30% 15% 13%

Saturation for mineral water market isexpected with in the next 5 years after which

the market will stabilize from todays point ofview the market looks quite disruptive becauseof heavy competition.

51

0%

5%

10%

15%

20%25%

30%

35%

40%

45%

Excellent Good Average Poor


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For observing retailers, 20 retailers were

identified in some of major areas in the city.

Following inferences were drawn .

1. Initially we enquired about the numbers of brands that the

retailers sell and most of them specified not more than 3 4 .

This indicates that the retailers prefer only the main brands.

2. Most of the retailers usually keep highly advertised brands.

3. Here two basic question as to which brands are selling more

and which one is being supplied more were combined. The

answer was obvious and i.e., the one which is sold more is

supplied more and it is Bisleri (in most cases).

4. The retailers answers as to which size of bottle is selling morewere inclined towards the 1 ltr. and 500 ml bottles with certain

exceptions.

5. It was a mixed reaction of the retailers when asked about the

highest margin paid to them by a company out of 100

40% - Bisleri

20% - Kinley

15% - Aquafina

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15%-others

RECOMMENDATION AND SUGGESTION

Campaign, stalls to beat local brands & create awareness.

Retailers need to concentrate on 5 and 20 litr bottle which

can be possible only if properly advertised & home delivery of

jars are done to the end customers.

The market is too congested and confused in the Delhi & its

Ncr region, so the company should properly promote &

strengthen the distribution channel to survive the competition.

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CONCLUSION

After analysis of the data & facts we have collected from consumer

& the retailers & matching them with the objectives one can say

that there is very good future for mineral water market. Soft

drink market might be some threat to the mineral water at

present but within few years the scenario is going to change.

Trend signifying increasing health consciousness amongst Indians

could also be observed.

Market has seen a tremendous growth from the early nineties &

now it is increasing by 70% to 90% every year so one can easily

say there is great potential in the mineral water market.

It could also be observed that the living standards of the People

improving & as they are becoming health conscious are ready

to pay for water now. On the question of survival of so many

companies government has made policies & restrictions from April

2001 which will force many manufactures to shut down their

factories. But due to potential in the market companies with quality

product will survive.

Finally from the data collected at both primary and secondary level

one can confidently say that Bisleri as packaged water brand is the

current market leader.

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ANNEXURE

CONSUMER QUESTIONNAIRE

Name of the respondent______________

Address of the respondent____________

Contact no.________________________

QUESTIONS

Q 1.How often do you consume mineral water?

a) Always b) Sometimes

c) Often d) Never

Q 2.When felling thirsty you opt for?

a) Mineral water b) Soft drink

Q 3. How many brands of mineral water are you aware of?

a) 0-2 b) 3-5

c) 6-10 d) 10 and above

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Q 4.Under what circumstances you opt for mineral water?

a)While traveling

b) During parties, meeting, seminars

c) When drinking water is not available

d) During illness

e) Others

Q5. Which size of bottle do you prefer?

a)500 ml b) 1ltr.

c) 5 ltr d) 20 ltr

Q6.Do you think mineral water is much more hygienic than

normal water?

a) Yes b)No

Q7. Do you think the price the companies are charging, is

worth the product?

a) Yes b) No

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Q8.Does advertising of this product has any effect on your

purchase?

a) Yes b) No

Q9. Do you think Indians are getting more health conscious

day by day ?

a)Yes b) No

Q10. Which brand do you prefer while buying mineral water?

a) Bisleri b) Kinley

c) Aquafina d) other

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RETAILERS QUESTIONNAIRE

Name of the respondent______________

Address of the respondent____________

Contact no.________________________

QUESTIONS

Q1. How many brands of mineral water do you sell (specify)?

a) 2-3 b) 3-5

c) More

Q2. What types of brands do you have?

a) Advertised b) Non-Advertised

c) Both

Q3. Which brand is selling more?

a) Bisleri b) Aquafina

c) Kinley d) Others

Q4.Which size of bottle is selling more?

a) 500 ml b) 1 ltr

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c) 5 ltr d) 20 ltr

Q5. On which brand do you get more margins?

a) Bisleri b) Aquafina

c) Kinley d) Others

Q 6.Do you feel there is growth in the mineral water market inthe last 5 years?

a) Yes b) No

Q 7. What is the future prospect of this market?

a) Excellent b) Good

c) Unlike d) Poor

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BIBLIOGRAPHY

PRINT MEDIA ----

Business World

A & M

Economic Times

Business India

VISUAL MEDIA.

Cable Network

Internet

Britannica Encyclopedia

Project Report on Bisleri

Documents

Transcript of Project Report on Bisleri