Analysis of marketing strategy of mineral water industry
ANALYSIS OF MARKETING STRATEGY OF MINERAL WATER INDUSTRY [A CASE STUDY OF BISLERI] A RESEARCH REPORT SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION TO INDRAPRASTHA UNIVERSITY, DELHI (2004-06)Submitted To : Submitted By :Mrs. Harpreet Kaur Nitesh Kumar BLS INSTITUTE OF MANAGEMENT MOHAN NAGAR GHAZIABAD
• Acknowledgement• Executive Summary• INTRODUCTION• About the industry Mineral Water Industry- Current Market Scenario Company Profile Marketing Strategy Advertising Campaign of Bisleri Packaging and Distribution Marketing Mix Competition in Market Product Profile Manufacturing• Objective• METHOD OF STUDY• Research Design• Tools and Instrument Used for the Study• Procedure and data collection• RESULT AND DISCUSSION• Findings and Statistical Analysis• SWOT analysis Conclusion• Recommendation• Limitations• Bibliography• Annexures
ACKNOWLEDGEMENTThe accomplishment of my research was possible only due to thecooperation, coordination and united efforts of different individuals, severalsources of material, knowledge and time. Pertaining to this I therefore takethis opportunity to express my deep sense of gratitude to entire staff andemployees of the Bisleri Ltd.I am very grateful to Mrs. Harpreet Kaur (Faculty) for his guidance andencouragement for his Kind Cooperation.The moving spirit behind this research was all of them, without theirconstant encouragement and support this research would not have been asuccessful outcome.NITESH KUMARMBA IVth Sem.
EXECUTIVE SUMMARY TITLE: ANALYSIS OF MARKETING STRATEGY OF MINERAL WATER INDUSTRY [A CASE STUDY OF BISLERI]Rationale of study:Water is the most important liquid in the world. Without water, therewould be no life, at least not the way we know it. In todays livingcondition, the need for Pure Drinking Water is becoming the issue forthe common Man.Eighty percent of the human metabolism consists of water. This is thereason why 90% of human diseases are water borne.Objective: The objective of research are as follows : • To determine the market share of Bisleri Brand of Bottle Water. • To find out the preference level of respondents regarding Bisleri Brand of Bottle. • To assess the brand awareness of the Bisleri in the Mineral Water Segment. • To Study the brand positioning of Bisleri.
Importance: 1) This report is useful for the researchers who are willing to do research on the Mineral water Industry and its present competitors in the market. 2) This report shows the problems associated with the Mineral water industry in the market as it helps in removing these problems. 3) This report can be useful as a secondary data for Mineral water industry. 4) This report helps in knowing the current and future scenario of Mineral water industry. 5) This report helps in knowing market position of different Mineral water industry.Research Methodology:The research conducted by Exploratory Research this type of research isQualitative and Quantitative. Qualitative refers to the characters of thedata or process by which the data are gathered.The research process consists of a series of closely related activities. Whya research study has been undertaken. Why a research study has beenundertaken, how the research problem has been defined, in what way andwhy the hypothesis has been formulated, what data has been collectedand what particular method has been adopted and a host of similar otherquestion are usually answered when we talk of research methodologyconcerning a research problem or study.
Sampling:The data was to be collected only from the Consumers and Retailers. Aquestionnaire was prepared and interviewing with Retailers andConsumers.A decision has to be taken concerning a sample unit before selecting thenumber of samples. It may be geographical as well as individual.Size of Sample:This refers the number of items (Outlets) to be selected from the finiteuniverse to constitute a sample size. The survey was conducted of 50outlets.Analysis:The data was tabulated manually and was also analyzed manually excelwas used to make graphs and pie chart.According to market share figure, Bisleri is the leading brand which 55.45%market share. While Kinley 23.33%, Kingfisher 3.97%, Aquafina 13.95%and others 6.30%.1. 80% retailers prefer to sell Bisleri brand because of demand, brand and profit margin.2. Bisleri is the most selling brand in the specific region it is at 45% selling among the competitors.
3. Retailers those are selling Bisleri brand of bottle water is 50%.4. The company has recently launched “Bada Bisleri, Same Price ” at Rs. 10/- for 1.2 Ltrs means 2% extra.Conclusion:The players who will endure will be those who have a strong regionalpresence. Take the case of Team, which enjoys immense popularityin TamilNadu. Similar brands with a regional presence are Siruvani,and Koday. Thus, new players will be looking for a distinctpositioning. One such brand is Pepsi’s Aquafina, the largest sellingbottled water brand in the US. After its successful test launch inMumbai and Bangalore, Aquafina was released in Chennai,Ahmedabad, Vadodara, and Pune. Pepsi has invested over Rs.5 crorein the new Aquafina water project in Maharashtra, which is the onlyAquafina plant outside the US.According to Deepak Jolly, executive vice president, corporatecommunications, Pepsi Foods Ltd. “Aquafina will be helped by Pepsi’snetwork. Moreover, Aquafina will be served absolutely chilled.” Thatmakes sense too, since surveys have indicated that an overwhelmingmajority of the bottled water that is consumed in India is by peoplewho are traveling.Recommendations : Advertisement to build the brand image that will provide the required ground to establish the authenticity to the product.
POP (Point of Purchase) displaying the cost of water at Rs. 2 per liter, as the perception of the people is that mineral water cost Rs. 10 per half Lt. Awareness programs at health club, schools & Nursing homes. To win over the consumer belief and faith over the genuity of the product.
INTRODUCTIONWater is the most important liquid in the world. Without water, therewould be no life, at least not the way we know it. In todays livingcondition, the need for Pure Drinking Water is becoming the issue forthe common Man.Eighty percent of the human metabolism consists of water. This is thereason why 90% of human diseases are water borne. There are 3types of water impurities, which are root cause of water bornediseases.1. Microbiological-Bacteria / virus.2. Dissolved impurities - chemical.3. Imbalance of Mineral Content.There are rapid changes that are taking place in our environmentsince long and the air and the water pollution is on an increase. Themain source of drinking water is river and downstream which alsohave not been able to escape the pollution. When a consumerbecame aware of the problems caused by water pollution the marketsaw an advent of ceramic water filters, which filters the dust andsuspended particles but dissolved impurities and microbiologicalimpurities are not cleared out. The mineral balance is also notmaintained.
1980s witnessed more changes by a tap attachment wherein Iodineresin is used to filter the water. It deactivates microbiologicalimpurities to an extent but has side effects due to iodine and it doesnot take care of dissolved impurities mineral balance.Late 1980s witnessed Ultra Violent based purifier, which filters dustand deactivates bacteria to a great extent. It maintains the odor andcolor of water but does not clear out the dissolved impurities andmineral particles. Thus came advent of mineral water.Historically, the need for purified water within Indian homes had beenkept down to a minimum. Essentially, there were three types of waterthat was used for different purposes. The first type was used forrinsing. The second type, which was used for cooking, was cleanerand kept covered. The third type was the cleanest – drinking water –and was very often boiled before use.Since an average family needed a small quantity, not more than fiveor six liters a day, boiled and filtered water had been a convenientsolution for some time .The fallouts were obvious. It was very difficultto convince the people that purification system was worth the price.There was no visible way to demonstrate the benefit. The otherwisesomnolent market began to change once companies like EurekaForbes targeted the office segment, while the mineral water playerswent after travelers. Ion Exchange was the only company, which had
any measure of success in entering homes with Zero-B. But cleandrinking water returned on the national agenda a little later.Around 1989, drinking water became an issue again.“Around early 1990s,Time did a story on India as a key emergingmarket and that was the trigger for all the players eyeing this market”.
WATER, WATER EVERYWHEREWest Europeans, south Asians and Japanese live in the most denselypopulated regions of the globe and worry constantly about the quality oftheir drinking water drawn from rivers and lakes. Most is polluted and unfitfor human consumption. In North America, people never worried aboutwater quality and safety until early 1970’s and restaurants always providediced water free. Some still do. Then came Perrier, the French mineral wateremphasizing how restaurateurs could increase their revenues by replacingiced water service with bottled water. Restaurateurs never miss anopportunity to increase their profits, and soon studies started to surfaceclaiming that serving iced water was costly and no one benefited. Manyrestaurants started serving automatically bottled water, and chargedoutrageous amounts i.e $ 3.50 for 300 ml. These days, a 750 ml bottlegoes for $ 10.- in some restaurants, plus applicable taxes and tip!Meanwhile, the word savvy bottled water marketers started circulating themyth that drinking bottled mineral water is safer, never mentioning whattheir studies were comparing.It is said that the inhabitants of seven cities between Switzerland and theNetherlands consume the water of the Rhine River. In these parts peopledrink beer, wine, bottled water or fruit juices and shun tap water. NorthAmericans have recently begun to drink bottled water, but already thedistinction between spring water, mineral water, and filtered tap water isblurred beyond redemption. Spring water must come from a natural springswith proven purity of contaminants; mineral water must contain 2000 partsper million in minerals; and filtered tap water means just that. Europeansalways preferred mineral water or eau de source (spring water) since their
rivers were polluted a long time ago. Now considerable efforts are made toclean all major European Rivers. The Rhine River, the Thames, the Loireare clean enough to allow several species of fish to thrive.As always, large companies with considerable cash reserves dominate themarket. Groupe Danone, a French conglomerate, markets Evian, Volvicand Crystal Springs; Nestle, a Swiss food multinational with headquartersin Montreux markets Perrier, Nestle Pure Life and San Pellegrino. Not to beoutdone soft drink giant Coca-Cola joined the cause with filtered tap waterand positioned their brand as pure, safe, life-style water. Coca Colamarkets Dasani and Pepsi Cola Aquafina. When it comes to mineral water,Voss (Norway); Tynant (Ireland); Vitel, Cathledon, Volvic, (France);Appolinaris (Germany), Spa (Belgium); Gasteiner (Austria); San Benedetto,San Pellegrino, Aqua di Nepi, Lete (Italy), Ramlosa (Sweden);Borsec(Romania) stand out. They display distinct taste profiles that spring andfiltered waters lack, but tend to be more expensive. When it comes toconsumption, Canadians consume approximately 30 litres per capita,Italians 158 litres, French 133, Dutch 119, Germans 101 and Americans 76.The low per capita consumption can be attributed to the illusion that tapwater is safe. In reality, only large cities control tap water quality regularlyand vigorously and treat it appropriately for safety. In small communities,scarce financial resources and lacking expertise often make tap watersafety questionable. Since the introduction of PET bottles (polyethyleneterephate) bottled water consumption increased by 16 percent in five yearsand continuing growth of the market is forecast by the Canadian BottledWater Association in Richmond Hill, Ontario. The question for restaurantpatrons remains whether to ask for bottled or mineral water, or demand icewater.
It all depends on the situation. You can ask politely for ice water, if that iswhat you prefer, or a glass of wine, or beer. The cost is almost the same forall the three, or you can complain to management that prices charged forbottled water are ridiculous as is the case with wine.
MINERAL WATER INDUSTRY“CURRENT MARKET SCENARIO”A few years back, the mineral water market had been crawling at therate of 3-4%, or even a lower figure. Indians carried drinking water inearthen pitchers, plastic or PUF bottles. But increasing cases oftyphoid and other waterborne diseases began to be reported. Inaddition to this, liberalization happened and the mineral waterindustry began to be stirred and shaken. The market started growingan astounding rate of over 100% per annum. The fact that there werevery few players in the market meant that their business grew byleaps and bounds.The market today has grown to Rs11bn. The organized sector --branded mineral water -- has only Rs5bn of market share. The rest isaccounted for by the unorganized sector, which is dominated by smallregional players. The market is still growing – at a rate greater than80% per annum.In the branded segment, Parle’s Bisleri is the market leader with ashare of more than 45%. Parle Agro’s Bailley comes a close secondwith market share of 15%. Other major players in the market are Yes
of Kotharis, Ganga of T-Series, Himalayan, Hello, Nestlé’s Pure Life,Pepsi’s Aquafina, Coca-Cola’s -Kinley Prime, and Florida etc.Sensing the opportunity that this segment holds, MNCs began to drawup plans to enter the market. Today the market is proving to be yetanother battlefield for an ongoing battle between the Desi’s andMNC’s. Last year the industry had around 170 brands. This figure isover 300 presently. The major foreign players are Coca-Colapromoted Kinley, Pepsi’s Aquafina, Britannia’s Evian, Nestlé’sPerrier, Herbert sons and Danone International.
COMPANY PROFILEThe origins of Bisleri lie in Italy, and the brand owes its name tofounder Felice Bisleri, an Italian entrepreneur. In 1967, Bisleri set upa plant in Mumbai for bottling and marketing mineral water, which wasfirst of its kind in India. However, it didn’t work well. Among otherreasons, the fact that the Indian consumer was unprepared to acceptbottled mineral water was responsible for its failure. Consumermindsets were more geared towards boiling water at home.In 1969, Parle bought over the Bisleri brand. In those days Bisleriwater was available in glass bottles. Parles taking charge of Bisleridid not make a dramatic difference to the brands fortunesimmediately. While it did gain in terms of visibility and reach(piggybacking on Parles existing distribution network), efforts toexpand the bottled water market were not exactly painstaking. Parleat that particular time was interested in making soda water and notmineral water. There were just minor initiatives on part of thecompany for making mineral water, as it was not considered to be avery profitable business at that time as people still considered boilingwater to be a safer and better than mineral water. Moreover they werenot ready to pay for a commodity like water, which was so abundantlyavailable.In 1972-73 Parle changed the packaging of its bottled water to plasticbottles and that significantly made a difference in the sales. The buyers,then, were mainly the upper class - the trendy people.In 1993, Coca-Cola bought Parle’s soft drink brands- Thumps-up, limcaetc. While Coca-Cola actually bought over Parles beverages, it agreedto a settlement that allowed the multinational to bottle and distribute
Bisleri soda for a time frame of five years. The charge of Bisleri water,however, remained with Parle. The upsurge in the sales of Bisleristarted from this point as Parle sold off its stable of brands to Coca-Cola. This was the time when it started concentrating on making Bisleria success in the domestic mineral water market. The reason why Parlechose to retain the Bisleri name was that Parle saw a fairly lucrativebusiness of mineral water in Bisleris equity.The real shift in company’s policy towards mineral water industry camein 1998,although the conscious efforts had already been started in1994. This change was primarily because of the fact that the people, atthis time, had started becoming more health conscious.
MARKETING STRATEGYIt is complete and an unbeatable plan designed specifically for attainingthe marketing objective of a firm. The marketing objective indicate what thefirm want to achieve. The marketing strategy provides the design forachieving them the linkage between marketing strategies and over allcorporate success is indeed direct and vital. Realizing the marketingobjectives is the purpose of two generic categories . 1. price based 2. Differentiation basedprice based marketing strategya business that opts for the price route in its competitive battle will enjoycertain flexibilities in matter of its product and use prices as maincompetitive level . it will price its product to suit the varying competitivedemands . it will be enjoying certain inherent cost advantages , whichpermits it to resort a price based fight . the major forms where such costadvantage can occurs are economies of sale , absolute cost advantages ,.Benefits of early entry a large market share build over a time . it providesfreedom in the matter of pricing but after producing a particular productand getting stuck in the face of the competition , one can not successfullyopt for a price led strategy .
The differentiation based strategymarketing strategy based on differentiation works on the principle that anyaspect of the offer and any activity of the firm can be made distinctivecompared with the competiting offers. Right from technology, plant locationto post sale and service a company can perceptibly differentiate and manybuyer values. Companies usually choose those functions , Which give themthe greatest relative advantage.Different firms adopts different strategy stances as their situational designdiffer-Broadly strategy stances can be classified under three heads- 1- Offensive Strategy- Offensive Strategy also known as confrontation strategy , is a strategy of aggression. A firm that is not presently the leader usually employs it, but it aspires to leadership position in the Industry.
2- Defensive Strategy- The leader who has the compulsion to defendhis position against the confrontation of powerful existing competitors orto dislodge the leader from his topmost position usually employs it.3- Niche Strategy- A firm pactising the niche strategy neither confrontsother nor defends itself. It cultivates a small market segment for itselfwith unique products / services supported by a unique marketing mix.Formulating the Marketing Strategy-Formulating the marketing strategy consists of two main steps-1- Selecting the target market- It doesnot fully bring out yhe import ofthe inseperable linkage between the two. When the selection of thetarget market is over an important part of the markting strategy of thefirm is already determined, defined and expressed.2- Assembling the marketing mix- Assembling the marketing mix meansassembling the four p’s of marketing in the right combination.
The firm has to find out how it can generate the best sales and profit. Itplans different marketing mixes with varying levels of expenditure oneach element and tries to figure out the effectiveness of eachcombination in terms of the possible sales and profit.
ADVERTISING CAMPAIGN OF BISLERIEvery brand needs a good ad campaign to establish itself in themarket. So it becomes very imperative to look at various adcampaigns that Bisleri undertook to build itself as a brand. Bisleristarted its game plan with the punch line of ‘Pure and Safe’ andused the same catch-line for advertising. But with the advent of manynew players, all claiming the purity, it became very imperative forBisleri to differentiate its product so as to stand out in the market.Bisleri found the answer in ‘sealed cap bottles’. It claimed 100%purity. While the bottles of the other brands, it claimed, could berefilled with ordinary, or even germinated water, Bisleri’s seal cappedbottles ensured the consumer of purity of water and single-used nessof the bottles. The ad showed a milk-man and a child showering theirbuffaloes and filling the ‘so-called’ mineral water bottles with thesame water and packing them with the simple polythene seal and theconsumer not knowing about the ‘purity’ of the water he is drinking.Next clip shows the Bisleri bottles being sealed with plastic caps andensuring the purity of water. The ad did work for Bisleri and it got itsmuch needed product differentiation.In 2000, some giant brands like Pepsi and coca-cola entered themineral water industry with a big bang. Bisleri now had a big threat ofmaintaining its market cap. While Coca-cola introducing its brand‘Kinley’ as a health care product, Pepsi projected ‘Aquafina’ assomething as pure as ‘Your own body’. Pepsi targeted the younggeneration and introduced Aquafina as a fancy product to carry.The ad campaign of Aquafina emphasized as ‘70% of your body iswater’ and thus give your body the purest water. The ad showed
young vibrant models and created the atmosphere of youthfulness.Water, Pepsi claimed, was no longer a simple beverage, but wassomething highly fashionable. They complimented it by giving theirbottles an attractive look. This soon caught the eye of the consumer.All these factors made Pepsi the biggest upcoming competitor ofBisleri (whereas Kinley lagged behind the race, showing a doctoradvising a family to take Kinley for pure water – not a very attractivead campaign).Bisleri, to counter-attack the new ‘Feel-Young’ fever had to even boldersteps. They first changed their base line from ‘Pure and Safe’ to ‘PlaySafe’. They tried a brand new ad campaign to catch the fancy of consumer.The new ad showed a young romantic couple on a marooned island, whenthe girl seductively attracts the guy and he follows her in trance. Themoment he gets hold of her, she whispers something in his ears. The nextfew shots show the guy looking for something in frenzy…can not findit….rushes towards the chemist’s shop….buys ‘something’ (keeping theaudience in suspense…or rather implicitly pointing for ‘……’). The girlopens it and….POOF….takes out a bottle of Bisleri and quenches herthirst. Caption: “Play Safe”. This campaign was to catch the attention ofyouth and a new Indian society which is supposed to be ‘not-so-prudish’.Thus Bisleri has taken a very bold step. The T.V. ads have beencomplimented by print ads also. The company has to focus on themarketing management of the product. In light of the challenge in front ofthe company and its current strengths and position, we have incorporatedthe marketing mix to counter the marketing strategies of the competitors bydeveloping its own marketing.
AQUAFINA ADVERTISEMENTS AND BISLERIA drop-dead gorgeous body flexes its muscles on the screen. This starklyarresting black and white image is then splashed with water. A voice-overinforms you that 70 per cent of your body is water. Why not give it thepurest…. Aquafina Bottled water from Pepsi.This kind of advertisement campaign used by the competitors is giving thecompany a tough time. The competitor, Pepsi, is utilizing the brand imagebuilt by it and is again targeting the “Generation X” maintaining thecompany image. It’s an unusual ad for this category. Till now, mostmarketers have focused on educating the consumer on how bottled wateris a safer option, with the lead of course, taken by the popular nationalbrand Bisleri.But Pepsi chose to junk this approach and it could well afford to. Bisleri,after all, had already done most of the hard work needed to build thebottled water category. What Pepsi needed was to establish its brand inthis crowded, fragmented market. Our task was made easier because wasmade easier because Bisleri had concentrated on educating the consumer,instead of building its own brand values," says Rohit Ohri, vice presidentand client services director, Hindustan Thompson Associates Limited(HTA). We wanted the imagery to posit~on Aquafina as a youthful,premium and fun brand," says Vibha Rishi, executive director, Pepsi. Theidea, she says, was not to objectify bodies so that one could drool overthem. "Instead, we are talking about your body and the need for each oneto take care of his or her body." The ad copy, which spoke of the water
content in our bodies, was actually trying to establish how important waterwas to our well- being and how we need to continuously replenish it.While the thinking was clear that the imagery had to be built in and aroundpurity, HTA did toy with a couple of other ideas and situations. Initially, theidea was to focus more strongly on the fun aspect and create a story linecomplete with a smart idea and a twist at the end. "But we gave it upbecause we felt that the story might take the mind away from the purityaspect that was a must to highlight," says Ohri.So HTA adopted a minimalist approach and created a film with little clutterand no props, which tried to capture the emotion of "feeling good aboutyourself. While the film and the imagery are completely the work of HT A,the strategic thinking comes from the Mother Company in the US.Aquafina, in fact, is the largest-selling bottled water brand in the US with a12 per cent market share, and India is the first country outside of the USwhere Aquafina is being bottled. Even in the US, the ad talks of thepercentage of water in our bodies, but the handling is a little more serious.For example, the film will show an emotional moment where someonestarts crying, and then you will hear the voice-over, "85 per cent of youreyes are water."There is no internal law that forces us to follow the internationalpositioning. But seeing the quality of thinking that has gone into this, wedecided to stay with this positioning, though the statements here are quitedifferent," explains Rishi.
Aquafina, like all offeFings that come from the Pepsi stable, also imbibesthe core values of the mother brand. It addresses the Pepsi-user base,largely the youth, and like Pepsi ,it is also being positioned as a hip brand.But Aquafina is a lot that Pepsi is not. It is a little bit older, mature andaffluent, and not as mass based as Pepsi.Pepsis role in the communication is that it is the source of credibility for theproduct and, of course, establishes the youthfulness of the brand. ButAquafina is a brand in its own right and with each piece of communication,its personality will emerge," feels Ohri. But while Aquafina is being given adistinct identity, it is also being targeted at the Pepsi consumer and isaddressing their need for safe and reliable drinking water. Will this notcannibalize Pepsi sales? "Water does eat into the cola market," agreesRishi, "but we cant build a business for Pepsi based on peoples lack ofaccess to safe drinking water.How can any business be built on deprivation?" Both will have to co-existand carve a market out for themselves, And~ while Pepsi targets the 18-25year olds, Aquafina also includes the 30-somethings together with thecollege crowd. Like Pepsi, Aquafina too is looking to command a premiumwithout being unaffordable.It is being positioned as a premium product, not via pricing, but in imageryand packaging. Priced at Rs. 10 in Delhi for a 750ml. bottle, it is pricedmarginally higher than the competition that gives you one liter for Rs. 10.The swirl shaped PET bottle resembles the Pepsi family and is sturdier andmore hip than most others in the category that take their design cues, itseems, from the one liter refined oil bottles in the market. The decision tobreak the norm and come up with a 750 ml pack size was more driven by
the fact that water is fundamentally consumed on the go and the 750 mlsize is easy to carry around. "It is ideal for an half-an-hour in the sun, oneliter gets too bulky," says Rishi. Pepsis future plans at the moment dontinclude commg up with size variants. They have also ruled out thepossibility of catering to the bulk market, which actually constitutes 30 percent of the total bottled water market that stands at 70 million litersannually, and is growing anywhere between 30 and 50 per cent.Pepsi, obviously, is looking for a big slice of this burgeoning market, but asSubroto Chattopadhyay, executive vice president, marketing, Pepsi, says,"We have a building blocks approach, first we have to build the brand, andthen the volumes.Bisleri is tackling the situation by building the brand on the purity plank.Akin to brand building in soft drinks, an aggressive print-and-TV campaignis being backed by hoarding, point-of-sale material, and every interface withthe consumer is being used as an opportunity to reinforce the message.For instance, all the vehicles used for supply have been painted in brightblue, bear the Bisleri logo and sport catchy baselines like . "Play Safe".
PackagingVariety is spices of life. Today for any business organization to besuccessful it has to provide its customer with the differentiated product thatis a value buy for them. In order to cater to yhe changing needs of thecustomer the business has to continuously come out with the variants ofthe products so that it can target the maximum segments.Today Aqua Minerals offers a variety of packaging options: 1 lit, 2 lit, 5 liy,20 lit. The 5 litre bottles account for 35 % of sales showing a growing healthconcern among the Indian society. 1 litre bottles account for 30% of theshare .The 2 litres bottle introduced to slowly and steadily replace the conventional1 litre bottle.The 5 litre packs, launched in dec 1999 in Goa, now available everywhere.DistributionIt’s obvious that availability holds the key to the market .For any product tobe successful yhe distribution system has to be really good. Large tracts ofthe country have not been explored by the national brands, which explainsthe proliferation of smaller brands.Bisleri’s strategy is to build a direct distribution system at an all India levelthat means serious investment In company owned trucks and carts, this
would make it the largest fleet owner in the country. Bisleri has around80,000 retail outlets in the country with about 12,000 each in the delhi andMumbai. It is intended to be increased this no. to 10,00,000 in order toexpand brands reach.The company will invest approximately Rs.200 cr. to procure 2000 trucksand hire same no. of sales people . the company plans to have its owndistribution network in places where it has its own plant
ProductThe main product of the company is the mineral water by the name ofBisleri Mineral water. Other than mineral water the company has alsothe soda water under its brand name called the Bisleri Soda Water.The concept of bottled mineral water was introduced in India, first byBisleri, and that is the reason, it has become a generic name for themineral water. Bisleri has become a perfect synonym of the mineralwater for the Indian consumers.The main challenge facing the company or any other player in thismineral water industry is that there is no scope of invention and
innovation in the product, which can be added as the additionalbenefits of the product.It is just water after all. This is what the Indian customers think of thebottled water. If we are talking about a product like television we canthink that the innovations could provide extra benefits derived fromthe product. For example other than its core usage the product canprovide for Internet facilities using conversion.PlacePlace stands for the company activities that make the productavailable to the target customers. To make the product available tothe target consumers a good distribution network has to be there tosupport the good quality of the product. Here in the case of themineral water industry the distribution network is the important factorin being competitive and the catch lies in making water available tomaximum number of places in the country.DISTRIBUTION NETWORK:The small-scale players built their sales by piggybacking on thegeneric category built up by Bisleri. It’s a battle that Bisleri can win by
sheer distribution muscle. One of the reasons why Bisleri is runningstrong in this industry is its strong distribution network built over theyears since its inception. Further, Bisleri plans to increase itsdistribution network over the southern and eastern region, where it isbehind popular brands like Team in Tamil Nadu and in AndhraPradesh.Prices for following packaging variants (AN ECONOMIC FACTOR AFFECTING THE BUYER’S BEHAVIOR)Price is the sum of values that consumer exchange for the benefits ofhaving or using the product or service. Price is the only element in themarketing mix that produces revenue. All other elements representcosts.In India, where the majority of the population comprise of the middle-income group and lower income groups it is not hard to understandthat pricing is one of the most important factor in the buyingdecisions.Bisleri has met the expectations of the consumers in terms of pricingthe product and also making the product available in variations oflitres, making Bisleri both convenient and affordable. The company isfollowing a very aggressive pricing. Its product is available at a veryreasonable price. 1.2 Ltrs Rs. 10/-
2 Ltrs Rs. 20/- 5 Ltrs Rs. 40/-PromotionModern marketing calls for more than just developing a good product,pricing it attractively, and making it available to the target customers,companies must also communicate with their customers, and whatthey communicate should not be left to chance.A Company’s total marketing communications program- called itsPromotion Mix consists of specific blend of advertising, personalselling, sales promotion, and public relations tools that the companyuses to pursue its advertising and marketing objectives.ADVERTISING CAMPAIGN:While designing the advertisement campaign, it is necessary to keepin mind the opinion leaders. Youth are the opinion leaders of thepresent time. And thus it becomes necessary to design the campaignkeeping the youth in mind. The opinion leaders would further trickledown the message to the less active members of the society.This is exactly what Bisleri is doing. Bisleri has started anadvertisement campaign stressing the point of purity and flaunting the
patent right the company has over the breakaway seal. The companyhas tried to put the message across louder, by using the ad campaignthat catches the eye of everyone, specially the youth.CONTENT OF THE CAMPAIGN:Bisleri that was looking for a differentiator decided to make thebreakaway seal the symbol of purity. The tamper-proof seal wasdeveloped, around which the communication was woven. Thecampaign stresses the safety provided by the breakaway seal byillustrating the ease with which conventionally sealed bottles can berefilled and recycled.The objective with the campaign would have been to highlight thetamper-proof seal and create doubt in the consumer’s mind of thepurity of the other brands. That is, Bisleri is the only one thatguarantees purity and keeps you Safe.To conclude: We find that new advertisement campaign of Bisleri iseye catching. This is what the company should do. And also thecompany should make the message clearer to the customers that ithas the patent right over the breakaway seal. In the survey we foundthat the consumers are aware of the breakaway seal but are not awarethat the company has the patent right.Apart from a high dose of investments on expanding bottling capacitiesand an ad budget that’s risen six-fold over last year, if Bisleri wants topenetrate every possible segment of the market, it can do that by
introducing more pack sizes and establishing the brand strongly withtrendy new packaging.Apart from creating consumer pull with campaign, the company, toincrease its sales would have to do the sales push as well. For that itwould have to give the retailers and other stockiest high trade marginsand incentives for keeping the product. This is very important in caseof this product because consumers would take up what is available tothem at ease and whatever retailer is giving. COMPETITION IN MARKET
COMPETITIONThe mineral water market is set to explode and hit the Rs.2,000-croremark in the next couple of years. This is drawing the big gunsattention. First Britannia launched Evian. And recently, soft drinksgiant Pepsi entered the fray with Aquafina. Now, Nestle too isreportedly planning a foray. Meanwhile, Parle Agro’s Bailey has beengrowing steadily. Small local players too are breathing down Bisleri’sneck riding on better trade margins and intensive distribution (in theirrespective areas of operation).The competition facing Bisleri can be categorized into a few brandnames like Parle Bailey Pepsi Aquafina Coca Cola KinleyWith Parle’s Bailey being the main competitor and second in marketshare in the organized market, Bisleri faces tremendous competitionfrom the unorganized sector.
AquafinaThe advantage for Aquafina is that though there are over 300 labelsof bottled water in the Indian market, few can be called brands. It isnecessary to remember that every product with a name is not a brand;even Bisleri has become generic to this category.It does not have any emotional values attached to it. So there was nodifficulty for Pepsi in creating space in such a market, which iscompletely different from the soft drinks market, where it will be verydifficult for any new player to find a slot. So the creative team at HTAvirtually had an empty canvas to work on. And it came up with acampaign that did have people talking. First, a series of teasers,followed by a film that showed healthy bodies and youthful peopleand, of course, lots of water.Although Aquafina is only available in a 750 ml pet bottle, the pricing,at Rs.10, is competitive. And it is safe. In addition to the tamper proofseal, there is a reliable method of checking whether the bottle hasbeen refilled. The date of manufacturing has been written on the capas well as on the bottle. Thus a person who is refilling it would haveto find a matching cap and bottle, the probability of which is very low.
Coca Cola- KinleyCoca-Cola joined the race by announcing the imminent launch of itsown brand of water and, in the process, putting to rest rumors of itsso-called takeover of Bisleri. Kinley is targeting institutions. Parle Agro’s- BailleyBailley the brand that is owned by Ramesh Chauhan’s brotherPrakash Chauhan is very popular in the southern part of India.Southern part of India accounts for 20% of the sale of the whole watermarket industry. Bisleri would have a tough competition from Bailleysince the company plans to spread its presence in that part of thecountry. Another thing that makes the competition difficult for thecompany is the price at which it’s competitor is offering the product.Like Bisleri it also gives the 1 lt. For Rs.10. The only strength point ofthe company, which it can capitalize, is it’s generic name. And alsothe company would have to enter that market with a strongdistribution base. We know the fact that Bailley has grown at a rapidpace using the route of franchising, which Bisleri has not adopted asyet. This is another point, which the company would have to take careof to face the competition.
PRODUCT PROFILE“It’s a compliment being generic to the category, but its not very goodwhen consumers think any mineral water brand is Bisleri”Bisleri, a product established in India by Ramesh Chauhan, Chairman ofParle Aqua Minerals has become a generic brand. Bisleri was the firstmarketed bottled water in a totally virgin market. The brand has becomesynonymous with mineral water; consumers accept any brand offered bythe retailer when they ask for Bisleri.So far Ramesh Chauhan’s Bisleri enjoys the largest market share of 56%in the Rs1100 crores mineral water markets and is growing at the rate of180% per annum. Annual sales of Bisleri have touched Rs400 crores. Inseventies, Bisleri was the only mineral water, which had nationalpresence, and the sale was to the tune of approximately one hundredthousand cases valued at about Rs.60 lacs. i .exe
MANUFACTURINGA quick look at Bisleris manufacturing reach indicates that it is representedacross the country – North accounts for 35% of sales for the industry, Westaccounts for 30%, South 20% and the East 15%.In order to be available in untapped areas Bisleri has setup 16 plantslocated all over the country - three-fourths of which are companyowned. The balance is run by franchisees. Bisleri has 5 plants in theNorth, 5 in the West- two of which were setup in the last year atAhmedabad and Surat, 4 in the South and 2 in the East. The companyhas bottling units located in Chennai, Bangalore, Goa, Calcutta,Mumbai, Delhi, Jaipur, Uttar Pradesh, Punjab, Indore and Nepal. Thenew plants are being set up in states like Kerala, Orissa, Bihar andNorth Eastern States, which hitherto have been unexplored by thecompany.It is also changing its production strategy and shifting to a 10-hrproduction schedule with sudden increase in demand planned to bemet by additional production.Bisleri has planned to expand its operations by investing Rs.60 croresin the upgradation of facilities. The 120-bottles per minute (BPM)
capacity of the 16 units across the country will be increased to 240BPM.Conscious of the environmental implications of its PET bottles, thecompany is to set up recycling plants at Delhi and Chennai, each withan outlay of Rs.50m. These will process 500 kg of PET per hour. Theprocessed material will be an input for polyester yarn manufacturers.In centers other than Delhi and Chennai, the company will set upcrushing units to crush the used PET bottles.The companys expansion plans will see its water bottling capacity goup from the present 400 million liters to 500 million liters. Parle BisleriLimited (PBL) is planning to invest Rs 200 crores to increase itsbottling capacity and double its turnover. The expansion will alsoincrease the number of companys bottling plants from 16 at present,to 25. The company will set up all the new plants as green fieldplants. It doesn’t have any intentions to acquire any existing plants.
PURE BOTTLED DRINKING-WATERIs DangerousThe Safety of Bottled Drinking-waterBecause of the large number of possible hazards in drinking-water, thedevelopment of standards for drinking-water requires significant resourcesand expertise, which many countries are unable to afford. Fortunately,guidance is available at the international level.The World Health Organization (WHO) publishes Guidelines for Drinking-water Quality which many countries use as the basis to establish their ownnational standards.International Standards for Bottled Drinking–waterThe intergovernmental body for the development of internationallyrecognized standards for food is the Codex Alimentarius Commission(CAC). WHO, one of the co-sponsors of the CAC, has advocated the use ofthe Guidelines for Drinking-water Quality as the basis for derivation ofstandards for all bottled waters.CSE Report on pesticide residues in bottled waterThe Centre for Science and Environment, a non-governmental organizationbased in New Delhi, has set up the Pollution Monitoring Laboratory tomonitor environmental pollution. Its main aim is to undertake scientificstudies to generate public awareness about food, water and aircontamination.
The bottled water market share of major brands is Bisleri (51%), Bailley(17%), Yes (11%) followed by Kinley (10%), Aquafina (4%).Drinking water filled in hermetically sealed containers of variouscompositions, form, and capacities that is suitable for direct consumptionwithout further treatmentFACTSBottled drinking water samples of some top brands– Bisleri (Parle BisleriPvt. Ltd.), Bailley (Parle Agro Pvt. Ltd.), Aquafina (Pepsico India HoldingPvt. Ltd.), Kinley (Hindustan Coca Cola Beverage Pvt.Ltd.) and of other less popular brands like Best, Royal Aqua, Seagull etc.,which were being sold and manufactured in Mumbai and nearby areas likePune and Daman, were purchased randomly. All the samples werepurchased from retail outlets in the market and from railway station andwere checked for proper seal, date of manufacture and batch number.Even the top brands, which claim to use treatment methods like purificationfiltration, activated carbon filtration, demineralization and reverse osmosiswere found to contain residues of pesticides. It might be due to the reasonthat the manufacturers may be by-passing the raw water after partialtreatment and remixing it with the fully treated stream so as to cut down thecost of treatment. On the basis of the results different brands can be ratedin terms of total organochlorine and organophosphorus pesticides fromleast to most contaminated as-
OBJECTIVETo analyze the marketing strategies of the company with • To determine the market share of Bisleri Brand of Bottle Water. • To find out the preference level of respondents regarding Bisleri Brand of Bottle. • To assess the brand awareness of the Bisleriin the Mineral Water Segment. • To Study the brand positioning of Bisleri.
RESEARCH DESIGNMEANING OF RESEARCH DESIGNThe formidable problem that follows the task of defining the researchproblem is the preparation of the design of the research project, popularlyknown as the “research design”. Decisions regarding what, where, when,how much by what means concerning an inquiry or a research studyconstitute a research design. “A research design is the arrangement ofconditions for collection and analysis of data in manner that aims tocombine relevance to the research purpose with economy in procedure.” Infact, the research design is the conceptual structure within which researchis conducted; it constitutes the blueprint for the collection, measurementand analysis of data. As such the design includes on outline of what theresearcher will do from witing the hypothesis and its operationalimplications to the final analysis of data. More explicitly, the designdecisions happen to be in respect of : (i) What is the study about ? (ii) Why is the study being made ? (iii) Where will the study be carried out ? (iv) What type of data is required ? (v) Where can the required data be found ? (vi) What periods of time will the study include ? (vii)What will be the sample design ? (viii)What techniques of data collection will be used ? (ix) How will the data analysed ? (x) In what style will the report be prepared ?
TOOLS AND INSTRUMENTS USED FOR THE STUDY It is necessary for a researcher to define conceptual structure whichresearch would be conducted. The function of research design is toprovide for the collection of relevant evidence with minimal expenditureof efforts, time and money. In this research the research design was asfollows:- 1) Time available for the research is every Wednesday of the week. 2) The means of obtaining the information is through : • Primary data like questionnaire • Secondary data like magzines, net and Pumplets etc. 3) There is no cost factor related to researcher.
PROCEDURE OF DATA COLLECTIONData compilation is an intermediate stage between data collection andanalysis. Data compilation involves classification and summarization inorder to make data amenable to analysis.In dealing with any problem, once the sample has been selected the datamust be collected from the sample population. There are several ways ofcollecting appropriate data which differ considerably in context of moneycost, time and other resources. They can be broadly classified in to twocategories.Two sources to collect data are namely:1. Primary Source2. Secondary SourcePRIMARY SOURCE OF COLLECTING DATA The Primary Data that I collected were the first hand information whichI received through personal interviews with the consumers and throughquestionnaires. This data gave the most vital information for making myanalysis of the prevailing purchasing behavior of the consumers.
QUESTIONNAIRE TECHNIQUEThe method of collecting data mailing and personally distributingquestionnaire to the respondents is the most extensively employedtechnique in various economical surveys. This method is quit popular,particularly in case of big inquiries. A typical questionnaire consists of anumber of questions arranged and printed in definite order on a form or aset of forms. The questionnaire is given to the respondents who areexpected to read and understand the questions and write the response inthe given space meant for the purpose in the questionnaire.
SECONDARY SOURCE OF DATA COLLECTIONSecondary Data involved in my research were the information that Icollected through the various broachers and pamphlets of the companywhich were provided to me during the analysis.RESEARCH DESIGN :The research design which has been used in the project report isdescriptive in nature.SAMPLE DESIGN:The sample design which has been use in this project report is simplerandom sampling.SAMPLING UNIT :A decision has to be taken concerning a sample unit before selecting thenumber of samples. It may be geographical as well as individual. Here allNCR region has been taken as a geographical unit and retailers as anindividual unit.SIZE OF SAMPLE:This refers the number of items (Outlets) to be selected from the finiteuniverse to constitute a sample size. The survey was conducted of 200outlets.
FINDINGAfter the tabulation and analysis of 50 respondents from Ghaziabad city:-He following findings are obtained:1. According to market share figure, Bisleri is the leading brand which 55.45% market share. While Kinley 23.33%, Kingfisher 3.97%, Aquafina 13.95% and others 6.30%. 2. 80% retailers prefer to sell Bisleri brand because of demand, brand and profit margin.
80% 70% 60% Bisleri 50% KEEP Other 40% brands 30% Don’t keep any Brand 20% 10% 0%3. Bisleri is the most selling brand in the specific region it is at 45% selling among the competitors.
45% 40% 35% 30% Bisleri 25% Kinley Aquafina 20% Kingfisher 15% Others 10% 5% 0%4. Retailers those are selling Bisleri brand of bottle water is 50%.5. The company has recently launched “Bada Bisleri, Same Price ” at Rs. 10/- for 1.2 Ltrs means 2% extra.6. There is discrimination in the prices of distributor or the prices at which retailers directly purchase from the market.7. Most of the customers first ask for Bisleri bottle water just because of its Generic name not because of brand loyalty.
SWOT ANALYSISSTRENGTHS• Old and famous brand name• Better packaging• Effective distribution network• Famous as pure & safe among consumer• Good product mix• Frequent quality checking• Much used by corporate world• Better management• Give regular follow up to distributor• Indian image• Better sales force• Sponsoring various cultural program• Better visibility• Good intensives to dealer
WEAKNESS-:one liter packs which accounted for 50 per cent of the company’sturnover has come down to 30 per cent. The two-liter packs, whichhave practically disappeared from the shelves, have come down from20 per cent to five per cent. The growth has come from the 500 mland the five-liter category, which account for 15 per cent and 36 percent of turnover respectively.Earlier, Bisleri was selling at a premium of Rs.12 for the same size.But beginning last year, it has been selling its one- liter bottles atRs.15 each. Aqua Minerals attributes the Price slashing to retailermargins being on the higher side earlier.The competitive Rs.15 price tag has been working well for the brand.In what could be a masterstroke, Aqua Minerals is testing out thepossibility of mass marketing 20-litre Bisleri bottles for an MRP ofRs.40. That works out to Rs.2 a liter. If the logistics, manufacturingand distribution do fall in place, it could change the face of thepurified water market for keeps.
OPPORTUNITIESSo far, Chauhan has not used the franchising route very aggressivelyunlike Parle Agro’s Bailley which has grown very fastusing this route. He has around six franchisees in Mumbai, Delhi,Chennai, Bangalore, Goa and Rajasthan. “We shunned this route sofar because in most areas where we had no presence, it wasimperative that we did it ourselves. Now for further expansion we canafford to use the franchisee route.”
THREATSBisleri will be taking the packs back and refilling them. But the packscannot be sterilized since the material used is PET and cannotwithstand high temperature. So how can he ensure purity?”Strategy to counter threats and others?We subject the bottles to chlorine washes, hot water washes andozone washes before we refill the bottles.The company is betting on the home segment. The reason being thatfilters and water purifiers also need to be cleaned periodically and stilldo not guarantee absolutely clean water. In order to service thissegment, the five liter packs are being pushed through the route of fatdealers (wholesale dealers) who are retailers as well as stockiest andserve as supply points from where customers can pick up the requiredquota. In future, consumers will be able to call the fat dealer andplace orders for home delivery of the five-liter pack. The company hasso far appointed 180 such dealers. This is a high turnover, low-marginretailer who does not keep a store but serves a similar purpose withother items such as rice or atta.
CONCLUSIONThe players who will endure will be those who have a strong regionalpresence. Take the case of Team, which enjoys immense popularityin TamilNadu. Similar brands with a regional presence are Siruvani,and Koday. Thus, new players will be looking for a distinctpositioning. One such brand is Pepsi’s Aquafina, the largest sellingbottled water brand in the US. After its successful test launch inMumbai and Bangalore, Aquafina was released in Chennai,Ahmedabad, Vadodara, and Pune. Pepsi has invested over Rs.5 crorein the new Aquafina water project in Maharashtra, which is the onlyAquafina plant outside the US.According to Deepak Jolly, executive vice president, corporatecommunications, Pepsi Foods Ltd. “Aquafina will be helped by Pepsi’snetwork. Moreover, Aquafina will be served absolutely chilled.” Thatmakes sense too, since surveys have indicated that an overwhelmingmajority of the bottled water that is consumed in India is by peoplewho are traveling.With the big players, who have the support of the financial muscleand a large consumer base in other categories with them, like Pepsi,Britannia, Nestle and Coke — the battle is the tougher arena of brand
building. All the multinationals are looking at high-octane advertisingtargeting specific consumer segments. Sensing troubled watersahead, Bisleri is busy working on a strategy to soak up thecompetition and protect his water kingdom.Strategy which the company could adopt, are as follows:1.The soft targetSelling bottled water requires constantly expanding the market. Thecompany should also target the market for soft drinks. All the softdrinks addresses three issues: fun, thirst and refreshment followed bystatus to some degree. The thirst and the status value of the mineralwater are well accepted. There is very little the mineral water brandscan do to add the fun element around the product. Again here, itbecomes important for the company to have a good distributionnetwork. It should be understood that if the mineral water is easilyavailable everywhere then it can be said with confidence that it wouldbe able to replace the soft drinks as thirst quencher. If we try and lookat the reasons that why consumers buy soft drinks as thirstquenchers: we would find the answer as that either water is notavailable or if it is available then safety is not assured. Therefore,backed by a good distribution network mineral water industry cangrow at a rapid rate.
RECOMMENDATIONS Advertisement to build the brand image that will provide the required ground to establish the authenticity to the product. POP (Point of Purchase) displaying the cost of water at Rs. 2 per liter, as the perception of the people is that mineral water cost Rs. 10 per half Lt. Awareness programs at health club, schools & Nursing homes. To win over the consumer belief and faith over the genuity of the product. Display of hot and cold dispensers and bottles at places like hotels, clubs and airports where upper class group visits, as they are the potential customers. Place like departmental stores, petrol pumps and super bazaars can also be considered. The company should organize camps at various part of the city also road show to bring about the difference between mineral water and filter/purified water and to tell the people how mineral water is more hygienic than filtered water/purified water. To aware people the cost benefit analysis to the customer of how the mineral water would cot less and benefit more, because people using purifier system cost too much.
LIMITATIONS A small segment of the market has been covered only, so the conclusion cannot be generalized.c The data collected cannot be free from errors, since some of the respondents failed to give correct information.r Study accuracy totally based upon the respondents response.S Stipulated short span of time for survey.
BIBLIOGRAPHY Marketing Management Philip Kotlar Annual Report, Bisleri 2001 Business Magazines – India Today Annual Addition 2004 Business Today, Business World August 2004 Websites www.bisleri.com www.discovery.com www.google.com
QUESTIONNAIRE1. Which brand of bottle water do you sale more? a. Kingfisher b. Kinlery c. Aquafina d. Bisleri e. Others2. What is your monthly sale? ________________________________________________3. Which brand of bottle water do you prefer to sell more? ________________________________________________4. Why do you prefer to sell more this particular brand? a. Easily available b. More demand c. Quality Factor
5. Generally which brand of bottle water customer demand? ________________________________________________ 6. Frequency of services no. of days] between two service of the company/WD in the area / market? Bisleri Aquafina Kingfisher Kinley OthersQ. 7 When you talk of drinks, what brands come to your mind?____________________________________________________Q. 8 Whether the customers are already aware about this product?____________________________________________________Q. 9 Which are the brands available in your shop?____________________________________________________Q. 10 Number of buyers who buys this brand per day? a) 0-5 b) 5-10 d) 10-15 e) Above 15Q.11 Are you satisfied with the current margins on this brand? Yes / NO____________________________________________________Q.12 Whether you are getting any complaints from customers, specify?
____________________________________________________Q. 13 To which brand and reason? Brand:- _____________________________________ Reason:- _____________________________________