Packaged drinking water pdf pritha.s14@fmsedu-faculty-of-management-studies

Marketing & Distribution of
Packaged Drinking Water
Submitted by
Asif Muhammed F162
Praveen Kumar F192
Pritha Sarkar F222

Marketing & Distribution of Packaged Drinking Water
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We would like to express our gratitude to Ms. Garima Gupta who guided us throughout the
execution of this project and who always provided us with his valuable insights on how to do a
marketing research project both inside and outside the classroom.
We would also like to thank the consumers who took time out to fill up our survey and provided
us with deep consumer behavior patterns. Of course it is not possible to name them individually
but their contribution is valued by us.
And last but not least we thank our mentor Ms Pallavi Sinha who was there for us throughout the
successful completion of project, who guided us and provided us with valuable suggestions.

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Acknowledgement 2
Abstract 5
Literature Review 6
Objective of the project 9
Introduction 10
i. About Packaged Drinking Water Industry 10
ii. Growth & Progress over the years 10
iii. Market Rulers 11
iv. Raw Materials 11
v. Process of Manufacturing 11
SWOT Analysis of Packaged Drinking Water Industry 13
i. Strengths 13
ii. Weaknesses 14
iii. Opportunities 15
iv. Threats 16
Research Methodology 17
Research Design 17
Data Collection 17
Survey Analysis of Customer Responses 18

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User Preferred Brands 22
Segmentation, Target and Positioning 22
A Brief Introduction to each product: 4P Analysis 23
i. Bibo 23
ii. Bisleri 25
iii. Evian 28
Conclusion 31
References 33

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We did our research with the aim of finding the marketing and distribution consumer preferences
in the packaged drinking water industry in India. We studied in detail about the Indian packaged
drinking water industry, its origin, growth and current scenario. A SWOT analysis has been
carried out on packaged drinking water industry also.
To get the consumer preferences, we conducted a market survey among different parts of India.
From the responses, we analyzed that there is significant difference in user preference among
branded water and local brands, owing to the factors like cost, awareness, ease of access etc.
Moreover from our study we understood that there are significant differences between the
various players, how they are positioning themselves in the market, what all marketing strategies
they are employed etc. So in detail we studied about 3 brands, one the most preferred brand,
turned out to be Bisleri, one, the most preferred local brand, turned out to be Bibo and the last,
the most preferred luxury brand, turned out to be Evian. We did STP as well as 4P analyses for
these 3 brands as well.
And as conclusion we analyzed in detail what all barriers that a local player is facing when
entering into the packaged drinking water industry.

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1) BOTTLED & SOLD: THE STORY BEHIND OUR OBSESSION WITH BOTTLED
WATER
Peter H. Gleick, Washington, DC: Covelo/London: Island Press, 2011.
Objective
The book disciplinary boundaries and treat water problems from multiple physical, social,
political perspectives. A hydrologist, a legal scholar, and an anthropology specialist combine
their expertise in their highly engaging treatment of the past, present, and uncertain future of
the Rio Grande. The book Bottled and Sold moves easily from the physical to social aspects
of the growing problem of bottled water. Another characteristic is that the intended audiences
of the book need not have any previous knowledge about water resources, although their
contents are also instructive to specialists. The three books are also similar in their overall
high quality and commitment to innovation and change in the substance and process of water
resources decisions.
Focus Method Reasoning Insights
River
Basin
Historical/institutional analysis Historical
precedence
How and why present
conditions emerged
Approach
Bottled & Sold: The Story Behind Our Obsession With Bottled Water by Peter Gleick sets a
goal where “the world moves toward sustainably managed freshwater resources where every
person on the planet has safe and reliable drinking water, ecosystems and communities all
have their basic water needs satisfied, and water is used efficiently and carefully” (page 177).

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Through policy analysis that considers the putative benefits of convenience, purity, and taste
of bottled water; the real costs of energy to manufacture and transport bottles; the added costs
to collect and dispose of used bottles; and the uncertain and inadequate regulations to protect
bottled water quality, Gleick concludes that improving public water supply systems is the
preferred pathway to the future he envisions. While the author himself relies on rational
means–ends analysis, he readily recognizes the power of framing tap water as unwholesome,
socially constructing bottled water as fashionable, and storytelling where bottled water is the
hero of weight-loss narratives. Further, analysis alone is recognized as insufficient to change
either regulatory policy or consumer demand. Political mobilization against bottled water and
the greening of some corporate brands, both of which the book documents, are processes
taking place and to which this book clearly intends to contribute.
Customs and Central Excise withdraws controversial ad
http://www.cseindia.org
Issue Dealt With
The customs and central excise department gave through its advertisements that was
published in leading newspapers on February 21 gave the following message
Drink Aerated drinks and do social service
The advertisement said that the central excise duty, which is to the tune of rs 95,508 crores
(paid between April- December 2010), consumers pay on aerated drink is used to meet the
drinking water requirements of millions. It reads that 'The Central Excise Duty you pay on
aerated drinks helps quench the thirst of millions'- it almost seems that the more people drink
aerated drinks, the more they are contributing towards the society and doing a social service.
Findings
Consumption of aerated drinks is known to have long term health impacts like obesity,
osteoporosis, gastronomic distress, calcium loss and kidney stones. Obesity in India has

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grown by 20 percent between 1998 and 2005 and obesity increases the risk of diabetes, heart
diseases, stroke and high blood pressure.
CSEs campaign bore fruit when the government in July 2003 decided to notify new norms
for pesticide residues in bottled water. The norms state that pesticide residues considered
individually should not be more than 0.0001 mg/litre while total pesticide residues were
capped at not more than 0.0005 mg/litre.

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To carry out a detailed study about Indian Packaged Drinking water industry- its origin,
growth and future scope and on the basis of this analysis, suggest innovative strategy for
new entrants.
After conducting a detailed study about the history of packaged drinking water industry, how it
has originated in India, how it has evolved over the years, the major players involved, the
changing demand and consumption statistics of the industry throughout and its projected growth
over the next decade, we go deep on the different marketing strategies employed by the local
players, the industry leaders and the niche segmented brands, how they are segmenting the
markets, what are their target segments and what differences are there in the strategies adopted
by them to position them in the targeted market.
As a part of the project, we would like to carry out a detailed survey about the usage and user
preferences of the various market players, the attitude of the Indian consumers towards them, and
predict what is next for the players; the future by analyzing the market responses. Moreover, we
visit manufacturing plants and get an insightful experience about the various day to day
operations, and challenges faced at a bottling plant, how the nature of challenges differ from an
established one to a local brand.

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About Packaged Drinking Water
Water forms an essential part of life for all of us. Since it is a human necessity, it makes best
sense to do business in. As a normal human being requires an average of 2-3 liters of water every
day and Indian population is more than one billion (growing at 2-3% annually) the business
opportunity is enormous and the industry potential is largely untapped.
The bottled water industry is estimated to be a whopping 1600 crore business! It has grown at a
rate of 38-40% annually over the past four years. However the domestic packaged drinking water
industry of India is highly fragmented with more than 1000 players. The top 5 players account
just above 35% of the total market share
Growth and Progress over the Years
Packaged Drinking Water Industry in India has never looked back after the economic
liberalization process of 1991-92. In fact the fastest growth in the consumption of bottled water
in the world has been recorded in India according to a new study conducted by the US based
earth policy institute.
Earlier packaged drinking water was privileged to the high class, foreign tourist and highly
health conscious people, but the present decade has witnessed increasing popularity among
average consumers, increasing living standards, disposable income, education and awareness
among the consumers domestic and foreign tourist, sophisticated business houses and offices has
increased rapidly the sales of bottled water in recent years.
The growing demand for packaged drinking water speaks volumes of the scarcity of clean
drinking water and the quality of tap water. It has become an icon of healthy lifestyle emerging
in India. Selling – „safety‟ – i.e. pure and simple water has now become one of the fastest
growing industries in India despite the harsh truth it is build on the foundation of bad
governance, inequality and obvious exploitation. However, packaged drinking water provides the
distant advantages of convenient packing, consistent quality and is ubiquitous.

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According to Bureau of Indian Standards (BIS), there are 1200 bottling plants and 200 brands of
packed drinking water across the country (nearly 80% of which are local) hitting over the
markets which thoroughly signifies the market is big, even by international standards. This is a
boom time for the Indian bottled water industry, because the economics are sound. India is the
tenth largest bottled water consumer in the world. The consumption of smaller units of 500 ml
has increased by around 140% perceptibly over the last 5 years. Even school children are
carrying the 500 ml packs in their school bags. The 20 liter bulk water jars have found
phenomenal acceptance in house hold and at workplace. With the growing market size, one can
imagine the employment and growth opportunities being created with the surge in bottled water
industry.
Market Rulers
The bottled water market is dominated by major player such as Coco-cola, PepsiCo (Aquafina),
Parle (Bisleri & Bailey), K.K. Beverages, Manikchand, and Tata-Mount Everest. Although we
have a large number of players, Parle was the pioneer among the major player when it was
launched in India, 35 years ago.
Raw Materials
The main raw material is water which is purified and made into finished product.
Process of Manufacturing
The water is processed with multi stage purification processes such as – sand filter, activated
carbon filter, ultraviolet disinfection, ultra filtration, Reverse Osmosis and Ozonization.
The sand filter eliminates load of total suspended solids in the raw water. Activated carbon filter
removes the organic contamination and pesticide residuals from the water. It also controls taste
and odor of water. In UV disinfection, water is exposed to UV light of wavelength 245
nanometers (nm), generally. A dosage of 16000 microwatt/sq.cm is required at 40˚ C for
effective disinfection. The Ultra filtration is a low pressure membrane process that removes
dissolved organic macro molecules, viruses, pyrogen enzymes etc. Then comes the reverse
osmosis where dissolved impurities like unwanted salts and retain minerals which are essential to

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human body are eliminated. Then water will go through a process of ozonization, ozone being
the strongest oxidizer and disinfection agent which can act on a broad spectrum of
microbiological organisms. After ozonisation, water is filtered again through a microscopic filter
before final packaging.

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Strengths
Growing Popularity
With the increase in mobility of people outside their region and movement from rural region to
urban region there is increment in use of packaged drinking water due to easy availability and
safe option for water
Industry growth
With the growth of industries and other corporate entities such as hotel and restaurant there is
increase in use of packaged drinking water as an option and shifting behavior from normal
drinking water to packaged drinking water in case of any gathering at higher level of functioning
Increasing use of new Bulk Segment in Household
With rising scarcity of water and increasing cases of pollution there is increase in trend of buying
Bulk Drinking water deal from dealers of Bisleri etc. As being easily available and at lower cost
than the premium packaged water of same brand, this bulk segment of big bottle is getting
popular in houses as well as offices quickly these days
Growing population
With the growing population of the country the market size for packaged drinking water is
increasing day by day due to higher consumption as well as increasing scarcity of fresh water in
surrounding.

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Weaknesses
Reuse of bottles by local seller and illegal manufacturers- Manufacturer’s issue
Due to inability of destructing the bottle use after taking out water from it the same bottle is
being used by local public to sell it again with normal water in it but packed with seal. It creates
disbelief in public and they don‟t even keep faith in buying the new one due to inability to
distinguish between used one and new one affecting the sale.
Inability to find market in rural population
Due to comparatively high price and less awareness about importance of pure water, this
industry has found it difficult to cover rural market. Though at the same price cold drinks have
found its feet in the market but packaged drinking water is still something very hard to be
accepted by rural population for very long time.
Not very Economical
The price will always remain an issue for general public for quite long time as it is still compared
to the normal water available for nearly no price. This difference of price would really mke the
industry finds out a way to fill up by making public aware of the importance of pure water which
is rare to find in the free water.
Quality not maintained properly
From time to time there have been issue with the quality of processed mineral water though on
one hand it is highly expected by public to be the purest form and if something wrong is found as
was in one of the case of Bisleri having germ contents in it, really upset people and can make the
demand fall down abruptly.

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Opportunities
Sustained market growth in coming years
Growing population increasing level of water pollution is going to have a great impact on growth
of the packaged water industry. With the rise in population, country is moving toward the water
crisis zone causing water bill to be added to the system decreasing the gap between normal water
and mineral water.
Increased awareness among people regarding the use of clean water
As literacy rate is increasing more people are getting to know the need of pure water and status
of present water cleanliness scenario. Rather than a luxury packaged drinking water in big bottle
is considered as a regular need for the family need considering risk of having impure water from
tap.
Launch of premier packaging for hotels etc
With the increasing use of packaged drinking water in hotels and restaurants there is increase in
demand for the product and considered as a status mark during meal outside home. Also it is
being offered at residential inn and motels as only source of drinking water to show more
concern for health of costumers.
Threats
Increased Competition
Being market of high growth rate i.e. 40%, this industry is being used as an entry by many
players. Leaving Bisleri & Aquafina there are many local players who rise very easily and its
difficult for them to tackle this new competition arising by their brand value as the main material
is water which is available very well in all form.
Entry of big players like Coke, Pepsi to the industry

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Entry of big player like coke & Pepsi is taking competition to new level and by decreasing the
profit margin and better market reach they are able to attract more customer thus making it
difficult for old players to continue their dominance.
Availability of too many substitutes
Substitute in terms of cold drink or juice are creating a great competition for the packaged water
industry. Bringing taste with fulfilling thirst of people has been USP for them and really hit hard
packaged drinking water most of the time. The beverages industry has been above packaged
drinking water industry and packaged bottle are chosen only in case of real need of water by
general public.
Entry of Purifying Machines
Brands like Eureka & Swach are bringing up a new and better solution for customers to purify
water by their own rather than depending on the purified water available in bottle thus decreasing
the demand of packaged water. Being more convenient for the customers, this industry is rising
rapidly leaving very little market for packaged water industry to cover

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Research Design
The objective of the project was to identify the customer preferences over different brands across
the country, how often they are taking packaged drinking water and how much customers are
willing to pay. Is there is any significant difference in the user preferences across brands or
consumers really prefer some brands over others? Is price a crucial factor altogether in deciding
consumer choices? How much an Indian consumer is willing to pay for a bottle of drinking
water?
We followed a model of conclusive research. We surveyed close to 150 persons, majority being
working professionals and students, as they forms the largest consumer group of packaged
drinking water. We asked them about the frequency of consumption, the price range they are
willing to pay, brand awareness etc. Based on the analysis of responses we formulated the
consumer perceptions.
Apart from consumer survey, we visited bottling plants, retail stores and local dealers to get a
clear picture of how packaged drinking water is manufactured, is there any differences in the
processes followed by national players and regional players, how well different brands are doing
in market etc.
Data Collection
Survey
We surveyed 154 persons throughout the country. A large part of the survey had done through
internet and other social media tools; however a significant part was covered by the researchers
themselves. In the second case, the survey was orally administered and respondents were
explained about technical things.

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Observation
The major target group was students and professionals who form the largest consumer groups.
They had difference in attitude towards different products. Based on their responses, we chose 3
different brands, one being the market leader i.e.; Bisleri, one, a niche segmented product i.e.;
Evian and one a local brand i.e.; Bibo. We analyzed the different marketing techniques followed
by these 3, how they differ? How they are positioning themselves in the market?

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We got 154 responses from different category of occupation and age group to get an overall view
of what exactly is the view of market toward packaged drinking water in term of preference and
their convenience of getting to the product. We got a well distributed customer response in terms

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of occupation as well as age group giving more authentication to our work.
There was a requirement to analyze how frequently people are in habit of buying packaged
drinking water. That would give us a rough idea about the demand rate of consumers. By the
response we realized that still packaged drinking water is considered to be a incidental buy and
not a regular need for most of the consumers in India.
We wanted to have an idea of the buying potential of consumers in respect to packaged drinking
water in the sense how much are the willing to pay for packaged drinking bottle (1 litre ). We

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observed that the maximum numbers of people are ready to pay more than Rs. 30 for a bottle of
water.
On the other hand looking into the minimum amount which people are willing to pay for a bottle
and the most preferred value came up to be Rs 15 or less. It shows clear response of people to
pay lesser amount due to the price gap between the normal water and packaged water bottle.
Overall idea that we can obtain from the response is that though the price is a big concern for
consumers but at the same time it can be handle in reference to the importance of pure water in
daily life system.
The response we got from consumers made a clear distinction between various points from
where they would like to buy packaged drinking water. Even the industry has a good idea of the
consumers‟ preference and very well distributed the product at different places. From the
response it is found that nearby grocery shops and local vendors are more preferred to the
consumers when it comes to buying the product showing their need of convenience in term of
distance travelled to get to the product.

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The most important response that was needed from the consumers was regarding the preference
of Brands. What was found from the consumers‟ response is a set of 3 brands well distincted in
term of their distribution, existence and price range. Bisleri comes out to be the most preferred
brand when it comes to the normal ranged product whereas a local brand Bibo is most preferred
one among certain region of the country. Evian rises to be the most preferred brand when it
comes to premium brand being used in luxurious hotels and big corporate houses.

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USER PREFERRED BRANDS
Segmentation, Target & Positioning
Based on income groups, we can classify consumers as Higher Income Group with annual
income greater than 500000 per annum, Middle Income Group with annual income between
300000 and 500000 and lower income groups with annual income less than 300000. Also the
customers residing in different parts of India have different attitude towards the market leader.
Also, the people with better education are more aware of the safety and security aspect of a
market leader.
We can divide our customer base as health conscious people, who are very lesser concern about
safety and purity/highly concern about standard of water/averagely concerned. Also, if the brand
is used only by travelers or if there is 24 hour requirement, or even irregular water requirement.
On the basis of income group – Lower income group/ higher income group/ middle income
group. Bibo focuses on high health conscious people, with 24 hour of regular water requirement,
falling in lower and middle class income group. The brand is positioned as ever transforming and
never compromising product. It offers “Flexi” Quote prices- Offers water supply service on the
quoted price. Bibo Water provides door delivery service to the corporate & domestic customers
365 days, with delivery timing for 12 hours! It also offers retail packs in all sizes, 1 litre, 2 litre,
500 ml, and 300 ml.
It has been noticed, based on frequency of travelling that travelers are better and frequent
consumers of Bisleri than home birds. Bisleri is sold in huge quantities in MNCs. So, it targets
Middle and high income group individuals living in urban and semi-urban areas, and
organizations, particularly MNCs. Bisleri has positioned itself as the first brand to sell bottled
water in India, with bottled mineral water known as “Bisleri” for a long time - Has the first
mover advantage. And the first brand to advertise its secure seal packing- considered sign of
purity.
As Evian has positioned itself as “natural water that comes from the Alps, not touched by man”,
it targets only niche segment of population that belongs to a high income group. As a part of its
restructuring plan Evian started to sell the major five star hotels in Mumbai and Delhi, and posh

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café like “Just around the corner” in Bandra. Evian has positioned itself as a product that
compares water with life, hence making it equally important for mother, baby, children, etc.
Evian boasts of Stay well hydrated day and night with Evian's natural mineral water, State-of-
the-art bottling techniques to retain the essence of pristine water, Source of Evian gives it's taste
a unique character.

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A Brief Introduction to each product: 4P Analysis
Bibo
Bibo water, established in 1997, has strong presence across the state of Andhra Pradesh and has
been consistently recorded a growth rate of over 18% for last few years. The Bibo water is the
brand of Acer Engineers Pvt. Ltd, basically a Water Treatment Technology company having
executed various industrial water treatment and drinking water plants, the company diversified
into manufacturing of Mineral Water in 1996 and as a result Bibo got originated. Currently Bibo
expanded to Chennai also and plans to establish itself as a key player across the South India.
The product is available in 20 Liters, 10 litres, 2, 1, 500ml and 300ml. The 20 litre packs are
catered through wide spread distribution network across the twin cities of Hyderabad and
Secundarabad, the 20 Liters BIBO Water is delivered to the doorsteps of over 3200 customers
while the 10 litres are catered through the prime retail outlets in these cities. The other packs are
distributed through normal distribution channels. BIBO Water in different packs is distributed
through 720 retail outlets across the twin cities. The 1 Ltr BIBO Water is also a preferred Indian
Railway approved brand.

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The conception of idea Bibo was a breakthrough. Acer from their previous experiences
understood the market needs and responded accordingly. They understood the needs of low cost
pure water. The 20 liter Pack was charged at Rs. 50, 10 litre packs at Rs 30, 2 litre at Rs 25, 1
litre at Rs 16, 500 ml at Rs 10 and 300 ml at Rs 7. The 20 litre and 10 litre packs had a huge
demand across the metros owing to the sudden industrialization and subsequent development
which lead to shortage of space as well as pure water. Moreover the distribution network was
also very good. They being local player had the advantage of that too. Excellent network along
with efficient distribution and proper focus made them the player to beat in their areas.
Bisleri
Bisleri was originally an Italian company created by Felice Bisleri, who first brought the idea of
selling bottled water in India. Subsequently Bisleri was introduced in Mumbai in 1965. Parle
bought over Bisleri (India) Ltd. in 1969 and started bottling water in glass bottles under the
brand name „Bisleri‟. All shares of Parle (and therefore Bisleri) are held by Mr Ramesh J
Chauhan and his family. In 1995 Ramesh J. Chauhan started expanding Bisleri operations and in
2003 Bisleri announced its venture to Europe.
The brand name Bisleri is so popular in India that it is used as generic name for bottled water. It
almost has 60% market share in packaged drinking water in India.
The product is available in 8 pack sizes: 250ml cups, 250ml bottles, 500ml, 1 litre, 1.5 litre, 2
litre, 5 litre, and 20 litre with price starts from Rs 3 for 250ml cups, Rs 3 for 250mi bottles, Rs 10
for 1 litre bottle, Rs 30 for 5 litre bottle and Rs 60 for 20 litres.
The product is available virtually in all the places in India, ranges from shopping malls to college
canteens to streets.
Bisleri became the household name in India, thanks to the aggressive promotional activities it
carried out throughout its time. Till 1990, it was the only major player, enjoyed a sort of
monopoly in the market. But things changed from 1991. The Indian consumer market which
once was an iron curtain to the MNC‟s became as open as sky. Parle began to feel the pressure.

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Threats started to come in the form of Pepsi, Coca Cola and Nestle through its brands. To cope
as early as up , in the late 1990‟s Bisleri aggressively campaigned to create a distinct brand
image- 'There is just one Bisleri. The entire campaign was built around the tamper proof seals.
The campaign focused on the safety provided by the "breakaway" seal, by illustrating the ease
with which conventionally sealed bottles could be refilled and recycled. Hoardings and point-of-
sale promotion material backed an aggressive print-and-TV campaign, and every interaction with
the consumer was used as an opportunity to reinforce the message that Bisleri was "pure and
safe.” The campaign was instrumental in putting bisleri as the market leader. However problems
were pertaining in the distribution channels of bisleri. Even though, Bisleri followed the same
setup like others i.e; from manufacturing plant to distributors to retailers, there were and there
are some shortcomings. The company doesn‟t give any credit schemes to the Distributors. The
Distributor either have to make Advance Payment or else the day on which company delivers
stock to them the company people collects the payment. But the distributor offers credit of a
maximum period of 3 days to the retailers. Moreover the margins are also low compared to
others. This has become a major weakness for Bisleri for over a decade.
By early 2000‟s Aquafina and Kinley began to step into the once dominated Bisleri market. With
the strong support from their parent brands Pepsico and Coca Cola, superior international
technology, established brand names and the already excellent distribution channels, they began
to outscore Bisleri in every domain. With identifying the huge opportunities lying in Indian
packaged drinking water industry, both Pepsi and Coca Cola doubled the manufacturing plants in
a very short span. This lead Bisleri to shift its marketing strategies.
They begin to move into unconventional means. They were responsible for popularizing the bulk
water bottles like 5 litres and 20 litres. The understanding of needs of Indian middle class for
safe and pure water became a key in the rejuvenation of Bisleri. Bisleri was investing heavily on
marketing and distribution of bulk segment and it gave an upper edge. Even though Coca cola
also targeted the bulk segment via Kinley, it couldn‟t match to Bisleri‟s already established
name. Aquafina however concentrated only in small and medium segments and restricted itself
from entering into bulk segment.
By 2000, Bisleri decided to penetrate every possible segment of the market by introducing more
pack sizes and to establish the brand strongly with trendy packaging. In 2000, Bisleri launched

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the 1.2 litre pack. This added to the five pack sizes that Bisleri had (500 ml, one, two, five and 20
litres). The new pack was priced at Rs 12. This pack was targeted at the regular mineral water
consumer who is accompanied by a friend and also restaurants and hotels. In the long run, Bisleri
planned to replace the standard one litre pack with the 1.2 litre pack. The company felt that
although the one litre pack accounted for 35% of sales in terms of volume, it had problems in the
form of leakages, loose caps and foreign particles in the water. Bisleri thought that a heavier 1.2
litre bottle would solve most of these problemsThe extra margin obtained through the 1.2 litre
pack went only for campaigning Bisleri.
After this the whole brand has reshaped. They moved from the classic blue to a more eco
friendly green color in packaging. In place of the round ringed bottles, Bisleri would be available
in hexagonal flat sleeved bottles, owing to the consumer perception that the old Bisleri was not
trendy enough.

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Moreover they be begin to campaign aggressively. In place of safe and pure, by late 2000‟s
Bisleri launched its Play Safe ad campaign. The campaign targeted the youth and hoped to
convey a social message: young people need to make sure they are safe even when they are
having fun. The ad campaign saw a shift in positioning from "pure and safe" to "play safe."
According to Ambience D'Arcy, the shift had been necessitated by the fact that every new
entrant in the mineral water market adopted the purity. As a result of all these Bisleri could
reestablish itself as a brand, however the competition has increased manifold and Bisleri is not a
player now as it was in the retail sector once due to the improved business strategies of Pepsico
and Coca cola. The focus has been shifted to the bulk water segment to reinvent itself was a key
decision along with the promotion. But still it‟s the brand to beat in Indian packaged drinking
water reaffirming the quote “Early Bird catches the worm”.
Evian
Evian, the iconic French mineral water brand, owned by Danone Group entered the Indian
market in 1999. Evian was pure water collected from Alps and not mineral water. The product
Evian is portrayed as a luxury and expensive bottled water. Evian Company entered India in
partnership with Radhakrishna Foodland for the distribution of Evian, as Radhakrishna Foodland
provided all supply chain solutions for Evian. The product Evian was branded as a luxury one,
available only to the upper class in selected stores. The price was set to be around Rs70 initially
for a 1 litre bottle and Rs25 for a 330 ml bottle. The initial promotional activities were limited
and only the distribution network of Radhakrishna Foodland was the main promotional aspect as
such.

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As a result, the brand couldn‟t do well in initial years in India. The Indian consumer was not
willing to pay for the luxury of Evian and Evian was also not able to get a place in the mind of
Indian consumer mainly owing to the price, as Indian consumer was always skeptical about the
price than any other parameter. By 2003, Evian understood that it has to undergo some radical
changes for survival in Indian packaged drinking water industry. As a result the entire Evian
brand has been restructured.
The product remained the same, price too. In fact due to the variations in Euro, the price
increased to Rs 92 per litre at one point but later came down and settled at Rs 80 per litre. The
entire supply chain distribution channels were the next to undergo changes. The partnership has
moved from Radhakrishna Foodland to Narangs Hospitality Services (distributor of Red Bull).
The Danone India even went into a joint venture to Narangs Hospitality Services, called
Quarisma Beverages allowing Narang to take a great stake. Narang was much superior in closing
down the supply chain faults as they proved their expertise on that through a variety of products
like Red Bull, Illy coffee etc. Next Danone concentrated on the promotion of Evian as a brand.
The company introduced certain innovative strategies while remaining as a luxury brand. As a
part of universal detox campaigns (Detoxification is the process of removing toxins from the
body), they had conducted campaigns in India too. The new Evian detox campaign offered Evian
as the ubiquitous antidote to all your indulgences. Soon they began to partner with all the 5 star
hotels in the metros to create special detox menus, gyms and skin clinics for special Evian
related offers along with partnering with Mercedez Benz came next. All the Benz cars came
stashed with an Evian detox kit. As a part of rebranding, Evian began to differentiate itself from

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safe drinking water; it positioned itself as a “natural mineral water from the Alps, untouched by
man". Moreover as an extension to the detox activities Evian also plans to start a spa soon in
India. The strategy paid off. Evian begin to get into the minds of Indian consumers. It became an
icon of luxury water in India. The sales has increased manifold over the years. It begins to
distinguish itself to a lifestyle, which the Indian consumer is always aspiring for.

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After analysing each of the 3 brands in detail, particularly the local brand, which included
visiting the plant, and conducting telephonic interviews with BIBO water users, and conducting a
data analysis, we found that the local brand required innovative communication strategy and
more flexibility in govt regulations regarding setting up plants. Many manufacturers and factory
owners were reluctant to set up plants in states due to strict state regulations. While the consumer
preference survey was conducted at the very beginning to decide on the 3 brands to study, it was
decided that a detailed brand study on local brand was required due to lack of consumer
preference. We found that although the local brand had a strong distribution network and local
loyalists, they face the hurdles like being a well established industry with only a few rulers and
emerging market leaders with well defined parent companies, many customers are not ready to
trust new entrants on the market due to purity and safety concerns, cheap price strategy adopted
by numerous smaller not working for them as consumers are ready to pay as much provided
water safety and purity is guaranteed within a reasonable price range, a large share of buyers
include corporate companies that go for well established brands due to status factor, and
unwilling to try new brands.
We conclude further that packaged drinking water has a lot of scope in establishing itself. As no.
of middle class people are growing and more and more consumer oriented products are moving
to rural customers, it has a scope in all demographic regions. Tracing the huge potential in this
industry, water purifiers like Eureka Forbes has decided to enter into bottles drinking water
industry making an investment of 2 crore in purification and bottling set-up itself.
We note that the industry has only a few counted rulers and only one or 2 emerging brands, but a
fairly large no. of smaller companies. Our analysis show that brands like aquafina has marketed
itself on both purity as well as taste. Its parent brand PepsiCo has taken water conservation
initiatives which have built brand awareness among masses. Not just the water, PepsiCo has
spent handsome amount to highlight the design of the body of bottle itself. So, a strong
marketing campaign would be required to build a brand image. The recent increase in price of
water bottle (w.e.f May 1, 2012) did not have a significant effect on regular consumer base of
packaged drinking water industry.
From the survey, we concluded that many local packaged drinking water industries are growing
in southern India, and for the customers in that region ( Andhra Pradesh), the local packaged
manufacturing industry is as popular among the localities as the market leader, unlike in a city
like New Delhi.

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We infer that before starting a packed drinking water pant, a few important things to be kept in
mind is capacity of the packaged drinking water plant, procedure or documentation, subsidies by
the government, water source required.
After telephonic interaction with a manufacturer in Thane, we boiled down to following
difficulties it can face, hardness of water tested in that area, as that would decide the cost of
purifier ( RO process manufacturer), Norms of Bureau of Indian Standard to be followed, The
requirement of funds in setting up your own brand in a conservative lending scenario.
For any new entrant, with limitation in working capital restricts it to bottle for others rather than
selling one‟s own brands. Also, it would also be necessary to get a BIS certification and a testing
lab approved by BIS before you start bottling. We also found that the source of water is equally
important, as if it stops yielding water, it can affect the business.
We also conclude that it is a good decision not to market and sell your own brand but instead to
bottle for others. It is a 'cut throat' business where you have to give credit and find it is extremely
difficult to collect money, so we would suggest it would be better to assess the market situation.
A new entrant must also be aware of, as well as get a BIS certification and a testing lab approved
by BIS before it start packaging.

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34
1) Reinventing Bisleri
URL: http://www.icmrindia.org/free%20resources/casestudies/reinventing-bisleri2.htm
2) Bottled loot: By Chandra Bushan
URL: http://www.hinduonnet.com/fline/fl2307/stories/20060421006702300.htm
3) Coke's plans hold water: By Neha Kaushik
URL:http://www.hinduonnet.com/businessline/catalyst/2001/11/29/stories/1929f05b.htm
4) Business: Kinley‟s packaging revamp
URL: http://spoonfeedin.blogspot.com/2008/07/business-kinleys-packaging-revamp.html
5) Managing your salesforce: A Motivational Approach, by P.Venugopal

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