bisleri india, case study

WILL THIS MAN’S GAME PLAN HOLD WATER?

Presented To: Mr. Hitesh Manocha Presented By: Gaurav Chauhan Punit Goyal Tanvi Sudele Tushar Ashok Kumar

Market Overview

• One of the fastest growing industry in India

• The per capita consumption of mineral water in India was a mere 0.5-liter as compared to 111 liter in Europe and 45-liter in USA

• Consumption varies across region and is primarily linked to the level of prosperity

• The bottled water industry in India was worth Rs 500 Crore. It was growing at 40 per cent a year and by 2010 it is expected to reach Rs 5,000 Crore.

The market was mainly segmented into three segments:-

•Premium- Least Crowded with just four brands: French transnational- Danone's Evian ,Ferrarelle , Nestle's Perrier and San Pellagrino

•Popular- Most Crowded with Bisleri, Bailley, Aquafina, and Kinley (500 ml, 1 ltr, 1.2 ltr)

•Bulk- Bisleri Clean sweep (5, 12 & 20 liters)

Size and Segment

Bisleri Overview

• Started by Signor Felice Bisleri in 1965 by Bisleri Ltd., a company of Italian origin

• Parle bought over Bisleri (India) Ltd. In 1969 & started bottling Mineral water

• Mr. Ramesh J. Chauhan started expanding Bisleri operations in 1995 Turn over multiplied more than 20 times over a period of 10 yrs Average growth rate was around 40% over this period

Bisleri Overview

•Rigorous R&D and stringent quality controls made them market leader in the bottled water segment

•Developed unique non-returnable pack size in 1L and returnable packs in 5L & 20L to suit the need of every individual

• 20 ltr and 5 ltr jars segment - 20% market share, 1 ltr Bisleri bottle - 35% share make them the market leader in this segment

• The company has 12 bottling plants across the country

• The company is gearing up to foray into the flavored water segment

Contd…

VisionOur vision is to be the dominant player in the branded water business where the second player is less than 20% of our business.

MissionWe are in the business to serve the customer. He is the most important person. He is the only one who pays. He deserves the best quality and presentation at a worth of the price. We must have world class quality, at the lowest production & distribution cost. This will make us an unbeatable leader and will have satisfied loyal customers.

Key Trends

Trends in Mineral water industry

•New entrants from other sector

•Wide packaging formats

•Brand building competition

• Quality differentiation

Marketing Mix

Product• Brand name• Quality and Purification processes• Variety ( 1Lt, 500ml, 5lt, 20lt)• Unique Hexagonal Packaging

Priceo Volume Discounto

Marketing Mix (cont…)

Place• Strong distribution channel (3.5 Lac outlet)• No of plant (12 New plants would be set up) • Market Coverage• Fully owned Transportation • Reverse logistics • Promotion• Pull Strategy (Ad budget has risen six fold)• Push Strategy • Play safe Ad campaign

Pest Analysis

Political Environment

•Government failure to provide safe drinking water

•laws encouraging ground water exploration

•FDA and various govt. agency As mineral water is covered under the Prevention of Food Adulteration Act (PFA), drinking water is not and the Act must be immediately amended to include

•Environmental regulation

PEST Analysis

Economic Environment

•Developing economy

•Better Infrastructure:-

•Career Attributes:- Employment opportunity

PEST Analysis

Social Environment

•The quality of water available in the country is bad•Scarcity of water•Health Conscious People•Population Growth rate

PEST Analysis

Technological Environment

Economies of scale

Competition

• Launch their product on theme (Pure and Safe)

• No big player in bulk segment

• no presence in small towns

•Introduced more pack sizes in 1.2 ltr, 300 ml cups(smaller towns)

•More emphasize is given on bulk size segment( with future growth of 75% )

•Investing heavily in vans to make their distribution competitive

•Planning to invest over 150 Crore for expanding its bottling operation

•Focused on thirst & status through advertisement

How Bisleri react to the growing competition

SWOT Analysis

Strength

•Solid base of co.

•Brand

•Distribution channel

•Quality

•Innovation

SWOT Analysis

Weakness

• Duplicity in the market

• Less awareness about mineral water

SWOT Analysis

Opportunity

•Growth – cover untapped market

•Market expansion by acquiring local brands

•Premium pack

SWOT Analysis

Threats•Aggressive competition•Low-entry barriers •Restriction by government on plastics•Water purifier

Recommendations•They have sufficient funds to acquire local brands to enhance the •market share

•Can enter into the premium segment market

•They can tie up with large commercial complex, hotels and air lines• industries as they emerging sector

•They can target the youth segment

•Launching trendy packs to attract more & more customer