Marketing strategies by Bisleri

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CONTENTS

Title Page No.

1.Acknowledgement 3-4

2.Introduction 5-14

3.Company Profile 15-164.Marketing Strategy 17-22

5.Advertising Campaign of Bisleri 23-31

6.Packaging and Distribution 32-34

7.Marketing Mix 35-42

8.Competition in Market 43-47

9.Product Profile 48-52

10.Manufacturing 53-58

11.Objective 59-60

12.Research Methodology 61-66

13.Result & Discussion 67-75

14.Conclusion 76-79

15.Recommendation 80-82

16.Limitations 83-8417.Bibliography 85-86

18.Annexures 87-90

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ACKNOWLEDGEMENT

The accomplishment of my research was possible only due to the

cooperation, coordination and united efforts of different

individuals, several sources of material, knowledge and time.

Pertaining to this I therefore take this opportunity to express my

deep sense of gratitude to entire staff and employees of theBisleri Ltd.

I am very graceful to Mr. Mukesh Agarwal (Sr. Sales

Executive) for his guidance and encouragement for his Kind

Cooperation.

The moving spirit behind this research was all of them, without

their constant encouragement and support this research would

not have been a successful outcome.

(Vivek Kumar Mishra)

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INTRODUCTION

Water is the most important liquid in the world. Without

water, there would be no life, at least not the way we know it.

In today's living condition, the need for Pure Drinking Water

is becoming the issue for the common Man.

Eighty percent of the human metabolism consists of water.

This is the reason why 90% of human diseases are water

borne. There are 3 types of water impurities, which are root

cause of water borne diseases.

1. Microbiological-Bacteria / virus.

2. Dissolved impurities - chemical.

3. Imbalance of Mineral Content.

There are rapid changes that are taking place in our

environment since long and the air and the water pollution is

on an increase. The main source of drinking water is river

and downstream which also have not been able to escape

the pollution. When a consumer became aware of the

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problems caused by water pollution the market saw an

advent of ceramic water filters, which filters the dust and

suspended particles but dissolved impurities and

microbiological impurities are not cleared out. The mineral

balance is also not maintained.

1980's witnessed more changes by a tap attachment wherein

Iodine resin is used to filter the water. It deactivates

microbiological impurities to an extent but has side effects

due to iodine and it does not take care of dissolved impurities

mineral balance.

Late 1980's witnessed Ultra Violent based purifier, which

filters dust and deactivates bacteria to a great extent. It

maintains the odor and color of water but does not clear out

the dissolved impurities and mineral particles. Thus came

advent of mineral water.

Historically, the need for purified water within Indian homes

had been kept down to a minimum. Essentially, there were

three types of water that was used for different purposes.

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The first type was used for rinsing. The second type, which

was used for cooking, was cleaner and 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 five or six liters a day, boiled and filtered water had

been a convenient solution for some time .The fallouts were

obvious. It was very difficult to convince the people that

purification system was worth the price. There was no visible

way to demonstrate the benefit. The otherwise somnolent

market began to change once companies like Eureka Forbes

targeted the office segment, while the mineral water players

went after travelers. Ion Exchange was the only company,

which had any measure of success in entering homes with

Zero-B. But clean drinking water returned on the national

agenda a little later.

Around 1989, drinking water became an issue again.

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Meanwhile, the word savvy bottled water marketers started

circulating the myth that drinking bottled mineral water is safer,

never mentioning what their studies were comparing.

It is said that the inhabitants of seven cities between Switzerland

and the Netherlands consume the water of the Rhine River. In

these parts people drink beer, wine, bottled water or fruit juices

and shun tap water. North Americans have recently begun to

drink bottled water, but already the distinction between spring

water, mineral water, and filtered tap water is blurred beyond

redemption. Spring water must come from a natural springs with

proven purity of contaminants; mineral water must contain 2000

parts per million in minerals; and filtered tap water means just

that. Europeans always preferred mineral water or eau de source

(spring water) since their rivers were polluted a long time ago.

Now considerable efforts are made to clean all major European

Rivers. The Rhine River, the Thames, the Loire are clean enough

to allow several species of fish to thrive.

As always, large companies with considerable cash reserves

dominate the market. Groupe Danone, a French conglomerate,

markets Evian, Volvic and Crystal Springs; Nestle, a Swiss food

multinational with headquarters in Montreux markets Perrier,

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Nestle Pure Life and San Pellegrino. Not to be outdone soft drink

giant Coca-Cola joined the cause with filtered tap water and

positioned their brand as pure, safe, life-style water. Coca Cola

markets 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 and filtered

waters lack, but tend to be more expensive. When it comes to

consumption, 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 tap water is safe. In reality, only large

cities control tap water quality regularly and vigorously and treat it

appropriately for safety. In small communities, scarce financial

resources and lacking expertise often make tap water safety

questionable. Since the introduction of PET bottles (polyethylene

terephate) bottled water consumption increased by 16 percent in

five years and continuing growth of the market is forecast by the

Canadian Bottled Water Association in Richmond Hill, Ontario.

The question for restaurant patrons remains whether to ask for

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bottled or mineral water, or demand ice water.

It all depends on the situation. You can ask politely for ice water,

if that is what you prefer, or a glass of wine, or beer. The cost is

almost the same for all the three, or you can complain to

management that prices charged for bottled water are ridiculous

as is the case with wine.

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MINERAL WATER INDUSTRY

CURRENT MARKET SCENARIO

A few years back, the mineral water market had been

crawling at the rate of 3-4%, or even a lower figure. Indians

carried drinking water in earthen pitchers, plastic or PUF

bottles. But increasing cases of typhoid and other waterborne

diseases began to be reported. In addition to this,

liberalization happened and the mineral water industry began

to be stirred and shaken. The market started growing an

astounding rate of over 100% per annum. The fact that there

were very few players in the market meant that their business

grew by leaps and bounds.

The market today has grown to Rs11bn. The organized

sector - branded mineral water -- has only Rs5bn of market

share. The rest is accounted for by the unorganized sector,

which is dominated by small regional players. The market is

still growing at a rate greater than 80% per annum.

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In the branded segment, Parles Bisleri is the market leader

with a share of more than 45%. Parle Agros Bailley comes a

close second with market share of 15%. Other major players

in the market are Yes of Kotharis, Ganga of T-Series,

Himalayan, Hello, Nestls Pure Life, Pepsis Aquafina, Coca-

Colas -Kinley Prime etc.

Sensing the opportunity that this segment holds, MNCs

began to draw up plans to enter the market. Today the

market is proving to be yet another battlefield for an ongoing

battle between the Desis and MNCs. Last year the industry

had around 170 brands. This figure is over 300 presently.

The major foreign players are Coca-Cola promoted Kinley,

Pepsis Aquafina, Britannias Evian, Nestls Perrier, Herbert

sons and Danone International.

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COMPANY PROFILE

The origins of Bisleri in Italy, and the brand owes its name

to founder Felice Bisleri, an Italian entrepreneur. In 1967,

Bisleri set up a plant in Mumbai for bottling and marketing

mineral water, which was first of its kind in India. However, it

didnt work well. Among other reasons, the fact that theIndian consumer was unprepared to accept bottled mineral

water was responsible for its failure. Consumer mindsets

were more geared towards boiling water at home.

In 1969, Parle bought over the Bisleri brand. In those days

Bisleri water was available in glass bottles. Parle's taking

charge of Bisleri did not make a dramatic difference to the

brand's fortunes immediately. While it did gain in terms of

visibility and reach ( Parle's existing distribution network),

efforts to expand the bottled water market were not exactly

painstaking. Parle at that particular time was interested in

making soda water and not mineral water. There were justminor initiatives on part of the company for making mineral

water, as it was not considered to be a very profitable

business at that time as people still considered boiling water

to be a safer and better than mineral water. Moreover they

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were not ready to pay for a commodity like water, which was

so abundantly available.

In 1972-73 Parle changed the packaging of its bottled water to

plastic bottles 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 Parles soft drink brands- Thumps-

up, limca etc. While Coca-Cola actually bought over Parle's

beverages, it agreed to 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 Bisleri started

from this point as Parle sold off its stable of brands to Coca-

Cola. This was the time when it started concentrating on

making Bisleri a success in the domestic mineral water market.

The reason why Parle chose to retain the Bisleri name was

that Parle saw a fairly lucrative business of mineral water in

Bisleri's equity.

The real shift in companys policy towards mineral water

industry came in 1998,although the conscious efforts had

already been started in 1994. This change was primarily

because of the fact that the people, at this time, had started

becoming more health conscious.

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MARKETING STRATEGY

It is complete and an unbeatable plan designed specifically for

attaining the marketing objective of a firm. The marketing

objective indicate what the firm want to achieve. The marketing

strategy provides the design for achieving them the linkage

between marketing strategies and over all corporate success is

indeed direct and vital. Realizing the marketing objectives is the

purpose of two generic categories .

1. price based

2. Differentiation based

price based marketing strategy

a business that opts for the price route in its competitive battle

will enjoy certain flexibilities in matter of its product and use

prices as main competitive level . it will price its product to suit

the varying competitive demands . it will be enjoying certain

inherent cost advantages , which permits it to resort a price

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based fight . the major forms where such cost advantage can

occurs are economies of sale , absolute cost advantages ,.

Benefits of early entry a large market share build over a time . it

provides freedom in the matter of pricing but after producing a

particular product and getting stuck in the face of the competition

, one can not successfully opt for a price led strategy .

The differentiation based strategy

marketing strategy based on differentiation works on the principle

that any aspect of the offer and any activity of the firm can be

made distinctive compared with the competiting offers. Right

from technology, plant location to post sale and service a

company can perceptibly differentiate and many buyer values.

Companies usually choose those functions , Which give them the

greatest relative advantage.

Different firms adopts different strategy stances as their

situational design differ-

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Broadly strategy stances can be classified under three heads-

1- Offensive Strategy-

Offensive Strategy also known as

confrontation strategy , is a strategy ofaggression. 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 defend his position against the confrontation of powerful

existing competitors or to dislodge the leader from his topmost

position usually employs it.

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3- Niche Strategy-

A firm pactising the niche strategy neither

confronts other nor defends itself. It cultivates a small market

segment for itself with 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 does not fully bring out

import of the inseparable linkage between the two. When the

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

marketing strategy of the firm is already determined, defined

and expressed.

2- Assembling the marketing mix-

Assembling the marketing

mix means assembling the four ps of marketing in the right

combination.

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The firm has to find out how it can generate the best sales and

profit. It plans different marketing mixes with varying levels of

expenditure on each element and tries to figure out the

effectiveness of each combination in terms of the possible

sales and profit.

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ADVERTISING CAMPAIGN OF BISLERI

Every brand needs a good ad campaign to establish itself in

the market. So it becomes very imperative to look at

various ad campaigns that Bisleri undertook to build itself

as a brand. Bisleri started its game plan with the punch

line ofPure and Safe and used the same catch-line for

advertising. But with the advent of many new players, all

claiming the purity, it became very imperative for Bisleri 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 be refilled with ordinary, or even

germinated water, Bisleris seal capped bottles ensured

the consumer of purity of water and single-used ness of

the bottles. The ad showed a milk-man and a child

showering their buffaloes and filling the so-called mineral

water bottles with the same water and packing them with

the simple polythene seal and the consumer not knowing

about the purity of the water he is drinking. Next clip

shows the Bisleri bottles being sealed with plastic caps

and ensuring the purity of water. The ad did work for

Bisleri and it got its much needed product differentiation.

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In 2000, some giant brands like Pepsi and coca-cola entered

the mineral water industry with a big bang. Bisleri now had a

big threat of maintaining its market cap. While Coca-cola

introducing its brand Kinley as a health care product, Pepsi

projected Aquafina as something as pure as Your own

body. Pepsi targeted the young generation and introduced

Aquafina as a fancy product to carry.

The ad campaign of Aquafina emphasized as 70% of your

body is water 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 was something highly

fashionable. They complimented it by giving their bottles an

attractive look. This soon caught the eye of the consumer. All

these factors made Pepsi the biggest upcoming competitor of

Bisleri (whereas Kinley lagged behind the race, showing a

doctor advising a family to take Kinley for pure water not a

very attractive ad campaign).

Bisleri, to counter-attack the new Feel-Young fever had to even

bolder steps. They first changed their base line from Pure and

Safe to Play Safe. 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, when the girl seductively

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attracts the guy and he follows her in trance. The moment he gets

hold of her, she whispers something in his ears. The next few

shots show the guy looking for something in frenzycan not find

it.rushes towards the chemists shop.buys something

(keeping the audience in suspenseor rather implicitly pointing

for ). The girl opens it and.POOF.takes out a bottle of

Bisleri and quenches her thirst. Caption: Play Safe. This

campaign was to catch the attention of youth 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 been complimented by

print ads also. The company has to focus on the marketing

management of the product. In light of the challenge in front of

the company and its current strengths and position, we have

incorporated the marketing mix to counter the marketing

strategies of the competitors by developing its own marketing.

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AQUAFINA ADVERTISEMENTS AND BISLERI

A drop-dead gorgeous body flexes its muscles on the screen.

This starkly arresting black and white image is then splashed with

water. A voice-over informs you that 70 per cent of your body is

water. Why not give it the purest. Aquafina Bottled water from

Pepsi.

This kind of advertisement campaign used by the competitors is

giving the company a tough time. The competitor, Pepsi, is

utilizing the brand image built by it and is again targeting the

Generation X maintaining the company image. Its an unusual

ad for this category. Till now, most marketers have focused on

educating the consumer on how bottled water is a safer option,

with the lead of course, taken by the popular national brand

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 the bottled water category. What Pepsi needed was to

establish its brand in this crowded, fragmented market. Our task

was made easier because was made easier because Bisleri had

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concentrated on educating the consumer, instead of building its

own brand values," says Rohit Ohri, vice president and 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. The idea, she says, was not to objectify bodies so

that one could drool over them. "Instead, we are talking about

your body and the need for each one to 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 water was

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 around purity, HTA did toy with a couple of other ideas and

situations. Initially, the idea was to focus more strongly on the fun

aspect and create a story line complete with a smart idea and a

twist at the end. "But we gave it up because we felt that the story

might take the mind away from the purity aspect that was a must

to highlight," says Ohri.

So HTA adopted a minimalist approach and created a film with

little clutter and no props, which tried to capture the emotion of

"feeling good about yourself'. While the film and the imagery are

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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 a 12 per cent market share, and India is the first country

outside of the US where Aquafina is being bottled. Even in the

US, the ad talks of the percentage of water in our bodies, but the

handling is a little more serious. For example, the film will show

an emotional moment where someone starts crying, and then you

will hear the voice-over, "85 per cent of your eyes are water.

"There is no internal law that forces us to follow the international

positioning. But seeing the quality of thinking that has gone into

this, we decided to stay with this positioning, though the

statements here are quite different," explains Rishi.

Aquafina, like all offeFings that come from the Pepsi stable, also

imbibes the 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 and affluent, and not as mass based

as Pepsi.

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Pepsi's role in the communication is that it is the source of

credibility for the product and, of course, establishes the

youthfulness of the brand. But Aquafina 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 a distinct

identity, it is also being targeted at the Pepsi consumer and is

addressing their need for safe and reliable drinking water. Will

this not cannibalize Pepsi sales? "Water does eat into the cola

market," agrees Rishi, "but we can't build a business for Pepsi

based on people's lack of access to safe drinking water.

How can any business be built on deprivation?" Both will have to

co-exist and carve a market out for themselves, And~ while Pepsi

targets the 18-25 year olds, Aquafina also includes the 30-

somethings together with the college crowd. Like Pepsi, Aquafina

too is looking to command a premium without being unaffordable.

It is being positioned as a premium product, not via pricing, but in

imagery and packaging. Priced at Rs. 10 in Delhi for a 750ml.

bottle, it is priced marginally higher than the competition that

gives you one liter for Rs. 10. The swirl shaped PET bottle

resembles the Pepsi family and is sturdier and more hip than

most others in the category that take their design cues, it seems,

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from the one liter refined oil bottles in the market. The decision to

break 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 ml size is easy to carry around. "It is ideal for an

half-an-hour in the sun, one liter gets too bulky," says Rishi.

Pepsi's future plans at the moment don't include commg up with

size variants. They have also ruled out the possibility of catering

to the bulk market, which actually constitutes 30 per cent of the

total bottled water market that stands at 70 million liters annually,

and is growing anywhere between 30 and 50 per cent.

Pepsi, obviously, is looking for a big slice of this burgeoning

market, but as Subroto Chattopadhyay, executive vice president,

marketing, Pepsi, says, "We have a building blocks approach,

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

Bisleri is tackling the situation by building the brand on the purity

plan. Akin to brand building in soft drinks, an aggressive print-

and-TV campaign is being backed by hoarding, point-of-sale

material, and every interface with the consumer is being used as

an opportunity to reinforce the message. For instance, all the

vehicles used for supply have been painted in bright blue, bear

the Bisleri logo and sport catchy baselines like. "Play Safe".

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Packaging

Variety is spices of life. Today for any business organization to be

successful it has to provide its customer with the differentiated

product that is a value buy for them. In order to cater to changing

needs of the customer the business has to continuously come out

with the variants of the products so that it can target the

maximum segments.

Today Bisleri Minerals offers a variety of packaging options: 1 lit,

2 lit, 5 lit, 20 lit. The 5 litre bottles account for 35 % of sales

showing a growing health concern among the Indian society. 1

litre bottles account for 30% of the share .

The 2 litres bottle introduced to slowly and steadily replace the

conventional 1 litre bottle.

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The 5 litre packs, launched in dec 1999 now available

everywhere.

Distribution

Its obvious that availability holds the key to the market .For any

product to be successful distribution system has to be really

good. Large tracts of the country have not been explored by the

national brands, which explains the proliferation of smaller

brands.

Bisleris strategy is to build a direct distribution system at an all

India level that means serious investment In company owned

trucks and carts, this would make it the largest fleet owner in the

country. Bisleri has around 80,000 retail outlets in the country

with about 12,000 each in the Delhi and Mumbai. It is intended to

be increased this no. to 10,00,000 in order to expand brands

reach.

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The company will invest approximately Rs.200 cr. to procure

2000 trucks and hire same no. of sales people. The company

plans to have its own distribution network in places where it has

its own plant

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MARKETING MIX

The set of controllable tactical tools- product, price,

promotion, and place (4 Ps), that the firm blends to produce

the response it wants, in the target markets.

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The 4Ps

Product

The main product of the company is the mineral water by the

name of Bisleri Mineral water. Other than mineral water the

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company has also the soda water under its brand name

called the Bisleri Soda Water. The concept of bottled mineral

water was introduced in India, first by Bisleri, and that is the

reason, it has become a generic name for the mineral water.

Bisleri has become a perfect synonym of the mineral water

for the Indian consumers.

The main challenge facing the company or any other player

in this mineral water industry is that there is no scope of

invention and innovation in the product, which can be added

as the additional benefits of the product.

It is just water after all. This is what the Indian customers

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

like television we can think that the innovations could provide

extra benefits derived from the product. For example other

than its core usage the product can provide for Internet

facilities using conversion.

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Place

Place stands for the company activities that make the

product available to the target customers. To make the

product available to the target consumers a good distribution

network has to be there to support the good quality of the

product. Here in the case of the mineral water industry the

distribution network is the important factor in being

competitive and the catch lies in making water available to

maximum number of places in the country.

DISTRIBUTION NETWORK:

The small-scale players built their sales by piggybacking on

the generic category built up by Bisleri. Its a battle that

Bisleri can win by sheer distribution muscle. One of the

reasons why Bisleri is running strong in this industry is its

strong distribution network built over the years since its

inception. Further, Bisleri plans to increase its distribution

network over the southern and eastern region, where it is

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behind popular brands like Team in Tamil Nadu and in

Andhra Pradesh.

Prices for following packaging variants

(AN ECONOMIC FACTOR AFFECTING THE BUYERSBEHAVIOR)

Price is the sum of values that consumer exchange for the

benefits of having or using the product or service. Price is the

only element in the marketing mix that produces revenue. All

other elements represent costs.

In India, where the majority of the population comprise of the

middle-income group and lower income groups it is not hard

to understand that pricing is one of the most important factor

in the buying decisions.

Bisleri has met the expectations of the consumers in terms of

pricing the product and also making the product available in

variations of litres, making Bisleri both convenient and

affordable. The company is following a very aggressive

pricing. Its product is available at a very reasonable price.

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1 Ltrs Rs. 13&15/-

2 Ltrs Rs. 22/-

5 Ltrs Rs. 40/-

20Ltrs Rs 70/-

Promotion

Modern 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 what they communicate should not be

left to chance.

A Companys total marketing communications program-

called its Promotion Mix consists of specific blend of

advertising, personal selling, sales promotion, and public

relations tools that the company uses to pursue its

advertising and marketing objectives.

ADVERTISING CAMPAIGN:

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While designing the advertisement campaign, it is necessary

to keep in mind the opinion leaders. Youth are the opinion

leaders of the present time. And thus it becomes necessary

to design the campaign keeping the youth in mind. The

opinion leaders would further trickle down the message to the

less active members of the society.

This is exactly what Bisleri is doing. Bisleri has started an

advertisement campaign stressing the point of purity and

flaunting the patent right the company has over the

breakaway seal. The company has tried to put the message

across louder, by using the ad campaign that catches the eye

of everyone, specially the youth. \

CONTENT OF THE CAMPAIGN:

Bisleri that was looking for a differentiator decided to make

the breakaway seal the symbol of purity. The tamper-proof

seal was developed, around which the communication was

woven. The campaign stresses the safety provided by the

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breakaway seal by illustrating the ease with which

conventionally sealed bottles can be refilled and recycled.

The objective with the campaign would have been to highlight

the tamper-proof seal and create doubt in the consumers

mind of the purity of the other brands. That is, Bisleri is the

only one that guarantees purity and keeps you Safe.

To conclude: We find that new advertisement campaign ofBisleri is eye catching. This is what the company should do.

And also the company should make the message clearer to

the customers that it has the patent right over the breakaway

seal. In the survey we found that the consumers are aware of

the breakaway seal but are not aware that the company has

the patent right.

Apart from a high dose of investments on expanding bottling

capacities and an ad budget thats risen six-fold over last

year, if Bisleri wants to penetrate every possible segment of

the market, it can do that by introducing more pack sizes and

establishing the brand strongly with trendy new packaging.

Apart from creating consumer pull with campaign, the

company, to increase its sales would have to do the sales

push as well. For that it would have to give the retailers and

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other stockiest high trade margins and incentives for keeping

the product. This is very important in case of this product

because consumers would take up what is available to them

at ease and whatever retailer is giving.

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COMPETITION

The mineral water market is set to explode and hit the

Rs.2,000-crore mark in the next couple of years. This is

drawing the big guns attention. First Britannia launched

Evian. And recently, soft drinks giant Pepsi entered the fray

with Aquafina. Now, Nestle too is reportedly planning a foray.

Meanwhile, Parle Agros Bailey has been growing steadily.

Small local players too are breathing down Bisleris neck

riding on better trade margins and intensive distribution (in

their respective areas of operation).

The competition facing Bisleri can be categorized into a few

brand names like

Parle Bailey

Pepsi Aquafina

Coca Cola Kinley

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With Parles Bailey being the main competitor and second in

market share in the organized market, Bisleri faces

tremendous competition from the unorganized sector.

Aquafina

The advantage for Aquafina is that though there are over 300

labels of bottled water in the Indian market, few can be called

brands. It is necessary to remember that every product with a

name is not a brand; even Bisleri has become generic to this

category.

It does not have any emotional values attached to it. So there

was no difficulty for Pepsi in creating space in such a market,

which is completely different from the soft drinks market,

where it will be very difficult for any new player to find a slot.

So the creative team at HTA virtually had an empty canvas to

work on. And it came up with a campaign that did have

people talking. First, a series of teasers, followed by a film

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that showed healthy bodies and youthful people and, 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 proof seal, there is a reliable method of checking

whether the bottle has been refilled. The date of

manufacturing has been written on the cap as well as on the

bottle. Thus a person who is refilling it would have to find a

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

Coca Cola- Kinley

Coca-Cola joined the race by announcing the imminent

launch of its own brand of water and, in the process, putting

to rest rumors of its so-called takeover of Bisleri. Kinley is

targeting institutions.

Parle Agros- Bailley

Bailley the brand that is owned by Ramesh Chauhans

brother Prakash Chauhan is very popular in the southern part

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of India. Southern part of India accounts for 20% of the sale

of the whole water market industry. Bisleri would have a

tough competition from Bailley since the company plans to

spread its presence in that part of the country. Another thing

that makes the competition difficult for the company is the

price at which its competitor is offering the product. Like

Bisleri it also gives the 1 lt. For Rs.10. The only strength

point of the company, which it can capitalize, is its generic

name. And also the company would have to enter that market

with a strong distribution base. We know the fact that Bailley

has grown at a rapid pace using the route of franchising,

which Bisleri has not adopted as yet. This is another point,

which the company would have to take care of to face the

competition.

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PRODUCT PROFILE

Its a compliment being generic to the category, but its not

very good when consumers think any mineral water brand

is Bisleri

Bisleri, a product established in India by Ramesh Chauhan,

Chairman of Parle Aqua Minerals has become a generic

brand. Bisleri was the first marketed bottled water in a

totally virgin market. The brand has become synonymous

with mineral water; consumers accept any brand offered by

the retailer when they ask for Bisleri.

So far Ramesh Chauhans Bisleri enjoys the largest market

share of 56% in the Rs1100 crores mineral water markets and

is growing at the rate of 180% per annum. Annual sales of

Bisleri have touched Rs400 crores. In seventies, 'Bisleri' was

the only mineral water, which had national presence, and the

sale was to the tune of approximately one hundred thousand

cases valued at about Rs.60 lacs.

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200 ml. Rs. 3

250 ml. Rs. 5

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500 ml. Rs. 8

1 liter. Rs.13

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2 liter Rs. 22

5 liter jar Rs.35

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20 liter jar Rs. 60

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MANUFACTURING

A quick look at Bisleri's manufacturing reach indicates that it is

represented across the country North accounts for 35% of

sales for the industry, West accounts for 30%, South 20% and

the East 15%.

In order to be available in untapped areas Bisleri has setup

16 plants located all over the country - three-fourths of which

are company owned. The balance is run by franchisees.

Bisleri has 5 plants in the North, 5 in the West- two of which

were setup in the last year at Ahmedabad and Surat, 4 in the

South and 2 in the East. The company has bottling units

located in Chennai, Bangalore, Calcutta, Mumbai, Delhi,

Jaipur, Uttar Pradesh, Punjab, Indore and Nepal. The new

plants are being set up in states like Kerala, Orissa, Bihar

and North Eastern States, which have been unexplored by

the company.

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It is also changing its production strategy and shifting to a

10-hr production schedule with sudden increase in demand

planned to be met by additional production.

Bisleri has planned to expand its operations by investing

Rs.60 crores in the upgradation of facilities. The 120-bottles

per minute (BPM) capacity of the 16 units across the country

will be increased to 240 BPM.

Conscious of the environmental implications of its PET

bottles, the company is to set up recycling plants at Delhi and

Chennai, each with an outlay of Rs.50m. These will process

500 kg of PET per hour. The processed material will be an

input for polyester yarn manufacturers. In centers other than

Delhi and Chennai, the company will set up crushing units to

crush the used PET bottles.

The company's expansion plans will see its water bottling

capacity go up from the present 400 million liters to 500

million liters. Parle Bisleri Limited (PBL) is planning to invest

Rs 200 crores to increase its bottling capacity and double its

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turnover. The expansion will also increase the number of

company's bottling plants from 16 at present, to 25. The

company will set up all the new plants as green field plants. It

doesnt have any intentions to acquire any existing plants.

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PURE BOTTLED DRINKING-WATER

Is Dangerous

The Safety of Bottled Drinking-water

Because of the large number of possible hazards in drinking-

water, the development of standards for drinking-water requires

significant resources and 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 Qualitywhich many countries use as the basis toestablish their own national standards.

International Standards for Bottled Drinkingwater

The intergovernmental body for the development of

internationally recognized standards for food is the Codex

Alimentarius Commission (CAC). WHO, one of the co-sponsorsof the CAC, has advocated the use of the Guidelines for

Drinking-water Qualityas the basis for derivation of standards for

all bottled waters.

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CSE Report on pesticide residues in bottled water

The Centre for Science and Environment, a non-governmental

organization based in New Delhi, has set up the Pollution

Monitoring Laboratory to monitor environmental pollution. Its main

aim is to undertake scientific studies to generate public

awareness about food, waterand air contamination.

The bottled watermarket share of major brands is Bisleri (51%),

Bailley (17%), Yes (11%) followed by Kinley (10%), Aquafina

(4%).

Drinking waterfilled in hermetically sealed containers of various

compositions, form, and capacities that is suitable for direct

consumption without further treatment

FACTS

Bottled drinking water samples of some top brands Bisleri

(Parle Bisleri Pvt. Ltd.), Bailley (Parle Agro Pvt. Ltd.), Aquafina

(Pepsico India Holding Pvt. Ltd.), Kinley (Hindustan Coca Cola

Beverage Pvt.

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Ltd.) and of other less popular brands like Best, Royal Aqua,

Seagull etc., which were being sold and manufactured in Mumbai

and nearby areas like Pune and Daman, were purchased

randomly. All the samples were purchased from retail outlets in

the market and from railway station and were checked for proper

seal, date of manufacture and batch number.

Even the top brands, which claim to use treatment methods like

purification filtration, activated carbon filtration, demineralization

and reverse osmosis were found to contain residues of

pesticides. It might be due to the reason that the manufacturers

may be by-passing the raw water after partial treatment and

remixing it with the fully treated stream so as to cut down the cost

of treatment. On the basis of the results different brands can be

rated in terms of total organochlorine and organophosphorus

pesticides from least to most contaminated as-

Aquafina Macblue

Bailley Kinley

Seagull Sheetal

Bisleri Brilliant

Bally Apurva

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OBJECTIVE

To 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.

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RESEARCH DESIGN

MEANING OF RESEARCH DESIGN

The formidable problem that follows the task of defining the

research problem is the preparation of the design of the research

project, popularly known as the research design. Decisions

regarding what, where, when, how much by what means

concerning an inquiry or a research study constitute a research

design. A research design is the arrangement of conditions for

collection and analysis of data in manner that aims to combine

relevance to the research purpose with economy in procedure.

In fact, the research design is the conceptual structure within

which research is conducted; it constitutes the blueprint for the

collection, measurement and analysis of data. As such the

design includes on outline of what the researcher will do from

witing the hypothesis and its operational implications to the final

analysis of data. More explicitly, the design decisions 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 ?

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(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 which research would be conducted. The function of

research design is to provide for the collection of relevant

evidence with minimal expenditure of efforts, time and money.

In this research the research design was as follows:-

1) Time available for the research is every day in 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 cost factor related to researcher.

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PROCEDURE OF DATA COLLECTION

Data compilation is an intermediate stage between data collection

and analysis. Data compilation involves classification and

summarization in order to make data amenable to analysis.

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

the data must be collected from the sample population. There are

several ways of collecting appropriate data which differ

considerably in context of money cost, time and other resources.

They can be broadly classified in to two categories.

Two sources to collect data are namely:

1. Primary Source

2. Secondary Source

PRIMARY SOURCE OF COLLECTING DATA

The Primary Data that I collected were the first hand

information which I received through personal interviews with the

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consumers and through questionnaires. This data gave the most

vital information for making my analysis of the prevailing

purchasing behavior of the consumers.

QUESTIONNAIRE TECHNIQUE

The method of collecting data mailing and personally distributing

questionnaire to the respondents is the most extensively

employed technique in various economical surveys. This method

is quit popular, particularly in case of big inquiries. A typical

questionnaire consists of a number of questions arranged and

printed in definite order on a form or a set of forms. The

questionnaire is given to the respondents who are expected to

read and understand the questions and write the response in the

given space meant for the purpose in the questionnaire.

SECONDARY SOURCE OF DATA COLLECTION

Secondary Data involved in my research were the information

that I collected through the various broachers and pamphlets of

the company which were provided to me during the analysis.

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RESEARCH DESIGN :

The research design which has been used in the project report is

descriptive in nature.

SAMPLE DESIGN:

The sample design which has been use in this project report is

simple random sampling.

SAMPLING UNIT :

A decision has to be taken concerning a sample unit before

selecting the number of samples. It may be geographical as well

as individual. Here all NCR region has been taken as a

geographical unit and retailers as an individual unit.

SIZE OF SAMPLE:

This refers the number of items (Outlets) to be selected from the

finite universe to constitute a sample size. The survey was

conducted of 200 outlets.

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FINDING

After 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%.

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Bisleri

kinley

Kingfisher

AquafinaOthers

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2. 80% retailers prefer to sell Bisleri brand because of demand,

brand and profit margin.

0%

10%

20%

30%

40%

50%

60%

70%

80%

Bisleri

KEEP Otherbrands

Dont keep anyBrand

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3. Bisleri is the most selling brand in the specific region it is at

45% selling among the competitors.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Bisleri

Kinley

Aquafina

Kingfisher

Others

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.

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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.

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SWOT ANALYSIS

STRENGTHS

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

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WEAKNESS-:WEAKNESS-:

one liter packs which accounted for 50 per cent of the

companys turnover has come down to 30 per cent. The two-

liter packs, which have practically disappeared from the

shelves, have come down from 20 per cent to five per cent.

The growth has come from the 500 ml and the five-liter

category, which account for 15 per cent and 36 per cent 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 at Rs.15 each. Aqua Minerals attributes the

Price slashing to retailer margins 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

the possibility of mass marketing 20-litre Bisleri bottles for an

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MRP of Rs.40. That works out to Rs.2 a liter. If the logistics,

manufacturing and distribution do fall in place, it could

change the face of the purified water market for keeps.

OPPORTUNITIESOPPORTUNITIES

So far, Chauhan has not used the franchising route very

aggressively unlike Parle Agros Bailley which has grown

very fast

using this route. He has around six franchisees in Mumbai,

Delhi, Chennai, Bangalore, Goa and Rajasthan. We

shunned this route so far because in most areas where we

had no presence, it was imperative that we did it ourselves.

Now for further expansion we can afford to use the

franchisee route.

THREATSTHREATS

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Bisleri will be taking the packs back and refilling them. But

the packs cannot be sterilized since the material used is PET

and cannot withstand high temperature. So how can he

ensure purity?

Strategy to counter threats and others?

We subject the bottles to chlorine washes, hot water washes

and ozone washes before we refill the bottles.

The company is betting on the home segment. The reason

being that filters and water purifiers also need to be cleaned

periodically and still do not guarantee absolutely clean water.

In order to service this segment, the five liter packs are being

pushed through the route of fat dealers (wholesale dealers)

who are retailers as well as stockiest and serve as supply

points from where customers can pick up the required quota.

In future, consumers will be able to call the fat dealer and

place orders for home delivery of the five-liter pack. The

company has so far appointed 180 such dealers. This is a

high turnover, low-margin retailer who does not keep a store

but serves a similar purpose with other items such as rice or

atta.

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CONCLUSION

The players who will endure will be those who have a strong

regional presence. Take the case of Team, which enjoys

immense popularity in TamilNadu. Similar brands with a

regional presence are Siruvani, and Koday. Thus, new

players will be looking for a distinct positioning. One such

brand is Pepsis Aquafina, the largest selling bottled water

brand in the US. After its successful test launch in Mumbai

and Bangalore, Aquafina was released in Chennai,

Ahmedabad, Vadodara, and Pune. Pepsi has invested over

Rs.5 crore in the new Aquafina water project in Maharashtra,

which is the only Aquafina plant outside the US.

According to Deepak Jolly, executive vice president,

corporate communications, Pepsi Foods Ltd. Aquafina will

be helped by Pepsis network. Moreover, Aquafina will be

served absolutely chilled. That makes sense too, since

surveys have indicated that an overwhelming majority of the

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bottled water that is consumed in India is by people who are

traveling.

With the big players, who have the support of the financial

muscle and 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 advertising targeting specific

consumer segments. Sensing troubled waters ahead, Bisleri

is busy working on a strategy to soak up the competition and

protect his water kingdom.

Strategy which the company could adopt, are as follows:

1.The soft target

Selling bottled water requires constantly expanding the

market. The company should also target the market for soft

drinks. All the soft drinks addresses three issues: fun, thirst

and refreshment followed by status to some degree. The

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thirst and the status value of the mineral water are well

accepted. There is very little the mineral water brands can do

to add the fun element around the product. Again here, it

becomes important for the company to have a good

distribution network. It should be understood that if the

mineral water is easily available everywhere then it can be

said with confidence that it would be able to replace the soft

drinks as thirst quencher. If we try and look at the reasons

that why consumers buy soft drinks as thirst quenchers: we

would find the answer as that either water is not available or

if it is available then safety is not assured. Therefore, backed

by a good distribution network mineral water industry can

grow at a rapid rate.

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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. 3 per liter, as the perception of the people is that

mineral water cost Rs. 10 per 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.

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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.

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LIMITATIONS

A small segment of the market has been covered only, so the

conclusion cannot be generalized.

The data collected cannot be free from errors, since some of

the respondents failed to give correct information.

Study accuracy totally based upon the respondents response.

Stipulated short span of time for survey.

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BIBLIOGRAPHY

Marketing Management Philip Kotlar

Annual Report, Bisleri 2006

Business Magazines India Today Annual Addition

2006

Business Today, Business World

August 2006

Websites

www.bisleri.com

www.discovery.com

www.google.com

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QUESTIONNAIRE

1. Which brand of bottle water do you sale more?

a. Kingfisher

b. Kinlery

c. Aquafina

d. Bisleri

e. Others

2. 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

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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 Others

Q. 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?

____________________________________________________

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Documents

Marketing strategies by Bisleri