Rural marketing

OVERVIEW OF THE BISLERI

BISLERI

Mineral Water under the name 'Bisleri' was first introduced in Mumbai in glass bottles in two varieties - bubbly & still in 1965 by Bisleri Ltd., a company of Italian origin. This company was started by Signor Felice Bisleri who first brought the idea of selling bottled water in India. Parle bought over Bisleri (India) Ltd. In 1969 & started bottling Mineral water in glass bottles under the brand name 'Bisleri'. Later Parle switched over to PVC non-returnable bottles & finally advanced to PET containers. Since 1995 Mr. Ramesh J. Chauhan has started expanding Bisleri operations substantially and the turnover has multiplied more than 20 times over a period of 10 years and the average growth rate has been around 40% over this period. Presently Bisleri have 8 plants & 11 franchisees all over India. They have presence covering the entire span of India. In their future ventures Bisleri look to put up four more plants in 06-07. Bisleri command a 60% market share of the organized market. Over whelming popularity of 'Bisleri' & the fact that they pioneered bottled water in India, has made us synonymous to Mineral water & a household name. When you think of bottled water, you think Bisleri.

At Bisleri the value customers & therefore have developed 8 unique pack sizes to suit the need of every individual. Bisleris packaged drinking water is present in 250ml cups, 250ml bottles, 500ml, 1L, 1.5L, and 2L which are the non-returnable packs & 5L, 20L which are the returnable packs. Till date the Indian consumer has been offered Bisleri water, however in their effort to bring to customer something refreshingly new, Bisleri introduced Bisleri Natural Mountain Water water brought to you from the foothills of the mountains situated in Himachal Pradesh. Hence Bisleris product range now comprises of two variants. Bisleri with added minerals and Bisleri Mountain Water. It is their commitment to offer every Indian pure & clean drinking water. Bisleri Water is put through multiple stages of purification, ozonised & finally packed for consumption. . Rigorous R&D & stringent quality controls has made Bisleri a market leader in the bottled water segment. Strict hygiene conditions are maintained in all plants. In their endeavor to maintain strict quality controls each unit purchases performs & caps only from approved vendors. Bisleri produce their own bottles in-house. The company has recently procured the latest world class state of the art machineries that put it at par with International standards. This has not only helped Bisleri to

improve packaging quality but has also reduced raw material wastage & doubled production capacity. You can be rest assured that you are drinking safe & pure water when you consume Bisleri. Bisleri is free of impurities & 100% safe. Enjoy the Sweet taste of Purity! For over 30 years, Bisleri has been the pioneer in the bottled water industry with its innovations and an eye for perfection. And ever since it was established in 1969, Bisleri has constantly searched for inspiration in nature.

This search has now led Bisleri to the new Natural Mountain Water. Inspired by nature, it comes to you from a pristine source situated in the beautiful and scenic mountains of Northern India.

Natural Mountain Water resonates with the energy and vibrancy of health and well-being. It is packed with the goodness of nature's minerals which will refresh your senses and rejuvenate you. Bisleri invite you to experience their Natural Mountain Water - The sweet taste of purity. 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. 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 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.

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.

PRICES FOR FOLLOWING PACKAGING VARIANTS

(AN ECONOMIC FACTOR AFFECTING THE BUYERS BEHAVIOR)

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. 1.2 Ltrs Rs. 10/2 Ltrs Rs. 20/5 Ltrs Rs. 40/20Ltrs Rs. 120/-

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.

PRODUCT OFFERINGS & RELATED STRATEGIES Philips has, right from its inception launched a series of state-of-the-art backed products. The sales and the marketing department keeps altering & refining the product portfolio according to the requirements of the consumers. Bisleri has the following products:-

1)

VEDICA

The water that almost descends from the Gods: Vedica Natural Mountain Water comes to you in all its untouched purity, right from its source. Gushing from an aquifer with intense pressure, the natural mountain water is pushed above the ground surface to a height of 5 meters above ground level, powerfully and consistently. The underground geological origin guarantees that there is no external Contamination, since the mouth of the water source is covered from rocks on all sides. Besides, being naturally fortified with silica, the spring is naturally free form any Microbial infection or pollution. Vedica Natural Mountain Water is also low on sodium,

making it the perfect choice for the health conscious. It has a high proportion of sulphates, which work as natural detoxifying agents. And its clear, sweet taste proves that it is free of calcium carbonate and magnesium carbonate salts, which give some mineral waters a chalky taste. Scientifically put, the Total Dissolved Solids in Vedica Natural Mountain Water is 225mg/ltr. It is also high in sulphates, the natural detoxifying agents. Ensuring that all you get with Vedica Natural Mountain Water is the sweet taste of purity. Vedica Natural Mountain Water is available in 500 ml and 1 litre bottles. SR. NO. 1 2 3 4 5 6 7 PARAMETER PH TDS at 180 deg.C (ppm) Calcium (ppm) Chlorides (ppm) Bicarbonates (ppm) Sulphate (ppm) Magnesium (ppm) 7.7 225 47 13 201 19 13 BISLERI VEDICA

2)

MINERAL WATER

Bisleri with Added Minerals: This product is bottled drinking water at its best. Bisleri with added minerals has a TDS count (total dissolved solids count) of approximately 100. It contains minerals such as magnesium sulphate and potassium bicarbonate which are essential minerals for healthy living. They not only maintain the pH balance of the body but also help in keeping you fit and energetic at all times. Bisleri with added minerals is also put through multiple stages of purification to ensure the elimination of all forms of bacteria. This makes the water you drink completely safe to consume. Bisleri with added minerals is available in 250ml cups, 250ml bottles, 500ml bottles, 1 litre bottles, 1.5 litre bottles, 2 litre bottles and 5 and 20 litre cans.

3)

MOUNTAIN

WATER

For over 30 years, Bisleri has been the pioneer in the bottled water industry with its innovations and an eye for perfection. And ever since it was established in 1969, Bisleri has constantly searched for inspiration in nature. This search has now led us to the new Natural Mountain Water. Inspired by nature, it comes to you from a pristine source situated in the beautiful and scenic mountains of Northern India. Natural Mountain Water resonates with the energy and vibrancy of health and well-being. It is packed with the goodness of nature's minerals which will refresh your senses and rejuvenate you. We invite you to experience our Natural Mountain Water - The sweet taste of purity

The company produces eight sizes of packaged drinking water namely 20 litter jar

5 litter jar 2 litter bottle 1.5 litter bottle 1 litter bottle 500 ml bottle 250 ml bottle 250 ml cup

PRICING AND RELATED STRATEGIES Bisleri believes in Ethical Pricing. No compromise has been made by the company on the

price front despite the cut-throat price war existing amongst various players in the Water bottling industry. In Water bottling it was one of the oldest entrants to enter the market in 1965. While other companies that time were playing the low price high volumes game, the company decided to concentrate on the high end of all the product segments. Bisleri believes in value marketing. It is exactly opposite of what other brands stands for. Other brands are pushing volume by sacrificing value. Bisleri is sacrificing volume for value. . However the company after three years in the market has come down to mass marketing. Now it is targeting all the segments in the market. It is even concentrating on the rural areas now. Price of its various pack size are as follows:Packsize 250 ml 250 glass 500 ml 1 ltr. 1.5 ltr. 2 ltr. 5 ltr. 10 ltr. 20 ltr. Soda 1 1 24 12 9 1 35 43 60 260 no.of bottles 24 24 20 12 160 160 80 140 115 Retailers price (Rs.) 115 Rs.4 Rs.10 Rs.15 Rs.20 Rs.25 Rs.40 Rs.50 Rs.70 Rs.15 MRP(per bottle) Rs.6

Mountain Vedica

12 12

130 140

Rs.20 Rs.25

DISTRIBUTION AND RELATED STRATEGIES Bisleri is currently selling its products in 1800 towns and cities with of one lakh and above. It has 32 branch offices, 1140 distributors and 2,000 dealers all over the country. By the end of 1999, the company plans to reach another 7000 towns with a population of 50,000 or more. In this process it will add on to 60 distributors and 1000 dealers. To achieve this sends eight vans to crisscross the country covering 5000 km every month, to familiarize the trade and the customers with Bisleri products. In every city, Bisleri approached the best dealers in a scheme ridden market; it positioned itself as an ethical company. Instead of discounts Bisleri wanted dealers to pay an advance for Bisleris products. This ensured that the dealer would push the Brand in the market place, even if it was just to keep his oven cash from staying blocked. In the long run this created a pent-up demand for the brand.

SUPPLY CHAIN & DISTRIBUTION CHANNEL

Manufacturing plant

Corporate Distributor Railways

Retailers

Consumers

SWOT ANALYSIS

STRENGTH: Major market player and 40 years old brand, so it has great trust. Huge demand in the market. Almost every customer asks for Bisleri packaged water. Premium brand image in the mind of customers. Which help to attract a major portion of Customers. Bisleri is innovative in launching new range and good quality products. Bisleri has a strong presence in the international and domestic market An effective sales department and a large no. of potential sales person, who has vast experienced knowledge about the market and good relationship with the distributor & retailers. Delivery at free of cost. Home build production facility Innovation of new products like mountain, Vedica. Cooperation among various department and its work culture Break away seal (unique capping), design and eye-catching color of bottles.

WEAKNESS: Low margin. Retailers are not keeping Bisleri as its margin is less than its competitors. No scheme. Bisleri is not providing any scheme unlike its competitor. Poor advertising. Competitor has edge on electronic media, print media advertising but Bisleri does not have this edge.

 No display, stand and freeze to the retailers. Replacement problem. Company is not replacing the damaged or expired bottle. Carton quality is not durable.

OPPORTUINITY: New corporate offices are opening in the area New shopping malls are opening & can open direct sales counter like EDM mall. Extension of Delhi metro. Two new metro stations are shortly opening in Vaishali and Sahibabad. Increasing interest of people of using packaged water in ceremonial program like marriage, birthday, parties etc. Sales and brand promotion Tie-up with some food & restaurant chain.

THREATS:

Growing market share of the competitors.

Low demand of 1.5ltr.and 10ltr. as compare to other pack size. Dissatisfaction with company regarding accounts which would directly affect sales of products. Low awareness among people about mountain & Vedica. No alternative product which the other brands are having.

PROBLEMS OF THE ORGANISATION The main challenges for any organization is his competitors. Bisleri has the following competitors: KINELY AQUFINA KING FISHER

Mcdollars Catch In the age of competition price has also come up with a new problem. Because other brand has lesser prices than bisleri & other companies give more margins to the retailer than the bisleri. Competitors are providing various schemes with soft drinks. But Bisleri is not having these kind facilities. There is no motivational program for salesman & distributors. In some cases some elements are found in jar. shipping problem i.e. late in loading There is accounts problem Promotional and branding problem. It has less hoarding, stand etc. Plant capacity problem. During the pick season production is not enough to meet the demand.

Marketing segmentation Ci t y Geographic - M e t r o c i t i e s Cities with population over 1 million.

S e m i - u r b a n Demographic

a r e a s

- T o w n s

I n c o m e - M i d d l e , U p p e r m i d d l e a n d h i g h income group. Education -Literate.

Psychographic

Social class -middle ,upper class , upperu p p e r c l a s s Life style -outdoor & sports oriented. Behavioral

Occasions -Parties , meetings and travelling B e n e f i t s - s a f e & s c u r e .

User status -Regular user & potential user Positioning B i s l e r i p o s i t i o n t h e i r p r o d u c t o n t h e p u r i t y platform Launch an ad campaign Pure And Safe Sept 2000 shift in positioning from Pure and safe to Play safe People consume mineral water not for mineralbut for safety said by chauhan.