PROJECT REPORT

ON
COMPETITORS ANALYSIS OF BISLERI
IN BISLERI INTERNATIONAL PVT. LTD

Submitted in Partial Fulfillment of the requirement of

Bachelor of Business Administration (BBA)

Training Supervisor Submitted By

ASHISH BARAWAL PIYUSH NEGI

Designation: SALES TEAM LEADER 03050501715(2015-

18)

Submitted To:

Banarsidas Chandiwala
Institute of Professional Studies, Dwarka, New Delhi

(Affiliated to Guru Gobind Singh Indraprastha University)

 TO WHOM SO EVER IT MAY CONCERN

This is to certify that the project work title “COMPETITORS ANALYSIS OF BISLERI” by
“PIYUSH NEGI” is an authentic work carried out by his under my guidance and supervision
in the Bachelor of Business Administration From “BANARSIDAS CHANDIWALA
INSTITUTE OF PROFESSIONAL STUDIES” The report submitted has been founded
satisfactory for the partial fulfilment of the degree of B.B.A

-------------------------

Mrs Rekha Dahiya

(PROJECT SUPERVISOR)

2
 CERTIFICATE

This is to certify that the project work done on “COMPETITORS ANALYSIS OF BISLERI”
Submitted to Guru Gobind Singh Indraprastha University, Delhi by PIYUSH NEGI in partial
fulfillment of the requirement for the award of degree of Bachelor of Business Administration, is a
bonafide work carried out by him under my supervision and guidance. The work was carried during
16 Aug 2017 to 29 Sept, 2017

During the training period his behavior & performance was satisfactory.

Date: Name of the guide -

Ashish barawal

3
 STUDENT DECLARATION

I hereby certify that the project report entitled on “COMPETITORS ANALYSIS OF BISLERI”
Submitted in partial fulfillment of the requirement for the award degree of Bachelor in
Business Administration to BANARSIDAS CHANDIWALA INSTITUTE OF
PROFESSIONAL STUDIES is my original work and not submitted or the award of any
other degree, diploma, fellowship, or any other similar title or prizes anywhere else.

PIYUSH NEGI

Enrollment No.

0305501715

4
 BONAFIDE CERTIFICATE

This is to certify that as per best of my belief the project entitled “ A

STUDY ON ” is the bonafide research work carried out by PIYUSH
NEGI student of BBA, BCIPS, Dwarka,New Delhi during Aug-sept
2017, in partial fulfillment of the requirements for the Summer Training
Project of the Degree of Bachelor of Business Administration.
He has worked under my guidance.

--------------------
Name - Ms. Rekha Dahiya

Project Guide (Internal)

Date:

Counter signed by
-------------
Name - Dr. Davinder Sharma

Director /HOD
Date:

5
 ACKNOWLEDGEMENT

I would like to take an opportunity to thank all the people who helped me in collecting
necessary information and making of the report. I am grateful to all of them for their
time, energy and wisdom.

Getting a project ready requires the work and effort of many people. I would like all
those who have contributed in completing this project. First of all, I would like to
send my sincere thanks to Ms. Rekha Dahiya for her helpful hand in the completion of
my project.

PIYUSH NEGI

BBA (FINAL YEAR)

6
 EXECUTIVE SUMMARY

The packaged drinking water industry is in the growth stage. A number of leading

players have emerged such as Bisleri, Aquafina, Bailey, and Kinley. There are other

significant players like Yes, Ganga, Himalayan and many others. Foreign players in

the local market such as Evian and Perrier also characterize the industry. At present,

the Indian market is also less organized and not much branded.

In this context, the industry needs to be studied to find the structure in terms of

players, substitutes and others factors governing the success of leading players. This

report attempts to study the following:

Market Study

Packaged drinking water market in terms of major players, market size, growth, and

market shares of players, segmentation statements and positioning of the various

products available.

Consumer Study

The consumer segments and their habits and practices also have been studied along

with packaging technologies available and the importance of distribution and logistic

networks.

Strategies

To analyse the reasons for success and make a set of best practices and strategies for

the players. The company profiles also need to be studied to be able to cross-compare

and make deductions as to what are the best practices existing.

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 TABLE OF CONTENTS

EXECUTIVE SUMMARY 5
INTRODUCTION TO THE INDUSTRY 7
INTRODUCTION TO THE COMPANY 17
COMPETITION 31
OBJECTIVE OF THE STUDY 39
METHODOLOGY OF THE PROJECT 40
ANALYSIS OF PROBLEM UNDER STUDY 41
DATA ANALYSIS AND INTERPRETATION 44
RECOMMENDATION 57
CONCLUSION 59
BIBLIOGRPAHY 60
Questionnaire 61

8
 INTRODUCTION TO THE INDUSTRY

Water. The fountain of all life. Even a toddler will tell you it is a prime need of the

body. Sixty per cent of our body weight is made up of it. Water can also be the cause

of much misery. Especially in India, where contaminated water continues to bring

down millions with diseases such as diarrhea, dysentery, typhoid, jaundice and gastro-

enteritis.

Getting pure drinking water from municipal taps in cities and towns is now a luxury.

At home most people are forced to either boil water or install purifiers. While

traveling or eating out in restaurants, buying bottled water has become a necessity.

This need has seen an explosion of companies marketing “safe drinking water” in

bottles across the country.

OVERVIEW OF THE INDUSTRY

Now around 100 companies sell an estimated 424 million litres of bottled water

valued at around Rs. 200 crore in the country annually.

The tradition of bottled water and mineral water is not very old. Even in western

countries the practice of bottled drinking water started in 1950s. The trend of having

mineral water gained grounds in the market.

Since ancient time people have used water from mineral springs, especially hot

springs, for bathing due to its supposed therapeutic value for rheumatism, arthritis,

skin diseases, and various other ailments. Depending on the temperature of the water,

the location, the altitude, and the climate at the spring, it can be used to cure different

ailments. This started the trend of using mineral water for drinking purpose to exploit

the therapeutic value of the water. This trend started gaining momentum in mid 1970s

9
and since then large quantities of bottled water from mineral springs in France and

other European The concept of bottled has been quite prevalent in western countries

due to greater health consciousness and higher awareness about health and hygiene

countries are exported every year.

IN INDIA with exposure of media and exposure to international life styles,

deteriorating levels of potable water, increase in a number of water borne cases,

increase in awareness about health and hygiene and other related factors led to

acceptability of concept of mineral water. The market has not looked back ever since

then and has grown leaps and bounds to such an extent that a number of genuine as

well as fly-by -night operators have entered it to milk it.

HOW IS BOTTLED WATER DIFFERENT FROM TAP WATER?

Consistent quality and taste are two of the principal differences between bottled water

and tap water. While bottled water originates from protected sources - largely from

underground aquifers and springs - tap water comes mostly from rivers and lakes.

Another factor to consider is the distance tap water must travel and what it goes

through before it reaches the tap. In compliance with international regulations, bottled

water is sealed and packaged in sanitary containers. If a bottled water product is

found to be substandard, it can be recalled. This can’t happen in case of tap water.

According to regulations in the US, when bottled water is sourced from a community

water system the product label must state so clearly. However, if the water is subject

to distillation, de ionization or reverse osmosis, it can be categorized that way, and

does not have to state on its label that it is from a community water system or from a

municipal source.

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Processing methods such as reverse osmosis remove most chemical and

microbiological contaminants.

TYPES OF WATER

Packaged waters

Packaged waters, other than natural mineral waters, are waters for human

consumption and may contain minerals, naturally occurring or intentionally added;

may contain carbon dioxide, naturally occurring or intentionally added; but shall not

contain added sugars, sweeteners, flavoring or other foods.

Artesian water

Artesian water is from a well tapping a confined aquifer in which the water stands at

some height above the top of the aquifer.

Spring water

It is water derived from an underground formation from which water flows naturally

to the surface of the earth. Spring water shall be collected at the spring or through a

bore hole tapping the underground formation feeding the spring. There shall be a

natural force causing the water to flow to the surface through a natural orifice. The

location of the spring shall be identifiable.

Well water

Well water is water from a hole bored, drilled, or otherwise constructed in the ground

which taps the water of an aquifer.

Glacial (Glacier) water

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It is either the runoff directly from the natural melting of ice of glacier or water

obtained from the melting of glacier ice at a bottled water operation.

Prepared water

Prepared water is substantially altered so that its composition is no longer

characteristics of the defined origins. They have been rendered fit for human

consumption or have passed through community water supply or have had the

composition significantly changed.

Mineralized table water

It is prepared water with minerals added according to the provisions in the Codex

General Standard for Food Additives.

THE MANUFACTURING PROCESS

Processing and Quality Assurance

 The casing tube itself is protected with stainless steel mesh to give a preliminary

filtration

to the water.

 Ultra filtration gives water reduction in turbidity and adds sparkle

 Activated carbon purifier to remove colour and odor in water

 Reverse osmosis membrane has porosity of less than 0.01 micron the process

renders

water free of microorganisms and also reduces dissolved solids

12
To ensure mineral water is held safe free from contamination, ultraviolet treatment

and ozonisation process is carried out. Ozone is unstable trivalent oxygen, a very

powerful bactericide with no side effect, as it disintegrates into oxygen within couple

of hours.

Sterilization effect of ozonised water continues even after water is packaged, thereby

ensuring safety of Mineral Water up to its final packing. To ensure high quality of

packing materials, components like caps and bottles are manufactured in-house from

resins of quality suppliers.

Good Manufacturing Practices are stringently followed at all times. Processing is

religiously monitored at every stage. Testing source water, processing parameters,

microbial quality, packaging material integrity and finally, shelf life studies, forms an

integral part of quality and safety assurance plan.

Labeling

The Name of the Product shall be the appropriate terms as defined. Water containing

carbon dioxide that emerges from the source and is packaged directly with its

entrapped gas or from which the gas is mechanically separated and later reintroduced

at a level not higher than naturally occurring in the water, may bear on its label the

words naturally carbonated or naturally sparkling. Packaged water which contains

carbon dioxide at levels than those naturally occurring in the source of the product

shall be labeled with the words carbonated, carbonation added or sparkling.

Rules and Regulations

The Bureau of Indian Standards (BIS) has just recently got involved in the process. In

September 2000, the Government of India made it mandatory for all bottled water

13
companies to get an ISI mark, including imported bottled water brands like Evian and

Perrier. The Ministry of Health and Family Welfare had set a deadline of Mar 29,

2001 for complying with the new norms.

MARKET CATEGORISATION

The market initially had only one SKU of 1 litre this was followed a by a number of

smaller and bigger SKUs. Based on these SKUs we can divide the entire market into

two segments:

 Retail consumption market

 Household & Institutional consumption market

Each of these consumption markets have a number of SKUs under it. Some of the

most consumed SKUs in retail market are 500ml, 1 litre, 1.2 litre, 1.5 litres, 2 litres,

and 5 litres. Recently Bailley has launched 330ml pack targeted against 330ml pack

size of soft drinks especially the aluminum-can drinkers.

The institution market is largely constituted by the hotel industry, caterers, offices,

parties, travel, tourism, hospitals etc. The SKUs that are available in this market are

10 litres and above besides this we have pack size of 250ml plastic cups.

The market can also be divided on the basis of the price at which this bottled water is

available into three categories:

 Super premium mineral water

 Premium local natural mineral water

 Popular or plain bottled water

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Presently, Evian of Danone group; Perrier and San-Pellegrino of Nestle belong to

super premium category. Catch, Himalayan, Brilliant etc. belong to premium local

natural mineral water category.

All other brands like Bisleri, Bailley, Kinley, Aquafina etc. belong to popular or plain

bottled water category.

The packaged drinking water market is often categorized as per the clients they have:

Corporate, Theaters, Gymkhanas, College Canteens, Retail Outlets, Hotels and

Restaurants and Occasions.

MARKET SIZE AND GROWTH

With the entry of Aquafina and Kinley the market share of the existing players

changed phenomenally.

MARKET SIZE AND GROWTH RATE

The mineral water market is still maintaining the pace at which it has been growing

over past few years. The market is witnessing launch of a number of player with every

passing day. Presently the market is skewed towards regional players and has more

than 250 players in the fray. Besides these we have a number of fly-by-night operators

who enter the market in summers, reap benefits by packaging tap water and selling as

pure mineral water, and then leave once the season is over. The problem in the market

is not with the players but with the consumers. Poverty levels, illiteracy has led these

players to take full advantage of consumers by selling even the tap water as mineral

water. The fault also lies with the government for being lackadaisical in setting up

norms for entry into the industry and also for being lackadaisical in taking proper care

of health of its public.

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Total bottled market has a size of Rs11-12bn of this around Rs7bn is in the hands of

organized sector and rest is with unorganized sector. In the organized sector Bisleri is

the market leader with 45% market share followed by Bailey with 23-24% market

share. PepsiCo and Coca-Cola too have market share in the range of 8-9%

individually. Rest of the organized market is well distributed among small regional

players. The market for the past three years has been growing at unimaginable rates of

more than 80%, this can be explained on account of the lower base of previous years.

This strong double digit growth rate of the industry has attracted a number of global

players in the market In the recent past some the major players like Coke, PepsiCo

have launched their products in the market. Many more like Nestle, Britannia, HLL

have evinced interest in the market. With changing consumer preferences from

carbonated drinks towards bottled water the growth rate is expected to stabilize at 25-

30 % for next 4-5 years.

The Rs 1,000 crore branded packaged water market, which was once synonymous

with the desi Bisleri, is now witnessing intense competition with multinationals

entering the fray, according to a survey by ORG-MARG. The survey says that there

has been erosion in the retail market share of Bisleri, the brand launched by the

Ramesh Chauhan-promoted Parle Bisleri, thanks to aggressive marketing by

multinationals.

ORG-MARG has estimated the market share of Bisleri at 37.6 per cent in February

2002, drastically down from the 59.9 per cent share it enjoyed in July 2000, in the

mid-pack segment (500—2000 ml).

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Coca-Cola’s Kinley enjoys a market share of 28.2 per cent, Pepsi’s Aquafina has 11.1

per cent and the Prakash Chauhan-promoted Parle Agro’s Bailley has 5.7 per cent for

February 2002, ORG-Marg says. In July 2000, Aquafina had only 3.6 per cent, while

Bailley’s share was 5.3 per cent.

Launched in August 2000, Kinley within 18 months controls a market share of close

to 30 per cent. “It is only a matter of time, before Kinley pips Bisleri and moves to the

numero uno position,” senior Coca Cola officials said.

The above figures indicate healthy growth signals for multinationals. One section of

analysts says that these brands have grown at the expense of Bisleri; virtually a

generic name for packaged-water, while others point out that the market has expanded

as consumers have become aware of the benefits of clean drinking water.

Thus we see that almost all-major national and international brands have taken a

plunge. Parle’s Bisleri that virtually monopolized the bottled water market is now

vying with Nestle, Coca-Cola, and PepsiCo. According to a national-level study, there

are close to 200 bottled water brands in India. Nearly 80 per cent of these are local

brands.

Genie is out of the bottle! Indeed, the bottled water industry is one of the most

thriving sectors in India.

COMPETITION

The bottled water industry has two other industries as its biggest competitors in from

of Water purifiers industry and the soft drinks industry. Though the water purifier

industry should be credited to have done the spadework, for setting up the foundation

of bottled water industry but still it acts as competitors especially in the household and

17
institutional consumption market. So the water purifier is a strong competitor in

household and institutional market the soft drinks market is a strong rather very strong

competitor in the retail consumption market.

Bottled water became a product in the West during the 1920’s and developed rapidly.

Huge market size, numerous local brands and controlled price mechanism are some of

the features of the market there. Consumers in the West are quality conscious and

display brand loyalty. Indian consumers lack on both the counts.

In Asia, Indonesia is the largest and the oldest market for bottled water. In India,

bottled water is still not perceived as a product for masses though, the scene is

changing slowly thanks to low pricing and aggressive marketing strategy adopted by

new entrants. Some surveys show that truck drivers on highways form a major chunk

of bottled water drinkers. Penetration in rural areas is another significant factor that is

likely to play a key role in the development of the bottled water trade.

In comparison to global standards India’s bottled water segment is largely

unregulated. Safe water is rated with a different yardstick in different countries. In

India, the aspect has been overlooked for long. Indian consumers tend to believe that

any bottled water is safe water. This may not be the case.

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 INTRODUCTION TO THE COMPANY

HISTORY OF BISLERI

The origin of BISLERI lies in Italy and the brand owes its name to its founder

MR.FELICE BISLERI, an Italian entrepreneur. In 1967, BISLERI set up a plant in

Bombay for bottling and marketing actual mineral water, which did not quite work.

By 1969, BISLERI wanted to exit the business and to help him out the Chauhan’s

bought the brand, intending to turn it into a soda brand. Since then it has come a long

way. Now, it owns a large percentage of shares in the Indian market and also it has its

presence in International Water Market.

“WATER WATER EVERYWHERE

BUT JUST A LITTLE THAT IS CLEAN”

JOURNEY OF BISLERI

1969: Buys BISLERI bottled water from an Italian company, Felice Bisleri. It was

bottled in glass bottles then.

Early-1980s: Shifts to PVC (Poly Vinyl Chloride) bottles. Sales surge

Mid-1980s: Switches to PET bottles, which meant more transparency and life for

water.

1993: Sells carbonated drink brands like Thums Up, Gold Spot and Limca to Coca-

Cola for Rs. 400 crore.

1995: BISLERI launches a 500 ml bottle and sales shoot up by 400 per cent.

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2000: Introduces the 20-litre container to bring prices down from Rs. 10 a litre to Rs.

2 a litre.

1998: Introduces a tamper-proof and tamper-evident seal.

2000: BIS cancels BISLERI'S licence of water bottling in Delhi since some of the

bottles did not carry ISI label; the license is restored one-and-a-half months later.

2002: KINLEY overtakes BISLERI. The national retail stores audit by ORG-MARG

show Kinsley’s market share at 35.1 per cent compared to BISLERI’S 34.4 per cent.

2003: BISLERI says it plans to venture out into Europe and America to sell bottled

water.

STRENGTH

1. QUALITY STANDARD:-

Every bottle of BISLERI is put through a rigorous Multi stage purification processes

which includes micron filtration and ozonisation. It acquires 6 stages of purification

processes which ensure quality water which is pure and safe for drinking purpose.

Good manufacturing are the strength all the time processing in religiously monitored

at every stage.

2. TRUST FOR BRAND:-

More than 50 lakhs people trust the BISLERI. They buy only BISLERI water because

it has became generic name for mineral water. For example: - When people go to buy

the mineral water many of them ask for BISLERI, even though they get other brand.

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3. LARGE RANGE OF PRODUCTS:-

BISLERI offers a large range of products which attracts consumer of all categories.

For example: - 1 litre or 500 ml pack is useful for individual buyers, 12 litres or 20

litres is useful for organization. Therefore it attracts large number of customer.

4. MARKETING:-

BISLERI is promoted by an aggressive print & TV. TV is backed by a Hoarding &

point – of – sale material. Every interface with customer is used as an opportunity to

reinforce. For example: - All vehicles used for supply have been painted in light

green, bears the BISLERI logo & sport catchy baseline likes “drink and drive”.

5. DISTRIBUTION SYSTEM.

With little belief in the distributor system, the company leverage its large fleet of

truck to supply bottled water directly to retailers through a system called ‘Route

Selling’ where the driver of truck is trained to be a service person. This ensures that

water supplied is fresh and bottles are in good shape. BISLERI has more than 80,000

outlets in the country.

6. EXPERIENCE OF MR.CHAUHAN (M.D OF BISLERI)

From the vast experience of marketing Gold Spot and Thums Up, Mr. Chauhan knows

that distribution plays a crucial role in the successful marketing of bottled drinks. He

knows that making fresh water available within a particular period of time is crucial

for its success. He is pursuing a multi- pack and multi- price strategy.

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7. BULK – SEGMENT IS USEFUL FOR HOUSEHOLDS ALSO:-

Households in certain parts of the country spend a huge amount of money on fuel in

order to purify the water. They are supposed to buy the impure water and then they

have to spend money to purify it.

For instance the water scarce south people spend large some of money to buy water

and still more to purify it. The 12 litre product is hit in various cities of south.

8. GROWING POPULARITY:-

The popularity of BISLERI is increasing rapidly day by day. People in the market

when it comes to mineral water a person goes to any shop and asks for BISLERI as

his/her first preference. BISLERI is seeing a growth of almost 50% per year. With the

small pack being popular among individuals user its bulk pack is also generating the

huge demand which is capturing the market for BISLERI. Today 60-70 % of total

income of BISLERI comes from its bulk segment and the company is planning to

increase it up to 80%.

9. THE BREAK AWAY SEAL:-

Keeping in mind the consumers need to recognize a genuine product that cannot be

tempered with. The unique cap has been patented and cannot be duplicated. This

technical strength ensures that the consumer will only get a high safe product when

they will drink BISLERI.

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MISSION STATEMENT

“To provide the highest quality product, keeping in mind all aspect including

freshness purity and safety and making it easy available to the consumer at very

affordable price.”

WEAKNESS

1.METHOD ADOPTED FOR DISTRIBUTION:-

THE ‘ROUTESELLING’ policy adopted by BISLERI for distribution is more

expensive than more commonly followed method of appointing distributors in

different towns. This reduces the profit of company. The dealer margin is reduced

due to this .therefore not many dealer keeps BISLERI in many areas. Indirectly this is

reducing the coverage of BISLERI.

2. REUSE OF BOTTLE BY LOCAL SELLERS AND ILLEGAL

MANUFACTURERS:-

Market research conducted by BISLERI revealed that the other overriding

concern for this set of buyers is the tampering of seal and the reuse of bottles. Many

have witnessed used bottles being refilled at railway stations. This deteriorates the

brand image of BISLERI.

For example: - local sellers fill the bottle of BISLERI with impure water and the

bottles are purchased by illiterate customers as BISLERI water but they buy water of

low quality. In this way brand of BISLERI gets affected.

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3. FAULTS IN PRODUCTION:-

Tests conducted by various authorities shows that it contains pesticides. In

2002 the 2cm long insect was found in the bottle of BISLERI. This has affected its

sales and reputation. The license of its two factories one at Noida and other at

Bangalore has been cancelled because of fault in production.

4. PRESSURE BY GOVERNMENT AUTHORITY:-

After insect was found in the bottles, FDA (Food & Drug Adulteration) has

cancelled the production of BISLERI. Afterwards it was allowed to resume it but in

this period its customer were moved towards other products. It is constantly under

check by various authorities.

5. NOT MEETING THE DEMAND OF THE CUSTOMER:-

In certain parts of south in our country big bottles of BISLERI are in huge demand

but the company is unable to meet the demand of the consumers. This is affecting the

demand for the product. So People are forced to use other brands of mineral water.

OPPORTUNITY

1. FAST GROWING FIELD:-

The best beverage for India in the new millennium seems to be water. In recent years,

the bottled drinking water market has been witnessing high decibel level of activity,

with a host of new entrants. The bottled water market which worth Rs. 1000 crore is

expected to be Rs. 5000 crore by 2010. This will increase a lot of scope for bottled

water market.

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2. BISLERI CAN UTILISE ITS DISTRIBUTION CHAIN:-

With BISLERI becoming a generic name for bottled drinking water. If company can

manage the distribution chain of the product to make it available where the consumer

needs it the most, the company may well succeed in his gamble with water. For this

the company can connect it with dealers and other distributors who will market the

products for them all around the world.

3. EXPANSION IN EUROPE:-

The launch of BISLERI in the European market on 4th September, 2003 has created a

lot of scope for BISLERI in the field. This will also compensate the deterioration of

image; BISLERI has suffered after insect was found in the bottle. It will silence the

critics and it will also increase the faith of the customer for the brand. It will create an

international brand image and the quality will increase.

4. LAUNCH OF PREMIUM PACK:-

The company also has its premium product range. This is prepared keeping 5-star

hotels and other premium customer. This pack will be sold at Rs. 20 per litre. This

will give a tough competition to the EVIAN, the biggest player in the premium water

range which sells its 1 litre water at a hefty of Rs.85 per litre.

5. CHANGE OF IMAGE:-

The company has changed the colour of the product. It has changed from blue to

green. By changing the colour, the company has provided a new product to the

consumers; they will be getting a new and a refreshing product.

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6.INCREASE IN PRODUCTION:-

BISLERI is eyeing the Market and is in the process of increasing the production by

setting 4 new plants adding to its 23plants. This will increase the production capacity

of the company.

THREAT

1. MARKET IS EYED BY THE BIG PLAYERS:-

The growth of the market indicates the need for the mineral water. Due to this the

heavy weights are eyeing the market. Coke, Pepsi, Britannia, Nestle, Auswater—is

keen on raising their stakes in this market. With the cut throat competition between

Coke and Pepsi, BISLERI is not safe.

2. ENTERING OF NEW PLAYERS:-

To get some share in the market many new players are entering in the market. Among

them major names are Godrej, which is launching its product AQUA-PURE and Tata-

Tea is looking forward to but Himalayan, this will increase the competition. Also

Britannia which is distributing EVIAN is planning to launch its own brand. There are

also new entrants ATCO with BRILLIANT water, DS FOODS with CATCH are also

coming. Even Hindustan lever is planning to enter into the market. This is give a

tough competition to the current water brands including BISLERI.

3. WATER FILTER MANUFACTURERS:-

BISLERI is not only getting competition from mineral water maker but is also facing

a tough competition from various water filter manufacturers such as Eureka Forbes

26
(Aqua guard). They have been marketing there purifiers in the market which has

decreased the sales of bottled water supply to homely customers.

4. ILLEGAL MANUFACTURERS:-

Company is facing a tough competition from illegal manufacturers in the rural areas.

The illegal manufacturers provide water at a very cheaper rate then the branded

manufacturers. There are 1000’s of illegal manufacturers which are providing the

water at a very cheaper rate. This is a serious problem for branded manufacturers.

This companies also use the fake name of branded bottled water i.e. BISLERI and

supply their products in the market.

5. STRONG DISTRIBUTION CHANNEL OF THE OTHER

MANUFACTURERS:-

Analysts feel that BISLERI’S break away seal will not at all be effective the company

having strong distribution channel will only survive. This rings the warning bell for

BISLERI because among other players Kinley and Aquafina are having a strong

distribution network of Coke and Pepsi. Nestle will be banking on its chocolate

distribution network. Even though the BISLERI has a strong networks but its

concentration on bulk segment can lead to improper network.

For example: - A chemist who is selling the 1 litre pack may not sell the 20 litre pack.

This could disturb the network.

6. NEW GOVERNMENT POLICY:-

For preparing 1 litre of mineral water 3 litre of ground water is required.

Government was not charging tax on the extraction of the ground water. Now by

introducing the new policy government is going to impose tax on the extraction of the

27
ground water, this will increase the production cost because of which the companies

will be forced to increase the price which all consumers’ of all categories can not

afford. The companies can compensate the high production cost by reducing their

marketing expenses but this will keep the consumer unaware about the product. This

is also effect the quality of the bottled water.

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 MARKET SIZE AND GROWTH

market share 2007

Others
11% Bisleri
Bailley
23% Yes
Bisleri
53% Bailley
Yes Others
13%

With the entry of Aquafina and Kinley the market share of the existing players

changed phenomenally.

market share 2008

Kinley others Bisleri

7%
10%
Aquafina Yes
4% Bisleri Bailley
Bailley 51% Aquafina
17%
kinley
Yes
11% others

29
 MARKET SIZE AND GROWTH RATE

The mineral water market is still maintaining the pace at which it has been growing

over past few years. The market is witnessing launch of a number of player with every

passing day. Presently the market is skewed towards regional players and has more

than 250 players in the fray. Besides these we have a number of fly-by-night operators

who enter the market in summers, reap benefits by packaging tap water and selling as

pure mineral water, and then leave once the season is over. The problem in the market

is not with the players but with the consumers. Poverty levels, illiteracy has led these

players to take full advantage of consumers by selling even the tap water as mineral

water. The fault also lies with the government for being lackadaisical in setting up

norms for entry into the industry and also for being lackadaisical in taking proper care

of health of its public.

Total bottled market has a size of Rs11-12bn of this around Rs7bn is in the hands of

organized sector and rest is with unorganized sector. In the organized sector Bisleri is

the market leader with 45% market share followed by Bailey with 23-24% market

share. PepsiCo and Coca-Cola too have market share in the range of 8-9%

individually. Rest of the organized market is well distributed among small regional

players. The market for the past three years has been growing at unimaginable rates of

more than 80%, this can be explained on account of the lower base of previous years.

This strong double digit growth rate of the industry has attracted a number of global

players in the market In the recent past some the major players like Coke, PepsiCo

have launched their products in the market. Many more like Nestle, Britannia, HLL

have evinced interest in the market. With changing consumer preferences from

carbonated drinks towards bottled water the growth rate is expected to stabilize at 25-

30 % for next 4-5 years.

30
The Rs 1,000 crore branded packaged water market, which was once synonymous

with the desi Bisleri, is now witnessing intense competition with multinationals

entering the fray, according to a survey by ORG-MARG. The survey says that there

has been erosion in the retail market share of Bisleri, the brand launched by the

Ramesh Chauhan-promoted Parle Bisleri, thanks to aggressive marketing by

multinationals.

ORG-MARG has estimated the market share of Bisleri at 37.6 per cent in February

2002, drastically down from the 59.9 per cent share it enjoyed in July 2000, in the

mid-pack segment (500—2000 ml).

Coca-Cola’s Kinley enjoys a market share of 28.2 per cent, Pepsi’s Aquafina has 11.1

per cent and the Prakash Chauhan-promoted Parle Agro’s Bailley has 5.7 per cent for

February 2002, ORG-Marg says. In July 2000, Aquafina had only 3.6 per cent, while

Bailley’s share was 5.3 per cent.

Launched in August 2000, Kinley within 18 months controls a market share of close

to 30 per cent. “It is only a matter of time, before Kinley pips Bisleri and moves to the

numero uno position,” senior Coca Cola officials said.

The above figures indicate healthy growth signals for multinationals. One section of

analysts says that these brands have grown at the expense of Bisleri; virtually a

generic name for packaged-water, while others point out that the market has expanded

as consumers have become aware of the benefits of clean drinking water.

Thus we see that almost all-major national and international brands have taken a

plunge. Parle’s Bisleri that virtually monopolized the bottled water market is now

vying with Nestle, Coca-Cola, and PepsiCo. According to a national-level study, there

31
are close to 200 bottled water brands in India. Nearly 80 per cent of these are local

brands.

Genie is out of the bottle! Indeed, the bottled water industry is one of the most

thriving sectors in India.

32
 COMPETITION

The bottled water industry has two other industries as its biggest competitors in from

of Water purifiers industry and the soft drinks industry. Though the water purifier

industry should be credited to have done the spadework, for setting up the foundation

of bottled water industry but still it acts as competitors especially in the household and

institutional consumption market. So the water purifier is a strong competitor in

household and institutional market the soft drinks market is a strong rather very strong

competitor in the retail consumption market.

Bottled water became a product in the West during the 1920’s and developed rapidly.

Huge market size, numerous local brands and controlled price mechanism are some of

the features of the market there. Consumers in the West are quality conscious and

display brand loyalty. Indian consumers lack on both the counts.

In Asia, Indonesia is the largest and the oldest market for bottled water. In India,

bottled water is still not perceived as a product for masses though, the scene is

changing slowly thanks to low pricing and aggressive marketing strategy adopted by

new entrants. Some surveys show that truck drivers on highways form a major chunk

of bottled water drinkers. Penetration in rural areas is another significant factor that is

likely to play a key role in the development of the bottled water trade.

In comparison to global standards India’s bottled water segment is largely

unregulated. Safe water is rated with a different yardstick in different countries. In

India, the aspect has been overlooked for long. Indian consumers tend to believe that

any bottled water is safe water. This may not be the case.

33
MARKET RESEARCH

Research methodology: In-depth interview technique adopted

Areas covered

The total number of calls was 100, and it was found that:

Offices using mineral water was 34%and the rest belonged to Aqua-Guard or cooler

or both.

“Frequency of visit of the delivery van”

“P

ay

me

nt

terms”

34
In the case of cheque the payment was done with one-month credit.

In the case of users it was found that the users of:

Plastic dispenser 65%

Hot and cold dispenser 25%

Milton 10%

About the awareness of the facilities of the 20 litre jar in the above mentioned area it

was found that around 25 % of the respondents were not aware of the facility of the

mineral water in the office other than the 1 litre or the 500ml bottle.

.The market is still has a large potential to cover as the majority of water is brought

either through the home or through the person who brings water in the vessel.

35
It was also seen that many users of Bisleri are transferring to Kinley the reason that

was found was on the service factor. Though the price of Bisleri is cheaper than

Kinley but in the case of service kinley is much better than bisleri which matter most.

The various brand that were found are:Bisleri, Kinley, Brilliant, Bailley, Harnil, Hello,

kingfisher, alpha, aquapure, Krishna, zero B, Wilson, good water,Out of which it was

found that:

“Market Share of players among users”

36
 SEGMENTATION

The mineral water market is segmented according to the type of consumers:

Foreign Tourists

Foreign tourists have been the main consumers of the mineral water as they face a lot

of digestion problems due to different food habits.

Domestic Tourists

Domestic tourists have switched to mineral water mainly because of safety and

hygiene factors.

Fashion Conscious

Like soft drinks, drinking mineral water is also considered fashionable by some

people.

The mineral water consumer is mainly in the age group of 20-35 years and is an

educated middle class person. This is also the segment of fruit drinks, which have

usually been positioned as fun and health drink for young adults.

The mineral water market is also segmented along pack sizes:

One litre bottle

This is meant to spell safety and security for consumers. It is positioned on a prestige

platform for the achiever segment - who like to make a fashion statement by drinking

mineral water. This segment gets the maximum sales.

37
500ml bottle

This size has been introduced in the market to target the individual and local travelers.

PET bottles

The size of the PET bottles varies from 10 to 20 litres. These are mainly for

institutional sales (Wedding parties, Hotels, Corporate, etc.)

38
 CONSUMER HABITS AND PRACTICES

 Consumers are growing more health conscious and are more careful of their

drinking habits.

 Brand loyalty is very low as all the products taste the same so they can buy just

any product which is on the shelf, same as that of soft drinks and fruit beverages.

 Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions.

 While there is no aversion to consumption of mineral water by any age group, this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters

look in for soft drinks and fruit beverages to quench their thirst.

 Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them.

Consumers often drink bottled water as an alternative to tap water. They think it tastes

better (no chlorine taste) and perceive it to be safer and of better quality. They also

look for security: food scandals in industrialized countries and water-borne diseases in

developing countries greatly influence consumers’ attitudes. Consumers buy bottled

water to feel well and to lose weight. Bottled water is perceived as a healthy

alternative to other beverages. Thus, for the aerated beverages bottled water offers a

potential threat.Moreover, increasing urbanization, causing declines in tap-water

quality, can also explain the popularity. Because it is untreated, natural mineral water

is perceived as “natural” by city dwellers looking for genuine products. Higher living

standards and auto usage enable people to easily bring home more and heavier bottles

39
of water. At the office, a bottle of water is now a common sight on the desk, next to

the computer and the telephone. Drinking bottled water is a sign of a rise in the social

scale. Above all, bottled water has become a huge marketing success.

40
 OBJECTIVE OF THE STUDY
1. To understand the Mineral Water business and products.

2. To find out the people’s perception.

3. To find out whether people were aware of difference of water Industry.

4. To find out how people think about Bisleri as compare to Aquafina and Kinley.

5. To find out what respondents expect from Water Industries.

6. To understand Consumer buying behavior.

7. To come out with conclusion and suggestions based on the analysis and the

Interpretation of data.

41
 METHODOLOGY OF THE PROJECT
Research in common parlance refers to a search for knowledge. One can also define

research as a scientific and systematic search for pertinent information on a specific

topic. The word research has been derived from French word Researcher means to

search.

FRANCIES RUMMER defined “Research: It is a careful inquiry or examination to

discover new information or relationship and to expand or verify existing knowledge.

Research is the solution of the problem, whether created or already generated. When

research is done, some new outcome, so that the problem (created or generated) to be

solved.

42
 ANALYSIS OF PROBLEM UNDER STUDY

The Rs. 500 crore bottled water market is witnessing hectic activity with many

players entering the fray in the last one-year and still more to come. Part of the fast

moving consumer goods (FMCG) sector, bottled water is the only segment to have

shown phenomenal growth of about 50 per cent in the last one year.

Hindustan Lever (HLL), the consumer goods giant, has initiated plans to enter this

sector. The company is considering whether to set up its own facilities for bottled

water or go in for an acquisition.

Nestle India is the latest to enter this market with the launch of its brand `Pure Life' in

New Delhi last week. It plans to grab a 50 per cent market share in the next two years

and emerge as a strong player. The company has not ruled out acquiring existing

brands. The product will be available in other cities as well soon. The water is bottled

at Nestlé’s new plant at Samalkha in Haryana. Nestle has already launched two of its

global premium mineral water brands `Perrier' and `San Pellegrino' which are targeted

at niche markets.

The market is expected to continue to grow at a healthy clip. In fact, in the last two

years, there has been a doubling of growth. Major players include Parle Bisleri, Parle

Agro, Coca Cola, PepsiCo, and among domestic players UB and Britannia. The

success of bottled water could be attributed to two factors. First, it has been an

underdeveloped business for a while now and, second, soft drink manufacturers have

priced themselves out by a long shot. The prices of soft drinks have, in fact, doubled

in the last ten years and this has happened because the price of concentrates has shot

up during this period.

43
In fact, soft drink major Coke launched its Kinley brand of bottled water and Pepsi its

global brand Aquafina. Pepsico is reportedly contemplating two more pack sizes for

its bottled water. Kinley's new product follows the launch of `Chhotu' Bailley, which

is a 350 ml bottle introduced by Parle Agro. Kinley water was launched in August

2000 in

one-litre bottles for Rs.10. The water is produced at Coca-Cola's three Greenfield

manufacturing plants at Bidadi near Bangalore, Dasna in Uttar Pradesh and Goa. The

company plans to either add more water bottling operations or go for contract bottling

as it goes national.

Marketing Consultants, with a current market share of 38%, Bisleri offers the

maximum number of pack sizes. Kinley follows it with a 28% share. The other brands

including Aquafina and Bailley constitute 11% & 6% per cent market share in the

bottled water market.

The Samsika survey further says that there are as many as 186 brands in the water

market. Out of this, two are national brands, 17 regional and 167 local brands.

Apollinaris, a natural sparkling mineral water brand, has been introduced close on the

heels of Nestle coming out with its sparkling water brands - Perrier and San

Pellegrino. The product is being imported and distributed by the Mumbai based

company, Veekay Food & Beverages. It is now available at restricted retail outlets in

Mumbai and Delhi and a separate sub-brand is simultaneously being launched to take

care of institutional sales.

44
It is also being launched under the sub-brand of Big Apple and Lemon. But the

product is in a different price bracket altogether with the 750 ml Apollinaris Big

Apple pegged at Rs. 99 and the one litre Apollinaris Classic sparkling water at Rs. 90.

With over 200 players jostling to be the thirst-quenching favorite of the Indian

consumer, the business is growing at a rate of over 50 per cent annually. The

country's bottled water business is estimated to be around Rs. 1,100/- crore, of which

the branded market accounts for Rs. 700 crore and about 700 million litres in

volume.

India’s 1 billion plus population needs between 1-2 billion litres a day. More than 200

brands of bottled water are being retailed across the country. An estimated 850 million

liters of bottled water is bought every year.

As we can see from the diagram above that most of the sales of Bottled water comes

in the summer season. Therefore, the right time to launch such type of product is

summer season. In monsoon time also a good response can be generated because there

are people who are very much conscious of their health and this makes them to go for

45
packaged water. Therefore, the sales are good in rainy season. In winter season the

sales are very low because of climatic conditions.

DATA ANALYSIS AND INTERPRETATION

Q1) what you drink when you feel thirsty?

a) 80% Water b) 13% Juice c)7% Soft Drink

Analysis:

I analyze that people perception towards water is more .On first category they want to

drink water then juice and then soft drink.

46
Q2) what you prefer in drinking?

a) 4% Tap water

b) b) 41% Mineral water

c) c)54% Boiled water

d) d) 1% Chemically.Treated.Water

Analysis:

People mostly want to drink boiled water then mineral water and very few % tap

water and only 1% chemically treated water.

47
48
Q3) why you think people prefer mineral water?

a) 73% Good for health b) 11% Ready to drink c) 16% Easily available

Analysis:

I analyze that 73% says that they drink mineral water because it is good for health,

16% they drink because it is easily available and 11% says they drink because it is

ready to drink.

49
Q4) what you think about price of mineral water?

a) 38% Expensive b) 58% Normal c) 4% Cheaper.

Analysis:

I analyze that 58% says price of mineral water are normal, 38% says it is expensive

while 4% says it is cheaper.

50
Q5) which is best brand in mineral water?

a) 41% Aquafina b) 51% Bisleri c) 5% Kinley d) 3% Others.

Analysis:

I analyze that people prefer Bisleri for mineral water than Aquafina and then Kinley

and others.

51
Q6) which bottle you prefer for drinking?

a) 24% Bulk bottle b) 38% 1.5 liter c) 38% 500ml.

Analysis:

I analyze that mostly people prefer 500ml and 1.5 L bottle as their %ages are same i.e.

38% as they are easy to carry while 24% prefer Bulk bottle.

52
Q7) which company’s bulk bottle you prefer?

a) 41% Aquafina b) 46% Bisleri c) 10% Kinley d) 3% Others.

Analysis:

I analyze that mostly people prefer bulk bottle of Bisleri than Aquafina than Kinley

and others.

53
Q9) what are benefits of mineral water?

a) 93% Good health

b) b) 6% Status

c) c) 1% for better taste.

Analysis:

I analyze that mostly people says that mineral water is good for health rather than

status and a better taste.

54
Q10) there are several forms of mineral water which one you prefer?

a) 96% Branded b) 4% UN Branded.

Analysis:

I analyze that mostly people prefer branded mineral water like Aquafina, Bisleri.

Q11) what is most selling/buying branded water?

55
 a) 18% Aquafina b) 81% Bisleri c) 0% Kinley d) 1% Others.

Analysis:

I analyze that the most selling/buying branded water is Bisleri which prove that it is a

market leader in water industry than Aquafina and very rare portion to others.

56
Q12) how would you rate Bisleri?

a) 52% Good b)24% Best c)24% Average

Analysis:

I analyze that mostly people rate Bisleri as good while remaining rate it best and

average.

57
Q13) How often you purchase Bisleri?

a) 38% Once a week b) 26%Once a month c) 10% after six month d) 26%Once a

Year

Analysis:

Mostly people purchase Bilsleri once a week while %ages of once a month and a year

are same i.e. 26% while remaining 10% purchase after six month.

58
Q14) Compared to Aquafina and Kinley, what you say about Bisleri?

a) 29% Much better b) 43% Average c) 23% Same d) 1% Not good e) 4%

Not use.

Analysis:

Compared to Nestle mostly people says it is average.

59
 RECOMMENDATION

Improve Public Relation:

One of the suggestion for BISLERI is to improve its public relations. It should share

information with the customers. It should tell the consumers that the company is

ethically responsible and values quality.

Improve its Promotional Efforts:

During the survey I observed that there is not any posters or banners that promotes

BISLERI. It needs to decide on how to improve its promotional efforts. It needs to

constantly run ads to inform the customers about their products and existence and

paste banners.

Strengthen The Distribution Network:

As during the course of project it is observed that BISLERI is not available at many

stores, which also cause consumer to switch on alternative product. The distribution

department must have to study the target market properly and make sure that

BISLERI is available at least in every area of the country.

More Advertising Campaigns are required:

Current advertising strategy is not enough for BISLERI. They must hire some

qualified employees that collaborate with professional advertising agencies that will

guide them for effective advertising strategies. As nestle market leader and BISLERI’s

main competitor has flow of advertisement for promotion of pure life.

60
Conduct Seminars:

BISLERI will have to conduct seminars for the awareness just as Nestle conduct,

especially for the awareness of its bulk bottle.

Offer schemes:

BISLERI should offer schemes just like Nestle to increase the selling of its bulk

61
 CONCLUSION

The important increase in India can be easily explained through the growth of the

population and problems of water quality and water supplies. Until 1992, the demand

for bottled water in India was mostly limited to foreign tourists, corporate meetings,

conferences, etc. The introduction of bulk packaging extended the market to new and

numerous consumers.

Bottled water is a particularly competitive market, hence companies need to develop

diverse marketing strategies, such as accessing new markets by owning or developing

partnership with regional brands, developing new products (such as flavored water) or

by-products (such as cosmetics) and developing services (home and office delivery of

water)

62
 BIBLIOGRPAHY

 www. Indiainfoline.com

 www.mineralwater.com

 www.waterworld.com

 Report on Population ( Tata Energy Institute )

63
 Questionnaire

Q1) what you drink when you feel thirsty?

a) 80% Water b) 13% Juice c)7% Soft Drink

Q2) what you prefer in drinking?

a) 4% Tap water b) 41% Mineral water

c) 54% Boiled water d) 1% Chemically.Treated.Water

Q3) why you think people prefer mineral water?

a) 73% Good for health b) 11% Ready to drink

c) 16% Easily available

Q4) what you think about price of mineral water?

a.) 38% Expensive b) 58% Normal

c) 4% Cheaper.

Q5) which is best brand in mineral water?

a) 41% Aquafina b) 51% Bisleri

c) 5% Kinley d) 3% Others.

Q6) which bottle you prefer for drinking?

a) 24% Bulk bottle b) 38% 1.5 liter c) 38% 500ml.

Q7) which company’s bulk bottle you prefer?

a) 41% Aquafina b) 46% Bisleri c) 10% Kinley d) 3% Others.

64
Q8) what are benefits of mineral water?

d) 93% Good health

e) 6% Status

f) 1% for better taste.

Q9) there are several forms of mineral water which one you prefer?

a) 96% Branded b) 4% UN Branded.

Q10) what is most selling/buying branded water?

b) 18% Aquafina b) 81% Bisleri c) 0% Kinley d) 1% Others.

Q11) how would you rate Bisleri?

b) 52% Good b)24% Best c)24% Average

Q12) How often you purchase Bisleri?

a) 38% Once a week b) 26%Once a month

c) 10% after six month d) 26%Once a Year

Q13) Compared to Aquafina and Kinley, what you say about Bisleri?

a) 29% Much better b) 43% Average

c) 23% Same d) 1% Not good

e) 4% Not use.

65
 BALANCE SHEET

Balance sheet

Rs crore)

Balance sheet

Mar ' 08 Mar ' 07 Mar ' 05 Mar ' 04 Mar ' 03

Sources of funds
Owner's fund

Equity share capital 5.25 5.23 5.22 5.22 5.22

Share application money - - - - -

Preference share capital - - - - -

Reserves & surplus -1.62 -1.81 -2.08 -2.02 -2.05

Loan funds
Secured loans 0.80 1.40 1.70 1.78 2.02

Unsecured loans - - - - -

Total 4.44 4.83 4.85 4.98 5.19

Uses of funds
Fixed assets

Gross block 10.16 10.13 9.90 9.89 9.50

Less : revaluation reserve - - - - -

Less : accumulated depreciation 6.81 6.51 5.81 5.42 4.96

Net block 3.35 3.62 4.09 4.47 4.54

Capital work-in-progress - - - - -

Investments 0.05 0.05 0.05 0.05 0.05

Net current assets

Current assets, loans & advances 1.15 1.43 0.93 0.87 1.04

Less : current liabilities & provisions 0.11 0.27 0.27 0.47 0.53

Total net current assets 1.03 1.15 0.67 0.40 0.51

66
 Mar ' 08 Mar ' 07 Mar ' 05 Mar ' 04 Mar ' 03

Miscellaneous expenses not written - - 0.03 0.06 0.09

Total 4.44 4.83 4.85 4.98 5.19

Notes:
Book value of unquoted investments 0.05 0.05 0.05 0.05 -

Market value of quoted investments - - - - -

Contingent liabilities - - - - -

Number of equity sharesoutstanding (Lacs) 540.31 508.30 54.03 54.03 52.20

67