2012

BRAND PROJECT ON BISLERI

SUBMITTED TOProf. SRIRAM RAJAN IBS HYDERABAD

SUBMITTED BYPUJA PALLAVI 10BSPHH010573 (sec- C)

DATE OF SUBMISSION- 2/6/2012

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 StudyPackaged 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 StudyThe consumer segments and their habits and practices also have been studied along with packaging technologies available and the importance of distribution and logistic networks.

StrategiesTo analyze 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.

TABLE OF CONTENT
EXECUTIVE SUMMARY ........................................................................................................................2 TABLE OF CONTENT ............................................................................................................................3 INTRODUCTION ..................................................................................................................................5 Chapter 1: ORIGIN AND GENESIS OF BRAND WITH A CLEAR TIMELINE ...................................................5 ORIGIN...........................................................................................................................................5 GENESIS .........................................................................................................................................6 TIMELINE........................................................................................................................................6 CHAPTER 2: VALUE AND STYLE OF COMPANY AND BACKGROUND OF PROMOTERS..............................10 STYLE OF COMPANY......................................................................................................................10 PROMOTERS.................................................................................................................................12 CHAPTER 3: ORIGIN, HISTORY AND MARKET EXPANSION OF THE BRAND .............................................14 ORIGIN.........................................................................................................................................14 HISTORY .......................................................................................................................................15 MARKET EXPANSION OF THE BRAND..............................................................................................17 Chapter 4: Brand Portfolio ................................................................................................................18 TYPES OF BOTTLED WATER ............................................................................................................18 Carbonated Water.............................................................................................................................18 Sparkling Water ...............................................................................................................................19 Mountain Water ...............................................................................................................................19 BISLERI PRODUCT PORTFOLIO........................................................................................................19 MANUFACTURING ........................................................................................................................21 DISTRIBUTION ..............................................................................................................................22 PACKAGING ..................................................................................................................................22 CHAPTER 5: MARKETING ENVIRONMENT AND MAJOR PLAYERS ..........................................................26 MARKETING ENVIRONMENT..........................................................................................................26 MARKETING INITIATIVES ...............................................................................................................26 MARKET CATEGORIZATION............................................................................................................27 MARKET SIZE AND GROWTH RATE .................................................................................................28 MAJOR PLAYERS ...........................................................................................................................30

4 MARKET SHARE OF THE MAJOR PLAYERS .......................................................................................31 CHAPTER 6: INDUSTRY AND COMPETITION ........................................................................................32 OVERVIEW OF THE INDUSTRY ........................................................................................................32 SWOT ANALYSIS OF THE PACKAGED WATER INDUSTRY ...................................................................33 INDUSTRY ANALYSIS (PORTERS FIVE FORCE MODEL) ......................................................................34 DIRECT COMPETITORS OF BISLERI........................................................................................37 SWOT ANALYSIS OF BISLERI ...........................................................................................................42 BCG MATRIX .................................................................................................................................49 LEGAL REQUIREMENTS..................................................................................................................49 CHAPTER 7: STRATEGIC PRICING ANALYSIS.........................................................................................51 CHAPTER 8: CUSTOMER ANALYSIS .....................................................................................................53 SEGMENTATION ...........................................................................................................................53 CONSUMER HABITS AND PRACTICES ..............................................................................................54 CUSTOMER DELIGHT .....................................................................................................................56 CUSTOMER STATUS ......................................................................................................................56 CONSUMER CONCERNS AND PERCEPTIONS ....................................................................................58 WHAT THE COMPANY IS DOING TO TAKE CARE OF THE CONSUMERS CONCERN? ............................58 Chapter 9: BRAND BISLERI .................................................................................................................59 BRAND ASSET EVALUATOR ............................................................................................................59 AD CAMPAIGN OF BISLERI .............................................................................................................60 Bisleris ad strengthens the core appeal of the brand" ..................................................................60 INSIGHTS ABOUT BISLERI...............................................................................................................62 Chapter 10: Future Strategies ............................................................................................................65 STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER TO RETAIN ITS MARKET SHARE.....................65 Strategy to counter threats ...........................................................................................................66 FUTURE PLANS .............................................................................................................................68 RECOMMENDATIONS....................................................................................................................70 Chapter:10 CONCLUSION ..................................................................................................................72 THE COLOUR OF MONEY ...............................................................................................................73 MARKET BUZZ...............................................................................................................................74 NEW MARKETS ............................................................................................................................76 References .......................................................................................................................................78

INTRODUCTION
Wate r wate r everywhe re But just a little that is clean 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. In India, 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.

Chapter 1: ORIGIN AND GENESIS OF BRAND WITH A CLEAR TIMELINE

ORIGIN
A brand that pioneered the concept of mineral water, bottled with its distinct green label, Bisleri, today, is a household name. Powered by 17 owned plants, 33 co-packers, 11 franchisees and a wide distribution and retail network pan India, Bisleri is at the centre of the Aqua Green Revolution. Bisleri is proud to have pioneered the concept of bottled water in India, way back in 1969. Journey back into bisleris history to understand the unwa vering commitment to innovation and quality, and focus on customer need, that have made Bisleri the benchmark for bottled water in India.

GENESIS

Bisleri was originally an Italian company created by Felice Bisleri, who first brought the idea of selling bottled water in India. Bisleri then was introduced in Mumbai in glass bottles in two varieties bubbly & still in 1965. Parle bought over Bisleri (India) Ltd. in 1969 and started bottling water in glass bottles under the brand name Bisleri. Later Parle switched over to PVC non-returnable bottles & finally advanced to PET containers. In 1995 Ramesh J. Chauhan started expanding Bisleri operations. In 2003 Bisleri announced its venture to Europe.After that Ramesh J. Chauhan sold his stake to Wakharikar & Sons,but all operations are under Ramesh J.Chauhan. The brand name Bisleri is so popular in India that it is used as generic name for bottled water. Bisleri is a brand of bottled water in India. Bisleri has 60% market share in packaged drinking water in India. It is available in 8 pack sizes: 250ml cups, 250ml bottles, 500ml, 1 liter, 1.5 liters, 2 liters, 5 liters, and 20 liters. Their operation run throughout the subcontinent of India and is one of the leading bottled water supplying companies in India. As of 2007, Bisleri has 8 pla nts & 11 franchisees all over India.

In 1969 Parle bought over Bisleri (India) Ltd. and started bottling Mineral water in glass bottles under the brand name 'Bisleri'. In due course Parle switched over to PVC non-returnable bottles and finally advanced to PET containers.

TIMELINE
The journey till now1969: Buys Bisleri bottled water from an Italian company, Felice Bisleri. It was bottled in glass bottles then. Early-1980s: Shifts to PVC 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. 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 license 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 Kinley'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.

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CHAPTER 2: VALUE AND STYLE OF COMPANY AND BACKGROUND OF PROMOTERS

STYLE OF COMPANY
It is the commitment of Bisleri to offer every Individual pure & clean drinking water. Rigorous Research and Development and stringent quality controls have made it market leaders in the bottled water segment. Bisleri has always been committed to offering every Individual pure and clean drinking water. Hence Bisleri water is put through multiple stages of purification, ionization and is hygienically packed for final consumption. To maintain strict quality controls in every unit, we not only purchase caps from approved vendors, it also manufactures its own bottles, in- house. To be at par with International standards, it has recently procured the latest state-of-the-art machinery which has not only helped it improve packaging quality but has also reduced raw material wastage and doubled production capacity.

Vision The Aqua Green Revolution began with an ambitious dream: An India in which every person has uninterrupted access to scientifically purified and fortified drink ing water, irrespective of geographical barriers or economic limitations. Hence, its vision is to be the dominant player in the branded water business where the second player is less than 20% of their business.

Mission The Aqua Green Revolution urges us to innovate continuously, to provide every Indian access to scientifically purified and fortified drinking water that is readily available and easily affordable; and to support initiatives that rejuvenate the Earth's natural sources of pristine drinking water.

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

Values Trust: Build trust in every single individual who interacts with the brand. Innovation: Approach innovation not as a can-do, but as a must-do. Seamlessness: Integrate smaller goals seamlessly to achieve the larger objective. Commitment: Sow the seeds of commitment at every step towards the goal. Integrity, Leadership, Teamwork, Co-operation, Quality, Passion, Openness & Transparency are their values reflected by the brand.

Team Bisleri At the forefront of the Aqua Green Revolution is a team that builds itself around a Vision, a Mission and Values. Team Bisleri, guided by the vision and energy of Mr. Ramesh Chauhan, is shaping the Aqua Green Revolution into a movement that will transform the lives of millions.

Organizational Structure Senior Sales Manager ASM under the Senior Sales Manager ASM has zones divided such as north, east, west, south and central Sales Executive for ASM in all the 5 zones 5 Corporate Sales person for all the 5 zones Their truck drivers are their salesmen

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PROMOTERS
Parle was established in 1929 as a confectionery manufacturing unit by late Shri Jayanti Lal Chauhan. In 1967 Mr. Ramesh J Chauhan, son of Late Shri Jayanti Lal Chauhan, a MIT and MBA Graduate from University of Boston, USA, took over the helm of the Group. It was due to his foresightedness the group bought Italian Mineral Water Company Bisleri in 1969 that has

grown to become the Leading Brand BISLERI in Indian market. Presently BISLERI enjoys number one position in the water market. The Group also was a pioneer in Indian market for introducing aerated drinks like Thums up, Limca, Citra and Gold Spot. These products were later sold to MNCs in 1993. Prese ntly the focus of organization is on packaged and mineral water marketed under the brand name Bisleri. Bisleri International Pvt. Limited (BIPL) has the history of being the undisputed leader with constant growth and development in an ever-changing environment. Bisleri International Pvt. Ltd is 40 years old. It has presently 8 own manufacturing units, 11 franchisee and 32 contract packing facilities across India. We will be expanding the business to reach far & wide. Our plants are now equipped with sophisticated machinery & state of the art technology. Parle was established in 1929 as a confectionery manufacturing unit by late Shri Jayanti Lal Chauhan. In 1967, Mr. Ramesh. J. Chauhan son of Late Shri Jayanti Lal Chauhan, a MIT and MBA Graduate from University of Boston, USA, took over the helm of the Group. It was due to his foresightedness the group bought Italian Mineral Water Company Bisleri in 1969 that has

grown to become the Leading Brand BISLERI in Indian market. Presently BISLERI enjoys number one position in the water market. The Group also was a pioneer in Indian market for introducing aerated drinks like Thums up, Limca, Citra and Gold Spot. These products were later sold to MNCs in 1993. Presently the focus of organization is on packaged and mineral water marketed under the brand name Bisleri. Bisleri International Pvt. Limited (BIPL) has the history of being the undisputed leader with constant growth and development in an ever-changing environment. Bisleri International Pvt. Ltd is 40 years old. It has presently 8 own manufacturing units, 11 franchisee and 32 contract

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packing facilities across India. We will be expanding the business to reach far & wide. Our plants are now equipped with sophisticated machinery & state of the art technology.

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CHAPTER 3: ORIGIN, HISTORY AND MARKET EXPANSION OF THE BRAND

ORIGIN
Western Express Highway in Mumbai has been the route to success for two well-known men. One was the make-believe super biker cum thief Kabir aka John Abraham in the Bollywood flick Dhoom; and the other is the crafty Ramesh Chauhan, who has masterminded the runaway success of the Rs.500 crore bottled water brand, BISLERI in the country, from his 1st floor office in the sparkling green aqua fill BISLERI building.

BISLERI was originally an Italian Company created by Signor Felice BISLERI who first brought the idea of selling bottled water in India. BISLERI then was introduced in Mumbai in glass bottles in two varieties bubbly & still in 1965. 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 expand ing BISLERI operations. In 2003 BISLERI announced its venture to Europe. 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.

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HISTORY

In 1967, Bisleri an Italian company, started by Signor Felice Bisleri, first brought the idea of selling bottled water in India. It started a company called Bisleri India. In 1969, Ramesh Chauhan, the Chairman of Parle Exports, bought over the brand. In those days, Bisleri packaged drinking water was available in glass bottles. Being a returnable package owing to various other problems such as breakage and weight, in 1972-73, Bisleri was made available in PVC (Poly Vinyl Chloride) bottles. After this plastic packaging was introduced, things started to change, and sales increased rapidly. The upsurge in the sales of Bisleri started in 1993 as Ramesh Chauhan sold off the Parle stable of brands, including Thums Up, Limca and Gold Spot. Recognising the potential of the packaged drinking water market, he then went on to concentrate on making Bisleri a top selling brand in India. Bisleri is a brand name synonymous to mineral water in India. It has approximately 60% market share in packaged drinking water in country. Brand is owned by Parle Company, which bought over Bisleri in 1969 from Italian company. Initially, Bisleri faced the problems of acceptance from consumers. It was difficult to advertise for a company something as bottled water, which is colorless, tasteless and odorless. In mid eighties company changed its packaging to PET bottles which shows transparency and clear water to consumers. This gave mineral water market a boost. In India, water is scarce and quality is poor so initially the consumers were only foreigners and NRIs. Therefore, to increase its customers base, company came up with comfortable and affordable price bottle which was a great success and showed 400% growth. India bottled water market is worth Rs 1,000-1,200 crore (approx). Seeing this growth over the years, many new players have entered the market. Amongst them Kinley from Coke, Aquafina from Pepsi, kingfisher and now Himalayan from Tata are main players of industry. There are

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many ups and down in last couple of years but brand recall of Bisleri is amazing which helped company. In order to differentiate form other players company tries to come up with different and new campaigns on regular intervals. In case of food and water, whenever people are suspicious of the quality of product they dont eat unhygienic food and instead of having non purified water they prefer to stay thirsty. Bisleri itself seems to play on this need for safety, coining the popular tag-line Play it safe. The advertising helped differentiate the product from its competitors who, more or less, communicated nothing. Bisleris seal was also breakaway (hence irreplaceable), even though this manufacturing process of sealing seems to be slow and could clog up the assembly line. Somewhere along the now that space was occupied by Aquafina and Kinley. The safe breakaway seal was replaced by a regular seal, but the change wasnt communicated and more variants (packaging) emerged. Some of these variants were sold simultaneously. They were manufactured in different parts of Delhi, and one had the website www.bisleri.com printed on it, while the other had www.bisleri.co.in printed. So, the mistake was a complete lack of communication on Bisleris part. Now they have a new product out - a mineral water brand (as opposed to a packaged drinking water brand), and they are advertising it. Still, there are three types of Bisleri bottles in the market in Delhi right now. Now again Bisleri changed its packaging and came up with a new bottle. It has been general feeling that Kinleys new packaging is more acceptable by the people as it is easy to grip it. In a packaged water market, where the product is not so differentiated, the company has to constantly come up with innovate branding techniques, distribution channels, advertising and also new packaging techniques.

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MARKET EXPANSION OF THE BRAND

According to the Bureau of Indian Standards there are 1,200 bottled water factories all over India (of which 600 are in one state -- Tamil Nadu). Over 100 brands are vying for the Rs 1,000-crore (Rs 10 billion) bottled water market and are hard selling their products in every way possible -better margins to dealers, aggressive advertising, and catchy taglines. In such a scenario, The Strategist takes a look at how it all started -- with Bisleri -- and how Ramesh Chauhan, chairman, Parle Bisleri created a market out of pure water. Under the leadership and vision of Mr. Ramesh J. Chauhan, Bisleri has undergone significant expansion in their operations. The company has witnessed an exponential growth with their turnover multiplying more than twenty times in a short span of 10 years. The average growth rate over this period has been around 40% with Bisleri enjoying more than 60% of the market share in the organized mineral water segment.

Currently Bisleri has 11 franchisees and 8 plants across India, with plans of setting up 4 new plants on the anvil. The overwhelming popularity of 'Bisleri' and the fact that it was the pioneers of the bottled water industry in India has made it synonymous to Mineral water and a household name. So naturally 'When you think of bottled water, you think Bisleri'.

To maintain strict quality controls in every unit, Bisleri not only purchase caps from approved vendors, but also manufacture own bottles, in-house. To be at par with International standards, they have recently procured the latest state-of-the-art machinery which has not only helped them improve packaging quality but has also reduced raw material wastage and doubled production capacity. One can rest assured that they are drinking safe and pure water when they consume Bisleri. Bisleri is free of impurities and is 100% safe. Enjoy the sweet taste of Purity!

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Chapter 4: Brand Portfolio

Water is the common name given to liquid form of hydrogen and oxygen compound H2O. Often known as elixir of life, water covers two thirds of the Earthss surface and constitutes 75% of the human body. It is one of the Natures most significant and precious gift to mankind, without which life on earth would be impossible.

TYPES OF BOTTLED WATER

Mineral Wate r Water which contains minerals and other dissolved substance is called mineral water. Minerals add therapeutic value to water; the minerals commonly added are magnesium sulphate, potassium bicarbonate, calcium and iron. Studies reveal that mineral water is one of the healthiest types of bottled water and daily consumption enhances overall health and helps boost the immune system.

Carbonated Water In 1767, Englishman Joseph Priestley first discovered a method of infusing water with carbon dioxide to make carbonated water. Carbonated water, also known as seltzer, or soda water, it is plain water into which carbon dioxide gas under pressure has been dissolved, and thus made effervescent. It is the major and defining component of carbonated soft drinks (itself a class of aerated beverages). The process of dissolving carbon dioxide in water is called carbonation.

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Sparkling Water Sparkling water is the simplest form of carbonated water. Essentially it is identical to still water, except that it contains numerous bubbles. The term sparkling water can also include spring water that has been carbonated or aerated.

Mountain Water Natural Mountain Water is water in its pure nascent stage coming from a pristine source situated in the scenic mountains of Northern India. Packed with minerals and resonating with health, it replenishes you with energy. There is absolutely no substitute for pure natural water.

BISLERI PRODUCT PORTFOLIO

The Bisleri product range includes Bisleri Mineral water, Bisleri Fizzy Soda and Vedical Natural Spring water. Every drop that goes into the Bisleri bottle is scientifically purified as per the international standards, and fortified with minerals, to give the customers the The sweet taste of Purity. The three essential ingredients in any Bisleri Product are: 1. QUALITY 2. INOVATION 3. VALUE

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VEDICA NATURAL SPRING WATER

BISLERI MINERAL WATER

BISLERI FIZZY SODA

Every drop of Vedica Mountain Bisleri with added minerals is put Water fills you with natures through multiple stages of

benediction.

purification which makes the water you drink completely safe to consume.

Fed by chaste snow, seasoned with Bisleri with added minerals in now herbs and minerals and purified by available in 250ml, 500ml, 1ltr, natural filters, the water gushes 2ltr bottles and 5ltrs, 15ltrs and from the Himalayas to fill your 20ltrs jars. being with the mysticism of ages gone by.

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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 are run by franchisees. Bisleri has 5 plants in the North, 5 in the West- two of which were setup in the last year at Ahemdabad and Surat, 4 in the South and 2 in the East. The company has bottling units located in Chennai, Bangalore, Goa, 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 hitherto have been unexplored by the company. 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 crore 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 litres to 500 million litres. Parle Bisleri Limited (PBL) is planning to invest Rs 200 crore to increase its bottling capacity and double its 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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DISTRIBUTION
It's obvious that availability holds the key to the market. For any product to be successful the distribution system has to be really good. Large tracts of the country have not been explored by the national brands which explain the proliferation of smaller brands. Bisleris strategy is to build a direct distribution system at an all-India level. Currently, Bisleri has around 80000 retail outlets in the country with about 12000 each in the Metros of Delhi and Mumbai. It is intended to increase this number to 10 lacs outlets in order to expand brands reach. That means serious investments in company-owned trucks and carts. Parle hopes to double its existing fleet of 1000 trucks. This would make it the largest fleet owner in the country. In order to service the home segment, the 5 litres 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 customer can pick the required quota. The customer can call the fat dealer and place order for home delivery of the 5 litre pack. 180 of these dealers are already functional, and more are in the process of being appointed. "The idea is to make Bisleri all-pervasive. The company plans to have its own distribution network in places where it has its own plants. Franchisees would manage the distribution in their respective areas of operation.

PACKAGING

Variety is spice of life. Today for any business organization to be successful it has to provide its customers with the differentiated product that is a value buy for them. In order to cater to the changing needs of the customers the business has to continuously come out with the variants of the product so that it can target the maximum segments. Today, Aqua Minerals offers a variety of packaging options:150 ml, 300 ml, 500 ml, 1 liter, 2 liters, 5 liters, and 20 liters. The 5-litre bottles account for 35 per cent of sales showing a

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growing health concern among the Indian society. 1 liter bottles account for 30 percent of the share, whereas the 500 ml bottles taking up 15 per cent. The remaining sizes share the rest of the contribution. The 2 litres bottles were introduced to slowly and steadily replace the conventional 1 litre bottles. This would give them an advantage over others. The 500- ml category was re- focused as a trendy product, targeted at the teenage crowd and for the roadside consumers. Aqua Minerals is currently a supplier to Indian Airlines with 125-ml cups. The 5 liter packs, launched in December 1999 in Goa, are currently available in six cities, including Delhi, Bombay and Bangalore, and sell over 5,000 bottles a day.

Different packagings available for Bisleri Mineral Water

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Bisleri Soda and Vedica Mountain water

Packaging of 15ltr Home Pack

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Following is a quick overview of the various packaging options provided by Bisleri along with the target consumers:
Size of the bottle 500 ml Price per bottle Rs. 7 Target consumer Teenagers, college students and roadside consumers. Also aimed to supply to the Indian Railways. 1 liters 1.2 litres Rs. 10 Rs. 12 General consumers and travelers. Consumers demanding a little more water at just a little more price. 2 litres 5 litres 20 litres Rs. 18 Rs. 20 Rs. 40 Small offices, shopkeepers, households Households, institutes, offices, retail shops, showrooms Households, institutes, offices, schools and colleges

In addition to the above mentioned sizes, Bisleri also provides 150 ml cups for Indian Airlines travelers, and 300 ml cups for marriages and parties.

The following pie chart shows the sales wise distribution of the various pack sizes:

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CHAPTER 5: MARKETING ENVIRONMENT AND MAJOR PLAYERS

MARKETING ENVIRONMENT
Presently most of the players in the Indian market are selling their product claiming it to be mineral water. All the players are vying to grab a few points of market share and they are trying to get their brands endorsed by some or other authority. Recently Coca-Cola has got its brand, Kinley, endorsed by the Federation of Family Physicians Associations of India (FFPAI) to create an image of being recommended by doctors and thus of the product being safe and healthy. Similarly other companies to claim to have purified their water n numb er of times to show the superiority of their product. Many players are pitching their product against water purifier industry by claiming their product to be superior to that purified by these water purifiers. Many players are marketing on the price factor as well as the size factor. While others are focusing on particular target segment. Overall different players are playing different tunes in order to establish their brands in the market

MARKETING INITIATIVES
The breakaway 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. In 2006, the Bisleri brand was extended to mineral water with Bisleri Mountain Water, which the company is aiming to target at upper middle-class consumers in on-trade establishments and institutions. With mineral water priced at a significant premium to packaged distilled water, the company aims to move up the value chain. In a bold move, Parle Bisleri revamped the packaging of Bisleri from blue to aqua-green, in a bid to differentiate it from other brands on the market. The company also changed the shape of the Bisleri bottle to create a wider neck, which enables the company to use less plastic in the

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packaging and significantly improves margins. The label on the bottle also features mountains and glaciers emphasizing the purity of Bisleri. In 2007, the company also increased advertising in the media, especially television, and the growth of bulk bottled water sales to homes has also helped to increase volume sales. In addition, Bisleri enjoys first mover advantage in bottled water, having been present on the market for more than 30 years. It enjoys strong brand equity in the country as Bisleri is synonymous with bottled water to most consumers. Bisleri plans to introduce vending machines for its packaged drinking water, a first initiative of its kind by any branded water company in India. Bisleri has tied up with vending machine company Grabbit to set up automated machines in offices, shopping malls, airports and other high traffic points.

MARKET CATEGORIZATION
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 has a number of SKUs under it. Some of the most consumed SKUs in retail market are 500ml, 1 litre, 1.2 litres, 1.5 litres, 2 litres, and 5 litres. 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 5 litres and above besides this we have pack size of 250ml plastic cups.

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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

Presently, Evian of Danone group; Perrier and San-Pellegrino of Nestle belong to super premium category. Himalayan, Brilliant etc. belong to premium local natural mineral water category. All other brands like Bisleri, Bailey, 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: Theatres / cinema halls/ multiplexes Corporate Caterers Picnic spots, Clubs, Gymkhanas Hotels, Resorts Resorts In- flight kitchens College canteens General Stores etc

MARKET SIZE AND GROWTH RATE

The mineral water market is still maintaining the pace at which it ha s 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-bynight operators who enter the market in summers,

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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 Rs. 11-12bn of this around Rs. 7bn is in the hands of organized sector and rest is with unorganized sector. In the organized sector Bisleri is the market leader with 60% 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, HUL 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 1,200 crore branded packaged water market, which was once synonymous with the desi Bisleri, is now witnessing intense competition with multinationals entering the fray and is also reeling under the high input costs. 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.

Genie is out of the bottle! Indeed, the bottled water industry is one of the most thriving sectors in India.

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MAJOR PLAYERS

COCA COLA KINLEY

PARLES BISLERI

PEPSICO AQUA FINA

MANIKCHAND QXYRICH

PARLE AGRO BAILLEY

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MARKET SHARE OF THE MAJOR PLAYERS

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CHAPTER 6: INDUSTRY AND COMPETITION

OVERVIEW OF THE INDUSTRY

Now around 100 companies sell an estimated 424 million liters 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 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, factors like exposure to media and international life styles, deteriorating levels of potable water, increase in number of water borne cases, increase in awareness about health and hygiene and other related factors contributed to adaptability 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.

In 1967 Bisleri set up a bottling plant for manufacturing and marketing its mineral water but failed. The brand was later sold off to Parle in 1968-69. Mineral water market had its seeding as early as 1968-69 when Parle Group acquired the Bisleri brand from Bisleri of Italy for launching Soda water but later launched bottled water also. The launch at that time was a big flop as concept of buying water that too in bottled form was not accepted by the Indian public. The market remained dormant for quite long (for a period of 20 years or so).

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The market throughout this period was formed only by the premium products that too available through 5-star hotels. In early 1990s with onset of liberalization policy by the Indian government, coming in of cola majors, sell off of local soft drink brands of Campa, Thumps up, Gold Spot etc by Parle to Coke and other factors led Bisleri to test waters again. Bisleri relaunched its bottled water in 1994. By this time with exposure of media and exposure to international life styles, deteriorating levels of po table water, increase in a number 7 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.

SWOT ANALYSIS OF THE PACKAGED WATER INDUSTRY

STRENGTH The industry is growing @ 40%. In India the market is huge & untapped Growing awareness among the people about the importance of mineral water

WEAKNESS Many players entering in the race. Any local person can start manufacturing. Rural population is not using the packaged water. Not very economical Quality not properly maintained e.g. Bisleri & hence has bad effect on the whole

OPPORTUNITY Sustained Market growth increase in coming years Literacy rate growing and hence the awareness of safe drinking water to avoid the diseases. Huge population & untapped market.

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THREAT Many substitutes available Too many players will dilute the market & the profit margin

INDUSTRY ANALYSIS (PORTERS FIVE FORCE MODEL)

Potters Five Forces Model Substitutes New Entrant Bargain Power of Supplier Bargain Power of Customer Industry Rivals

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INDUSTRY RIVALS: The Industry Competitors in the bottled water market are Bisleri, Bailey, Aquafina, Kinley, Yes, Ganga, Himalayan, Evian, Perrier and various other local brands.

Rivals divided into organized and unorganized Organized Cokes Kinley, PepsiCos Aquafina, Mohan Meakins, SKN Beweries and Parle Agros Bailley. Unorganized Local water brands such as H2GO, Blue Label, Kwencher, Yes, etc. NEW ENTRANTS: The Potential Entrants are HUL water purifier and various new local brands that come in the market. Shaw Wallace is also in a process to enter the bottled market in the premium segment.

HUL water purifier Pureit Various new local brands (unorganized players) Shaw Wallace is also in a process to enter the bottled market in the premium segment.

SUBSTITUTES: The Substitutes in this industry would be soft drinks, aqua guard, tap water and the most economical drink Nimbu pani. The industries estimates that bottled water is the fastest growing beverage segment and is immediately followed by the soft drink/aerated beverages market. Soft drinks Water purifiers Tap water Coconut water Vending Machine water The most economical drink -nimbu pani

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BARGAIN POWER OF SUPPLIER: The Suppliers Power also should be considered while analyzing the industry. When the companys suppliers are able to raise price or reduce quantity supplied of PET bottles or the labeling material then the supplier power would be high. When the companys suppliers are able to raise price and reduce quantity, then the supplier power would be high

BARGAIN POWER OF CUSTOMER: The Buyer Power should also be considered when the buyer will demand more quality or service, and set competitors against each other, all at the expense of sellers profitability. This power is prevailing in the industry where there are many brands fighting for their existence or for their share. One of the ways to defend themselves would be to develop superior offer that strong buyers cannot refuse. Packaging (PET bottles) Labeling material Buyers demand Better quality or service Set competitors against each other At the expense of sellers profitability

Prices of other products are more of less the same Brand Loyalty of customer is very low

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DIRECT COMPETITORS OF BISLERI

HINDUSTAN COCA COLA BEVERAGES PRIVATE LIMITED Company: Hindustan Coca cola Beverages Private Limited Brand: Kinley Product: Packaged Drinking Water Quality: ISI Marked. Packaging: Pet Bottles, Polycarbonate Jars Target Market Segment: Health Conscious people Positioning: Safe Water Trade Promotion: Effective TV ads (Boond Boond mein vishwas), Banking on Parent Brand, Mobile Van. Distribution: Bottling plant (Wada, Thane District) Three C&F for catering Mumbai Market Vidyavihar Kandivali Sewri

For 1 Liters: The Company directly approaches the retailer. They have tracked Mumbai through various routes and accordingly they service. For 20Litre. Jar: Kinley sell their products through their own network only. They have appointed HDA (Home delivery Agent) for some area to sell their product.

Distribution Weakness: Not been able to penetrate in interior area since they have not appointed Distributors in most of the area.

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PEPSICO INDIA LIMITED

Company: PepsiCo India Limited Brand: Aquafina Product: Packaged Drinking Water Quality: ISI Marked Packaging: Pet Bottles Target Market Segment: Health Conscious people Positioning: Safe Water Trade Promotion: Banking on Parent Brand, Banners.

Distribution: Bottling plant (Chembur, Roha) Distributor for catering Mumbai Market Jogeshwari Sewri Chembur, Kanjur Marg

For 1 Litre. etc. The Company directly approaches the retailer. They have tracked Mumbai through various routes and accordingly they service.

For 20 Litre jar The Company has not entered the 20-litre Packaged water Market

Distribution Weakness: It seems that the Company is not pushing their packaged water brand Aquafina and concentrating on Beverages market. Many times their products are not available in the market. Aquafina packaged Bottles water is given in a scheme to promote their Beverages brand.

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PARLE AGRO PRIVATE LIMITED. Company: Parle agro private limited Brand: Bailey Product: Packaged Drinking Water Quality: ISI Marked Packaging: Pet Bottles, Polycarbonate Jars Target Market Segment: Health Conscious people Positioning: Safe Water Trade Promotion: Mobile Van

Distribution: Bottling plant (Patalganga, Panvel) Two Go downs to cater Mumbai Market Jogeshwari Vikroli

For 1Litre: The Company directly approaches the retailer. They have tracked Mumbai through various routes and accordingly they service.

For 20 Litre. Jar: Bailey sells their product through their own network in South Mumbai. The y have appointed Distributors in North Mumbai and other parts.

Distribution Weakness: The Company is losing out its share on every front. Lethargic Approach towards Market. No Advertisement, Lack of Aggressiveness.

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BRILLIANT Company: Brilliant Product: Packaged Drinking Water Quality: ISI Marked Packaging: Pet Bottles, Polycarbonate Jars Target Market Segment: Health Conscious people Positioning: Pure Water Trade Promotion: Direct Selling, Push Strategy Distribution: For 1 Litre. etc. The Product is available at very few selected places Company direct handle the distribution of their product. MRP: Rs. 12 (One Litre) For 20 Litre. jar They have appointed 4 Distributors in South Mumbai. (Nariman Point, Nepeansea road, Fort, Central Mumbai)

Distribution Weakness: Not been able to penetrate in the Market. Low on Advertisement and other awareness program.

HIMALAYA Company: TATA Product: Packaged Drinking Water Quality: ISI Marked. Packaging: Pet Bottles. Target Market Segment: Health Conscious people Positioning: pure mountain Water Trade Promotion: heavy advertisements & traditional promotional activities Distribution Weakness:

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Lack Aggressiveness Slow and steady approach PARLE AGROS BAILEY Bailey the brand that is owned by Ramesh Chauhans brother Prakash Chauhan is very popular in the southern part 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 Bailey 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.

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 Bailley 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).

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SWOT ANALYSIS OF BISLERI

STRENGTHS

QUALITY STANDARD Every bottle of Bisleri is put through a rigorous Multi stage purification processes which includes micron filtration and ionization. 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. TRUST FOR BRAND More than 50 lakh 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. 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. 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.

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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.

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.

BULK SEGMENT IS USEFUL FOR HOUSEHOLDS Households in certain parts of the country spend a huge amount of money on fuel to purify 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.

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 whic h 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 %.

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BREAKWAY SEAL Keeping in mind the consumers need to recognize a genuine product that cannot be tampered with. The unique cap has been patented and cannot be duplicated. This technical strength ensures that the consumer will only get a high safe prod uct when they will drink Bisleri.

WEAKNESS

METHOD ADOPTED FOR DISTRIBUTION THE ROUTESELLIN G 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.

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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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.

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.

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

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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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.

EXPANSION IN EUROPE The launch of BISLERI in the European market on 4 th 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.

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.

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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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

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, Auswateris keen on raising their stakes in this market. With the cut throat competition between Coke and Pepsi, BISLERI is not safe.

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.

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 (Aqua guard). They have been marketing there purifiers in the market which has decreased the sales of bottled water supply to homely customers.

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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 1000s 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.

STRONG DISTRIBUTION CHANNEL OF THE OTHER MANUFACTURERS Analysts feel that BISLERIS 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.

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 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 cannot 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 will also affect the quality of the bottled water.

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BCG MATRIX The Boston Consulting Group (BCG) Matrix

Relative Market Share Position

Industry Sales Growth Rate

Bisleri

Stars

Question Marks

Cash Cows

Dogs

LEGAL REQUIREMENTS
The bottled water industry is governed by PFA and BIS standards. Some of the key highlights of these legislations are:

1. Mineral water is covered under the Prevention of Food Adulteration Act (PFA), while drinking water is not under its preview. 2. Drinking Water is excluded from the purview of the (PFA) Prevention of Food Adulteration Act, 1954. Except for the specification that water used in the preparation of a food article shall be free from micro-organisms likely to cause diseases and should be free from chemical constituents that might impair health. 3. The Prevention of Food Adulteration Act (PFA) of 1954, whose stipulation is mandatory, has set standards only for mineral water and defines it as water obtained directly from

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potable natural or drilled sources that contain a substantial amount of non-toxic, healthrelated mineral salts. 4. The PFA rule on mineral water is that it must be free from dirt, foreign matter or any other ingredients injurious to health and has to be packed in clean and sterile containers. 5. The Bureau of Indian Standards (BIS) has provided standards for both drinking water and mineral water but compliance hitherto was voluntary. 6. To regulate the quality and price of bottled water, BIS approval has been made mandatory w.e.f. end of 1999. 7. Mineral water shall be packed in clean, colorless, transparent and tamper-proof bottles made of polyethylene conforming to the IS 10146 standards. 8. The standards laid down under PFA Act do not prescribe any minimum quantity of minerals to qualify as mineral water. 9. Hitherto Indian laws do not stipulate the minimum mineral content level required for water to be labeled as a mineral water 10. The BIS does not lay down any guideline or practice for processing water. 11. There is no specific industrial licensing policy for the bottled-water sector. Thus any one can set up a plant can do so without establishing the source of the water and the technology used to purify it. 12. Both the PFA Act and BIS state that the water must be completely free of bacteria like salmonella, E-coli, faecal streptococci, v. cholera and shigella that cause a range of illnesses such as cholera, typhoid, dysentery and various types of gastro-enteritis. 13. Both the PFA and BIS lay down standards for metals like lead, mercury, arsenic, aluminium and barium 31 which cause a range of disorders. 14. The BIS lays down a minimum of 150mg/l and a maximum of 700 mg/l of TDS for mineral water. 15. The PFA rules do not prescribe any minimum TDS levels but does mention the maximum of 1500mg/l. 16. There are no government laboratories for testing water samples for all the parameters involved

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CHAPTER 7: STRATEGIC PRICING ANALYSIS

Pricing is the next most important consideration for the consumer. they have crashed the prices of the one liter and 500 ml offerings. At Rs.5, that is half the price of the one liter pack, the 500 ml pack is a steal, says Company. What about the smaller pack eating into the one- liter sales? Answers Company, Interestingly, the smaller pack has pushed up the one liter sales. There has been a very good rub-off. Schemes for retailers for a combination of both packages are on create the push. However, 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. Mr. Chauhan points out Our sales prove that the Indian consumer is getting smarter by the day. If he can buy a highquality product for the same price, why will he opt for an inferior brand? For frequent consumers, Bisleri introduced a half- liter bottle priced at Rs.5 some six months back. Theres also a two- liter bottle for Rs.20. In what could it be a masterstroke, Aqua Minerals is testing out the possibility of mass marketing 20-litre Bisleri bottles for an MRP of Rs.75. 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. In the current scenario, mineral water is picked up more by travelers, less by households. With its big capacity jar, Aqua Minerals wants to change that. They are trying to break the home market with the 20- litre jar, company discloses.

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In the case of pricing three types of pricing is available: Low pricing Market price Premium pricing

Market pricing Advantages of Market Pricing The consumer, so greater chance of accepting the price, accepts the price. Quality of the product initially would be accepted. Disadvantages No reason for the consumer to shift the product when the price is same. Product cannot be positioned as a premium product

Comparative Pricing Geographical Pricing (Transportation Chugs) E.g. Gujarat Village Rs.5/- Per Ltr. Mumbai Rs.12/- Per Ltr.

Product Line Pricing Image Pricing Old Pack New Pack Rs.5/-Per 500ml Rs.9/-Per 500ml

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CHAPTER 8: CUSTOMER ANALYSIS

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 drink s, which have usually been positioned as fun and health drink for young adults. The mineral water market is also segmented along pack sizes:

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.

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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.) Geographic City Size: Mostly Major Cities & Sub Metros Climate:- Hot & Humid

Psychographic Lifestyle: Travel Freak Personality:- Health Conscious

Demographic Family Size: Mostly Individual Corporate

Behavioral Benefit: Thirst & Quality Brand Loyalty: Split Loyal

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.

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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 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.

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CUSTOMER DELIGHT

BISLERI is in the business to serve the customer. It deserves the best quality and presentation at a worth of the price. They have world class quality, at the lowest production & distribution cost. This makes them unbeatable leaders, and helps them in having satisfied loyal customers. BISLERI values its customers & therefore have developed 8 unique pack sizes to suit the need o f every individual. At present they provide 250ml cups, 250ml bottles, 500ml, 1L, 1.5L, 2L which are the non-returnable packs & 5L, 20L which are the returnable packs. For the customers Bisleri has come up with a new scheme called the redumtion scheme de signed especially for the customers. In the Redumtion scheme BISLERI provides for Rs 300 a 20lt BISLERI bottle, 2 fridge bottles, a 1.5l bottle, a 250ml bottle and a fridge stand.

CUSTOMER STATUS
The central question the company has to understand is: How do consumer respond to various marketing stimuli the company might use? The company that really understands how customers will respond to different product features, prices and advertising appeals has a great advantage over its competitors. The question can be further broken down to: Who buys? When do they buy? Where do they buy? Why do they buy?

Who buys? In the survey conducted by us, we found that the middle income and the upper income groups are the users of the bottled water. The lower income group is still dependent on the water from wells and hand pumps. In the middle- income group also, people buy bottled water while travelling.

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Among the various income groups, there comprise the students, the office going executive ,tourists and the retired people. So the company should go in for strategies to target customer segments based on appeal, prices, convenient packaging and other characteristics conforming to the customer segment the company is targeting.

When do they buy? In the survey we found that the middle- income group buys mineral water while travelling. At home or at the work place they mainly use water filters that are installed. Or, they use large pack of bottled water like the jumbo pack (18 lt.) by Bisleri. The upper income group uses mineral water only. So, they constitute a large part of the total market.

Where do they buy from? According to the survey conducted by us, the bottled water users buy the water from retail outlets and also through tie ups with dealers. Large consumers of bottled water like Hotels, institutions, corporate order their water requirements through dealers. The small time but frequent consumer buys bottled water from retail outlets.

Why do they buy? For obvious reasons, soaring mercury levels are directly proportional to consumption of purified bottled water. The basic reason consumers ask for bottled water is the safety. With the growing health hazards in the country and as the people are becoming more health conscious they are switching over to bottled water. This is the reason that the industry is growing at fast pace. The other reason after this is, that the bottled water is convenient to carry. They can throw the bottles after use unlike when they carry water from home.

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CONSUMER CONCERNS AND PERCEPTIONS

The thinking here is that with consumer perceptions about mineral water changing, the brand Bisleri has to Reinvent itself. Earlier, mineral water used to stand for water enriched with certain minerals and was picked up by health-conscious consumers. This no longer holds. Mineral water has come to mean just thatwater. Albeit safe drinking water that is conveniently available. The consumer does not really care if the water contains minerals. The most important consideration is purity of the product.

WHAT THE COMPANY IS DOING TO TAKE CARE OF THE CONSUMERS CONCERN?

Tampering of seals: Around 76 per cent of consumption happens in transit. Consumer research shows that the overriding concern for this set of buyers is the tampering of the seal. Many have witnessed used bottles being refilled at railway stations. So when a consumer buys mineral water, he would like to be assured that the water has not been tampered with. Bisleri has rightly introduced the concept of the breakaway seal to reinforce the purity of Bisleri mineral water and given a surety to its consumers that what they are consuming is SAFE. Taste of the mineral water: Many consumers want the mineral water to taste more like Water. The consumer research reveals that consumers prefer Bisleri because of its natural taste.

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Chapter 9: BRAND BISLERI

BRAND ASSET EVALUATOR

1. Differentiation: Differentiation is the ability for a brand to stand apart from its competitors. Bisleri stresses a lot on safety, ensured with its safety seal which is not possible to break and reseal. Moreover is is cheaper than its competitors like Aqua fina, Himalaya etc. It is moderately high in differentiation. 2. Relevance: Relevance is the actual and perceived importance of the brand to a large consumer market segment. This gauges the personal appropriateness of a brand to consumers and is strongly tied to household penetration. Bisleri has very high relevance. The bottled water industry in India is growing at the rate of 40 % every year and is the fastest growing industry in the beverage sector.

3. Esteem: Esteem is the perceived quality and consumer perceptions about the growing or declining popularity of a brand. Bisleri has been awarded the Readers Digest Most Trusted Brand twice. Bisleri carries high esteem. 4. Knowledge: Knowledge is the extent of the consumers awareness of the brand and understanding of its identity. Bisleri, since its inception has become a name synonymous with safe drinking water. People use the word Bisleri and Mineral Water interchangeably. Therefore Bisleri ranks high on Knowledge.

Since Bisleri rates very high on both Brand Strength and Brand Stature, on the BAV Power Grid Bisleri should occupy the Leadership Position.

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AD CAMPAIGN OF BISLERI

Bisleris ad strengthens the core appeal of the brand"

Over the past week we have seen a cute blue monster peeping out of television sets, newspapers, hoardings, trucks, and web pages. Say hi to Bisley, the new friendly neighbourhood mascot for bottled water brand Bisleri. Bisley and his mom live in a lake within a beautiful Humsa painting and make their appearance once in a while, catching sailors unawares. But despite their tough exterior they depend on Bisleri for protection and to wash down their meals (read humans) with a bottle of the good water. This animated television commercial (TVC) after a gap of two years is an attempt to refresh the brand. "Bisleri is growing; we are setting up new plants. The animation and humour should appeal to the young generation," says Shraddha Naithani, brand manager, Bisleri. Made by design agency Red Lion, the TVC has been produced by Ram Madhvani of Equinox and took about six months to make. This is the first ever TVC made by Red Lion, which had also redesigned the brand identity for Bisleri some years back. Elsie Nanji, managing partner, Red

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Lion says the TVC is an attempt to give a new identity to the brand and move away from the 'safety' peg. Reason for that shift: the safety position is now being adopted by a rash of consumer product categories, from soaps to condoms.

Bisleri is generic to the bottled water category with most consumers asking for bottled water likely to say, "Ek Bisleri Dena". Yet, the challenge now was to move forward. Says marketing consultant, Ashok Kurienwho advised Bisleri on the revamp: "To become a differentiator in the category a brand has to leapfrog. Bisleri is now about protection and people know that they will not get hurt if they use Bisleri." Yet, advertising folk and sections of consumers are a bit baffled by the campaign for a couple of reasons. One, if the earlier peg was safety, the new one of protection isn't exactly a mighty step forward. So what really is the big deal about Bisley? Two, the idea of placing a monster on the plank of protection may be stretching the limits of creative licence. Monsters, after all, are associated with horror and evil. And even if they sometimes can be cute, folklore more often

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than not suggests that humans need to be protected from such hideous creatures seldom do monsters go about crying out for protection. Mahesh Chauhan, co-founder, Salt Brand Solutions, is bewildered by the campaign. "I find the TVC very bizarre in the first place and I don't really understand it." But that may be irrelevant. As he himself adds: "But there is no way to ignore it, like it or not. It is a memorable campaign and, for an on-the-go category product, I think it works," says Chauhan. Bisley may not win awards for monstrous ingenuity but then, if it is being noticed, the guys at Red Lion have got some things right.

INSIGHTS ABOUT BISLERI

A category builder, Bisleri today is a generic name for bottled water. At the same time it has to ward off competition from the many brands in the market. Therefore, it was but natural that the brands advertising had to move away from functional claims to emotional claims as is reflected in its latest Stay Protected campaign. Meanwhile Bisleri continues to focus on innovation, introducing the Bisleri hub concept and the new 15- litre bottle, to connect with every segment of the market through a unique combination of convenience and pricing. In an interview with FEs Twishy, Anjana Ghosh, director, Bisleri International Pvt Ltd talks about product portfolio expansion, its latest Stay Protected campaign and distribution hurdles.

What is the current market share of Bisleri?

Just 30% of the bottled water market is serviced by national brands while the remaining 70% is covered by the local brands. Bisleris... market share is 65% of the national brands market which includes Kinley, Aquafina and others.
Is Bisleri planning to expand product portfolio and production capacity?

A recent innovation is the 500ml SKU which hit the market in October/ November. Bisleri has launched a 15- litre pack for the in-home consumption market because the 20-litre pack was too

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bulky for the retailer to make home delivery. The new 15- litre pack will have a rocking base which will allow consumers to easily tilt the heavy bottle while pouring water. This will increase the two way sale by 20% 30%. We have a sales target 5000 jars of the 15- litre pack every day. We have an introductory offer of buy 3 jars and get one free for this 15- litre pack priced at Rs 70. We are also planning to set up one or two plants per month. Five of the plants: Ratnagiri, Thane, Nasik, Kolhapur and Pune are ready to start operations. We plan to add 10 to 15 plants in the next 6 to 8 months. We are looking at 50% growth across the country. Is distribution a major hurdle and what are the plans to facilitate quick delivery to the customers? Bisleri water is a bulky product and distribution of such a bulky product is a major challenge. We have launched the concept of Bisleri hubs in which the local stationery shops exclusively sell Bisleri water. There are 120 such hubs in Mumbai. The company also wants to have 100 Bisleri Shoppes by the end of the year, 20 of which are already in Bangalore. This way we have broken down our operations area-wise depots thus allowing us to provide quick and efficient service. What was the idea behind Bisleris latest campaign Stay protected? Bisleri. is synonymous with safety and purity. We wanted an idea that would build on these brand values, going a step forward from our earlier product value, Play Safe. The brand needed outstanding advertising to create high appeal. The ad is designed to revitalise Bisleri thereby strengthening the core appeal of the brand. The new ad has action and humor, supported by a jingle and a happy ending. It entertains, involves, and it makes you look at mineral water and Bisleri with a new perspective. The target group for Bisleri is predominantly male as per a survey conducted by us. This new ad aims to revitalize the brand Bisleri across all genders and age groups. How is Bisleri planning to strengthen its digital presence?

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We plan to have a strong online presence for our current campaign Stay Protected. The current campaign has two phases. Phase 2 has an innovative online campaign and a social media plan. The main agenda is to engage the consumers and appeal to the next generation. Our current social media campaign Stay Protected will continue to stay for a while and will also speak about Bisleris various corporate social responsibility (CSR) activities. We have re-designed our website. People can interact directly with our customer care department. There are various information such as water recipes available on it. How is Vedica faring in the market? Vedica is a premium brand of natural mineral water with medical values. It is directly bottled from its source which is in the Himalayas. Vedica caters to the premium segment i.e., SEC A, A+. To target this segment, we are making it available at 5-star hotels, super malls, high-end restaurants, corporate sessions, etc. However, distribution for such a product is always expensive.

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Chapter 10: Future Strategies

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER TO RETAIN ITS MARKET SHARE

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 address three issues: fun, thirst and refreshment followed by status to some degree. The 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. 2. Getting in shape The another improvement the company needs is in terms of packaging. It is often seen that the youth are the opinion leaders, therefore it becomes very important for any consumer product to make a mark in that generation, if it really wants to grow. The company for that, would have to come with packaging that is more sturdy and portrays itself as a hep brand. 3. Distribution network The need for improving the distribution network is not only when the company wants to target the soft drinks market. If it wants to enter every part of the country and would face competition from competitors like Bailley it becomes a prerequisite for the company to have a strong distribution network. take the example of Bailley, it can be seen that this company has grown rapidly in the past and is still on that trend. One of the important reason for this rapid growth is franchising.

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THREATS 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 they ensure purity?

Strategy to counter threats

Bottles are subjected to chlorine washes, hot water washes and ozone washes before refilling the bottles. The company is betting on the home segment. It is often seen that customers are not satisfied with filters and water purifiers. 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.. 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 .

OPPORTUNITIES So far, company 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. They shunned this route so far because in most areas where they had no presence, it was imperative that they did it themselves. N ow for further expansion they can afford to use the franchisee route.

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Price or competition

Pricing is the next most important consideration for the consumer. they have crashed the prices of the one liter and 500 ml offerings. At Rs.5, that is half the price of the one liter pack, the 500 ml pack is a steal, says Company. What about the smaller pack eating into the one- liter sales? Answers Company, Interestingly, the smaller pack has pushed up the one liter sales. There has been a very good rub-off. Schemes for retailers for a combination of both packages are on create the push. However, 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 fro m 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.10 each. Aqua Minerals attributes the Price slashing to retailer margins being on the higher side earlier. The competitive Rs.10-price tag has been working well for the brand. Pointing out Mr. Chauhan, Our sales prove that the Indian consumer is getting smarter day by the day. If he can buy a highquality product for the same price, why will he opt for an inferior brand? For frequent consumers, Bisleri introduced a half- liter bottle priced at Rs.5 some six months back. Theres also a two- liter bottle for Rs.18. In what could be a masterstroke, Aqua Minerals is testing out the possibility of mass marketing 20-litre Bisleri bottles for an 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. In the current scenario, mineral water is picked up more by travelers, less by households. With its big capacity jar, Aqua Minerals wants to change that. They are trying to break the home market with the 20- litre jar, company discloses.

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FUTURE PLANS
Bisleri was the first to market bottled water in totally virgin markets and naturally people associate the brand with bottled water .now Bisleri is perhaps already 10 steps ahead of its competitors and will endeavors to widen its gap in the times to come. Some of the future plans of the Bisleri 1. New pack sizes in bottles and cups. 2. Increase the distribution network with an investment of over 200 crores. 3. Strengthen presence in traditionally weak areas by setting up 12 new bottling facilities at the cost of Rs 150 crores. 4. Bisleri planning to diversify into fruit juice business. It has already set up a fruit -juice plant in Chittor AP. 5. The company plans to go in the neighbouring countries like Nepal and Bhutan. 6. The company planning to open the Bisleri retail outlets ---these ere the shops where only Bisleri will be sold.

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 the executive vice president, 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 bottled water that is consumed in India is by people who are travelling. 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

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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. At the end I would like to say that being a market leader Bisleri ha ve to adopt few things as follows because previously it was working under an environment which was equivalent to monopoly. Because he was the initiator in water trade business, but as the changing rules of business and market, one has to adopt & implement different & effective strategies at the right time to attain a position in this competitive world. The market size is further projected to increase to 265 million cases by the year 2014-15 this works out of a projected growth rate of nearly 11% a year. Some of the future plans to maintain the top spot that Bisleri commands in the Indian market are: New pack sizes in bottles and cups Increase the distribution network with an investment of over 200 crores . The demand has been further fueled due to increasing income and changing lifestyle of the urban middle and upper classes of the population due to globalization. To enhance capital and fixed assets of the group to withstand challenges and tough market trends. We can divide the entire market into two segments: Retail consumption market Household & Institutional consumption market. It is also triggered by advertising and wide spread distribution of the product

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RECOMMENDATIONS
Develop new marketing strategies due to raising competition in water trade. Give more margins to the retailers and distributors so that they eagerly participate in increasing the company revenue by rising sales. Reducing the cost of production by finding, changing & adopting new advance technologies. Should respond to the competitors when they give something new to the consumer by giving the same or better. Should give more stress & attention to the media and advertising. Should give proper service to the existing consumers. Reducing the delivery time and the water will be refilled within half an hour of the phone call. Awareness program about the hygiene water in schools & colleges. Displays of hot & cold dispensers and bottles at places like airports, metro stations. The company should organize camps at various parts of the city. Also road shows to bring about the difference between mineral water and purified water Advertisement to build the brand image that will provide the required ground to establish the authenticity to the product. Flavored water without sugar and artificial ingredients could be introduced so that the consumers also have a healthy substitute to the soft drinks. Bulk water delivery to home at no additional cost. Company like Aquafina & Kinley should come up with other big bottles variant. POP (Point of Purchase) displaying the cost of water at Rs. 2 per mlt 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 genetic of the product. .

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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. Mineral water in polybags like milk be more convenient to the consumers. 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 cost less and benefit more, because people using purifier system cost too much. From the study it has been found that majority of the people do not have any brand preference. The company should establish brand image in mineral water with the help of advertisement & better service to the customers. To win over the consumer faith over the genuinely of the product the company should have redress forums where people can convey their grievance. Water storing fridges should be provided to retailers by big brands. 'Buy two bottles get one' like offers can also be introduced by big brands. Pirated or copied variants of branded water to be stopped. Plastic quality of bottle can be improved as especially middle class segment don't want to throw plastic bottles after water consumption and like the same bottle to be used in future for domestic purposes. The redhresal forum should be located zone wise and the company should see the zonal head reports every day regarding the grievances of the customers. The company should make proper arrangements to get away with the grievances of the consumers as soon as possible.

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Chapter:10 CONCLUSION
Kinley moved it off the No.1 slot a couple of years ago, but Bisleri's brand recall is eyebrowraising -- the 38- year-old brand is still generic to bottled water in India, which is worth Rs 1,0001,200 crore (Rs 10-12billion). And that is in spite of the more than 1,200 bottled water factories and 100 brands scampering for their share of the Rs 1,800-crore (Rs 18 billion) bottled water market (Source: Technopak Advisors). Still, 100competitors means you can't sit back and relax, even if the market is surging ahead at 40 per cent a year; you need to keep up the buzz around your brand. That is why in October last year, Parle Bisleri changed the look and feel of its flagship product, introduced a new variant (natural mountain water) and announced its plans to launch the brand in the US -- a huge market for designer waters. Bisleri has ambitious plans to invest Rs 220 crore (Rs 2.2 billion) in its new variant, manufacturing planets and distribution: it will invest Rs 100 crore (Rs 1 billion) -- funded through internal accruals -- in the natural mountain water business, including Rs 40 crore (Rs 40 million) for two plants in Uttaranchal and Himachal Pradesh, and Rs 60 crore (Rs 600 million) for infrastructure development -- increasing the existing manufacturing facility as well as widening the distribution network. Over the next two years, the company will also spend more than Rs 60 crore (Rs 600 million) on aggressive marketing. It also plans to launch branded ice and flavoured and vitamin-enriched water. But, laughs Parle Bisleri chairman Ramesh Chauhan, "Those may have to wait. I am still overwhelmed by the current changes." To be sure, the changes are noteworthy. For decades now, Bisleri has been sold in conical bottles -- a legacy from the 1960s when the water was sold in glass beer bottles. Although it switched to PET in the 1980s, the shape didn't change. Instead, the company just added some more shapes: conical one- litre bottles, hexagonal half- litre ones and rectangular two- litre bottles.

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"We were just bumbling along," admits Chauhan. Now, both regular bottled water and the mountain water variant are sold in a streamlined, round shape, while the ubiquitous blue of the logo has given way to a more international looking aqua green. "It takes courage for a generic brand like Bisleri to make such a major change," says Ashok Kurien, CMD, Ambience Publicis Advertising, the agency that has been associated with Parle Bisleri for over 20 years.

THE COLOUR OF MONEY

Chauhan claims the changes are already bearing results -- apparently, sales are up 50 per cent on a month-on-month basis. Equally importantly, the packaging changes have helped Parle Bisleri shave costs. Earlier, fixing labels on differently shaped bottles -- especially the ones that are tapered at the neck -- was difficult and time consuming. Labelling round bottles has increased the speed 10 times. Eight months ago, the company also launched the prototype of a rounded bottle with slightly wider necks ("Alaska neck", in industry terminology). The change in design meant using 2-3 grams less of plastic in every bottle, which added up to an annual saving of Rs 3 crore (Rs 30 million). Even the new label helped the company cut costs -- by up to Rs 6 crore (Rs 60 million) a year. The earlier shrink label has been replaced with one made of superior biaxially-oriented polypropylene film that can not only take more colours, but costs half of shrink labels. Now Chauhan is hoping the new bottle design will help improve the o utput as well. "Earlier, the quality of the bottles wasn't consistent - some were thicker than others, some were bent around the bottom and so on. All this hampered our efforts to increase productivity," he says. With a uniform design for all product sizes, the company aims to double bottling capacity in its 23 plants, to 200 million cases a day, by the first half of 2007.

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MARKET BUZZ

By and large, most brand analysts approve of Bisleri's attempt to reinvent itself. Says Harish Bijoor, CEO, Harish Bijoor Consult Inc, "The aqua green is representative of freshness and health, two qualities you associate with water." The changed colour scheme also helps the brand stand out in a sea of almost-uniformly bluetoned bottles of water, the colour that was brought into India by Bisleri. Aqua green connects with the images of water, agrees A G Krishnamurthy, chairman, AGK Brand Consulting, and former chairman and MD of Mudra. The extension into mountain water, though, has taken some market watchers by surprise, especially since it carries the same brand name (which is virtually synonymous in India with plain bottled water). "I did not expect them to use the same name since Bisleri is generic to packaged water," emphasises Arvind Singhal, chairman, Technopak Advisors. He adds that while building a new brand from scratch would have meant huge costs for the company (perhaps up to half the present turnover of the company), the opportunity it afforded would have been worth the investment. There's another potential problem with the new launch: it looks the same as the regular version, has the same brandname, and is just another type of water -- but costs Rs 8 more. Isn't there a risk in that strategy of confusing customers who may think their retailer is trying to rip them off? "Look at the label closely before you jump to conclusions," warns Kurien. Well, the mountain water bottles do show a mountain in the green label background and also clearly state what kind of water it is, with the cap bearing the same image. Kurien adds that even the crates for the new variant look different because of the clear image of mountains on them. "We tried to create a family colour for all Bisleri brands as well as make the difference clear," he defends.

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Chauhan, too, feels that people demanding mountain water are a select few, who will know what they are buying. Natural mineral water is a very niche category at present, accounting for just 2-5 per cent of the packaged water industry. Still, Bisleri will have to deal with entrenched competition - Himalaya and Catch have been present in this category for some time now. And Bisleri is prepared for a battle. In November, it kicked off a high-decibel print, outdoor and television campaign, anchored by Ambience. The company has been targeting malls, multiplexes, five-star hotels and premium restaurants to stock the variant, in a bid to reach out to its target customer -- affluent, urban and health conscious. It will probably do well, predicts Bijoor. "We are entering a generation that is more concerned about health and wellness than ever before," he points out. Chauhan is equally optimistic about the success of his new ventures. He is counting on natural water sales crossing Rs 200 crore (Rs 2 billion) in the next two years. Meanwhile, the market is buzzing with talks that the action surrounding Bisleri is a "dress-up" to impress potential buyers for the brand -- speculation has extended to the level that the brand has been valued at close to Rs 150 crore (Rs 1.5 billion). Bottled water major Bisleri International is planning to set up its own exclusive retail outlets 'Bisleri Shopees' - in India as it looks to counter shopkeepers pushing rival brands.

"Opening 'Bisleri Shopees' requires a lot of working and deployment strategies to be in place, which is presently being worked upon," Bisleri International Director Anjana Ghosh said.

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She, however, did not give further details as to by when the company is likely to open the first store and also the number of outlets planned.

Ghosh said the reason behind the plans to set up exclusive outlets is to provide consumers Bisleri products 'at the right price' and also avoid losing out to rivals who are pushing their brand by giving bigger margins to shopkeepers. "The inability of other branded water to create value for their brand has left them with no alternative but to buy out the retailer by giving him high margins," she said.

Every consumer asks for Bisleri but is given some other product perhaps where the retailer gets a better margin, she added.

"Water is an impulse purchase, hence consumer can't wait and is cheated by the shopkeeper," she said.

Bisleri competes with the likes of PepsiCo's 'Aquafina', Coca Cola's 'Kinley' and UB Group's 'Kingfisher' in the bottled water segment. Comments from these companies could not be immediately obtained.

Besides, the company has been looking at expanding its product portfolio and is planning to launch fruit- flavoured water in the country.

NEW MARKETS
While the controversy over European standards is going on in India, Bisleri, the acknowledged Indian market leader, is now set to sell still and sparkling waters in Europe and America. Bisleri is confident of entering the European market and has been tested by the Central Food & Technology Research Institute (CFTRI), Mysore. The CFTRI-tested Bisleri water using European standards and found 'not detected' for all pesticides specified.

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This European launch will silence critics who had raised issues concerning Bisleri's water quality, a company press release said. The company stands proud by its high international quality and has the confidence to take the European market by storm. Says Parle Bisleri chairman Ramesh Chauhan: "The fact that we have reached out to international markets is an acknowledgement of our quality and our penchant for safety and purity." Bisleri for Europe will be bottled in three attractive and convenient sizes of 500ml, 750ml and 1.5-litre bottles at its state-of-the-art operations in Jandun, France. Every year 3.1 billion containers will be filled - one of the highest demands ever for Bisleri. Forecasted sales of a whopping 3,00,000 cases in Europe, the brand will be sold through 28 distributors across Europe. To meet this phenomenal demand, Bisleri will be sold in Europe and America through existing Maaza distributors and retail outlets, doing a turnover of $10 million. For 20 years Maaza has had developed a vast network of 80 distributors and 2,50,000 retail outlets. Bisleri is known for packaging innovations in India. The international Bisleri also includes still water and the freshness of sparkling waters from the Ardennes Mountains, available with trendy sports caps and screw caps. Having captured the lion's share in the Indian bottled water industry, Bisleri is now set to quench the thirst of millions of people across the world. Says Chauhan: "Bisleri reaching international markets is an indicator of the latent demand which is yet untapped. Having pioneered bottled water as a product in India to the market leader in its category, we have come a long way." Parle is the parent company of Bisleri and Maaza, of which Chauhan is the chairman. Bisleri has been packaging bottled water since 1969. Bisleri's success in expanding into Europe is attributed to its winning brand. The company has built its brand in India by positioning itself as a pure and safe mineral water first, before all other competitors.

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References

www.wikipedia.org/wiki/Bisleri www.rediff.com/money/2005/jun/10spec.htm www.bisleri.com www.authorstream.com/Presentation/rahutiger-142760-reinventing-bislerientertainment-ppt-powerpoint www.ibnlive.in.com/news/bisleri-tata-all-set-to-tap-into-foreign- market/67052-7.html www.rediff.com/money/2005/jun/10spec.com www.domain-b.com/companies/companies_p/parle_bisleri/20030904_ventures.html www.gits4u.com/water/water16.htm http://articles.economictimes.indiatimes.com/keyword/bisleri/recent/3