Integrated Marketing Communications Project

Bisleri Vedica
GO-TO-MARKET STRATEGY

Group-5
Raghav Rohila- PGP/15/039 Vikas Rai Arora-PGP/15/062 Manish Kumar Day- PGP/15/93 Robin Biswajeet- PGP/15/171 Arushi Joshi-PGP/15/209 1

Introduction and Market &Analysis Objective of the Case Understand the bottled water market and different segments present in India Analyzing the competition and how bottled water from Bisleri is placed in the market Preparing a go to market strategy for Vedica, Bottled water brand of Bisleri
Market Scenario:Approximately 1 Mn bottled water is sold each day in India Packaged water market 15 % of the overall packaged beverage Industry The natural mineral water (where Vedica will be Positioned) constitutes 6% of Market increasing scarcity of safe drinking water, changing life styles and aggressive expansion by market players 3300 registered plants bottling water and 12000 unregistered

The bottled water business in India can be divided into three segments in terms of price:Segment
Premium water Natural Water Packaged water

Brands
Evian, San Pelligrino and Perrier Qua, Himalayan ,Vedica, Catch Bisleri, kinley ,Aquafina, Oxyrich

Price
80 to 110

FINANCIALLY STRONG MARKET

Market size is 5000 Cr in fiscal 2012-2013 Estimated to cross 10,000 Cr mark by 2015 CAGR = 19 % Bisleri is in top with 43% market share followed by Aquafina (15%) & Kinley (11%) Natural water market is growing at a phenomenal rate of 40-50 %

25 to 50

10 to20

PORTERS FIVE FORCES

SITUATION ANALYSIS

Industry Competitors
HIGH: Bisleri, Bailey, Aquafina, Kinley, Yes, Ganga, Himalayan, Evian, Perrier and various other local brands

Potential Entrants
HIGH: HUL water purifier and various new local brands. Shaw Wallace potential competitor in premium segment

Threat of Substitutes
HIGH: Soft drinks, aqua guard, tap water and Nimbu Pani, soft drink/aerated beverages market

Suppliers Power
HIGH: Suppliers ability to raise price or reduce quantity supplied of PET bottles or labelling material

Buyers Power
HIGH: Large no. of brands fighting for their market share

Market and Competitor Analysis

STRENGTHS - Strong Parent BrandBisleri - Herbal and Mineral Filled - Excellent packaging - Excellent Distribution channels

Weakness

-High Price
-Low Brand Identification of Vedica because of previous experiences

Opportunities

Threat - Intense Competition - Legal tussle in the past -Substitutes available

- Eco friendly
product position - Low cost of production -Huge population & untapped market.

Major Competitors - Vedica will compete with premium Mineral water Companies as well as natural Mineral water Companies

The GO-TO-MARKET STRATEGY

DISCOVER

DIAGNOSE

DESIGN

DEPLOY

DISCOVER
Analyze the potential markets for the product to be launched Analyze the Buying pattern of and look for the choice drivers

DIAGNOSE
Choose where to compete in the market Understand the opportunity to create differential Advantage

4 D Approach
DEPLOY Implement the design of market strategy in the optimal way Identify the channels to maximize the
effectiveness of the strategy Devise PUSH-PULL measures

DESIGN Determine the positioning of the product Decide on the pricing and distribution channels to be used Decide on the promotion mix to be used for the Brand Awareness
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Analysis for Go to Market Strategy

DISCOVER

The current market size is approximately 5000 crores with 1 mn packaged bottled sold everyday in the Indian Market The Natural Mineral bottled water category consists of 6 % of total market The Natural Mineral bottled market is assumed to be worth 300 crores With very few players like Tatas Himalayan , Qua and catch Vedica mountain of Bisleri has a very good opportunity to capture a chunk of this pie Bisleri is the market leader in packaged bottled water industry and hence leverage its brand for establishing a Brand Identity of vedica Mountain Water
DIAGNOSE

Indian Bottled water industry id divided into three categories in terms of cost:Premium, Natural and Packaged Pricing 1 ltr bottles at Rs 50 and 500ml bottles at Rs 25 ,Vedica will be directly competing with Himalayan, Qua and also to the likes of Evian With Imported bottled water such as Evian , Perrier etc priced very high at INR 80110 , Vedica has an opportunity to fill itself in a masstige segment (between mass and prestige markets)
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DIAGNOSE
NATURE LOVERS Primary attraction is due to love for nature & natural products Attracting feature is purity associated with nature Mainly socialites & nature fanatics Very small and niche segment, low volumes

SEGMENTATION
HEALTH CONSCIOUS Consume mainly due to mistrust on open water & contamination possibility Natural water gives confidence of purity & good fir health Travelers(Domestic & Foreign), Professionals, Restaurant diners Brand name & trust are prime drivers FASHION STATEMENT Only reason for consumption is status symbol associated with consumption of natural water Mainly college crowd driven by compulsion or peer pressure Very little repeat purchase since wallet size is low

TARGETING
HEALTH CONSCIOUS SEGMENT 1. Product characteristics of purity would appeal to this segment because of their health related need 2. Larger potential market size 3. High chance of repeat purchase since such people are travelling and hence need the product on a daily basis 4. Main sales channel through institutional sales rather than retail sales 5. Higher income group hence pricing would be acceptable

PURCHASE CHANNELS USED BY TARGET SEGMENT

1. 2. 3. 4. 5. 6. Organized retail outlets Airports & outlets at other travel channels Restaurants & eateries in Malls & Movie Theaters Conferences & Summits Sports & other high profile events Hotels, Motels and other such organizations in the hospitality sector
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DESIGN

COMMUNICATION STRATEGY & PLAN Launch Strategy

Printed media Social media Outdoor media Proper use of Bisleri distribution channels for promotion

Pre Launch Strategy

Press releases Samples in Airlines and star hotels Sneak peaks on R&D Focus on essence of spring Water(Uttarakhand)

Contest Sponsors

Press Releases

Print Ad

Co-Marketing

TV Ads+ Brand Ambassadors

Google Ads & Search

OOH/ Beauty Salon

In store branding
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DESIGN

COMMUNICATION STRATEGY & PLAN

Post Launch Strategy

Review Website listings Paid Online listings Digital campaigning Push on Institutional Sales Focus on the purity of water Show water as part of the users personality Appealing to youth Indulgence & Royal feeling Feel of natures freshness Print ads to be given in Lifestyle Magazines, Conference brochures etc

Digital Marketing Break up

Email and sms marketing Email and sms to be sent to many consumers in tie up with Network operators about the Introductory product Display Ads Display and banner Ads on Highly visited websites such as youtube and many other websites Social Media Sales promotions or discounts on facebook or twitter page Engagement through Events by Bisleri Blogs Industry Blogs Forums Discussion boards especially in Ecofriendly oriented websites Internet Search engine optimization Paid listings Unique templates in Yahoo Advertising
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ATL Activations: Promoting Pristine Purity

OOH (Out-of-Home)
Escalator digital signage in selected stations Outdoor billboard Airport advertising Ads on Volvo bus services

Print Ads
High-end magazines, e.g. Print Ads in health/ personal care/ fashion Magazines for both male and females. E.g. Femina, vogue, Filmfare, GQ, Forbes, fortune , Wedding Essentials Magazine etc Key messages Vedicas elegant image and package Designed from the ground Product benefits of unique water source and good for health

Television Commercials
The TVC would focus on the pristine purity of Vedica. It would portray a young women experiencing the purity and beauty of the Himalayas (mountains) as and when she gulps each drop of Vedica. The imagery will be that of the himalyas while the purity of the glaciers will be portrayed

Promoting Pristine Purity

Kiosks in SEZs, malls

Event Sponsorship
Cricket, Hockey tournaments Charity Dinner Sponsor for Fashion show lifestyle product Product Placement in Movies

We can set up small kiosks in get-together areas of corporate office buildings, SEZs to create awareness about the pristine purity of Vedica among our target customers i.e working class people The kiosks can also be used to focus on working women professionals and create awareness about the functional benefits of Vedica which will induce them to consider Vedica for their family

GO TO MARKET STRATEGY : Below The Line Activations

Vedica Bootcamp
Theme: Save water + Benefits of Pure Mineral water Target: School children (class 5-8) Vedica will organise a boot camp in metros (say Mumbai and Delhi) where major pvt schools of that city will be invited. The event will be for students in the 11-14 years age bracket. Each school should be persuaded to send maximum number of students. They will be educated on the importance of water and how each one can contribute to safe water They will also be educated on the diseases caused from water and the benefits of safe and pure drinking water There will be a quiz for each of the separate class where teams from different school will participate. The winners of the quiz will receive prizes and certificates.

THE JINGLE OF INDIA

Vedica will come up with a jingle making competition. The medium: Radio channels. Vedica has to tie up with a major radio channel The jingle will have to focus on the pristine purity of Vedica and its benefits Open to students above the age of 18. During any particular time or show on a particular day callers can call and share a jingle. They have to come up with a jingle live on radio on the given theme The best jingle gets a gift hamper. All the best Jingles enter into a national round and three best jingles are chosen by Vedica and will be used in their ads. The makers of these jingles will then a get a huge cash prize. Create a huge brand awareness and customer engagement among the youth

Small Sku of Vedica will be distributed to the students in the bootcamp. The attractive packaging will strike a chord with the young ones also. Through the students, Vedica as a brand will create awareness in many families as well. This entire event will greatly boost the brand image of Vedica.

GO TO MARKET STRATEGY : Distribution Channel

Institutional Trade Promotions

Channel

Institutional

Retail High End Supermarkets/ hyper markets Exclusive Retail shops in Airports and Malls selling high end food items

Offer credit to the restaurants, hotels, clubs and bar owners offer them a price reduction on the product price at the time of billing for a limited period of time. Objective: stimulate higher than normal purchase orders and push through products Benefits retailers & distributors

Hotels, Restaurants

Retail: Mix of Consumer + Trade Promotions

offer them a price reduction on the product price at the time of billing for a limited period of time. Provide retailers with the racks/hangars/other promotional merchandise to provide adequate shelf display area and visibility Retail merchandising support (on shelf price cuts, retailer feature advertisements, in-store displays) Objective: category management Benefits all parties

Clubs, Bar

Bisleri Old Commercial

Insights: Protection & Hygiene; Length: 1.45 Mins http://www.youtube.com/watch?v=UMNB4ZuKOEw

Bisleri Vedica Commercial & CMDs Interview

Insights: Natural Essence; Length: 2.39 Mins http://www.youtube.com/watch?v=Ey9oLtAjlMg

GO TO MARKET STRATEGY : Distribution Strategy

Using 120 of its own trucks, along with the logistics of its distributors and retailers, Bisleri can deliver its bulk packages at the doorsteps of those who call up the company's hotline. The service should be kept on for 24 hours to accommodate fine dines and five star hotels who find it difficult to forecast consumption

The transport of natural mineral water from the source to various regions incurs very high cost for the company. So Vedica should initially focus on metros and tier I cities such as Mumbai, Delhi, Calcutta, Bangalore, Gurgaon etc where it has a strong distribution network

Subsequently To make Vedica a success, Bisleri should fine tune and leverage on its strength - service and multiple manufacturing units.

The direct to institutions model can be leveraged upon to focus on high end malls and restaurants

Unlike players such as Tata Tea's Himalayan, which has only distributors in key cities such as Mumbai, Bisleri has its own storage facility to put the client at ease. The just-in-time principle is at work here. This netwok should be leveraged

Place of Purchase
From our survey we find the preference for the place of purchase. The product should be positioned in fine dines, high end restaurants , hotels and pubs. They should also be present in the grocery markets in international airports and high end hyper and supermarts

72% Grocery Stores Airport Grocery Malls 14% 57% 71% 86% 43%

DESIGN

CUSTOMER ENGAGEMENT
Execution 1. Billboards to publicize contest on Vedica website 2. QR code scanners on purchase locations directing to mobile website 3. Facebook Page to direct to Contest 4. On the Bottle advertisement

Objective: 1. To engage the potential customer segment & make him aware about Vedica 2. To create a positive buzz around Vedica in the marketplace & increase visibility Contest Concept 1. Asks the customer to relive the moments which she/he spent with Nature 2. Upload photographs on website with family/friends/spouse in natural location 3. A short caption describing why nature is important to you 4. 20 Winners get an all paid holiday in a Himalayan Resort in Uttarakhand Benefits for Brand VEDICA 1. Website used to communicate the Vedica concept & its natural content 2. Substantial increase in Top of Mind Awareness value for Vedica due to customer engagement

http://saileshks15.wix.com/bisleri-vedica#!home/mainPage

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DEPLOY

CHANNEL & MARKET SELECTION

The figures indicate that the premium water business is prominent in Metro cities and natural water is prominent in Tier 1 and 2 cities

Geographical

High per capita Income group cities/states to be initially focused Top 5 states with highest per capita income All Tier 1 cities and metros to be targeted More focus on institutional sales

Preferred Channels
Channels where high income individuals shop Malls & Shopping Centres Organized retail outlets Spencer, Reliance, Big Bazar etc. Food Courts - malls, sports complex In store promotion to grab customer attention Outdoor marketing
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DEPLOY

STRATEGIC ALLIANCES PRE-LAUNCH

Leverage on the existing distribution channel; Add new channels to increase the reach to new set of customers

Distribution Channel

As per research, Premium water brands perform better in on-trade channel since the prestige of water brands enhanced the image of outlet & allowed the outlet to justify high mark ups
Three-Five star Hotels High End restaurants Hospitality Chains
Like Haldiram, Nirulas,

Entertainment Chains like Malls, Theatres, High End Movie Halls

Airports

Special Events, World Conferences and IPL Matches,

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DEPLOY

PUSH STRATEGY IN TRADE CHANNEL

OBJECTIVE: 1. To ensure that the channel partners have enough incentive to sell Vedica 2. To beat the competition in market & capture the shelf space at strategic locations

Why it makes sense 1. As per the cost structure shown, there is not much difference in terms of product cost for Vedica except packaging & transportation cost 2. High margin money available which can be passed to channel to push the sales 3. High margin can also be used for marketing & other selling expenses
PRICING STRUCTURE IN TRADE CHANNEL
Normal Bisleri 1/2 Litre, 24 bottles 1 litre, 12 bottles Purchase Price 225 165 Selling Price 240 180

Cost of 1 litre Cap cost Bottle cost Treatment cost Label cost Carton cost Transportation cost Others Total cost Selling Price Margin Available

Normal 0.25 2.5 0.25 1 0.5 1 0.5 6 15 9

Vedica 0.25 5 0.25 1 0.5 3 0.5 10.5 50 39.5

Scheme Total Margin 3 bottles free 45 3 bottles free 60

Percentage Margin/Litre 20% 3.33 36% 4.00

Target for VEDIKA 1. Give more margin to retailer as compared to conventional packaged water 2. To push half a litre bottle in the market since that is the size most convenient for the target segment 3. Increased visibility for Vedica uniquely transparent bottles in the consumers\

PROPOSED STRUCTURE FOR VEDICA

Vedica 1/2 Litre, 24 bottles 1 litre, 12 bottles Purchase Price 500 520 Selling Price 600 600 Scheme 4 bottles free 2 bottles free Total Margin 200 180 Percentage 40% 35% Margin/Litre 14.29 11.25
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Appendix: Sample Creative 1 Pureness of Nature

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Appendix: Sample Creative 2 -Dance with Vedica

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Appendix: Sample Creative 2 -Billboard

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Bisleri Commercials
http://www.youtube.com/watch?v=UMNB4ZuKOEw

Insights: Protection & Hygiene; Length: 1.45 Mins

Bisleri Vedica Commercials & CMDs Interview

http://www.youtube.com/watch?v=Ey9oLtAjlMg Insights: Natural Essence; Length: 2.39 Mins

THANKS !!!
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