Project Report on Product and Brand management in

The Market of

Branded Water Bottle Industry

with reference to BISLERI

Dr. Sanjay Patro, XLRI

Report by

207 Anmol Rohatgi | 218 Gajanan Kulkarni | 220 Heemanish Midde

25th October 2008

Xavier Institute of Management & Research, Mumbai Mumbai University

EXECUTIVE SUMMARY
The packaged drinking water industry is in the growth stage. A number of leading players have emerged such as Bisleri, Aquafina, Bailey, and Kinley. There are other significant players like Yes, Ganga, Himalayan and many others.

Foreign players in the local market such as Evian and Perrier also characterize the industry. At present, the Indian market is also less organized and not much branded. In this context, the industry needs to be studied to find the structure in terms of players, substitutes and others factors governing the success of leading players. This report attempts to study the following:

Market Study Packaged drinking water market in terms of major players, market size, growth, and market shares of players, segmentation statements and positioning of the various products available.

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

Strategies To 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.

What do we want to study? In broad terms, the major tasks in the project are to study the packaged drinking water industry, which would include the following Study the market size Study the major players, their market shares, and distribution networks. Study the emerging trends (in products, packaging, pricing and promotion)

TABLE OF CONTENTS
Executive summary

1. Introduction 2. Packaged water 2.1 How is bottled water different from tap water? 2.2 Types of water 3. Overview of the industry 4. SWOT analysis of the packaged water industry 5. Industry analysis (porters five force model) 5.1 An example of a new entrant 6. Consumer habits and practices 7. Market Categorization 8. Market size and growth rate 9. Market segmentation 10. Bisleri - Parle Bisleri Pvt. Ltd. 11. SWOT analysis of Bisleri 12. Marketing initiatives 13. Competitors 14. Packaging and pricing

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1 INTRODUCTION

Water water everywhere 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. Especially in India, where contaminated water continues to bring down millions with diseases such as diarrhea, dysentery, typhoid, jaundice and gastro-enteritis.

Getting pure drinking water from municipal taps in cities and towns is now a luxury. At home most people are forced to either boil water or install purifiers. While traveling or eating out in restaurants, buying bottled water has become a necessity. This need has seen an explosion of companies marketing safe drinking water in bottles across the country.

2 PACKAGED WATER
2.1 HOW IS BOTTLED WATER DIFFERENT FROM TAP WATER?

Consistent quality and taste are two of the principal differences between bottled water and tap water. While bottled water originates from protected sources - largely from underground aquifers and springs - tap water comes mostly from rivers and lakes.

Another factor to consider is the distance tap water must travel and what it goes through before it reaches the tap. In compliance with international regulations, bottled water is sealed and packaged in sanitary containers. If a bottled water product is found to be substandard, it can be recalled. This cant happen in case of tap water.

According to regulations in the US, when bottled water is sourced from a community water system the product label must state so clearly. However, if the water is subject to distillation, de ionization or reverse osmosis, it can be categorized that way, and does not have to state on its label that it is from a community water system or from a municipal source.

Processing methods such as reverse osmosis remove most chemical and microbiological contaminants.

2.2 TYPES OF WATER

Packaged waters Packaged waters, other than natural mineral waters, are waters for human consumption and may contain minerals, naturally occurring or intentionally added; may contain carbon dioxide, naturally occurring or intentionally added; but shall not contain added sugars, sweeteners, flavoring or other foods.

Artesian water Bottled water from a well that taps a confined aquifer (a water-bearing underground layer of rock or sand) in which the water level stands at some height above the top of the aquifer. Accordingly, drinking water is water that is sold for human consumption in sanitary containers and contains no added sweeteners or chemical additives (other than flavors, extracts or essences). It must be calorie-free and sugar-free. Flavors, extracts or essences may be added to drinking water, but they must comprise less than one-percent weight of the final product or the product will be considered a soft drink.

Mineral Water Bottled water containing not less than 250 parts per million total dissolved solids may be labeled as mineral water. Mineral water is distinguished from other types of bottled water by its constant level and relative proportions of mineral and trace elements at the point of emergence from the source. No minerals can be added to this product.

Spring water It is water derived from an underground formation from which water flows naturally to the surface of the earth. Spring water shall be collected at the spring or through a bore hole tapping the underground formation feeding the spring. There shall be a natural force causing the water to flow to the surface through a natural orifice. The location of the spring shall be identifiable.

Glacial (Glacier) water It is either the runoff directly from the natural melting of ice of glacier or water obtained from the melting of glacier ice at a bottled water operation.

Prepared water Prepared water is substantially altered so that its composition is no longer characteristics of the defined origins. They have been rendered fit for human consumption or have passed through community water supply or have had the composition significantly changed.

Purified Water Water that has been produced by distillation, deionization, reverse osmosis or other suitable processes can be labeled as purified bottled water. Other suitable product names for bottled water treated by one of the above processes may include "distilled water" if it is produced by distillation, "de-ionized water" if the water is produced by deionization, or "reverse osmosis water" if the process used is reverse osmosis.

3 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, with exposure of media and exposure to international life styles, deteriorating levels of potable water, increase in a number of water borne cases, increase in awareness about health and hygiene and other related factors led to acceptability of concept of mineral water. The market has not looked back ever since then and has grown leaps and bounds to such an extent that a number of genuine as well as fly-by -night operators have entered it to milk it.

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). The market through out this period was formed only by the premium products that too available through 5star 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 re-launched its bottled water in 1994. By this time with exposure of media and exposure to international life styles, deteriorating levels of potable water, increase in a number

of water borne cases, increase in awareness about health and hygiene and other related factors led to acceptability of concept of mineral water. The market has not looked back ever since then and has grown leaps and bounds to such an extent that a number of genuine as well as fly-by -night operators have entered it to milk it.

4 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.

THREAT

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

5 INDUSTRY ANALYSIS (PORTERS FIVE FORCE MODEL)

Potential Entrants

Industry Rivals Supplier Power

Buyer Power

Substitutes

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

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.

The Substitutes in this industry would be soft drinks, aqua guard, tap water and the most economical drink Nimbu pani. The industry estimates that bottled water is the fastest growing beverage segment and is immediately followed by the soft drink/aerated beverages market

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.

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 there existence or for their share. One of the ways to defend themselves would be to develop superior offer that strong buyers cannot refuse.

5.1 AN EXAMPLE OF A NEW ENTRANT

In case AMUL were to enter the market of bottled water, here is a SWOT of Amul

STRENGTHS

WEAKNESSES

Brand name of AMUL Core competence lies in milk and dairy products. Distribution network well oiled Excellent brand recall

People may be unable to shift perception from milk provider to water segment. Awareness of various product Case of improper implementation

OPPORTUNITIES

THREATS

Various FMCG sectors To cover the rural area To get into other related retailing of food items

Maturity stage at the PLC cycle. From existing competitors of various sectors.

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6 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their drinking habits.

Brand loyalty is very low as all the products taste the same so they can buy just any product which is on the shelf, same as that of soft drinks and fruit beverages.

Availability in the chilled form and brand awareness plays a crucial role in purchase decisions.

While there is no aversion to consumption of mineral water by any age group, this product is mainly consumed by the people in the age group of 20-35 years who have less attraction of soft drinks or other synthetic drinks whereas youngsters look in for soft drinks and fruit beverages to quench their thirst.

Visibility is another factor that should be taken care of by the companies as consumers are not very brand loyal and consume whatever is in front of them.

Consumers often drink bottled water as an alternative to tap water. They think it tastes better (no chlorine taste) and perceive it to be safer and of better quality. They also look for security: food scandals in industrialized countries and water-borne diseases in developing countries greatly influence consumers attitudes. Consumers buy bottled water to feel well and to lose weight. Bottled water is perceived as a healthy alternative to other beverages. Thus, for the aerated beverages bottled water offers a potential threat.

Moreover, increasing urbanization, causing declines in tap-water quality, can also explain the popularity. Because it is untreated, natural mineral water is perceived as natural by city dwellers looking for genuine products. Higher living standards and auto usage enable people to easily bring home more and heavier bottles 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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7 MARKET CATEGORISATION
The market initially had only one SKU of 1 litre this was followed a by a number of smaller and bigger SKUs. Based on these SKUs we can divide the entire market into two segments: Retail consumption market Household & Institutional consumption market

Each of these consumption markets 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.

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

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8 MARKET SIZE AND GROWTH RATE

The mineral water market is still maintaining the pace at which it has been growing over past few years. The market is witnessing launch of a number of player with every passing day. Presently the market is skewed towards regional players and has more than 250 players in the fray. Besides these we have a number of fly-bynight operators who enter the market in summers, reap benefits by packaging tap water and selling as pure mineral water, and then leave once the season is over. The problem in the market is not with the players but with the consumers. Poverty levels, illiteracy has led these players to take full advantage of consumers by selling even the tap water as mineral water. The fault also lies with the government for being lackadaisical in setting up norms for entry into the industry and also for being lackadaisical in taking proper care of health of its public.

Total bottled market has a size of 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 Chauhanpromoted 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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9 MARKET SEGMENTATION
9.1 THE MINERAL WATER MARKET IS SEGMENTED ACCORDING TO THE TYPE OF CONSUMERS:

Foreign Tourists Foreign tourists have been the main consumers of the mineral water as they face a lot of digestion problems due to different food habits.

Domestic Tourists Domestic tourists have switched to mineral water mainly because of safety and hygiene factors.

Fashion Conscious Like soft drinks, drinking mineral water is also considered fashionable by some people.

The mineral water consumer is mainly in the age group of 20-35 years and is an educated middle class person. This is also the segment of fruit drinks, which have usually been positioned as fun and health drink for young adults.

9.2 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 likes to make a fashion statement by drinking mineral water. This segment gets the maximum sales.

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.)

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10 BISLERI - Parle Bisleri Pvt. Ltd.

10.1 MISSION STATEMENT To provide the highest quality product, keeping in mind all aspect including freshness purity and safety and making it easy available to the consumer at very affordable price.

10.2 COMPANY BACKGROUND Parle Bisleri Ltd is the biggest domestic player in soft drinks in India. It is a private company owned by Ramesh Chauhan. The company sold off the Thumps Up and Gold Spot brands to Coca-Cola India in the early 1990s. Since then, the company has focused solely on bottled water in India.

Due to the vast number of players present in bottled water in India, Parle Bisleri has tried to differentiate its brands from the competition. The company shifted its slogan from "Pure and Safe" to "Play Safe", following the attempt of many regional players to emulate the look of the companys brands.

Parle Bisleri is credited with revolutionizing bulk bottled water in India through the introduction of innovative 20-litre jar packaging. The company developed consumer-friendly packaging for its 20-litre jars by adding threaded fittings and valve caps, as opposed to other brands that feature snap-on fittings. These innovations facilitated easier draining of water from the jar.

10.3 HISTORY The origin of BISLERI lies in Italy and the brand owes its name to its founder MR.FELICE BISLERI, an Italian entrepreneur. In 1967, BISLERI set up a plant in Bombay for bottling and marketing actual mineral water, which did not quite work. By 1969, BISLERI wanted to exit the business and to help him out the Chauhans bought the brand, intending to turn it into a soda brand. Since then it has come a long way. Now, it owns a large percentage of shares in the Indian market and also it has its presence in International Water Market.

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10.4 JOURNEY OF BISLERI 1969: Buys BISLERI bottled water from an Italian company, Felice Bisleri. It was bottled in glass bottles then. Early-1980s: Shifts to PVC (Poly Vinyl Chloride) bottles. Sales surge Mid-1980s: Switches to PET bottles, which meant more transparency and life for water. 1993: Sells carbonated drink brands like Thumps 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 Kinsleys market share at 35.1 per cent compared to BISLERIS 34.4 per cent. 2003: BISLERI says it plans to venture out into Europe and America to sell bottled water. 2006: the Bisleri brand was extended to mineral water with Bisleri Mountain Water.

10.5 PRODUCTS

Production Parle Bisleri Ltd operates a network of 55 plants spread across the country. This ensures an extensive reach for the companys products. The company reportedly has plans to increase production capacity further in 2008. Parle Bisleris latest product, Bisleri Mountain Water, is bottled in two plants in Uttarakhand (formerly Uttaranchal) and Himachal Pradesh. The company plans to invest Rs100 million to increase the new brands manufacturing and distribution capacity.

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Bisleri with added Minerals: Bisleri Mineral Water contains minerals such as magnesium sulphate and potassium bicarbonate which are essential minerals for healthy living. They not only maintain the pH balance of the body but also help in keeping you fit and energetic at all times.

Bisleri Mountain Water: Bisleri Natural Mountain emanates from a natural spring, located in Uttaranchal and Himachal nestled in the vast Shivalik Mountain ranges. Lauded as today's 'fountain of youth', Bisleri Natural Mountain Water resonates with the energy and vibrancy capable of taking you back to nature. Bisleri Natural Water is bottled in its two plants in Uttaranchal and Himachal Pradesh and is available in six different pack sizes of 250ml, 500ml, 1 litre, 1.5 litre, 2 litre and 5 litres.

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11 SWOT ANALYSIS OF BISLERI

STRENGTH

1. Quality standard: Every bottle of BISLERI is put through a rigorous Multi stage purification processes which includes micron filtration and ozonisation. It acquires 6 stages of purification processes which ensure quality water which is pure and safe for drinking purpose. Good manufacturing are the strength all the time processing in religiously monitored at every stage.

2. Trust for Brand: More than 50 lakhs people trust the BISLERI. They buy only BISLERI water because it has became generic name for mineral water. For example: - When people go to buy the mineral water many of them ask for BISLERI, even though they get other brand.

3. Large Range of Products: BISLERI offers a large range of products which attracts consumer of all categories. For example: - 1 litre or 500 ml pack is useful for individual buyers, 12 litres or 20 litres is useful for organization. Therefore it attracts large number of customer.

4. Marketing: BISLERI is promoted by an aggressive print & TV. TV is backed by a Hoarding & point of sale material. Every interface with customer is used as an opportunity to reinforce. For example: - All vehicles used for supply have been painted in light green, bears the BISLERI logo & sport catchy baseline likes drink and drive.

5. Distribution System: With little belief in the distributor system, the company leverage its large fleet of truck to supply bottled water directly to retailers through a system called Route Selling where the driver of truck is trained to be a service person. This ensures that water supplied is fresh and bottles are in good shape. BISLERI has more than 80,000 outlets in the country.

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6. Experience of Mr.Chauhan (M.D of Bisleri) From the vast experience of marketing Gold Spot and Thumps 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.

7. Bulk Segment Is Useful For Households Also: Households in certain parts of the country spend a huge amount of money on fuel in order to purify the water. They are supposed to buy the impure water and then they have to spend money to purify it. For instance the water scarce south people spend large some of money to buy water and still more to purify it. The 12 litre product is hit in various cities of south.

8. Growing Popularity: The popularity of BISLERI is increasing rapidly day by day. People in the market when it comes to mineral water a person goes to any shop and asks for BISLERI as his/her first preference. BISLERI is seeing a growth of almost 50% per year. With the small pack being popular among individuals user its bulk pack is also generating the huge demand which is capturing the market for BISLERI. Today 60-70 % of total income of BISLERI comes from its bulk segment and the company is planning to increase it up to 80%.

WEAKNESS

1. Method Adopted For Distribution: THE ROUTESELLING policy adopted by BISLERI for distribution is more expensive than more commonly followed method of appointing distributors in different towns. This reduces the profit of company. The dealer margin is reduced due to this .therefore not many dealer keeps BISLERI in many areas. Indirectly this is reducing the coverage of BISLERI.

2. Reuse Of Bottle By Local Sellers And Illegal Manufacturers: Market research conducted by BISLERI revealed that the other overriding concern for this set of buyers is the tampering of seal and the reuse of bottles. Many have witnessed used bottles being refilled at railway stations. This deteriorates the brand image of BISLERI. For example: - local sellers fill the bottle of BISLERI with impure water and the bottles are purchased by illiterate customers as BISLERI water but they buy water of low quality. In this way brand of BISLERI gets affected.

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3. Faults in Production: Tests conducted by various authorities shows that it contains pesticides. In 2002 the 2cm long insect was found in the bottle of BISLERI. This has affected its sales and reputation. The license of its two factories one at Noida and other at Bangalore has been cancelled because of fault in production.

4. Pressure by Government Authority:After insect was found in the bottles, FDA (Food & Drug Adulteration) has cancelled the production of BISLERI. Afterwards it was allowed to resume it but in this period its customer were moved towards other products. It is constantly under check by various authorities.

5. Not Meeting the Demand of the Customer: In certain parts of south in our country big bottles of BISLERI are in huge demand but the company is unable to meet the demand of the consumers. This is affecting the demand for the product. So People are forced to use other brands of mineral water.

OPPORTUNITY

1. Fast Growing Field: The best beverage for India in the new millennium seems to be water. In recent years, the bottled drinking water market has been witnessing high decibel level of activity, with a host of new entrants. The bottled water market which worth Rs. 1000 crore is expected to be Rs. 5000 crore by 2010. This will increase a lot of scope for bottled water market.

2. Bisleri Can Utilize Its Distribution Chain: With BISLERI becoming a generic name for bottled drinking water. If company can manage the distribution chain of the product to make it available where the consumer needs it the most, the company may well succeed in his gamble with water. For this the company can connect it with dealers and other distributors who will market the products for them all around the world.

3. Expansion in Europe: The launch of BISLERI in the European market on 4th September, 2003 has created a lot of scope for BISLERI in the field. This will also compensate the deterioration of image; BISLERI has suffered after insect was found in the bottle. It will silence the critics and it will also increase the faith of the customer for the brand. It will create an international brand image and the quality will increase.

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4. Launch Of Premium Pack: The company also has its premium product range. This is prepared keeping 5-star hotels and other premium customer. This pack will be sold at Rs. 20 per litre. This will give a tough competition to the EVIAN, the biggest player in the premium water range which sells its 1 litre water at a hefty of Rs.85 per litre.

5. Change of Image: The company has changed the color of the product. It has changed from blue to green. By changing the color, the company has provided a new product to the consumers; they will be getting a new and a refreshing product.

6. Increase in Production: BISLERI is eyeing the Market and is in the process of increasing the production by setting 4 new plants adding to its 23plants. This will increase the production capacity of the company.

THREAT

1. Market Is Eyed By The Big Players: The growth of the market indicates the need for the mineral water. Due to this the heavy weights are eyeing the market. Coke, Pepsi, Britannia, Nestle is keen on raising their stakes in this market. With the cut throat competition between Coke and Pepsi, BISLERI is not safe.

2. Entering Of New Players: To get some share in the market many new players are entering in the market. Among them major names are Godrej, which is launching its product AQUA-PURE and Tata-Tea is looking forward to but Himalayan, this will increase the competition. Also Britannia which is distributing EVIAN is planning to launch its own brand. There are also new entrants ATCO with BRILLIANT water, DS FOODS with CATCH are also coming. Even Hindustan lever is planning to enter into the market. This is giving a tough competition to the current water brands including BISLERI.

3. Water Filter Manufacturers: BISLERI is not only getting competition from mineral water maker but is also facing a tough competition from various water filter manufacturers such as Eureka Forbes (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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4. Illegal Manufacturers: Company is facing a tough competition from illegal manufacturers in the rural areas. The illegal manufacturers provide water at a very cheaper rate then the branded manufacturers. There are 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.

5. 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.

6. New Government Policy: For preparing 1 litre of mineral water 3 litre of ground water is required. Government was not charging tax on the extraction of the ground water. Now by introducing the new policy government is going to impose tax on the extraction of the ground water, this will increase the production cost because of which the companies will be forced to increase the price which all consumers of all categories can not afford. The companies can compensate the high production cost by reducing their marketing expenses but this will keep the consumer unaware about the product. This is also effect the quality of the bottled water.

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12 MARKETING INITIATIVES
The break away seal: keeping in mind the consumers need to recognize a genuine product that cannot be tempered with. The unique cap has been patented and cannot be duplicated. This technical strength ensures that the consumer will only get a high safe product when they will drink BISLERI. 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 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.

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

For 20 Litre. 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.

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

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

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 Bailey sells their product through their own network in South Mumbai. They 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.

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)

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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: Lack Aggressiveness Slow and steady approach

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14 PACKAGING AND PRICING

PRICE (in Rs.) BRAND PACKAGINGS Per bottle 20 litre 5 litre 2 litre Bisleri 1 litre 500 ml 330ml 250 ml cup 20 litre 1 litre Bailey 500ml 330ml 1 litre Aquafina 500 ml 20 litre Kinley 1 litre 500ml 1 litre Himalaya 500 ml 15 12 5 25 8 75 8 5 12 75 30 20 10 5 5 3 60 10

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

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Disadvantages: No reason for the consumer to shift the product when the price is same. Product cannot be positioned as a premium product

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

Mineral water is covered under the Prevention of Food Adulteration Act (PFA), while drinking water is not under its preview.

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.

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 potable natural or drilled sources that contain a substantial amount of non-toxic, health-related mineral salts.

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.

The Bureau of Indian Standards (BIS) has provided standards for both drinking water and mineral water but compliance hitherto was voluntary

To regulate the quality and price of bottled water, BIS approval has been made mandatory w.e.f. end of 1999

Mineral water shall be packed in clean, colourless, transparent and tamper-proof bottles made of polyethylene conforming to the IS 10146 standards.

The standards laid down under PFA Act do not prescribe any minimum quantity of minerals to qualify as mineral water.

Hitherto Indian laws do not stipulate the minimum mineral content level required for water to be labelled as a mineral water

The BIS does not lay down any guideline or practice for processing water. 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.

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

Both the PFA and BIS lay down standards for metals like lead, mercury, arsenic, aluminium and barium

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which cause a range of disorders The BIS lays down a minimum of 150mg/l and a maximum of 700 mg/l of TDS for mineral water. The PFA rules do not prescribe any minimum TDS levels but does mention the maximum of 1500mg/l There are no government laboratories for testing water samples for all the parameters involved

THANK YOU

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