BISLERI- The Sweet Taste of Purity

Submitted To: Dr. Gajavelli V S

Group-9 (Section- B)
Archana Sharma

Roll No.

Chetan Chawhan 2012100 Chirag Bansal G. Snigdha Gaurav Prakash 2012101 2012114 2012116

000 crore by 2020. among others.5 billion.000 crore by 2013. With regards to Indian context there is sale of only unflavoured water. The bottled water market which has been growing at a CAGR of 19% is expected to continue its growth momentum and grow over four-folds to Rs 36.9bn by 2012. the small pack has maximum market share due to easy affordability and availability. whereas the unorganized players are resisting them by using differentiation strategy. The study estimates. World bottled water market is expected to reach$65. However. The one-litre bottle holds significant market share. stimulated by rising population. The bottled water segments are rapidly growing which has a total market size of more than $ 1. Mineral Water Industry Current Scenario Bottled water represents the fastest growing segment of the global beverage market with a market share of about 38%. in recent years the institutional supply is picking up with supply of bulk packs. around 48% are located in the south. says a study.Introduction to Mineral Water Industry The global bottled water industry consists of selling of flavoured as well as unflavoured water. the price increases when the cost of packaging and transportation increases the major players in the market are trying to establish themselves in bulk water business through brand equity. the domestic bottled water market (including organised and unorganised players) is estimated at Rs . and expected to grow to Rs 10. A growth in the sector has been viewed mainly because of the health conscious people. At present. lifestyle trends and growing levels of health consciousness. In June 2012. Of the 3300 registered plants manufacturing bottled water in India. The Exponential Increase in Demand Bottled Water 1990-2012 250 200 150 100 50 0 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Source: indiastat.000 crore. The market is mainly controlled by the organized sector with over 500 brands existing in the market. consumer spending patterns. there are more than 12000 are unregistered plants in India. The market operates in lower margins. improper water supply and the unpredictable municipal water supply. With a high growth rate and low entry barriers has attracted many players in this segment. followed by 22% in the west.

The sweet Taste of Purity Bisleri was originally an Italian company created by Felice Bisleri. Kinley has 25% and Aquafina approximately 15% share in the market. together with an 18% share. There has hardly been an involvement of any statutory body in defining specific standards. Mcdowells no 1. Indian consumers tend to believe that any bottled water is safe water.Bisleri. Packaged Natural Mineral Water [Under IS: 13428:1998. Also. 2012 Government Regulation In April 2002. Packaged drinking water [Under IS : 14543: 2004] . Parle Agro's Bailley has a 6% share in the market among the national players. Chauhan started expanding Bisleri operations. the government of India announced a new water policy based on privatization. In 1995 Ramesh J. who first brought the idea of selling bottled water in India. with Kinley and Aquafina fast catching up. The market share of different companies in bottled water industry is shown below. with no check on them. environmental concern is a challenge which needs to be addressed by the industry. Amongst the players. Oxyrich. Dated-25 June. Several small players have entered the trade in India to capitalize on the craze. In comparison to global standards India's bottled water segment is largely unregulated. This may not be the case. in 1969 and started bottling water in glass bottles under the brand name ‘Bisleri’. Bisleri continues to hold a leading position with a 36% market share. Industry experts say that quality controls need to be in place to curb the growth of unorganised players. The Bureau of Indian Standards (BIS) and The Associated Chambers of Commerce and Industry of India (ASSOCHAM) have just recently got involved in the process. The rest includes other organized brands such as Kingfisher. Bisleri then was introduced in Mumbai in glass bottles in two varieties – bubbly & still in 1965. Amendment 1-5 up to 15th October 2004] 2. Market Share 2012 40% 30% 20% 10% 0% Bisleri Kinley Aquafina Parle agro's Bailley Others 36% 25% 15% 6% 18% Source: The Times of India. Later Parle switched over to PVC non-returnable bottles & finally advanced to PET containers. In 2003 Bisleri announced its venture to Europe. All shares are held by Mr Ramesh J Chauhan and his family. Parle bought over Bisleri (India) Ltd. Indian bottled water is governed under 2 categories: 1.

Analysis of the prices and supply-demand forces for Bisleri Price. Schemes for retailers for a combination of both packages are on create the Economic Factor Affecting the Buyer’s Behaviour Price is the sum of values that consumer exchange for the benefits of having or using the product or service. “Our sales prove that the Indian consumer is getting smarter by the day. the 500 ml pack is a steal.quality product for the same price. mineral water is picked up more by travellers. This is also effect the quality of the bottled water. it could change the face of the purified water market for keeps. one litre packs which accounted for 50 per cent of the company’s turnover have come down to 30 per cent. Price is the only element that produces revenue.” says Company. Bisleri has crashed the prices of the one litre and 500 ml offerings. The two -litre packs. “At Rs. All other elements represent costs. If the logistics. Bisleri Product Share in Revenue 7% 28% 15% 30% 1 Litre 2 Litre 20% 500 ml 5 Litre 20 Litre . 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. why will he opt for an inferior brand?” For frequent consumers. Price or competition Pricing is the most important consideration for the consumer.4 a litre. The growth has come from the 500 ml account for 15%. where the majority of the population comprise of the middle-income group and lower income groups it is not hard to understand that pricing is one of the most important factor in the buying decisions. Government was not charging tax on the extraction of the ground water. However. in what could be a masterstroke. That works out to Rs.10. have come down from 20 per cent to five per cent.For preparing 1 litre of mineral water 3 litre of ground water is required. In the current scenario. Now by introducing the new policy government is going to impose tax on the extraction of the ground water.80. Aqua Minerals is testing out the possibility of mass marketing 20-litre Bisleri bottles for an MRP of Rs. In India. manufacturing and distribution do fall in place. which have practically disappeared from the shelves. less by households. 5 litre category for 28% and 20 Litre accounts for 7% of turnover respectively. If he can buy a high. The companies can compensate the high production cost by reducing their marketing expenses but this will keep the consumer unaware about the product.

20 18 16 14 12 10 8 6 4 2 0 Bisleri Aquafina Kinley Bailey Hello Price Comparison of Prices of different Brands .00 1 litre Rs. 10.00 Pepsi Aquafina 750 ml Rs.00 500 ml Rs.00 Price of Different Company Products 100% 80% 60% 40% 20% 0% High Reasonable Analysis regarding the price of mineral water among the retailers Supply Factors Bisleri package drinking water has an elastic demand as it has got many substitutes with similar prices. 80.00 Parle Agro Bailley 330 ml Rs. 25. 15.) 250 ml Rs.00 500 ml Rs. 15.00 1 litre Rs. 7. 6.00 20 litre Rs. The company can’t afford to increase the price of the product as it will lead to decrease in demand for Bisleri. 10.00 5 litre Rs.Company Brand Parle Bisleri Bisleri Packs Price (Rs. 10.

Thus it can be said that. whereas 18% of them say that they do not get the product offer and rest of the 9% retailers say that they do not get this product at all.5 2.Availability of different bottled mineral water to the retailers Brand Bisleri Aquafina Kinley Bailey Hello Others Easily 73% 75% 60% 70% 65% 60% Get but not often 18% 15% 15% 20% 20% 20% Do not get 9% 10% 10% 10% 15% 20% From the data. it can be interpreted that availability of Bisleri mineral water among the retailers is 73% of retailers gets the product easily.5 2 Percentage of Demand 16% 22% 24% 14% 13% 11% Percentage of Demand Others 11% Hello 14% Bailey 13% Kinley 24% Bisleri 16% Aquafina 22% Pie chart showing Percentage of Demand for Bottled Water .5 2. supply of Bisleri bottles is good and they should try to maintain this pattern in order to compete with Kinley and Aquafina which have strong distribution network due to their soft drink link. The percentage of demand for the particular brand of mineral water is as follows Brand Bisleri Aquafina Kinley Bailey Hello Others Points out of 5 3 4 4. Demand factors Analysis regarding demand of different Mineral Water Bottles The analysis regarding the forecast of demand of particular brand is derived out by taking an average of 100 retailers ranking.

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

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