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)

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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 (porter’s 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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where contaminated water continues to bring down millions with diseases such as diarrhea. typhoid. At home most people are forced to either boil water or install purifiers. 3 .1 INTRODUCTION “Water water everywhere But just a little that is clean” Water. Especially in India. Sixty per cent of our body weight is made up of it. While traveling or eating out in restaurants. Water can also be the cause of much misery. Even a toddler will tell you it is a prime need of the body. dysentery. The fountain of all life. buying bottled water has become a necessity. Getting pure drinking water from municipal taps in cities and towns is now a luxury. This need has seen an explosion of companies marketing “safe drinking water” in bottles across the country. jaundice and gastro-enteritis.

it can be categorized that way. are waters for human consumption and may contain minerals. Accordingly. In compliance with international regulations. However. It must be calorie-free and sugar-free. other than natural mineral waters. flavoring or other foods. bottled water is sealed and packaged in sanitary containers. If a bottled water product is found to be substandard. naturally occurring or intentionally added. This can’t happen in case of tap water. it can be recalled. de ionization or reverse osmosis.2 TYPES OF WATER Packaged waters Packaged waters. drinking water is water that is sold for human consumption in sanitary containers and contains no added sweeteners or chemical additives (other than flavors.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. when bottled water is sourced from a community water system the product label must state so clearly.largely from underground aquifers and springs . Flavors. may contain carbon dioxide. sweeteners. and does not have to state on its label that it is from a community water system or from a municipal source. naturally occurring or intentionally added. but shall not contain added sugars. According to regulations in the US.2 PACKAGED WATER 2. but they must comprise less than one-percent weight of the final product or the product will be considered a soft drink. if the water is subject to distillation. 4 . While bottled water originates from protected sources .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. extracts or essences). 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. 2. extracts or essences may be added to drinking water. Processing methods such as reverse osmosis remove most chemical and microbiological contaminants.

There shall be a natural force causing the water to flow to the surface through a natural orifice. or "reverse osmosis water" if the process used is reverse osmosis.Mineral Water Bottled water containing not less than 250 parts per million total dissolved solids may be labeled as mineral water. Spring water It is water derived from an underground formation from which water flows naturally to the surface of the earth. Other suitable product names for bottled water treated by one of the above processes may include "distilled water" if it is produced by distillation. No minerals can be added to this product. Purified Water Water that has been produced by distillation. deionization. The location of the spring shall be identifiable. They have been rendered fit for human consumption or have passed through community water supply or have had the composition significantly changed. 5 . 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. "de-ionized water" if the water is produced by deionization. Spring water shall be collected at the spring or through a bore hole tapping the underground formation feeding the spring. reverse osmosis or other suitable processes can be labeled as purified bottled water. 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.

Thumps up. The market remained dormant for quite long (for a period of 20 years or so). The tradition of bottled water and mineral water is not very old. sell off of local soft drink brands of Campa. for bathing due to its supposed therapeutic value for rheumatism.3 OVERVIEW OF THE INDUSTRY Now around 100 companies sell an estimated 424 million liters of bottled water valued at around Rs. Gold Spot etc by Parle to Coke and other factors led Bisleri to test waters again. The market through out this period was formed only by the premium products that too available through 5star hotels. In India. By this time with exposure of media and exposure to international life styles. This started the trend of using mineral water for drinking purpose to exploit the therapeutic value of the water. The brand was later sold off to Parle in 1968-69. In 1967 Bisleri set up a bottling plant for manufacturing and marketing its mineral water but failed. especially hot springs. deteriorating levels of potable water. coming in of cola majors. Bisleri re-launched its bottled water in 1994. 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. arthritis. skin diseases. 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. increase in a number 6 . deteriorating levels of potable 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. with exposure of media and exposure to international life styles. Depending on the temperature of the water. it can be used to cure different ailments. and various other ailments. Since ancient time people have used water from mineral springs. and the climate at the spring. Even in western countries the practice of bottled drinking water started in 1950s. 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. increase in a number of water borne cases. 200 crore in the country annually. The trend of having mineral water gained grounds in the market. the location. the altitude. In early 1990s with onset of liberalization policy by the Indian government.

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. increase in awareness about health and hygiene and other related factors led to acceptability of concept of mineral water. 7 .of water borne cases.

Rural population is not using the packaged water. 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.4 SWOT ANALYSIS OF THE PACKAGED WATER INDUSTRY STRENGTH The industry is growing @ 40%. Huge population & untapped market. Any local person can start manufacturing. Not very economical Quality not properly maintained e.g. THREAT • • Many substitutes available Too many players will dilute the market & the profit margin 8 . 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.

Bailey. 9 . tap water and the most economical drink Nimbu pani.5 INDUSTRY ANALYSIS (PORTER’S FIVE FORCE MODEL) Potential Entrants Industry Rivals Supplier Power Buyer Power Substitutes The Industry Competitors in the bottled water market are Bisleri. Ganga. Evian. Kinley. aqua guard. Yes. The Potential Entrants are HUL water purifier and various new local brands that come in the market. The Substitutes in this industry would be soft drinks. Perrier and various other local brands. When the company’s 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 industry estimates that bottled water is the fastest growing beverage segment and is immediately followed by the soft drink/aerated beverages market The Supplier’s Power also should be considered while analyzing the industry. Shaw Wallace is also in a process to enter the bottled market in the premium segment. Aquafina. Himalayan.

From existing competitors of various sectors. all at the expense of seller’s profitability. This power is prevailing in the industry where there are many brands fighting for there existence or for their share. 10 . Distribution network well oiled Excellent brand recall People may be unable to shift perception from milk provider to water segment.1 AN EXAMPLE OF A NEW ENTRANT In case AMUL were to enter the market of bottled water. 5. here is a SWOT of Amul STRENGTHS WEAKNESSES Brand name of AMUL Core competence lies in milk and dairy products. and set competitors against each other.The Buyer Power should also be considered when the buyer will demand more quality or service. 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. One of the ways to defend themselves would be to develop superior offer that strong buyers cannot refuse.

• While there is no aversion to consumption of mineral water by any age group. Drinking bottled water is a sign of a rise in the social scale. 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. Bottled water is perceived as a healthy alternative to other beverages. same as that of soft drinks and fruit beverages. Higher living standards and auto usage enable people to easily bring home more and heavier bottles of water. • Brand loyalty is very low as all the products taste the same so they can buy just any product which is on the shelf. Consumers often drink bottled water as an alternative to tap water. Moreover. • 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. can also explain the popularity.6 CONSUMER HABITS AND PRACTICES • Consumers are growing more health conscious and are more careful of their drinking habits. bottled water has become a huge marketing success. 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. 11 . • Availability in the chilled form and brand awareness plays a crucial role in purchase decisions. next to the computer and the telephone. natural mineral water is perceived as “natural” by city dwellers looking for genuine products. causing declines in tap-water quality. a bottle of water is now a common sight on the desk. At the office. Because it is untreated. Thus. increasing urbanization. Above all. Consumers buy bottled water to feel well and to lose weight. for the aerated beverages bottled water offers a potential threat.

5 litres. parties. 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. 1. Aquafina etc. travel. tourism. The institution market is largely constituted by the hotel industry. Bailey. All other brands like Bisleri. hospitals etc. Evian of Danone group. 2 litres. Resorts Resorts In-flight kitchens College canteens General Stores etc 12 . Clubs. Himalayan. belong to popular or plain bottled water category. Kinley. 1. belong to premium local natural mineral water category.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. Gymkhanas Hotels. and 5 litres. 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. offices. Perrier and San-Pellegrino of Nestle belong to super premium category. The SKUs that are available in this market are 5 litres and above besides this we have pack size of 250ml plastic cups. The packaged drinking water market is often categorized as per the clients they have: • • • • • • • • • Theatres / cinema halls/ multiplexes Corporate Caterers Picnic spots. Brilliant etc. caterers. 1 litre. Some of the most consumed SKUs in retail market are 500ml.2 litres.

The market is witnessing launch of a number of player with every passing day. and then leave once the season is over. Many more like Nestle. reap benefits by packaging tap water and selling as pure mineral water. PepsiCo have launched their products 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. PepsiCo and Coca-Cola too have market share in the range of 8-9% individually. 7bn is in the hands of organized sector and rest is with unorganized sector. HUL have evinced interest in the market. 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. Besides these we have a number of fly-bynight operators who enter the market in summers. 13 . the bottled water industry is one of the most thriving sectors in India. The problem in the market is not with the players but with the consumers. Rest of the organized market is well distributed among small regional players. Britannia. Poverty levels. illiteracy has led these players to take full advantage of consumers by selling even the tap water as mineral water. Presently the market is skewed towards regional players and has more than 250 players in the fray. The Rs 1. 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. Genie is out of the bottle! Indeed. Total bottled market has a size of Rs. this can be explained on account of the lower base of previous years. the brand launched by the Ramesh Chauhanpromoted Parle Bisleri. thanks to aggressive marketing by multinationals. There has been erosion in the retail market share of Bisleri. In the organized sector Bisleri is the market leader with 60% market share.200 crore branded packaged water market. 11-12bn of this around Rs. The market for the past three years has been growing at unimaginable rates of more than 80%. is now witnessing intense competition with multinationals entering the fray and is also reeling under the high input costs. which was once synonymous with the desi Bisleri.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.

Fashion Conscious Like soft drinks. Hotels.9 MARKET SEGMENTATION 9. drinking mineral water is also considered fashionable by some people. It is positioned on a prestige platform for the achiever segment . This is also the segment of fruit drinks. This segment gets the maximum sales. These are mainly for institutional sales (Wedding parties.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. PET bottles The size of the PET bottles varies from 10 to 20 litres. The mineral water consumer is mainly in the age group of 20-35 years and is an educated middle class person.2 THE MINERAL WATER MARKET IS ALSO SEGMENTED ALONG PACK SIZES: One litre bottle This is meant to spell safety and security for consumers. etc. which have usually been positioned as fun and health drink for young adults. 9. 500ml bottle This size has been introduced in the market to target the individual and local travelers. Domestic Tourists Domestic tourists have switched to mineral water mainly because of safety and hygiene factors.who likes to make a fashion statement by drinking mineral water. Corporate.) 14 .

which did not quite work. the company has focused solely on bottled water in India. Parle Bisleri is credited with revolutionizing bulk bottled water in India through the introduction of innovative 20-litre jar packaging. It is a private company owned by Ramesh Chauhan. Ltd. it owns a large percentage of shares in the Indian market and also it has its presence in International Water Market. Parle Bisleri has tried to differentiate its brands from the competition. The company sold off the Thumps Up and Gold Spot brands to Coca-Cola India in the early 1990s. The company developed consumer-friendly packaging for its 20-litre jars by adding threaded fittings and valve caps. following the attempt of many regional players to emulate the look of the company’s brands. In 1967. The company shifted its slogan from "Pure and Safe" to "Play Safe". an Italian entrepreneur. 15 . Since then.” 10. as opposed to other brands that feature snap-on fittings. These innovations facilitated easier draining of water from the jar.FELICE BISLERI. BISLERI set up a plant in Bombay for bottling and marketing actual mineral water.2 COMPANY BACKGROUND Parle Bisleri Ltd is the biggest domestic player in soft drinks in India. By 1969.3 HISTORY The origin of BISLERI lies in Italy and the brand owes its name to its founder MR. 10. Due to the vast number of players present in bottled water in India. 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. Since then it has come a long way.10 BISLERI .Parle Bisleri Pvt. Now. intending to turn it into a soda brand. BISLERI wanted to exit the business and to help him out the Chauhan’s bought the brand.

Sales surge Mid-1980s: Switches to PET bottles. is bottled in two plants in Uttarakhand (formerly Uttaranchal) and Himachal Pradesh. • Parle Bisleri’s latest product.10.4 JOURNEY OF BISLERI 1969: Buys BISLERI bottled water from an Italian company. 1993: Sells carbonated drink brands like Thumps Up. 2000: Introduces the 20-litre container to bring prices down from Rs. 2000: BIS cancels BISLERI'S license of water bottling in Delhi since some of the bottles did not carry ISI label.4 per cent. 10. 2006: the Bisleri brand was extended to mineral water with Bisleri Mountain Water. This ensures an extensive reach for the company’s products. The company plans to invest Rs100 million to increase the new brand’s manufacturing and distribution capacity. Bisleri Mountain Water. 1998: Introduces a tamper-proof and tamper-evident seal. the license is restored one-and-a-half months later. Felice Bisleri. The company reportedly has plans to increase production capacity further in 2008. which meant more transparency and life for water. 10 a litre to Rs.1 per cent compared to BISLERI’S 34. 2 a litre. 400 crore.5 PRODUCTS Production • Parle Bisleri Ltd operates a network of 55 plants spread across the country. 2003: BISLERI says it plans to venture out into Europe and America to sell bottled water. Gold Spot and Limca to Coca-Cola for Rs. 2002: KINLEY overtakes BISLERI. 1995: BISLERI launches a 500 ml bottle and sales shoot up by 400 per cent. 16 . The national retail stores audit by ORG-MARG show Kinsley’s market share at 35. Early-1980s: Shifts to PVC (Poly Vinyl Chloride) bottles. It was bottled in glass bottles then.

located in Uttaranchal and Himachal nestled in the vast Shivalik Mountain ranges. Bisleri Mountain Water: Bisleri Natural Mountain emanates from a natural spring. Lauded as today's 'fountain of youth'. 500ml. 1.Bisleri with added Minerals: Bisleri Mineral Water contains minerals such as magnesium sulphate and potassium bicarbonate which are essential minerals for healthy living. 2 litre and 5 litres. 17 . 1 litre.5 litre. Bisleri Natural Water is bottled in its two plants in Uttaranchal and Himachal Pradesh and is available in six different pack sizes of 250ml. Bisleri Natural Mountain Water resonates with the energy and vibrancy capable of taking you back to nature. They not only maintain the pH balance of the body but also help in keeping you fit and energetic at all times.

4. For example: . They buy only BISLERI water because it has became generic name for mineral water. Trust for Brand: More than 50 lakhs people trust the BISLERI. This ensures that water supplied is fresh and bottles are in good shape.11 SWOT ANALYSIS OF BISLERI STRENGTH 1. Good manufacturing are the strength all the time processing in religiously monitored at every stage. It acquires 6 stages of purification processes which ensure quality water which is pure and safe for drinking purpose. TV is backed by a Hoarding & point – of – sale material. 3.1 litre or 500 ml pack is useful for individual buyers. For example: . Quality standard: Every bottle of BISLERI is put through a rigorous Multi stage purification processes which includes micron filtration and ozonisation. 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. 12 litres or 20 litres is useful for organization. Large Range of Products: BISLERI offers a large range of products which attracts consumer of all categories.000 outlets in the country. Marketing: BISLERI is promoted by an aggressive print & TV.All vehicles used for supply have been painted in light green. Therefore it attracts large number of customer. For example: . bears the BISLERI logo & sport catchy baseline likes “drink and drive”. 2.When people go to buy the mineral water many of them ask for BISLERI. 5. Every interface with customer is used as an opportunity to reinforce. even though they get other brand. 18 . BISLERI has more than 80. Distribution System: With little belief in the distributor system.

Experience of Mr. He is pursuing a multi. Chauhan knows that distribution plays a crucial role in the successful marketing of bottled drinks. For example: .pack and multi. Many have witnessed used bottles being refilled at railway stations.price strategy. Indirectly this is reducing the coverage of BISLERI. This deteriorates the brand image of BISLERI. The 12 litre product is hit in various cities of south. 7.Chauhan (M. For instance the water scarce south people spend large some of money to buy water and still more to purify it. Growing Popularity: The popularity of BISLERI is increasing rapidly day by day. The dealer margin is reduced due to this . 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. This reduces the profit of company. 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. He knows that making fresh water available within a particular period of time is crucial for its success. They are supposed to buy the impure water and then they have to spend money to purify it. Mr. BISLERI is seeing a growth of almost 50% per year. 19 . In this way brand of BISLERI gets affected.6.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. Today 60-70 % of total income of BISLERI comes from its bulk segment and the company is planning to increase it up to 80%.D of Bisleri) From the vast experience of marketing Gold Spot and Thumps Up.therefore not many dealer keeps BISLERI in many areas. 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. 2. 8. 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. 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.

So People are forced to use other brands of mineral water. The bottled water market which worth Rs. It will create an international brand image and the quality will increase. Fast Growing Field: The best beverage for India in the new millennium seems to be water. Faults in Production: Tests conducted by various authorities’ shows that it contains pesticides. In recent years. 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. OPPORTUNITY 1.3. In 2002 the 2cm long insect was found in the bottle of BISLERI. This will also compensate the deterioration of image. It will silence the critics and it will also increase the faith of the customer for the brand. Bisleri Can Utilize Its Distribution Chain: With BISLERI becoming a generic name for bottled drinking water. Expansion in Europe: The launch of BISLERI in the European market on 4th September. with a host of new entrants. 20 . 2003 has created a lot of scope for BISLERI in the field. This has affected its sales and reputation. 3. 1000 crore is expected to be Rs. the bottled drinking water market has been witnessing high decibel level of activity. It is constantly under check by various authorities. If company can manage the distribution chain of the product to make it available where the consumer needs it the most. This will increase a lot of scope for bottled water market. 4. The license of its two factories one at Noida and other at Bangalore has been cancelled because of fault in production. BISLERI has suffered after insect was found in the bottle. This is affecting the demand for the product. 5000 crore by 2010. For this the company can connect it with dealers and other distributors who will market the products for them all around the world. 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. Pressure by Government Authority:After insect was found in the bottles. the company may well succeed in his gamble with water. 2. 5.

the biggest player in the premium water range which sells its 1 litre water at a hefty of Rs. THREAT 1. Even Hindustan lever is planning to enter into the market. Pepsi. 3. 5. 2. DS FOODS with CATCH are also coming. Launch Of Premium Pack: The company also has its premium product range. Coke. 21 . Britannia. They have been marketing there purifiers in the market which has decreased the sales of bottled water supply to homely customers. BISLERI is not safe. which is launching its product AQUA-PURE and Tata-Tea is looking forward to but Himalayan. Also Britannia which is distributing EVIAN is planning to launch its own brand. 20 per litre. There are also new entrants ATCO with BRILLIANT water. This will give a tough competition to the EVIAN. By changing the color. Nestle —is keen on raising their stakes in this market. This pack will be sold at Rs. 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. With the cut throat competition between Coke and Pepsi. 6.85 per litre.4. Due to this the heavy weights are eyeing the market. It has changed from blue to green. This is prepared keeping 5-star hotels and other premium customer. Among them major names are Godrej. the company has provided a new product to the consumers. Market Is Eyed By The Big Players: The growth of the market indicates the need for the mineral water. Entering Of New Players: To get some share in the market many new players are entering in the market. This will increase the production capacity of the company. they will be getting a new and a refreshing product. this will increase the competition. 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). This is giving a tough competition to the current water brands including BISLERI. Change of Image: The company has changed the color of the product.

Illegal Manufacturers: Company is facing a tough competition from illegal manufacturers in the rural areas. This could disturb the network. Now by introducing the new policy government is going to impose tax on the extraction of the ground water. This rings the warning bell for BISLERI because among other players Kinley and Aquafina are having a strong distribution network of Coke and Pepsi. 5. The companies can compensate the high production cost by reducing their marketing expenses but this will keep the consumer unaware about the product. New Government Policy: For preparing 1 litre of mineral water 3 litre of ground water is required. There are 1000’s of illegal manufacturers which are providing the water at a very cheaper rate. This is also effect the quality of the bottled water. For example: .e. The illegal manufacturers provide water at a very cheaper rate then the branded manufacturers. Government was not charging tax on the extraction of the ground water. Nestle will be banking on its chocolate distribution network. 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. 22 . Strong Distribution Channel of the Other Manufacturers: Analysts feel that BISLERI’S break away seal will not at all be effective the company having strong distribution channel will only survive.4. This companies also use the fake name of branded bottled water i. This is a serious problem for branded manufacturers. BISLERI and supply their products in the market. 6.A chemist who is selling the 1 litre pack may not sell the 20 litre pack. Even though the BISLERI has a strong networks but its concentration on bulk segment can lead to improper network.

shopping malls. In addition. With mineral water priced at a significant premium to packaged distilled water. the company aims to move up the value chain. • In 2007. The label on the bottle also features mountains and glaciers emphasizing the purity of Bisleri. • Bisleri plans to introduce vending machines for its packaged drinking water. the company also increased advertising in the media. airports and other high traffic points. which enables the company to use less plastic in the packaging and significantly improves margins. It enjoys strong brand equity in the country as Bisleri is synonymous with bottled water to most consumers. having been present on the market for more than 30 years. the Bisleri brand was extended to mineral water with Bisleri Mountain Water. The company also changed the shape of the Bisleri bottle to create a wider neck. especially television. a first initiative of its kind by any branded water company in India. which the company is aiming to target at upper middle-class consumers in on-trade establishments and institutions. • In a bold move. and the growth of bulk bottled water sales to homes has also helped to increase volume sales. 23 .12 MARKETING INITIATIVES • The break away seal: keeping in mind the consumers need to recognize a genuine product that cannot be tempered with. in a bid to differentiate it from other brands on the market. • In 2006. This technical strength ensures that the consumer will only get a high safe product when they will drink BISLERI. Bisleri has tied up with vending machine company Grabbit to set up automated machines in offices. Parle Bisleri revamped the packaging of Bisleri from blue to aqua-green. Bisleri enjoys first mover advantage in bottled water. The unique cap has been patented and cannot be duplicated.

Thane District) Three C&F for catering Mumbai Market • • • Vidyavihar Kandivali Sewri For 1 Litre.13 COMPETITORS HINDUSTAN COCA COLA BEVERAGES PRIVATE LIMITED Company: Hindustan Coca cola Beverages Private Limited Brand: Kinley Product: Packaged Drinking Water Quality: ISI Marked. They have tracked Mumbai through various routes and accordingly they service. Packaging: Pet Bottles. They have appointed HDA (Home delivery Agent) for some area to sell their product. etc. Banking on Parent Brand. Distribution Weakness: • Not been able to penetrate in interior area since they have not appointed Distributors in most of the area. Jar Kinley sell their products through their own network only. Distribution: Bottling plant (Wada. Polycarbonate Jars Target Market Segment: Health Conscious people Positioning: Safe Water Trade Promotion: Effective TV ads (Boond Boond mein vishwas). Mobile Van. For 20 Litre. The Company directly approaches the retailer. 24 .

Aquafina packaged Bottles water is given in a scheme to promote their Beverages brand.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. The Company directly approaches the retailer. Polycarbonate Jars Target Market Segment: Health Conscious people Positioning: Safe Water 25 . PARLE AGRO PRIVATE LIMITED. etc. Banners. 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. Distribution: Bottling plant (Chembur. Kanjur Marg For 1 Litre. Roha) Distributor for catering Mumbai Market • • • Jogeshwari Sewri Chembur. They have tracked Mumbai through various routes and accordingly they service. • • Many times their products are not available in the market. Company: Parle agro private limited Brand: Bailey Product: Packaged Drinking Water Quality: ISI Marked Packaging: Pet Bottles.

Nepeansea road. They have appointed Distributors in North Mumbai and other parts. Fort. MRP: Rs. etc. For 20 Litre. No Advertisement. etc. The Company directly approaches the retailer. Push Strategy Distribution: For 1 Litre. (Nariman Point. jar They have appointed 4 Distributors in South Mumbai. Central Mumbai) 26 . jar Bailey sells their product through their own network in South Mumbai. Polycarbonate Jars Target Market Segment: Health Conscious people Positioning: Pure Water Trade Promotion: Direct Selling. Panvel) Two Go downs to cater Mumbai Market • • Jogeshwari Vikroli For 1 Litre. Lack of Aggressiveness.Trade Promotion: Mobile Van Distribution: Bottling plant (Patalganga. Lethargic Approach towards Market. Distribution Weakness: • • • The Company is losing out its share on every front. They have tracked Mumbai through various routes and accordingly they service. The Product is available at very few selected places Company direct handle the distribution of their product. 12 (One Litre) For 20 Litre. BRILLIANT Company: Brilliant Product: Packaged Drinking Water Quality: ISI Marked Packaging: Pet Bottles.

Packaging: Pet Bottles. HIMALAYA Company: TATA Product: Packaged Drinking Water Quality: ISI Marked. Low on Advertisement and other awareness program. Distribution Weakness: • • Lack Aggressiveness Slow and steady approach 27 . Target Market Segment: Health Conscious people Positioning: pure mountain Water Trade Promotion: heavy advertisements & traditional promotional activities.Distribution Weakness: • • Not been able to penetrate in the Market.

28 .) 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. accepts the price.14 PACKAGING AND PRICING PRICE (in Rs. so greater chance of accepting the price. Quality of the product initially would be accepted.

Product cannot be positioned as a premium product 29 .Disadvantages: • • No reason for the consumer to shift the product when the price is same.

• The PFA rule on mineral water is that it must be free from dirt.e. 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. aluminium and barium 30 .15 LEGAL REQUIREMENTS The bottled water industry is governed by PFA and BIS standards. transparent and tamper-proof bottles made of polyethylene conforming to the IS 10146 standards. typhoid. • Both the PFA Act and BIS state that the water must be completely free of bacteria like salmonella. 1954. colourless. • The standards laid down under PFA Act do not prescribe any minimum quantity of minerals to qualify as mineral water. while drinking water is not under its preview. foreign matter or any other ingredients injurious to health and has to be packed in clean and sterile containers. cholera and shigella that cause a range of illnesses such as cholera. There is no specific industrial licensing policy for the bottled-water sector. Some of the key highlights of these legislations are: • Mineral water is covered under the Prevention of Food Adulteration Act (PFA). health-related mineral salts. v. mercury. • Drinking Water is excluded from the purview of the (PFA) Prevention of Food Adulteration Act. whose stipulation is mandatory. E-coli.f. 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. dysentery and various types of gastro-enteritis • Both the PFA and BIS lay down standards for metals like lead. arsenic. end of 1999 • Mineral water shall be packed in clean. BIS approval has been made mandatory w. • 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. • 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. 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. faecal streptococci. • The Prevention of Food Adulteration Act (PFA) of 1954.

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 ***** 31 .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.

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