To study the Indian packaged water industry with focus on
Submitted To: Dr. Supriya Choudhary Reader Submitted By: Megha Jain 06914901710 BBA (G) 1st Shift 3rd Sem

In partial fulfillment of the Requirements for the award of Degree of Bachelor of Business Administration

Maharaja Surajmal Institute Affiliated To:Guru Gobind Singh Indraprastha University


First of all I am deeply indebted to Department of Management, Maharaja Surajmal Institute, Janakpuri , New Delhi for allowing me to complete my research study on ‘To study the Indian packaged water industry with focus on BISLERI’ It gives me immense pleasure to express my heartfelt gratitude to my respected guide Ms. Supriya (Assistant Professor) for providing me articulate guidance and ceaseless encouragement throughout study. I shall be failing in my duty if I do not acknowledge the contribution of my family for their constructive cooperation.

MEGHA JAIN ROLL NO. 06914901710 BBA (GEN) 3rd SEM



This is to certify that the research work entitled ‘To study the Indian packaged water industry with focus on BISLERI’ has been undertaken by Ms. Megha Jain under my supervision in the partial fulfillment of requirement of the graduate course (BBA). The research work is candidate’s original work & this project report has not been submitted to any other university for any course. This is also certified that Ms. Megha Jain is the student of BBA nd 2 year in Maharaja Surajmal Institute, Janakpuri (Affiliated to GGSIPU University).

Project Guide: Ms. Supriya


 OBJECTIVES OF THE STUDY  RESEARCH METHODOLOGY  Sample Size  Analysis  INTRODUCTION  To the domestic packaged drinking water market  MARKET SHARE  COMPANY PROFILE OF BISLERI  Background  The Present  Future Plans  Technology Developments  Purification Process  Product & Packaging




 ANALYSIS AND INTERPRETATION  Consumer Related  Retailer Related  RECOMMENDATION AND SUGGESTION  CONCLUSION  ANNEXURE  Consumer’s Questionnaire Retailer’s Questionnaire BIBLIOGRAPHY


its market distribution and Brand Bisleri in detail. paying for water.OBJECTIVE OF THE STUDY:  To learn about the domestic packaged drinking water market.  To find the retailers view on the mineral water market and to assess the future prospect of the market.  Whether the people of Delhi & its NCR are getting health conscious.  To find about consumers’ and retailers’ brand preference  To see whether there is a threat to the mineral water market from water purifiers and soft drinks.  To find the potential of Mineral water market in Delhi & its NCR.  Whether the people of Delhi & its NCR and happy. 6 .

Collection of secondary data related to the topic from Internet. which one wants to cover. 7 .RESEARCH METHODOLOGY: Starting a research project needs a basic preparation regarding the issues related to the topic selected. Analyze the objective on the basis of information collected by secondary data. 2. Study the market. 5. Deskwork includes: 1. All the above activities at the initial stage of the project must be completed & then the main part follows. Determining the basic objectives of the study undertaken. For this one needs to do some deskwork. magazines & newspapers. 3. 4.

Analysis Then analysis of the questionnaire filled by the consumers & the retailers is done on the percentage base analysis & theoretical base analysis. INTRODUCTION: 8 . I took 50 consumers and 10 retailers as my respondents. They were selected by random sampling method because in this case systematic sampling is not possible since one cannot say whether a person is using mineral water or not.Sample Size Regions of Delhi & its NCR were covered for the study. The analysis formed the bases of the inferences drawn and reaching the conclusion of the study. On the bases of this analysis graphs were prepared showing the relationship between two variables.

Aquafina is owned by Pepsi. Moreover 30% of the whole mineral water customers are travelers. Nestle has Purelife. Since we never consider these things as necessity and especially when we are paying for natural resource like water which is available freely. The advent of the small bottles has increased consumption. these companies are dealing in same market. Bisleri is most popular brand in North India. on an whole there are more than 300 big & small players in the market some of the big players are Bisleri. When governments spoke about providing drinking water to all. Kinley. silver drop. little did one imagine that MNCs would package it and sell it to us. Bisleri is owned by Parle group. the reason behind this may be the growing health consciousness among Indians or nonavailability of pure drinking water. Buying water near the bus stop or at the railway station has become a routine. The bottled water market has recently seen growth. Bisleri is having big contracts like with air Indian & some part of Indian railways. same price & also same capacity. patients or it is used in parties/seminars. Indian water market has many companies selling water. Kinley is owned by Coke. But some small players also have sufficient market share in their local market. royal fresh are very popular in the congested region. 9 .To the domestic packaged drinking water market The concept of bottled mineral is quite a new one for Indian People. like prime. Mcdowell etc. Purelife. Aquafina. Most of the users are daily travelers.

a bottle fits into a handbag and can be carried conveniently. especially the heat and of Indian now live in urban areas. The brand name plays an impression on the human mind. The market of bottled water remained weak and inactive for as long as 20 years. The relaunch of Bisleri in 1994. and individual company levels. 10lts. quality of water is still a major concern. Given the extreme climatic conditions in India.5lt. 20lts and 50lts.Since the early 1990s. 1lt. 5lts. Indian attitude have changed and people are flocking to the cities at a frenetic pace . however. In western countries. The trend of using mineral water for drinking purpose started as a means to take advantage of the therapeutic value of water. 2lts. so do the sales of bottled water. was a success due to the growing awareness and high consciousness of health and hygiene among people. 1. 10 . Bottled water is available in quantities of 330ml. But in many parts of the country. plus the fact people are now prone to dehydration because they commute further for work and social activities. the issues of safe drinking water is more prevalent than ever. the state. This trend gained potential momentum during 1970s and ever since bottled water was exported every year from mineral springs in France and other European countries. the trade association. 500ml. For a particular brand to be certified as bottled water it requires approval on 4 levels namely the Central. Today many medical stores in the city are doing very well with the sale of branded bottled water.the practice of bottled drinking water started during 1950s. The first launch of bottled water in India was the launch of ‘Bisleri’ of Parle company during 1968-69 which was a major flop as the Indian population was not prepared to accept the concept of purchasing water. The advantage it has is unlike the Colas and other drinks dispensed from vending machines. As the mercury soars.

ILL EFFECTS OF DRINKING UNTREATED WATER • Typhoid • Bone deformation • Joint pain • Hardening of arteries and muscles • Gastro – stomach upsets • Excess content of fluoride can lead to flourisis • Arsenic Poisoning COMMONLY FOUND WATER CONTAMINATION SOURCES – • Contaminated storage Tanks • Cross contamination at sources • Leaks in distribution network • Improper functioning of Purifiers • Domestic Waste • Borewell or contaminated ground water • Organic matters • Industrial waste DISTRIBUTION NETWORK OF BISLERI 11 .

Over 100 brands are vying for the Rs 1.000-crore (Rs 10 billion) bottled water market and are hard selling their products in every way possible -.better margins to dealers.And this is how Parle Bisleri began According to the Bureau of Indian Standards there are 1. aggressive 12 .200 bottled water factories all over India (of which 600 are in one state -.Tamil Nadu).

chairman.with Bisleri -. Parle Bisleri created a market out of pure water. The campaign was successful and we were being noticed as someone who catered to the need for safe. Thus.. The PET packaging did not just ensure better transparency -. The Italian name added a dash of class to it. The Strategist takes a look at how it all started -. Felice Bisleri. what could they say about a category that had no market? They didn't know our target group. in 1969 -. Bisleri mineral water was bought from the Italian company. However. 13 . The first print ad campaign captured the international essence and showed a butler with a bow tie. Parle had Thums Up. "Bisleri is veri veri extraordinari" (the spelling of the punchline was designed to capture the consumer's attention).the company had been unable to market bottled water and wanted to exit the market -. it was not an easy product to advertise. catchy taglines. But three decades ago. healthy drinking water. The punchline was..and how Ramesh Chauhan. since bottled water is colourless. holding two bottles of Bisleri.Parle too did not see any potential for the product at that time..advertising. So they merely used the name and launched Bisleri soda with two variants -. It also meant better life for the water. Then. orange drink and lemonade) but no soft drink company was complete without a soda.they could now show sparkling clear water to the consumers. tasteless and odourless. In such a scenario. the real boost to mineral water came in the early-to-mid1980s when they switched to PVC packaging and later to PET bottles.carbonated and non-carbonated mineral water. the earlier brand building efforts focused on Bisleri being healthy with adequate minerals. As a soft drinks company. Gold Spot and Limca (cola.

000 in 1995 to 2. Soft drink sales are in glass bottles and the distribution model is built around picking up empty bottles and getting them back to the factory. The other major challenge was distribution. not only was water scarce. the dealer margin had to be kept high to compensate low sales. In India. But Ramesh Chauhan’s interest was in building brands and not in bottling soft drinks. The quality of water available in the country was bad.Meanwhile. which meant the dealer margins reduced. But that is not enough -. The number of outlets where Bisleri is available has increased from 50. too.000 at present. Currently. Bisleri soda was doing well but they had to discontinue production as they sold their soft drink brands to Coca-Cola in 1993. is useless. That is the kind of exclusivity we look for to get ahead of the distribution network that soft drink companies talk of. It was similar to what Europe faced before World War II. And because of limited sales. Now they had to push sales.50. Hence. though bottled water was something only foreigners and non-resident Indians consumed. the consumption of bottled water is far in excess of soft drinks on such occasions. They don't keep soft drinks but sell Bisleri. Soon customers were ordering bottled water on special occasions. Initially. There was a clear opportunity of building a market for bottled water. for instance. That's not the case with the retail bottled water packs (below 2 litre). they still had to increase the distribution.they need to keep looking for different avenues. they introduced free sampling of Bisleri at the tables where the elderly guests would sit. That's when he started to concentrate on developing the Bisleri water brand. MARKET SHARE: 14 . Take stationery shops and chemists. But a product that's not available where it's needed. which created the bottled water industry there. whatever was available was of bad quality. The quality of water in Europe was extremely poor.

Bisleri continues to lead in the Rs 700-1. KINLEY-28%. despite the brand's sustained national-level presence. 15 . The market size of bottled water is expected to surpass the size of soft drinks market very soon in the near future. AQUAFINA-11%. In terms of volumes. the North and West remain Bisleri's biggest performing markets. OTHERS21% Some of the specifications as per the latest notification (which were effective from April 01). packaged water market with an estimated 40 per cent market share. followed by Kinley at 28 per cent and Aquafina with an 11 per cent share.000 crore organised.Currently. The market has been growing for the last three years at an unimaginable rate of 80%.  The location of packaging should be close to the source or place of origin of water. Aquafina 11% Others 21% Others Bislery Kinley 28% Kinley Aquafina Bislery 40% Individual Market Shares: BISLERI-40%.

So in effect anyone can set up a plant without establishing the source of the water and the technology used to purify it. which is fast becoming one of the principal global markets in bottle water.  The water has to be treated and disinfected in accordance with specifications for it to be categorized as packaged bottle water. 16 .  However the BIS does not lay down any guidelines or practices for processing water and there is no specific industrial licensing policy for the bottled-water sector.  For water to be called mineral water it should also not be subject to any chemical treatments. Till recently India was not a potential consumer for packaged water hence the prospects are now huge. Only water obtained directly from natural or drilled underground sources can be sold as mineral water. it can be sourced from any places. Furthermore in a bit to provide standards for both drinking water and mineral water and to regulate the quality and price of bottled water. BIS approval was made mandatory from the end of 1999. But around 16 applications in packaged water category and 6 applications in the mineral water category are still in the pipeline.  For water to be categorized as packaged bottle water. But with regulations somewhat confusing and contradictory it is likely to be a while before the manufacturers are able to realize their full market potential in a country.  Till December ’2000 only six players have applied for license for packaged drinking water and no company has applied for license in mineral water category.  The new regulations also prohibit any claims relating to beneficial properties of the product and the immediate casualty will be CocaCola with its FFPAI endorsement.

Earlier the packaged drinking water market consisted of five star hotels. he then went on to concentrate on making Bisleri a top selling brand in India. After this plastic packaging was introduced. Bisleri packaged drinking water was available in glass bottles. With factories across India and a strong distribution network. started by Signor Felice Bisleri. Bisleri established itself as a force to reckon with in the domestic packaged drinking water market. Limca and Gold Spot. when Parle Exports took charge of the brand operations and the business took off in the market. Ramesh Chauhan. Being a returnable package owing to various other problems such as breakage and weight. tourists and foreigners. 17 .COMPANY PROFILE OF BISLERI: :: Background In 1967. Recognising the potential of the packaged drinking water market. In 1969. first brought the idea of selling bottled water in India. things started to change. in 1972-73. bought over the brand. As a marketing strategy. :: The Present It was around the year 1995. Bisleri was made available in PVC (Poly Vinyl Chloride) bottles. and sales increased rapidly. It started a company called Bisleri India. including Thums Up. i.e. Bisleri an Italian company. a conscious decision was taken by the company that only 40% of the sales should come from these outlets and 60% from general market. the Chairman of Parle Exports. The upsurge in the sales of Bisleri started in 1993 as Ramesh Chauhan sold off the Parle stable of brands. In those days.

street shops. clean and safe drinking water. Earlier. That thinking has slowly changed to the point where today. making bottled water very economical for the consumer. Such has been the presence and penetration of the Bisleri brand in the bottled water segment. since the source of water itself was unreliable. 5 and 20 litre bottles were introduced to meet this market need. in 1998.paanwallas. general stores and even non-tourists. :: Future Plans Bisleri was the first to market bottled water in a totally virgin market and naturally people associate the brand with bottled water. Some of the future plans to maintain the top spot that Bisleri commands in the Indian market are: • New pack sizes in bottles and cups • Increase the distribution network with an investment of over 200 crores Strengthen presence in traditionally weak areas by setting up 12 new bottling facilities at a cost of Rs. The price per litre went down as a result. a strategy was adopted to concentrate aggressively on the home market. not drinking Bisleri is considered as being behind the times. About few years ago. This brought about a sea change in the perception in the consumer's mind about consumption of Bisleri. Now Bisleri is perhaps already ten steps ahead of its competitors and will endeavour to widen its gap in the times to come. 150 crores 18 • . The bulk packages like the 2. The habit of boiling water or using electronic gadgets was not adequate. drinking bottled water was considered to be more of a status symbol. Bisleri's brand positioning stresses on pure.

where they will collect bottles from various places. crush and shred them. flower vase. This technology development in the product ensures that the consumer will only get a highly safe product when they consume Bisleri packaged drinking water. The unique cap has been patented and cannot be duplicated or tampered with. since PET bottles are not biodegradable and not easy to dispose. PET containers for the non-food industry and other PET items like polyester fibre. Bisleri also recognises the need to produce environment friendly products and is working on the PET project. 19 . The break away seal: Keeping in mind the consumer's need to recognise a genuine product that cannot be tampered with. Bisleri has always been involved in improving its product packaging. to avoid contamination. The company is currently working on the PET recycling project. One such recent development is the tamper proof break away seal. the bottles that are used are blown and filled at the factory itself. Product packaging: To ensure purity of the bottled water. Bisleri developed the break away seal.:: Technology Developments To make sure that the product that reaches the consumer is always of highest standard and also meets international standards. gift items etc. This shredded material will then be made into ropes . The PET Recycling Project: Bisleri is extremely conscious of environmental issues.

water has to be heated to 100 deg.  Bisleri is the brand leader in bottled water category. Boiling may kill the microbes but can not remove other physical impurities and toxic substances.It is time consuming.  Bisleri is trusted by 50 lakhs households across the country. Why Bisleri is pure? At BISLERI plants .WHY BISLERI?  Bisleri is totally safe & protects you from all water borne diseases. water undergoes multi – stage purification process to ensure proper blend of minerals and complete removal of microorganisms and toxic substances. 20 .Celsius. Also .  The water is purified through six stages of purification process that includes reverse osmosis and Ozonation. to kill microbes water should be boiled continuously for a minimum of 20 minutes. For boiling . So a habit of drinking PURE and SAFE BISLERI will ensure a healthy life WHAT ADVANTAGES BISLERI PURIFICATION PROCESS HAS OVER PURIFICATION DONE BY OTHER METHODS? Traditional process of boiling water for purification has its limitations.

These gadgets use either filtration technique or Ultra Violet rays or a combination of the two techniques. ARKAL FILTER : Removes suspended matter and turbidity. PROTECT YOUR HEALTH WITH BISLERI WHICH USES 6 STAGES OF PURIFICATION CHLORINATION : Kills micro organisms. Remove organic matter. The filters are cleaned rarely and all the muck accumulates inside leading to more contamination. 21 . pure and safe for the consumer. through our multi – stage purification process we ensure removal of toxic substances as well as physical and microbiological impurities. toxic substances or microorganisms. At BISLERI . These techniques do not guarantee 100 % purity of water. Filtration removes only the visible suspended particles and not the minute . These purification equipment are incomplete and need continuous monitoring and maintenance.Many home appliances are available in market for water purification. In our state-of-the-art processing plants we follow rigorous Good Manufacturing Practices and strict Quality Assurance norms so each and every bottle of BISLERI is made tasty. invisible particles . Ideally such filters need to be cleaned every day which is cumbersome. Ultra Violate rays kill the microbes but cannot ensure removal of toxic substances and physical impurities.

CARBON FILTER :Removes residual chlorine & odours REVERSE OSMOSIS : Removes organic material. :: Product & Packaging Bisleri is available in a range of sizes. The Bisleri bottled water range comprises the conventional 500 ml.Controls total dissolved solids in the water.Still/Sparkling Bisleri 22 . five litre and 20 litre jars for the home segment. 1. BOTTLED WATER ANALYSIS Spring Water . one litre. MICRON FILTRATION: Additional safety measures of filtration. OZONATION : Ensures water remains bacteria free for longer shelf life. though in very limited numbers for now.2 litre and two litre bottles. and smaller packs sizes of 250 ml cups and 330 ml bottles.

coffee.3 66.6 22 58 7. cold drinks. mixing with drinks  Kneading the dough  Cooking  Mixing with baby foods  Mixing with medicines .1 WHERE CAN WE USE BISLERI ?  Drinking  Making tea.2 13. lassi.8 2 19.PARTICULARS TDS Ph Factor Calcium Chlorides Bicarbonate Magnesium Nitrate Sulphates Hardness Mg/litre 160 7. 23 .

2003: Bisleri says it plans to venture out into Europe and America to sell bottled water :: Vision A major. 1993: Sells carbonated drink brands like Thums Up. 1998: Introduces a tamper-proof and tamper-evident seal. integrated consumer product manufacturing company. transitional. 2000: Introduces the 20-litre container to bring prices down from Rs 10 a litre to Rs 2 a litre.4 per cent. 2000: BIS cancels Bisleri's licence of a water bottling in Delhi since some of the bottles did not carry ISI label.THE JOURNEY TILL NOW: 1969: Buys Bisleri bottled water from an Italian company. diversified. 2002: Kinley overtakes Bisleri. with National Leadership and a strong environment conscience. playing a national role in safe water and Agro based drinks. Felice Bisleri. Sales surge Mid-1980s: Switches to PET bottles. which meant more transparency and life for water. 1995: Bisleri launches a 500 ml bottle and sales shoot up by 400 per cent. Early-1980s: Shifts to PVC bottles.1 per cent compared to Bisleri's 34. Gold Spot and Limca to Coca-Cola for Rs 400 crore. It was bottled in glass bottles then. 24 . the licence is restored one-and-a-half months later. The national retail stores audit by ORG-MARG show Kinley's marketshare at 35.

 To provide better quality of product and services through sustained market research and product development. and making it easily available to the consumer at a very affordable price. keeping in mind all aspects including freshness.  To enhance capital and fixed assets of the group to withstand challenges and tough market trends.  To foster a culture of participation and innovation for employee growth and contribution.:: Mission  To provide the highest quality product.  To achieve international standards of excellence in all aspects of energy and diversified business with focus on consumer delight through value and services of product and cost reduction.  To attain leadership in developing. and total quality management for a strong corporate identity and brand equity with continuous and positive growth. adopting and assimilating state or art technology for competitive advantage.  To cultivate high standards of business ethics.  To help enrich the quality of life of all the communities specially the neglected ones and preserve ecological balance and heritage through a strong environment conscience. 25 . purity and safety.

The fact that there were very few players in the market meant that their business grew by leaps and bounds. Though the fate Indian companies will suffer at the hands of these MNCs makes me sad.branded mineral water -. A few years back. The market today has grown to Rs11bn. MNCs are going to win. The organised sector -. the mineral water market had been crawling at the rate of 3-4%. But increasing cases of typhoid and other waterborne diseases began to be reported. plastic or PUF bottles. The market is proving to be yet another battlefield for an ongoing battle between the desis and the MNCs. the choices the consumers will have makes me happy. In addition to this.CURRENT PLAYERS: The mineral water industry is in a churn. or even a lower figure. Bisleri became a household name and is now generic for bottled water. So far. The market started growing an astounding rate of over 100% per anuum. Bisleri is the market leader as it continues to lead in the 26 . Only time will tell what the final outcome will be but I strongly feel that here too. The rest is accounted for by the unorganized sector which is dominated by small regional players. Indians carried drinking water in earthen pitchers.has only Rs5bn of market share. like in all other markets. liberalization happened and the mineral water industry began to be stirred and shaken. The market is still growing – at a rate greater than 80% per annum. MNCs have been winning. In the branded segment.

MNCs have begun to draw up plans to enter the market. Meanwhile. The first entrant in the bulk water category was Bisleri. the North and West remain Bisleri's biggest performing markets. Sensing the opportunity that this segment holds. The common man’s faith in the product was shaken. However. The 20-litre bulk water packs are targeted at the institutional and the home segment. among the first to challenge Bisleri's near monopoly was Pepsi's AquaFina followed by stiff competition from Parle’s Bisleri and Coca-Cola India’s Kinley. a number of regional players have even started selling plain tap water. entered the segmen 4 years ago. not everyone was put off. However. They carried out the appropriate feasibility studies. while Coke. but not without testing the waters first. followed by Kinley at 28 per cent and Aquafina with an 11 per cent share. packaged water market with an estimated 40 per cent market share. In terms of volumes. despite the brand's sustained national-level presence The boom in the market has also encouraged unscrupulous players to gain an entry. the action is all in Coca-Colas bulk water 27 . through Kinley. The company has also ruled out entering the bulk water segment in India. Many people have fallen sick after drinking this spurious mineral water. Pepsi is aiming to make its brand available throughout the country soon.000 crore organised.Rs 700-1. Over the past five years or so. In the name of mineral water. Bisleri has become a major player in the bulk water segment in the water-starved southern states.

against the conventional snap-on fittings. packaged water market with an estimated 40 per cent market share. is on. priced between Rs Bisleri’s focus on the bulk water market has grown in the past few years. despite the brand's sustained nationallevel presence the fact remains that the new kids on the block are nibbling away at Bisleri's stranglehold over the bottled water 28 . enjoying local clout. the North and West remain Bisleri's biggest performing markets. The 20-litre bulk water packs are targeted at the institutional and the home segment SWOT ANALYSIS: BISLERI Bisleri announced the re-launch of its 20-litre home pack with a more “consumer-friendly format” in thread fitting and valve cap. followed by Kinley at 28 per cent and Aquafina with an 11 per cent share.000 crore organised. mainly owing to the stiff competition posed by innumerable brands in the packaged bottled water market. In terms of volumes. regional players exist side by side. Not only are there big multinational players like Coke with their huge distribution networks. Bisleri continues to lead in the Rs 700-1. The existing 20-litre Bisleri packs are now being withdrawn and the rollout of the new jars.

Good Manufacturing Practices are stringently followed at all times. To ensure Bisleri packaged drinking water is held safe free from contaminations. shelf life studies. forms an integral part of quality and safety assurance plan. as it disintegrates into oxygen within couple of hours Sterilization effect of ozonised water continues even after water is packaged. Strengths: 29 . ultraviolet treatment and ozonisation process is carried out. processing parameters. of which Bisleri commanded a dominant 80 per cent share. components like caps and bottles are manufactured in-house from resins of quality suppliers.segment. microbial quality. thereby ensuring safety of Bisleri up to its final packing. packaging material integrity and finally. To ensure high quality of packing materials. the bottled water market was estimated at about Rs 300 crore. Only three years ago. Ozone is unstable trivalent oxygen. Processing is religiously monitored at every stage. a very powerful bactericide with no side effect. Testing source water.

500 ml.  Good brand awareness and brand positioning. 1.  Has become generic name in the mineral water market. 5 lit and 20 lit.  Availability of Bisleri in all over India with solid infrastructure facility.2 lit.  Product differentiation by introducing patented break way seal cap.  Best service and proper response to dealers and customers. Core business of company.  Focus on customer orientation through low price strategy.  First mover in this business since 1969. 1 lit. Weakness: 30 .  Available in different packs like cups. 2 lit.

 Unreliable municipal water quality.  Lack of proper advertising to create brand awareness.  Lack of technological up gradation.  Bisleri as a daughter company of Parle has a strong presence in India.  Lack of Global Awareness in brand.  Influence of tourists and expatriates. Opportunity:  Indian bottled water industry is still at growth stage.  Institutional sales are not penetrated properly. Pepsi’s Aquafina. 31 . Lack of brand loyalty as MNC’s are entering the market like Nestle’s Purelife.  Market coverage is not fully utilized.

 Coke and Pepsi are already having strong distribution network in bottle water industry with their own fleet of trucks & vans.  Local manufacturers who refill used bottle Hampers the image of the industry.  Tough competition from MNC's like Coke & Pepsi. People are becoming health conscious.  Fluctuation in sales due to seasonality. Bisleri goes green naturally 20 October 2006 32 . Threats:  Numbers of players like Kinley and other local players are present in the market have already captured the market.  Water filters and soft drink industry is a major threat to industry.

The investment would be funded through internal accruals. Priced at a significant premium to packaged water Natural Mountain Water will be available for Rs20 per litre. According 33 . Bisleri has 23 plants across the country producing bottled water. which accounts for about 5 per cent of the total bottled water segment. Bisleri International chairman Ramesh Chauhan said. which pioneered the packaged drinking water business in India.New Delhi: The Ramesh Chauhan-promoted Bisleri International. The likely locations would be in South and West India he said. The plants will come up next year. The brand that was till now marketed as packaged drinking water (cleaned through reverse osmosis) will now be available in a naturalavatar. The company is also planning an aggressive marketing and advertising campaign with a two-year budget of Rs60 crore. is expected to grow by leaps and bounds as health awareness and disposable incomes rise. Launching 'Bisleri Natural Mountain Water' he said the company was looking for four more locations from where we look to source natural water. Bisleri International will invest Rs100 crore for the project which constitutes a Rs40. catering to consumers' need to have hygienic drinking water while on the move or even at home. Bisleri Natural Mountain water will be available in aqua green packaging against the blue packaging of old and will be available in six sizes. Chauhan said the rest of the investment of about Rs60 crore would go into infrastructure development. The natural water segment. Chauhan said the new packaging has been adopted in order to stand apart from the others and in Chauhan's words. we want to differentiate ourselves and hence have adopted this aquagreen colour. is literally changing its colours and going for a makeover.crore investment in two plants in Uttaranchal and Himachal Pradesh in line expansion." he said. "As leader.

"We are in the process of getting the regulatory approvals for the venture." Chauhan said. but would set up a bottling operation there as transportation costs are a huge obstacle in sourcing the product from India. as against Rs220 crore last year. Catch and Leh Berry. vitamin and sparkling water categories. The company is said to be setting up R&D facilities for ice and studying various packaging options. He would not export India-bottled Bisleri into US. Bisleri is projecting a turnover of Rs300 crore this financial year. The bottled water industry is worth Rs1. It is projected to reach Rs5. chairman. The main players in the spring water segment are Himalaya.a turnover of Rs200 crore. A product offering of the World’s No. 1 beverage company. The natural spring water market is very small and accounts for 5 per cent of the entire segment.000 crore in India and is growing at 40 per cent per annum.000 crore by 2010. He said Bisleri was at par with companies in the developed world as far as meeting international standards were concerned. At present Himalaya leads the segment with a 50-per cent market share. Ramesh Chauhan. Bisleri claims to have a 40-per cent market share of the organized packaged water market. Kinley Water is 34 . Bisleri International expects to sell 10 million cases of Bisleri Mountain Water over the next two years. Chauhan says he is also preparing for an entry into the US market with his spring water and is talks with US authorities for this. KINLEY Kinley Water–a product of the Coca-Cola Company-is the established market leader in the drinking water the company the foray into spring water will be followed by an entry into the packaged ice segment (Bisleri Ice) as well into flavoured.

Available in different packs like 500 ml.a polycarbonate polymer (plastic) that is made specially for the purpose. 1 ltr. Unlike other brands which use recycled plastic. In addition to this. The water dispensers are ergonomically designed to suit both domestic as well commercial requirements. Refrigerator Model with Hot and Cold facility Hot and Cold Model Compacta Elegance     Advantages of Kinley:   Good brand positioning. is the promise of delivering ‘Trust in every Drop’. Kinley offers Kinley water dispensers.brought to You with the time-tested expertise of the Coca-Cola. 35 . Kinley bubble tops are made from what is known as Virgin Plastic. Backing Kinley Water. These water dispensers come in four basic models. 2 ltr. Kinley Water’s 25 litre bubble top containers made of Lexan. 5 ltr and 20 ltr.

basically targeting the youth.   Benefit as a product of Coca-Cola. AQUAFINA PepsiCo India launched the packaged water bottle brand Aquafina about five years ago in a 750-ml pack. Focusing on institutional sales to create brand awareness aggressively. 36 . Non-availability of a variety of range like Bisleri. Lack of strong infrastructure.  Use of technological up gradation. Easy availability of product in all over India after Bisleri with solid infrastructure facility. Disadvantage of Kinley:     Lack of proper service to customers. Focus on distributors not on small retailers.

 Focusing on institutional sales to create brand awareness. Advantages of Aquafina:  Strong distribution network. 1 ltr.  Available in different packs like 500 ml. expects its Aquafina brand to turn national by the year-end. Pepsi Foods. even if our positioning is somewhat different.  Good brand awareness and brand positioning.The brand now retails in conventional retail pack sizes of 500-ml and 1-litre bottle Aquafina’s market share in the retail segment is estimated at about 12 per cent and it remains to be seen how PepsiCo succeeds in penetrating the bulk water market.  Benefits as a product of Pepsi.  Easy availability of product in all over India. But we are gradually consolidating our bottled water business.  Use of technological up gradation. 750 ml. "Bisleri is the market leader and a good brand that has been built over the years. 37 ." says Pepsi Food's official spokesperson. too.

 Market coverage is not proper.Disadvantages of Aquafina:  Compared to Bisleri and Kinley the service from Aquafina is not satisfactory.  Focus on wholesalers not on small retailers.  Lack of strong infrastructure. 38 .  Non-availability of a variety of range.

ANALYSIS AND INTERPRETATION CONSUMER RELATED WHICH BRAND DO YOU PREFER WHILE BUYING MINERAL WATER? 60% 50% 40% 30% 20% 10% 0% Bisleri Kinley Aqufina Others Name of Brand Bisleri – Most Preffered 39 Consumer preferences 60% .

Kinley Aquafina Others 20% 12% 8% NUMBER OF RESPONDENTS USING MINERAL WATER FREQUENTLY 40% 35% 30% 25% 20% 15% 10% 5% 0% Always Always 20% Often Often 27% Sometimes Sometimes 38% Never Never 15% According to the survey conducted in Delhi & its Ncr it was analyzed that 38% of the mineral 40 .

RESPONDENTS CHOICE AMONGST MINERAL WATER AND SOFT DRINKS 60% 50% 40% 30% 20% 10% 0% Mineral Water Soft Drinks Mineral water 55% Soft drink 45% Determining whether. in a thirst condition. an average individual opts for mineral water or 41 .water users go in for an occasional use while there are still 15% of the respondents who never go for packaged water.

one can observe that the ratio is quite similar still more preferring Mineral water. 42 . BRAND AWARENESS OF MINERAL WATER AMONG RESPONDENTS 50% 40% 30% 20% 10% 0% 0 to 2 3 to 5 6 to 10 10 & above Brands 0–2 3–5 6 – 10 10 and above Respondents 40% 50% 10% 0 The observation shows that most of the people know only about the main brands which are owned by the big companies and are advertised hugely.soft drink. Mainly 3 –5 brands only comes to the minds of the customer in regards to mineral water.

5 ltr 1 ltr SIZE 5 ltr 20 ltr Size of Bottle (in ltrs.CUSTOMER PREFERENCES FOR BOTTLE 60% 50% 40% 30% 20% 10% 0% 0.) 0.5 ltr 1 ltr 5 ltr 20 ltr 60% 50% 40% Consumer preferences 60% 20% 5% 15% 100% Total 30% CUSTOMERS PREFERENCES REGARDING PRICE WORTH OF MINERAL WATER 20% 10% 0% 43 Yes No .

Respondent’s view % of respondents Yes 42% No 58% The observation shows that most of the people are not happy paying the price. They feel that the price should be a little lower. the companies are charging for the product. 44 .

45 . people who do not watch much of a TV generally does not know the importance of ads. In the interior parts.EFFECT OF ADVERTISING ON 54% 52% 50% 48% 46% 44% 42% Yes No PURCHASE Respondents perception % of respondents Yes No 46% 54% The observation shows that most of the populations buy the Mineral water just for the sake of buying it rather than buying it due to its advertising. So they buy it only for the sake of buying it. Very few people are actually affected by the advertisement of the product.

46 . The reason being the knowledge of the fact that the normal water which we get is not always very hygienic and may cause many diseases.GROWING HEALTH CONSCIOUSNESS AMONG INDIANS 80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No Yes 73% No 27% The observation shows that most of the population in Delhi & its NCR now a days is getting Health Conscious.

The survey was based on retailers. 35% of retailer go in for advertised products and non-advertised products do not have any weight Around 60% retailer believe in the combination of both (advertised and non-advertised version).RETAILER RELATED OBSERVATIONS AND FINDINGS TYPES OF BRANDS RETAILERS KEEP 70% 60% 50% 40% 30% 20% 10% 0% Advertised Non-advertised Both Advertised 35% Non-Advertised 5% Both 60% According to survey. 47 .

SIZE OF BOTTLE SELLING MORE 60% 50% 40% 30% 20% 10% 0% 0.5 Ltr 1 Ltr 5 Ltr 20 Ltr Size of bottle % of respondents 0. 48 .5 Ltr and 1 Ltr version are selling well but 5 ltr are selling very less as compared to others.5 ltr 60% 1 ltr 20% 5 ltr 5% 20 ltr 15% Surprisingly both 0.

The growth rate has been very high.GROWTH DURING THE LAST FIVE YEARS ACCORDING TO RETAILERS 60% 50% 40% 30% 20% 10% 0% Advertised Nonadvertised Both Retailer’s view % of retailer Yes 67% No 33% Last five year seen a tremendous growth in the mineral water segment. owing to increased health consciousness amongst the population. 49 . arising from scarcity of potable drinking water.

FUTURE PROSPECTS OF MINERAL WATER MARKET 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Excellent Good Average Poor Retailer’s prediction % of retailers Excellent Good Average Poor 42% 30% 15% 13% Saturation for mineral water market is expected with in the next 5 years after which the market will stabilize from today’s point of view the market looks quite disruptive because of heavy competition. 50 .

For observing retailers. 3..Aquafina 51 . It was a mixed reaction of the retailers when asked about the highest margin paid to them by a company out of 100 40% . Here two basic question as to which brands are selling more and which one is being supplied more were combined. 1.e. This indicates that the retailers prefer only the main brands.Kinley 15% . 2. 20 retailers were identified in some of major areas in the city. 5. Most of the retailers usually keep highly advertised brands. Following inferences were drawn …. and 500 ml bottles with certain exceptions.Bisleri 20% . The answer was obvious and i. the one which is sold more is supplied more and it is ‘Bisleri’ (in most cases). The retailers’ answers as to which size of bottle is selling more were inclined towards the 1 ltr. Initially we enquired about the numbers of brands that the retailers sell and most of them specified not more than 3 – 4 . 4.

52 .  The market is too congested and confused in the Delhi & its Ncr region.  Retailers need to concentrate on 5 and 20 litr bottle which can be possible only if properly advertised & home delivery of jars are done to the end customers. stalls to beat local brands & create awareness. so the company should properly promote & strengthen the distribution channel to survive the competition.15%-others RECOMMENDATION AND SUGGESTION  Campaign.

Trend signifying increasing health consciousness amongst Indians could also be observed.CONCLUSION After analysis of the data & facts we have collected from consumer & the retailers & matching them with the objectives one can say that there is very good future for mineral water market. Finally from the data collected at both primary and secondary level one can confidently say that Bisleri as packaged water brand is the current market leader. On the question of survival of so many companies government has made policies & restrictions from April 2001 which will force many manufactures to shut down their factories. But due to potential in the market companies with quality product will survive. 53 . It could also be observed that the living standards of the People improving & as they are becoming health conscious are ready to pay for water now. Market has seen a tremendous growth from the early nineties & now it is increasing by 70% to 90% every year so one can easily say there is great potential in the mineral water market. Soft drink market might be some threat to the mineral water at present but within few years the scenario is going to change.

________________________ QUESTIONS Q 1.How often do you consume mineral water? a) Always c) Often b) Sometimes d) Never Q 2.ANNEXURE CONSUMER QUESTIONNAIRE Name of the respondent______________ Address of the respondent____________ Contact no. When felling thirsty you opt for? a) Mineral water b) Soft drink Q 3. How many brands of mineral water are you aware of? a) 0-2 c) 6-10 b) 3-5 d) 10 and above 54 .

meeting. Under what circumstances you opt for mineral water? a) While traveling b) During parties. Do you think the price the companies are charging.Q 4. Which size of bottle do you prefer? a)500 ml c) 5 ltr b) 1ltr. Do you think mineral water is much more hygienic than normal water? a) Yes b)No Q7. is worth the product? a) Yes b) No 55 . d) 20 ltr Q6. seminars c) When drinking water is not available d) During illness e) Others Q5.

Which brand do you prefer while buying mineral water? a) Bisleri c) Aquafina b) Kinley d) other 56 .Q8. Does advertising of this product has any effect on your purchase? a) Yes b) No Q9. Do you think Indians are getting more health conscious day by day ? a)Yes b) No Q10.

Which size of bottle is selling more? a) 500 ml b) 1 ltr 57 .________________________ QUESTIONS Q1. Which brand is selling more? a) Bisleri c) Kinley b) Aquafina d) Others b) Non-Advertised b) 3-5 Q4. What types of brands do you have? a) Advertised c) Both Q3.RETAILER’S QUESTIONNAIRE Name of the respondent______________ Address of the respondent____________ Contact no. How many brands of mineral water do you sell (specify)? a) 2-3 c) More Q2.

On which brand do you get more margins? a) Bisleri c) Kinley b) Aquafina d) Others Q 6.c) 5 ltr d) 20 ltr Q5. Do you feel there is growth in the mineral water market in the last 5 years? a) Yes b) No Q 7. What is the future prospect of this market? a) Excellent c) Unlike b) Good d) Poor 58 .

 Cable Network  Internet  Britannica Encyclopedia 59 .BIBLIOGRAPHY PRINT MEDIA --- Business World A&M  Economic Times  Business India VISUAL MEDIA…….

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