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1. INTRODUCTION …………………………………………………………………1
2. AN INSIGHT INTO BOTTLED WATER INDUSTRY IN INDIA………………2
3. BISLERI ……………………………………………………………………………..7
4. AQUAFINA …………………………………………………………………………9
5. KINLEY …………………………………………………………………………….11
7. CONCLUSION ……………………………………………………………………..15
sufficient to satisfy the daily drinking water need of one-fourth of the Indian population or about 4.MANAGEMENT EDUCATION AND RESEARCH INSTITUTE INTRODUCTION AT the fourth World Water Forum held in Mexico City in March 2006. It is estimated that the global consumption of bottled water is nearing 200 billion litres . which is cashing in on the need for clean drinking water and the ability of the urban elite to pay an exorbitant price for this very basic human need. But it is good times for the bottledwater industry. Our ancestors might have thought and imagined about any impossible face of the modern world other than to buy water for drinking. GROUP PROJECT 2 . the 120-nation assembly could not reach a consensus on declaring the right to safe and clean drinking water a human right.the more we pollute our water bodies. the more the sales of bottled water.5 per cent of the global population. But friends it is a poignant fact that we happily buy different brands of packaged water and show our trust in quality of water we exchange for money The fortunes of this more-than-$100-billion global industry are directly related to the human apathy towards the environment . Millions of people the world over do not have access to potable water supply.
India is the tenth largest bottled water consumer in the world. Between 1999 and 2004. the industry had an estimated turnover of Rs. nearly 80 per cent of which are local. Manikchand. With over a thousand bottled water producers.the highest in the world.10 billion (Rs. In India. The rise of the Indian bottled water industry began with the economic liberalisation process in 1991. In fact. 1000-crore mark within the next couple of years. However. the Indian bottled water market grew at a compound annual growth rate (CAGR) of 25 per cent .less than five litres a year as compared to the global average of 24 litres. According to a national-level study. the per capita bottled water consumption is still quite low . There are more than 200 brands. Most of the small-scale producers sell non-branded products and serve small markets.000 crores). making bottled GROUP PROJECT 3 . Coca Cola. and the demand in 2004-05 was a staggering 82 million cases. when the demand for bottled water was less than two million cases a year. In 2002. However. Parle's Bisleri that virtually monopolized the bottled water market is now vying with Nestle.MANAGEMENT EDUCATION AND RESEARCH INSTITUTE AN INSIGHT INTO BOTTLED WATER INDUSTRY IN INDIA The bottled water industry is one of the most thriving sectors in India. since 1991-1992 it has not looked back.it has tripled between 1999 and 2004 . The market was virtually stagnant until 1991. PepsiCo. the Indian bottled water industry is big by even international standards. the total annual bottled water consumption has risen rapidly in recent times . The market is growing at a whopping rate of about 55 per cent annually and is expected to cross Rs. Nearly 80% of these are local brands. Today it is one of India's fastest growing industrial sectors. UB and Britannia.5 billion litres to five billion litres.from about 1. Almost all major national and international brands have taken a plunge.1. there are close to 200 bottled water brands in India.
25% 40% bisleri kinley aquafina others 10% 25% market share of different companies Consumption of bottled water in India is linked to the level of prosperity in the different regions.10-12 a litre. Premium natural mineral water includes brands such as Evian. multinational players such as CocaCola and PepsiCo have been trying for the past decade to capture the Indian bottled water market. have 2025 per cent of the market share. with Kinley holding 20-25 per cent of the market and Aquafina approximately 10 per cent. 500 ml bottles. Natural mineral water. Coca-Cola's Kinley and PepsiCo's Aquafina. which is nothing but treated water. Kinley and Aquafina are fast catching up. this industry is dominated by the big players . However. Coca-Cola.to 50-litre bulk water packs. Packaged drinking water. is the biggest segment and includes brands such as Parle Bisleri.110 a litre. The formal bottled water business in India can be divided broadly into three segments in terms of cost: premium natural mineral water. natural mineral water and packaged drinking water. including the smaller players. The western region accounts for 40 per cent of the market and the eastern region just 10. Today they have captured a significant portion of it. SKN Breweries and so on. Parle Bisleri continues to hold 40 per cent of the market share. Despite the large number of small producers. that India's vast middle class offers. However. They are priced in the range of Rs. where a bottled-water manufacturer can be found even in a one-room shop. in every medium and small city and even some prosperous rural areas there are bottled water manufacturers. 330 ml bottles. the GROUP PROJECT 4 . Parle Agro. which are imported and priced between Rs.80 and Rs. with brands such as Himalayan and Catch. Attracted by the huge potential. Parle was the first major Indian company to enter the bottled water market in the country when it introduced Bisleri in India 25 years ago. onelitre bottles and even 20.20 a litre. Leave alone the metros.MANAGEMENT EDUCATION AND RESEARCH INSTITUTE water is today a cottage industry in the country. San Pelligrino and Perrier. PepsiCo. The rest.Parle Bisleri. Mohan Meakins. is priced around Rs. Bottled water is sold in a variety of packages: pouches and glasses.
MANAGEMENT EDUCATION AND RESEARCH INSTITUTE bottling plants are concentrated in the southern region . 600 are in Tamil Nadu. This is a major problem because southern India. GROUP PROJECT 5 .of the approximately 1.200 bottling water plants in India. especially Tamil Nadu. is water starved.
50 and Rs. But the real cost of the industry is huge. or in pouches.3.75 for a one-litre bottle. Labour and establishment and marketing costs are highly variable and depend on the location and size of companies. They create huge water stress in the areas where they operate because groundwater is also the main source .are dependent on groundwater.MANAGEMENT EDUCATION AND RESEARCH INSTITUTE The majority of the bottling plants . is just Rs. Even with the state-of-the-art treatment system with reverse osmosis and membranes. this cost is much lower. without including the labour cost. In a nutshell. Private companies in India can siphon out. Treatment and purification account for the major cost. For water sold in big plastic jars (20-50 litres). the cost of treatment is a maximum of 25 paise a litre (Rs. Therefore.water . exhaust and export groundwater free because the groundwater law in the country is archaic and not in tune with the realities of modern capitalist societies. GROUP PROJECT 6 . It is precisely owing to this that companies sell water at even Re. The reason that companies do not have to bear the cost of the main raw material . in manufacturing bottled water. Informal discussions with industry members reveal that the gross profit of this industry can be as much as between 25 and 50 per cent.in most places the only source . along with the cap and the carton.25/litre).1 a litre in a 20-50 litre jar and still make profits.between Rs.0. is the single biggest cost . the cost of producing 1 litre of packaged drinking water in India. the major costs are not in the production of treated and purified water but in the packaging and marketing of it.0.whether they produce bottled water or soft drinks . This has created huge conflict between the community and the bottling plants. which are also reused.25.2. The cost of a bottle.has made this industry highly profitable.of drinking water in India.
COMPANY PROFILE Bisleri was originally an Italian Company created by Signor Felice Bisleri who first brought the idea of selling bottled water in India. Bisleri then was introduced in Mumbai in glass bottles in two varieties – bubbly & still in 1965. Parle bought over Bisleri (India) Ltd. The sale of bottled water is therefore not environmentally sound by any stretch of the imagination. These are hidden costs that society and the environment pay and will pay in the future. in 1969 & started bottling Mineral water in glass bottles under the brand name ‘Bisleri’.MANAGEMENT EDUCATION AND RESEARCH INSTITUTE The cost of fastdepleting groundwater is incalculable and so is the cost of disposal of plastic bottles and pouches. GROUP PROJECT 7 .
Bisleri continues to lead in the Rs 700-1. the branded mineral water industry saw some hectic activity. producing around 95 million liters in 1992.MANAGEMENT EDUCATION AND RESEARCH INSTITUTE Parle Bisleri's Bisleri brand launched in 1971 was the leader with 70% market share. • Bisleri has a very good distribution structure in India. a new brand was launched and another died. many international brands were planning to enter the mineral water market. Weaknesses: • • • Bisleri distinctly lacks in sales promotions in comparison to its competitors. every three months. • It enjoys monopoly in metropolitan and Tier-1 and Tier-2 cities along with Aquafina and Kinley. In the late 1990s.000 crore organized. In the early 1990s. The brand has some 18 manufacturing locations spread across the country. Mr. packaged water market with an estimated 40 per cent market share. the branded mineral water industry was worth Rs 3 billion. After 1993. It is not easily available outside metropolitan and other big cities. The brand name Bisleri is so popular in India that it's used as generic name for bottled mineral water. Currently Bisleri enjoys a market share about 40% in India and is facing stiff competition from other national and international players. In terms of volumes. the North and West remain Bisleri's biggest performing markets. It is expensive for common people. • Quality of product is of highest quality. Opportunities: GROUP PROJECT 8 . Products profile • • Bisleri Mountain Water Bisleri Mineral Water SWOT ANALYSIS: Strengths: • It enjoy a huge customer base • It has a good brand image. On an average. despite the brand's sustained national-level presence. Ramesh Chauhan is the vintage boss of Parle Bisleri Ltd.
To minimize costs it can introduce pouches to reach common people. juices and beverages. cola drinks. Small-scale producers and vendors who sell non-branded products and serve small markets Rigid government trade policies are big threats which are hampering growth of this industry. As of 2003. Vietnam. Turkey. Bisleri counterfeits are eating up its revenues and damaging its goodwill in the market. Aquafina is a brand of bottled water. Kansas (USA) in 1994 and was distributed across the United States. It was first distributed in Wichita. Threats: • • • • Other Indian and international bottled water players. It should spend more on sales promotions to reinforce its brand image in the market. Pakistan and India. GROUP PROJECT 9 . Canada. it had become the United States’ top-selling bottled water brand in measured retail channels.MANAGEMENT EDUCATION AND RESEARCH INSTITUTE • • • It can explore international markets specially developing market.
Citrus Blend. As of July 27.MANAGEMENT EDUCATION AND RESEARCH INSTITUTE Aquafina uses PepsiCo's own seven-step purification system. followed by Bisleri and Kinley. 2007. a low calorie. and ozonation. reverse osmosis. which includes charcoal filtration. • It has a good brand image and also benefits from the brand image of PepsiCo. • It enjoys monopoly in metropolitan and Tier-1 and Tier-2 cities along with Bisleri and Kinley. Kolkata and Kerala. "Pomegranate Cherry". • Quality of product is highly reliable and of highest quality. GROUP PROJECT 10 . in India. So it can afford to invest huge funds in marketing and R&D • It enjoys an excellent distribution structure of PepsiCo. Peach Mango and Orange Lime. Aquafina plus+. Aquafina has an overall market share of about 25% in India and it has emerged as the leading bottled water brand in the UP market. PepsiCo states in marketing material that this system removes substances that may be in other brands of bottled water. flavored water (without carbonation). Aquafina Alive. and artificially sweetened with Sucralose. available in Berry Blast (Raspberry). Kosi. SWOT ANALYSIS Strengths: • It has a good back up from its parent company that is Pepsoco. which it calls HydRO-7. PepsiCo put a disclaimer stating the water comes from a "public source" on each bottle. Aquafina uses the term "Purified Drinking Water" on its label PepsiCo produces several other products under the Aquafina label: • • • • Aquafina Sparkling. and Citrus Twist Aquafina FlavorSplash. The seventh plant at Guntur has gone on stream recently. vitamin-enhanced water beverage. two plants in Kosi and Guntur are franchise-owned operations. Wild Berry. available in Grape. and Raspberry. a low calorie (120 calories per 591mL bottle). While five of these plants are company-owned bottling operations. available in Berry Pomegranate. Bangalore. vitamin supplement water beverage available in "Blackberry Grape". Bazpur."Passionfruit Citrus" and "Orange Tangerine". carbonated flavored water. The brand is being manufactured out of seven plants in Roha (Maharashtra).
cola drinks. Its carbonated forms are used for mixers. wherever its processing plants are located because these plants are very rapidly exhausting the ground water resources of that area. The Kinley brand is used by Coca-Cola for two types of drinks: GROUP PROJECT 11 . local brands and unorganized local water vendors.MANAGEMENT EDUCATION AND RESEARCH INSTITUTE Weaknesses: • Pricing is high for the common people. • It is falling victim of cannibalization from its parent company as cola drinks are posing threats to its market share. • It should utilize the distribution facility of PepsiCo to reach to the rural and ultimate customers. • It should enhance its quality to establish itself in niche or premium market. • Aquafina has virtually no presence in rural or economically backward areas. juices and beverages. Threats: • Other Indian and international bottled water players. Kinley is a brand of still or carbonated water owned by The Coca-Cola Company and sold in many Central European countries and India. and also available in a variety of fruit flavors. Opportunities: • It should introduce pouches to minimize costs and hence making it more affordable to common people. • It is facing huge resistance from the local people and authorities.
It is tasted for potable drinking water quality. India. Nigeria and Pakistan. Hungary. which include three company owned facilities at Bangalore. Sweden. Poland. Source water is protected and observed to avoid any contamination. Denmark. Why Kinley the brand name of Coca Cola is the most trusted health plank among all the three major players of this industry i. All the tastes are done with third party testing laboratories. 8. To maintain the consistency of quality Coca-Cola has selected three green field-manufacturing plants located at Bidadi near Bangalore. Multi media filtration is done. Coca-Cola has a strong international audit system to monitor compliance to international and local standards. Molecular filtration is done by one of the methods of either reverse osmosis or coagulation. Manufacturing facilities get audited against quality management standards. United States and Zambia. Kinley meets the Indian standard of drinking water IS 14543. Water is conveyed through different media to catch any impurity. 2. 3. Germany. Water is purified through granular carbon filters. Available in Austria. Belgium. Nepal. Pepsi. 5. Switzerland. Maldives. GROUP PROJECT 12 . Lithuania. 1. Israel. Probably the answer lies in the stringent quality control process of Coca-Cola and its concern towards taste and purity of drinking water. Source of water id disinfected from microorganisms and metal ions by Clorination. bitter lemon. Italy. This is the reason why does taste of this brand never alters. One can witness the variation in taste of other brands and sometimesbitter taste too. The brand also has four other production lines which are on contract agreement. Kinley has an overall market share of approximately 25% in India. Luxembourg. Quality standard of source water is checked prior to use and it’s processing. Romania. Mumbai and Delhi. 4. Dasna in UP and plants in Goa and Maharashtra. Czech-Republic. club soda and fruit flavored. 6. India. Water is passed through high efficiency 5-micron meter filters to trap any activated carbon particles. Netherlands. Consistency in the taste and composition makes Kinley the most favored brand among all available drinking water brands. Treated water with mineral is an advantage when one consumes Kinley because other brands do not give minerals in treated water. Here organic traces are removed. Kinley ensures to provide minerals in packaged water. Bulgaria. Water is filled and packed in sterilized plastic bottles. Maldives. It has seven production lines in India. Slovakia. Moldova. Norway.MANAGEMENT EDUCATION AND RESEARCH INSTITUTE • • A Carbonated water with a wide array of variants: tonic. Bulgaria. Bisleri and Coca Cola. 7. It is tested periodically if selected for use. An High quality bottled water available in Bangladesh. Less number of manufacturing plants always ensures quality of treated water and consistency of source.e. Minerals are added to enhance the taste and to comply with the optimum mineral needs of drinking water.
• It has a good back up from its parent company (Coca Cola). • It should enhance its quality to establish itself in niche or premium bottled water market. So it can afford to invest huge funds in marketing and R&D • It enjoys an excellent distribution structure and penetration of Coca Cola in India. • It enjoys monopoly in metropolitan and Tier-1 and Tier-2 cities along with Bisleri and Aquafina. • It is facing huge resistance along with Aquafina from the local people and authorities. GROUP PROJECT 13 . Opportunities: • It should introduce pouches to minimize costs and hence making it more affordable to common people.MANAGEMENT EDUCATION AND RESEARCH INSTITUTE SWOT ANALYSIS Strengths: • Kinley follows one the most stringent quality control process in the industry. • It should utilize the distribution facility of Coca Cola to reach to the rural and ultimate customers. • Kinley has virtually no presence in rural or economically backward areas as is the case with other mineral water brands. • It has maintained Consistency in the taste and composition over the years. • It has a good brand image and also benefits from the brand image of Coca Cola. Africa and Asia. wherever their processing plants are located because these plants are very rapidly exhausting the ground water resources of that area. • It should explore new business horizons in underdeveloped and developing economies of Latin America. Weaknesses: • It’s not affordable for lower income groups of the society as they are very price sensitive.
MANAGEMENT EDUCATION AND RESEARCH INSTITUTE • It can look for the growth opportunities in EU an USA in the Bottled Water segment as it already has its presence in Carbonated and Flavoured Water segment. • It is falling victim of cannibalization from its parent company as cola drinks are also its competitors in the market. demographical environment etc. Company should focus on all the aspect like social environment. Company should arrange the market research in a most efficient and manner effective because the company's whole future depends upon the proper analyses of the market. political environment. Threats: • Other Indian and international bottled water players. (2) Every company should plan effectively to enter into the market. RECOMMENDATIONS: (1) During Development stage every company should first analyze the market. local brands and unorganized local water vendors. cultural environment. cola drinks. GROUP PROJECT 14 . juices and beverages.
during this stage company should use several strategies to sustain rapid market growth. and so forth that the main product.at this stage company should try to influence non. GROUP PROJECT 15 . (a) Inform potential consumers (b) Induce product trail (c) Secure distribution in retail Outlets Company should focus on those buyers who are the most ready to buy. (5) During maturity stage company should try to diversify brand and items models. They may withdraw from smaller market segment and weaker trade channels. product of different size. and try to edge over the competitors . service warranty because numbers of competitors get increased . And at this stage company should strongly focus on new products to remain in the market and to maintain profit in the market.users into users to increase profit as well as try to modify the product according to market requirements and build more intensive distribution channels.MANAGEMENT EDUCATION AND RESEARCH INSTITUTE (3) When company introduces its product in the market it should first try to achieve break even point.more so because the economics are sound.e. the bottom line is fat and the Indian government hardly cares for what happens to the nation's water resources. and they may cut their promotion budget and reduce price further. then marketer should build intensive distribution centers and build awareness and interest in the mass market and offer product extension. flavors.) (c) Company should lower prices to attract the next layer of price sensitive buyers. (a) Company should improve its product quality and adds product features and improving styling. CONCLUSIONS: These are boom times for the Indian Bottled Water Industry . (6) During decline Stage Company should focus on the new product as sales and profits decline. (4) During growth stage when the product clicked in the market. (b) Company should add new model and flanker products (i. Those remaining may reduce the number of products offer. Initially the profits are negative or low at the introduction stage company should develop promotional expenditure because of following needs. some companies withdraw from the market.
This has created huge conflict between the community and the bottling plants.MANAGEMENT EDUCATION AND RESEARCH INSTITUTE The majority of the bottling plants . This means that. exhaust and export groundwater free because the groundwater law in the country is archaic and not in tune with the realities of modern capitalist societies. a person can buy one square meter of land and take all the groundwater of the surrounding areas and the law of land cannot object to it. GROUP PROJECT 16 . This law is the core of the conflict between the community and the companies and the major reason for making the business of bottled water in the country highly lucrative.of drinking water in India. theoretically.whether they produce bottled water or soft drinks . The existing law says that "the person who owns the land owns the groundwater beneath".are dependent on groundwater. They create huge water stress in the areas where they operate because groundwater is also the main source .in most places the only source . Private companies in India can siphon out.
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