INTRODUCTION

Water forms an essential part of every living being. After air, water is the most important
necessity for life. Water plays a number of functions for the body. It serves as the body's
transportation system, it acts as a lubricant, it regulates the body temperature etc. The eulogy
for water is an unending thing. In fact more than 2/3rd of the human body is made of water.
The importance of water for human body can be well accessed from the fact that if the
amount of water in our body is reduced by just 1-2%, we feel very thirsty. If it's reduced by
5%, our skin will shrink and we will have difficulty moving our muscles and if it's reduced by
10%, we will die. Moreover with this commodity being a human necessity it makes best
sense to do business in. As a normal human being requires on an average needs 2-3 litres of
water everyday and world population is more than 6 billion (growing at 2-3% annually), the
business opportunity is humongous and the potential is largely untapped. These facts about
water added to the growing number of cases of water borne diseases, increasing water
pollution, increasing urbanization, increasing scarcity of pure and safe water etc. have made
the bottled water business quite lucrative. In addition with getting pure drinking water from
municipal taps in cities and towns becoming a luxury the scenario has become so lucrative in
business sense that the opportunity is being misused by a number of companies especially in
our country. These companies are selling plain tap water under the name of mineral water and
are be-fooling consumers. The situation has got aggravated by lack of awareness among
common people about mineral water and also due to lack of initiatives on part of the
government both on count of setting stringent norms as well as on taking action against non-
compliers. In fact one of the major factor for flourishing of the sector is the public fear that
water supplied by civic bodies is impure.

HISTORY OF MINERAL WATER

INTERNATIONAL SCENARIO:

POPULARITY OF MINERAL WATER:

The tradition of bottled water and mineral water is not very old. Even in western countries
the practice of bottled drinking water started in 1950s. The trend of having mineral water
gained grounds in the market.

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Since ancient time people have used water from mineral springs, especially hot springs,
for bathing due to its supposed therapeutic value for rheumatism, arthritis, skin diseases,
and various other ailments. Depending on the temperature of the water, the location, the
altitude, and the climate at the spring, it can be used to cure different ailments. This
started the trend of using mineral water for drinking purpose to exploit the therapeutic
value of the water. This trend started gaining momentum in mid 1970s and since then
large quantities of bottled water from mineral springs in France and other European
countries are exported every year.

The concept of bottled has been quite prevalent in western countries due to greater health
consciousness and higher awareness about health and hygiene. The international
standards regarding bottled water are so stringent that for a particular brand of water to be
certified as bottled water it has to get approvals on four levels: federal, state, trade
association and individual company levels.

In United States, the bottled water industry is regulated on four levels: federal (by the
U.S. Food and Drug Administration as a food product), state, industry association, and
individual company. EPA (Environment Protection Agency) regulates public water
systems. FDA regulates bottled water that crosses state lines.

TYPES OF WATER

1. ARTESIAN WELL 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. Another name for bottled water. Accordingly, drinking water is water that is sold
for human consumption in sanitary containers and contains no added sweeteners or
chemical additives (other than flavors, extracts or essences). It must be calorie-free and
sugar-free. Flavors, extracts or essences may be added to drinking water, but they must
comprise less than one-percent weight of the final product or the product will be
considered a soft drink.

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2. MINERAL WATER:

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

3. PURIFIED WATER:

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

4. SPARKLING WATER:

BOTTLES Water that after treatment and possible replacement with carbon dioxide
contains the same amount of carbon dioxide that it had at emergence from the source.

5. SPRING WATER:

water derived from an underground formation from which water flows naturally to
the surface of the earth. Spring water must be collected only at the spring or through
a borehole tapping the underground formation finding the spring.

6. WELL WATER:

Bottled water from a hole bored, drilled or otherwise constructed in the ground,
which taps the water of an aquifer

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 PURIFICATION PROCESS

Purity and safety are two major factors that should be taken care in sourcing and
processing of bottled water. Under ground water is used by it for filling the water.
Underground spring is carefully selected based on its portability and pathogen free water.
Great care goes in tapping this source. Only water below 25 meters is tapped. This is to
avoid any surface contamination to percolate and mix with underground water source.
Area surrounding the water collection tube at the surface is protected and kept clean.

The under ground water goes through seven stages of purification process which is as
follows:

1) CHLORINISATION :
First of all water is taken out from six bore wells and stored in the tank and chlorine is
mixed in it. This is done to remove bacteria from water.

2) SAND FILTRATION:

Chlorine mixed water is passed through seven layers of sand in a tank. This way all the
major bacteria are taken out from water.

3) CARBON FILTER:

After sand filtration water is passed through carbon filter to remove the chlorine that

Was mixed earlier.

4) ULTRA FILTRATION:
Under this method water is passed through a filter, which has the pores of .2 microns,
and even the biggest r of bacteria is of .5 microns, hence through this filter even the
remotest bacteria and dust particles are taken out.

5) REVERSE OSMOSIS:
As per the law TDS (total dissolved solids) are required to be maintained at the level
of 70 - 110 ppm, through reverse osmosis TDS is maintained at 100 ppm.

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6) OZONISATION:

Under this method ozone gas is mixed with water.

7) ULTRA FILTRATION:

Under this method ultra violet rays are passed through the water to kill water. This is
basically a precautionary step to purify water as after reverse osmosis no bacteria remain
in water. After whole this process at last step bottles are passed through a white screen
where a quality in charge inspect each and every bottle to ensure that there are no dust
particles in the bottles and if they are found then those bottles are rejected.

LABELLING STANDARD PERTAINING TO LABELING OF PRODUCT IN

THE INDUSTRY:

 Label should have consumer brand name.

 Label should have the name of the product category.
 Label should have name and address of the manufacturer.
 Label should have net weight or volume. Label should have the batch number.
 Label should have the name of source or place of origin of the product.
 Label should have the date of packaging. Label should have the date of expiry.
 Label should have direction for storage.
 Label should have treatment for disinfections.
 Label should have the license or certification from the concerned authority.

MARKET CATEGORISATION

The market of packaged drinking water is categorized as follows:

 Theatres / cinema halls/ multiplexes.

 Corporate.
 Caterers.
 Picnic spots, Clubs, Gymkhanas.
 Hotels, Resorts.
 Resorts.
 In-flight kitchens.

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  College canteens.
 General Stores etc.

It is needless to mention that water, a compound of hydrogen and oxygen is a precious

natural gift which is very essential for survival of mankind including animals. The water used
for portable purposes should be free from undesirable impurities. The water available from
untreated sources such as Well, Boreholes and Spring is generally not hygienic and safe for
drinking. Thus it is a desirable and necessary to purify the water and supply under hygienic
conditions for human drinking purpose as the name implies. The mineral water is the purified
water fortified with requisite amounts of minerals such as barium, iron, manganese etc.,
which can absorbed by human body. It is either obtained from natural resources like spring
and drilled wells or it is fortified artificially by blending and treating with mineral salts. The
mineral water shall be manufactured and packed under hygienic conditions sin properly
washed and cleaned bottles in sterilized conditions.

All living things need water. The Earth is full of water. Water is the most essential element,
next to air, to our survival. Water makes up more than two thirds of the weight of the human
body, and without it, we would die in a few days. Water is important to complete daily life
and to maintain our body health. Thirty years ago „packaged drinking water‟ barely existed.
Nowadays the product forms an essential business by its stable and still growing market –
locally and globally. Packaged drinking water can be described as any product, including
natural spring or well water, taken from municipal or private utility systems or other water,
distilled water or any of the foregoing to which chemicals may be added and which are put
into sealed bottles, packages or other containers, to be sold for domestic consumption or
culinary use.

MARKET POTENTIAL

Unfortunately sufficient safe portable water is not available everywhere in the country, either
harmful chemical substances are found in the layers of earth which enter in to water or it may
be contaminated due to pathogenic micro-organisms. If such water is consumed, the body
suffers from water born diseases. Due to this, it has become imperative to process and bottle
safe portable water for the mankind in prevailing conditions. The demand for purified water
becomes more during summer season. Although few companies have already entered in the
bottling of safe portable water and mineralized water, but still huge gap is there in between
demand and supply at all metropolitan cities and towns.

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The product is widely accepted in offices, restaurants, railway stations, airport, but stands,
hospitals and to some extent in rich house-holds. So there is good scope for establishing the
units for processing and bottling plain and mineralized drinking water in different parts of the
country.

5 major players of packaged mineral water in india

1) Bisleri
2) Kinley
3) Aqufina
4) Bailley
5) Himalayan

1. Bisleri

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 Bisleri International Pvt. Ltd

Type Private limited

Industry Beverages

Founded 1965; 54 years ago

Founder Jayanti lal Chauhan

Headquarters Mumbai, Maharashtra

India

Area served India, United Arab Emirates

Key people Ramesh J Chauhan (Chairman and MD)

Products Bisleri Mineral Water, Bisleri Soda, Bisleri Urzza, Bisleri Vedica, Bisleri
Fonzo, Bisleri Spyci, Bisleri Limonata, Bisleri Pinacolada, etc.

 Bisleri
Brands
 Urzza
 Vedica
 Fonzo
 Spyci
 Limonata
 Pinacolada

Website www.bisleri.com

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We all are very well aware of this brand! No doubt Parle’s Bisleri is the most popular brand
in India and is now a household name. It has a huge customer base that has been built over
years of trust that the company has created with the quality of water served to the nation. It
holds 40% market share in the Indian packaged drinking water industry. The Parle Group
purchased Bisleri from the Italian entrepreneur Signor Felice Bisleri in 1969.

In 1967, Bisleri an Italian company, started by Signer FeliceBisleri, first brought the idea of
selling bottled water in India. It started a company called Bisleri India. In 1969, Ramesh
Chauhan, the Chairman of Parle Exports, bought over the brand. In those days, Bisleri
packaged drinking water was available in glass bottles.

Being a returnable package owing to various other problems such as breakage and weight, in
1972-73, Bisleri was made available in PVC (Poly Vinyl Chloride) bottles. After this plastic
packaging was introduced, things started to change, and sales increased rapidly.

The upsurge in the sales of Bisleri started in 1993 as Ramesh Chauhan sold off the Parle
stable of brands, including Thums Up, Limca and Gold Spot. Recognising the potential of the
packaged drinking water market, he then went on to concentrate on making Bisleri a top
selling brand in India.

Vision

A major, diversified, transitional, integrated consumer product manufacturing company, with

National Leadership and a strong environment conscience, playing a national role in safe
water and Agro based drinks.

Mission

 To provide the highest quality product, keeping in mind all aspects including freshness,
purity and safety, and making it easily available to the consumer at a very affordable
price.
 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 enhance capital and fixed assets of the group to withstand challenges and tough
market trends.

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  To attain leadership in developing, adopting and assimilating state or art technology for
competitive advantage.
 To provide better quality of product and services through sustained market research and
product development.
 To foster a culture of participation and innovation for employee growth and
contribution.
 To cultivate high standards of business ethics, and total quality management for a
strong corporate identity and brand equity with continuous and positive growth.
 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.

Bisleri International Pvt. Ltd, also known as Parle Bisleri, is an Indian beverages company
best known for its eponymous Bisleribrand of bottled mineral water.

The Parle Group, founded by Late Jayantilal Chauhan, began manufacturing soft drinks in
1949. Bisleri, an Italian mineral water company, was launched in Mumbai in the year 1965.
The Parle Group purchased Bisleri from the Italian entrepreneur Signor Felice Bisleri in
1969.

Several Parle Bisleri soda brands including Citra, Thums Up, Maaza, Limca and Gold
Spot were sold to Coca-Cola in 1993 for a reported $40 million.At the time of sale, the Parle
brands together had a 60% market share in the industry.The brand was strong in South
India.Citra was phased out by 2000 to make way for Coke's international brand, Sprite.

Strengths in the SWOT Analysis of Bisleri :

1. Brand Recall: Bisleri is very popular around the country for its product. This has
made it achieve a very high brand recall among the minds of the customers. The
product is so popular that it has become synonymous with mineral water. This is a very
big success for the brand as its values and ideologies have clearly resonated with the
customers. This has also earned the trust of the customers for the brand.
2. Quality Standard: They have always focused on quality of its product and have never
compromised on the same. They claimed their bottled water to be 100% safe
to differentiate with its competitors. They introduced the breakaway seal to make sure
they deliver on their promise.

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 3. Innovation: They have always strived for innovations among their products. They
were the ones that moved from the glass bottles to PET bottles to ensure quality. The
PET bottles are 100% recyclable thereby taking care of their ecosystem. They
introduced the breakaway seal to maintain the purity. They also introduced the
hexagonal bottles for better handling, balance and usage. They introduced the big
family packs for the usage at homes and offices.
4. Market Share: According to the Euromonitor report of 2016 Bisleri leads the country
in market share with 24.6%.
5. No Close Competitors: Apart from Aquafina and Kinley, Bisleri is at a very
comfortable position in market share in the country.
6. Point of purchase marketing – Bisleri is known to be very strong and aggressive
where point of purchase marketing is concerned. It brands the shops of its dealers and
distributors very well across the country. Furthermore, the colors used are such that
they are noticeable even on highways when the cars are going fast. As a result, the
branding activity results in good turnover overall.

Weaknesses in the SWOT Analysis of Bisleri :

1. Distribution Method: The Routeselling method used by Bisleri is more expensive

than the common method of appointing distributors in different towns. This increases
the cost and many retailers refrain from keeping the product as well. This directly
attacks their distribution potential, revenue and market share.
2. Reuse of Bottles by Locals: Lot of local people collect the Bisleri bottles and refill it
using the local unclean water and then mix it with the original batch. This reduces
the brand image of Bisleri and may prove harmful during consumption.
3. Faults in Production: Many times it comes under scrutiny in lapses of quality. This
damages their brand value and reputation. They also lost the license to produce at their
Noida facility due to a similar case.
4. Unmet market Potential: It is unable to meet the market potential of the south India
as well as in various pockets of India. Production is not as high as it should be because
the consumption is very high. Naturally, there are other limiting factors to production
such as government norms as well. So if production is increased, Bisleri can match the
potential of the market.

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Opportunity in the SWOT Analysis of Bisleri :

1. Expansion: It can expand in different locations across the global markets to increase
the market revenues and profits. Europe and the Middle East is a lucrative option for
the same.
2. Expected Growth Rate: Packaged water grew at 23-25% compared to last year which
is almost double the growth rate of carbonated drinks. This shows there is still huge
potential in the country.
3. Premium Segment: It can launch a premium bottled water for 5-star hotels and high-
end customers. It can diversify its target audience and cash in on this segment as well.
4. Matching demand and supply – A major problem for any retailer to shift to brands
other then bisleri is the regular supply and refill capacity of Bisleri. The more
production Bisleri has, the more market it will conquer and the more it will be able to
match demand with supply. This will increase its revenues tremendously.

Threats in the SWOT Analysis of Bisleri :

1. Competition : Indian markets is getting crowded in this product category. Giants like
Coca-Cola, Pepsi and Tata Global Beverages have launched packaged mineral water in
the country. This can affect the market share of the company and thereby cut its profits
and revenues.
2. New big Players eyeing the market : Apart from this there are several other giants
that are eyeing the lucrative mineral water industry of India. Nestle, Tata, HUL and DS
group are all eyeing this market. This would increase the competition to the next level.
3. Localised players : Because the barriers to entry are very low for packaged drinking
water industry, there are many competitors who have cropped up in various places. As
they have a smaller operation then Bisleri, they are able to give higher margins to
retailers and capture the market in pockets. This is affecting Bisleri where small
pockets in urban areas are concerned.

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 4. RO and Filters : The increase in the sales of water filter and ROs in the country is also
an issue to the sales of Bisleri. People prefer their home water when travelling then to
buy a bottled water from a retailer. And as the rates of such filters are falling the threat
is increasing.
5. Counterfeiting : Local and illegal manufacturer package their products similar to
Bisleri and sell it across local destinations harming the market share of Bisleri.

6. Changing Government Policies: For every drop of water packaged some needs to be
given back to the earth and create sustainability in the environment. Bisleri would need
to change their production style and suit the government norms. This would increase
their cost of production and thereby make their products costlier or drive their profits
down.

2) Kinley

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 Yet another trusted name nationwide! Kinley is owned by the Coca Cola Company.
The water goes through lots of purity tests before making it to the market. They use
the latest technology of operation, that is, Reverse Osmosis.

This brand was first introduced in the country in March 1998, when COKE launched
Kinley Soda. The company entered in the business in May’00 through its brand,
Kinley. The company tied up with Kothari Beverages, of Yes brand of mineral water,
for manufacturing coke’s brand at Yes’ facilities. Starting with Bangalore, Kinley
mineral water was rolled out nationally in a phased manner. Positioning: Safety and
health oriented Target audience : Health and hygiene conscious people Personality :
Trustworthy, Strong, Confident Punch Line : “Boond Boond mein Vishwas” USP :
Belongs to the Coca Cola lineage, gains advantage from the distribution and retail
network.

Kinley is brand of simple and carbonated water owned by the famous beverage maker Coca-
Cola Limited. The brand of packaged drinking water which was launched in the year 2000 is
a highly healthy and hygienic water that goes through a number of purification processes.
The brand is popular in many countries in Europe and Asia.

The brand which communicates trust and truth ensures that good quality and clean water is
made available to all parts of the world. With the growing scarcity of water and as the
number of people who travel across the globe grow the need for packaged water is also
assumed to increase steeply. Yet another risk that is fueling the demandfor packaged water is
the increase in the incidence of water-borne diseases like cholera, typhoid, and jaundice
across the world.

Strengths in the SWOT analysis of Kinley

 Association with Coca-Cola: Coca-Cola is a popular company and closely associated

with aerated drinks. The company is a well-known name in the minds of the customer
and enjoys extremely high brand recall.
 High trust: In comparison to Kinley most other brands of water are sold by smaller
and relatively unknown companies. In contrast to that Kinley is owned by a company
Coca-Cola which enjoys goodwill and trust of customers and which is also popular.

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  Wide distribution channel: With growing water scarcity the packaged drinking water
has demand everywhere. Coca-Cola with its wide distribution channel is able to get its
water brand Kinley to even remote and rural location across its markets. This ensures
wide market coverage.
 Marketing campaigns: Kinley had a number of advertisement which was not just
appealing but also interesting. These scholarships were indicating a unique selling
proposition of the brand namely trust and were also indicative of the purity of the water
used.
 Variety of packaging: Kinley was introduced in the year 2000 with a 500ml pack. In
just a matter of two years, the number of packs in quantities like 500ml, 1 liter, 1.5
liters, 2 liters, 5litres, 20 liters, and 25 liters were introduced. In addition to this, the
company also launched 200ml water cups for a smaller section like parties, get-
togethers and other functions and 200ml pouches for sale in the rural areas.

Weaknesses in the SWOT analysis of Kinley

 Low Ethics of Coca-Cola: Coca-Cola has been a part of numerous scandals which
involve aspects like harmful ingredients in their aerated drinks, pollution of water
bodies in and around their factories due to poor waste disposal and management
mechanisms. These scandals affect the branding of Kinley.
 Low brand loyalty: The packaged drinking water industry is highly competitive
with Bislerifrom Parle, Kinley from CocaCola and Aquafina from Pepsico.
The product being water there is not much of scope for brand loyalty and the only
factor that fuels choice is ease of availability.This becomes a weakness for all players
in the domain.
 No or poor differentiation: The packaged drinking water industry players suffer from
no or poor differentiation and thus customers do not really find a difference between
the various players. The company has to find an emotional differentiator to ensure that
customers find a solid difference.
 Regulatory Framework: The new regulatory framework of India mandates that
packaged drinking water follow certain specific quality norms in not just the
manufacturing process but also the packaging which results in additional costs.

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Opportunities in the SWOT analysis of Kinley

 Market Potential: The total annual consumption of bottled water in India is around
1.5 billion liters and the cumulative growth rate is at 25 %. This means that there is a
huge untapped market here in addition to other parts of the world.
 Growing scarcity: There is a growing scarcity of water in the world and the number of
water-borne diseases across the world is growing. People are extra cautious about the
water they consume and this has resulted in a steep increase in the sales of bottled
water.

Threats in the SWOT analysis of Kinley

 Competition: Some of the major competitors of Kinley are Bisleri from Parle, Pure
Life fro Nestle and Aquafina from Pepsico.

3)Aquafina

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 Aquafina

Type Water Beverage

Manufacturer PepsiCo

Country of United States

origin

Introduced 1994; 25 years ago

Wichita, Kansas, U.S.

Website aquafina.com

Owned by the Pepsico Company, Aquafina is competitive hard and gaining the millions new
customer to its shelf. Aquafina was nationally rolled out first in 2000 & ever since then it
stands as one of the most preferred & bestselling brands nationwide.

The brand has more than 19 manufacturing plants across India, Aquafina is widely available
across more than a million outlets.

Entered the bottled water business in September 1999 by test launching its first in Mumbai
and then in Bangalore. PEPSI with its AQUAFINA brand has backing of a good distribution
channel of 60000 outlets, its refrigerators at retail outlets which stock its cold drinks along
with Aquafina as well. Initially Aquafina was available in just one pack-750 ml and was
priced at Rs. 10. Now they also have competing packages of 500ml and 1 ltr ml pack priced
at Rs.6 and Rs. 10 respectively. The main target audience for Aquafina is the youth segment.
By end 2002 PEPSI added 7 more to its existing base of 5 plants. Unlike most players,

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Pepsi is not looking at bulk buys or in-house consumption at the moment. The focus was thus
only on one SKU, that too 750ml. Though the company is present only in selected market as
of now, it has plans of increasing share in the market by expanding its SKUs portfolio as well
as its distribution reach.

Aquafina is a brand of purified bottled water products produced by PepsiCo, consisting of

both unflavored and flavored water. The Aquafina brand name is also licensed for use on
multiple skin care products, including lip balm and wrinkle cream.It was first distributed
in Wichita, Kansas in 1994, before becoming more widely sold across the United States,
Spain, Canada, Lebanon, Turkey, the GCC countries, Iran, Egypt, Vietnam, Pakistan, and
India to compete with The Coca-Cola Company's Dasani and Dr. Pepper Snapple's Deja
Blue. As of 2009, Aquafina represented 13.4 percent of domestic bottled water sales in the
United States, making it the number one bottled water brand as measured by retail sales.

Swot analysis of Aquafina

Strengths

1. Health and Hygiene Conscious: Packaged Water category is a healthier option

considering the increasing amount of water diseases and their consequences.
2. Strong Parent Company: Aquafina has a stronger Brand value with the support of
PepsiCo. PepsiCo has been a major factor in the quick growth and wider reach of
Aquafina.
3. Strong Branding and Marketing: Aquafina has performed brilliantly as far as
branding and marketing are concerned. From the Local point of purchase branding to
TV Commercials, Aquafina has been successful in promoting itself as a Brand.
4. Strong Distribution Network: Aquafina has a very strong distribution network
courtesy PepsiCo’s strong supply chain. Aquafina is available in small retail chains to
large hotels and restaurants.
5. Environmental friendly Packaging: With the introduction of ECO-FINA, Aquafina
has developed a 100% recyclable plastic bottle which scores high on being
environmentally friendly.

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 6. Differentiation: Aquafina has a differentiated product offering as well with its
Flavored water products as well as in Sparkling water. Besides this, Aquafina body
care and skin care products are also widely sold

Weaknesses

1. High Competition: Presence of high competition such as Bisleri, Kinley, Bailey etc.
discourages an increase in market share for Aquafina.
2. Misuse of empty bottles: There have been various examples wherein empty branded
bottles have been used to refill with impure water and this affects the image of the
company.
3. Lack of differentiating factors: In the Packaged waiter section, Aquafina does not
have much to differentiate from the other brands.

Opportunities

1. Distribution: Increasing the distribution of the product is the best way and only way
that Water companies can sell higher numbers. Water is a universal requirement , so
the farther and wider the brand is present, the more will be the sale. Off course,
production and shelf life is a bottleneck to distribution as well.
2. Increasing Awareness: There has been an increasing awareness towards the Pure and
hygienic water, which is a boost to the packaged water industry.
3. Acquisitions: Aquafina should look to acquire competition in order to expand market
shareand reduce competition.
4. Tie Ups: Aquafina should look for more tie-ups with hotels, restaurants, sports teams
etc. which increases its sales as well as promotions.

Threats

1. Water shortage: Water shortage is a major threat to Aquafina because government

might decide to limit the water supply to packaged drinking water companies. These
companies are selling the water back to consumers when there is a shortage of water
supply. Many consumers have a problem with this because they believe that mineral
water companies should not be supplied water in the first place and it should go to
consumers.

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 2. Low Capital required: Packaged water industry is a low capital intensive industry
especially at the local level and hence it is easier for new entrants to enter the market.
3. High brand switching: When it comes to packaged water, people do not generally have
a brand preference and hence sales are dependent on retailer/seller. As long as its
packaged drinking water and the people are thirsty, they will take any brand presented
to them.
4. Local Competition: Local Competition also become a deterrent to growth in the
industry and hence rise of Local competition is also a threat.

4) Bailley

Owned by the Giant FMCG Parle Agro LTD, Bailley Launched in 1993, Bailley has been the
symbol of purity & safe drinking water since a long span of time. Bailley is a premium
product of Parle Agro Ltd., which stands in high regards of Indian customers.The brand has
one of the largest state-of-art its packagings & bottling plants across the country.

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Though a pioneer in this field; Mr. Ramesh Chauhan Chairman- of Parle Bisleri had to
contend with several new entrants in this segment. For starters, his own brother, Mr. Prakash
Chauhan through Brand Bailey has been trying to emulate the Bisleri success through the
franchising route, but Bailey has never been successful in it. The brand is a product of Parle
Agro, the company of Frooti fame. The company presently is the second largest player in the
market with share of 20%. The company has recently extended its Bailey brand name for its
soda water. It is also credited with forming a new segment of 330ml SKU in the market
Target audience : Health and hygiene conscious people
Personality : Guardian, Authoritative, Reliable Punch Line : “I want my bailey”
USP : Pioneer advantage in bottled water industry, old player with lot of Experience

5) Himalayan

Himalayan is one of the well-established mineral water companies in India and is part of the
Tata Global Beverages Group. Himalayan is the part of the list of top 10 mineral water
brands in India. Himalayan Mineral Water was launched in 1997 and has emerged as one of
the best quality natural mineral water in the mineral water industry in India. Himalayan is one
of the top 10 mineral companies in India that sells natural Himalayan water procured from

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the Shivalik range after being naturally filtered for almost 20 years. Himalayan mineral water
is available in 300 ml, 1 liter, and 2-liter sizes and is sold at the most reasonable mineral
water price in India.

Mount Everest Mineral Water Limited is a public limited company incorporated in 1991. The
Company was promoted by Dr. Dadi Balsara, an NRI from Singapore. It had its first public
issue in 1995. The company’s registered office is located at Himachal Pradesh. The Tata
group, through Tata Tea, have acquired 31.73% holding in the Company partly by purchase
of shares from the investors, who had bought the shares from Dr. Balsara in 2001, and partly
by preferential allotment. Tata Tea, being the single largest shareholder of the company, and
with the management being firmly with the Tata group, the company is now A TATA
Enterprise. The plant is utilized to bottle natural mineral water under the brand name
HIMALAYAN together with inhouse facility to manufacture food grade PET Bottles and
tamper proof caps. The company started its commercial production in April 1997. The brand
HIMALAYAN enjoys an aspirational equity amongst consumers and has the potential of
truly becoming an international and iconic brand, it is this potential that the new management
proposes to unlock through brand building and enhanced distribution.

PEST ANALYSIS
Pest analysis plays an important role in the beginning of any organization activity/processes
as it go through all the functioning aspects of an individual organization and creates a
strategy for the various operations. The organization environment is made from various
factors ie.

a)Political factors-Bottled water industry which falls under FDA.The government plays an
important role as they set the rules and regulation for the organization manufacturing. The
industry have to go with the rules otherwise they will get charged fine. The following factors
which can cause bottled water industry to have variances in their profits or results-Changes in
tax laws, account standards, tax rates and regulations

Political factors for international companies as companies recently started selling their
products into US, so there are restrictions in transferring capital across border, changes in
government.

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Changes in business patterns which includes competitive product, pricings and their ability to
maintain share of sales in market, how the company make necessary arrangement with its
infrastructure like distribution, technology, bottlers .

b)Economic factor-

Last year the economy of India was not good, and now its booming but it doesn’t effected the
bottled water industry. The market is quiet tough and there are other water companies
existing now, so industry has decided to enter US. The market in US is very competitive and
highly brand conscious, so there is a heavy investment done by companies to build its brand .

c)Social factor-

Everyone want to stay and live a healthy life. Now people are become more conscious about
their diets. This affected the alcoholic beverage industries as people are more into drinking
water, coke as compared to beer and alcoholic beverages. The demand for bottled water
which is very convenient in daily life .As the age goes up the generation become more
serious about their health and this factor will keep the industry company always in demand
and keep going.

d)Technological factor-

The Bottled water industry should do marketing and advertising in a proper fashion, by
giving advertisement in internet and television in a stylish way. The industry is producing
different shapes of bottles which is much easier to carry and can throw it into bin when its
used. As the new technology introduced,the industry must use them for huge production as
the companies are growing in a tremendous way and can give a quality speedy delivery
service.

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PORTERS FIVE FORCE MODEL FOR PACKAGED AND MINERAL WATER
INDUSTRY

BARGAINING POWER OF SUPPLIERS:

Long Term Relationship

Local Government

Selection of suppliers is based on quality, equitable prices, etc

BARGAINING POWER OF CONSUMERS:

Global consumers

Different wants, needs etc

Long term relationship

Look out for maximum customer satisfaction

RIVALRY AMONG COMPETITORS:

Intensive competition between firms for the customer loyalty, market share and reputation.
Main competitors are Bisleri VS Kinley, Aquafina, International market, Pure Life, etc.

POTENTIAL ENTRY OF NEW COMPETITORS:

Fake Manufacturer who sounds alike.

Economies of Scale

Capital Investments

Research & Development

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POTENTIAL DEVELOPMENT OF
SUBSTITUTE PRODUCTS:
Soda

Juices

Local water

Tap water

Beer, etc

Porters five force model is basically useful for the marketers which provide a simple step for
accessing and calculating the position and competitive strength of organization or company.

Porters five forces for Bottled water industry-

a)Bargaining power of suppliers-

The suppliers are basically the input to any firm. Supply of raw materials, bottles, machinery
tools to the firms. The suppliers are providing their material to other industry as well so they
are not entirely dependent on water industry, so suppliers can negotiate and possibly a
pressure on industry profitability.

b)Bargaining power of consumers-

The consumers are very knowledgeable and brand conscious. These two factor can lead
consumers to be highly price conscious and look for quality products can effect the
profitability.

c)Rivalry among competitors-

Like every other industry, bottled water industry also got some competitors in the market
.The major problem is product differentiation, the quality, pricing which can effect the
industry

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d) Entry of new competitors-

Entry into the market like small firms can quickly enter into the market by sub contraction
their manufacturing activities, secondly new suppliers ,new rates so the industry should be
updated with all new technologies and with existing or upcoming competitors, because the
new entries can weaken the position and decrease profitability

e)Development of substitute product-

Bottled water industry-water which is easily available anywhere in malls, stations etc. can
have a threat by its substitutes like soda, coke, juices in future.

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