Professional Documents
Culture Documents
ON
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CERTIFICATE ACKNOWLEDGEMENT
MEGHA JAIN
ROLL NO. 06914901710
BBA (GEN) 3rd SEM
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CONTENTS
OBJECTIVES OF THE
STUDY
RESEARCH METHODOLOGY
Sample
Size
Analysis
INTRODUCTION
Background
The Present
Future Plans
Technology
Developments
Purification Process
WHY BISLERI?
EXCERPTS
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CURRENT PLAYERS
SWOT ANALYSIS
Consumer Related
Retailer Related
CONCLUSION
ANNEXURE
Consumer’s Questionnaire
Retailer’s Questionnaire
BIBLIOGRAPHY
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OBJECTIVE OF THE STUDY:
Whether the people of Delhi & its NCR and happy, paying for
water.
Whether the people of Delhi & its NCR are getting health
conscious.
To find the potential of Mineral water market in Delhi & its NCR.
6
RESEARCH METHODOLOGY:
issues related to the topic selected. For this one needs to do some
secondary data.
5. All the above activities at the initial stage of the project must be
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Sample Size
Regions of Delhi & its NCR were covered for the study. 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.
Analysis
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INTRODUCTION:
To the domestic packaged drinking water
market
The concept of bottled mineral is quite a new one for Indian People.
Since we never consider these things as necessity and especially
when we are paying for natural resource like water which is
available freely.
The bottled water market has recently seen growth; the reason
behind this may be the growing health consciousness among Indians
or non-availability of pure drinking water. Most of the users are
daily travelers, patients or it is used in parties/seminars. Moreover
30% of the whole mineral water customers are travelers.
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Since the early 1990s, Indian attitude have changed and people are
flocking to the cities at a frenetic pace - one-third of Indian now live
in urban areas.
Today many medical stores in the city are doing very well with the
sale of branded bottled water. The brand name plays an impression
on the human mind. Bottled water is available in quantities of
330ml, 500ml, 1lt, 1.5lt, 2lts, 5lts, 10lts, 20lts and 50lts.
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For a particular brand to be certified as bottled water it requires approval on 4 levels
namely the Central, the state, the trade association, and individual company levels.
Typhoid
Bone deformation
Joint pain
Arsenic Poisoning
Domestic Waste
Organic matters
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Industrial waste
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According to the Bureau of Indian Standards there are 1,200 bottled
water factories all over India (of which 600 are in one state -- Tamil
Nadu). 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, aggressive
advertising, catchy taglines.... In such a scenario, The Strategist
takes a look at how it all started -- with Bisleri -- and how Ramesh
Chauhan, chairman, Parle Bisleri created a market out of pure
water.
Bisleri mineral water was bought from the Italian company, Felice
Bisleri, in 1969 -- the company had been unable to market bottled
water and wanted to exit the market -- Parle too did not see any
potential for the product at that time.
As a soft drinks company, Parle had Thums Up, Gold Spot and
Limca (cola, orange drink and lemonade) but no soft drink company
was complete without a soda. So they merely used the name and
launched Bisleri soda with two variants -- carbonated and non-
carbonated mineral water.
But three decades ago, what could they say about a category that
had no market? They didn't know our target group. Then, since
bottled water is colourless, tasteless and odourless, it was not an
easy product to advertise.
Thus, the earlier brand building efforts focused on Bisleri being
healthy with adequate minerals. The Italian name added a dash of
class to it. The first print ad campaign captured the international
essence and showed a butler with a bow tie, holding two bottles of
Bisleri.
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However, the real boost to mineral water came in the early-to-mid-
1980s when they switched to PVC packaging and later to PET
bottles. The PET packaging did not just ensure better transparency --
they could now show sparkling clear water to the consumers. It also
meant better life for the water.
Meanwhile, Bisleri soda was doing well but they had to discontinue
production as they sold their soft drink brands to Coca-Cola in 1993.
But Ramesh Chauhan’s interest was in building brands and not in
bottling soft drinks. That's when he started to concentrate on
developing the Bisleri water brand.
The other major challenge was distribution. 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. That's not the
case with the retail bottled water packs (below 2 litre). But a product
that's not available where it's needed, is useless.
The number of outlets where Bisleri is available has increased from 50,000 in 1995 to
2,50,000 at present. But that is not enough -- they need to keep looking for different
avenues. Take stationery shops and chemists, for instance. They don't keep soft drinks but
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sell Bisleri. That is the kind of exclusivity we look for to get ahead of the distribution
network that soft drink companies talk of.
MARKET SHARE:
Aquafina
11% Others
21%
Others
Bislery
Kinley
Kinley
28% Aquafina
Bislery
40%
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Some of the specifications as per the latest notification
(which were effective from April 01).
The location of packaging should be close to the source or place
of origin of water.
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. But around 16 applications in
packaged water category and 6 applications in the mineral water
category are still in the pipeline.
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. So in effect anyone can set up
a plant without establishing the source of the water and the
technology used to purify it.
Till recently India was not a potential consumer for packaged water
hence the prospects are now huge. But with regulations somewhat
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confusing and contradictory it is likely to be a while before the
manufacturers are able to realize their full market potential in a
country, which is fast becoming one of the principal global markets
in bottle water.
:: Background
:: The Present
It was around the year 1995, when Parle Exports took charge of the
brand operations and the business took off in the market. With
factories across India and a strong distribution network, Bisleri
established itself as a force to reckon with in the domestic packaged
drinking water market.
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Earlier the packaged drinking water market consisted of five star
hotels, tourists and foreigners. As a marketing strategy, a conscious
decision was taken by the company that only 40% of the sales
should come from these outlets and 60% from general market. i.e.
paanwallas, street shops, 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. Now
Bisleri is perhaps already ten steps ahead of its competitors and will
endeavour to widen its gap in the times to come.
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
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Increase the distribution network with an investment of over
200 crores
:: Technology Developments
To make sure that the product that reaches the consumer is always of
highest standard and also meets international standards, Bisleri has
always been involved in improving its product packaging. One such
recent development is the tamper proof break away seal. Bisleri
also recognises the need to produce environment friendly products
and is working on the PET project.
Product packaging:
To ensure purity of the bottled water, the bottles that are used are
blown and filled at the factory itself, to avoid contamination.
WHY BISLERI?
Bisleri is totally safe & protects you from all water borne
diseases.
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Traditional process of boiling water for purification has its
limitations.It is time consuming. For boiling , water has to be heated
to 100 deg.Celsius. Also , to kill microbes water should be boiled
continuously for a minimum of 20 minutes. Boiling may kill the
microbes but can not remove other physical impurities and toxic
substances.
Filtration removes only the visible suspended particles and not the
minute , invisible particles , toxic substances or microorganisms.
The filters are cleaned rarely and all the muck accumulates inside
leading to more contamination. 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.
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CHLORINATION : Kills micro organisms. Remove organic matter.
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BOTTLED WATER ANALYSIS
Bisleri
PARTICULARS Mg/litre
TDS 160
Ph Factor 7.2
Calcium 13.6
Chlorides 22
Bicarbonate 58
Magnesium 7.8
Nitrate 2
Sulphates 19.3
Hardness 66.1
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WHERE CAN WE USE BISLERI ?
Drinking
Cooking
1993: Sells carbonated drink brands like Thums Up, Gold Spot and
Limca to Coca-Cola for Rs 400 crore.
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1998: Introduces a tamper-proof and tamper-evident seal.
2000: BIS cancels Bisleri's licence of a water bottling in Delhi
since some of the bottles did not carry ISI label; the licence is
restored one-and-a-half months later.
:: 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
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To provide better quality of product and services through
sustained market research and product development.
CURRENT PLAYERS:
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cases of typhoid and other waterborne diseases began to be
reported. In addition to this, liberalization happened and the
mineral water industry began to be stirred and shaken. The market
started growing an astounding rate of over 100% per anuum. The
fact that there were very few players in the market meant that their
business grew by leaps and bounds. Bisleri became a household
name and is now generic for bottled water. The market today has
grown to Rs11bn. The organised sector -- branded mineral water --
has only Rs5bn of market share. The rest is accounted for by the
unorganized sector which is dominated by small regional players.
The market is still growing – at a rate greater than 80% per annum.
In the branded segment, Bisleri is the market leader as it continues
to lead in the Rs 700-1,000 crore organised, 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. In
terms of volumes, the North and West remain Bisleri's biggest
performing markets, despite the brand's sustained national-level
presence The boom in the market has also encouraged
unscrupulous players to gain an entry. In the name of mineral
water, a number of regional players have even started selling plain
tap water. Many people have fallen sick after drinking this
spurious mineral water. The common man’s faith in the product
was shaken. However, not everyone was put off. Sensing the
opportunity that this segment holds, MNCs have begun to draw up
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plans to enter the market, but not without testing the waters first.
They carried out the appropriate feasibility studies. However,
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.
The first entrant in the bulk water category was Bisleri, while
Coke, through Kinley, entered the segmen 4 years ago. Over the
past five years or so, Bisleri has become a major player in the bulk
water segment in the water-starved southern states. The 20-litre
bulk water packs are targeted at the institutional and the home
segment. Pepsi is aiming to make its brand available throughout
the country soon. The company has also ruled out entering the bulk
water segment in India. Meanwhile, the action is all in Coca-Colas
bulk water business. 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,
against the conventional snap-on fittings. The existing 20-litre
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Bisleri packs are now being withdrawn and the rollout of the new
jars, priced between Rs 40-60, is on.
Bisleri’s focus on the bulk water market has grown in the past few
years, mainly owing to the stiff competition posed by innumerable
brands in the packaged bottled water market. Not only are there big
multinational players like Coke with their huge distribution
networks, regional players exist side by side, enjoying local clout.
Bisleri continues to lead in the Rs 700-1,000 crore organised,
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. In terms of volumes, the North and West remain
Bisleri's biggest performing markets, despite the brand's sustained
national-level presence the fact remains that the new kids on the
block are nibbling away at Bisleri's stranglehold over the bottled
water segment. Only three years ago, the bottled water market was
estimated at about Rs 300 crore, of which Bisleri commanded a
dominant 80 per cent share.
To ensure Bisleri packaged drinking water is held safe free from
contaminations, ultraviolet treatment and ozonisation process is
carried out. Ozone is unstable trivalent oxygen, a very powerful
bactericide with no side effect, as it disintegrates into oxygen
within couple of hours Sterilization effect of ozonised water
continues even after water is packaged, thereby ensuring safety of
Bisleri up to its final packing. To ensure high quality of packing
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materials, components like caps and bottles are manufactured in-
house from resins of quality suppliers.
Strengths:
Available in different packs like cups, 500 ml, 1 lit, 1.2 lit, 2 lit,
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Availability of Bisleri in all over India with solid infrastructure
facility.
cap.
Weakness:
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Opportunity:
India.
Threats:
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Local manufacturers who refill used bottle Hampers the image
of the industry.
industry.
in bottle water industry with their own fleet of trucks & vans.
The brand that was till now marketed as packaged drinking water
(cleaned through reverse osmosis) will now be available in a
naturalavatar.
Bisleri International will invest Rs100 crore for the project which
constitutes a Rs40- crore investment in two plants in Uttaranchal
and Himachal Pradesh in line expansion, Bisleri International
chairman Ramesh Chauhan said. The plants will come up next
year. Chauhan said the rest of the investment of about Rs60 crore
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would go into infrastructure development. The investment would
be funded through internal accruals.
The natural water segment, which accounts for about 5 per cent of
the total bottled water segment, is expected to grow by leaps and
bounds as health awareness and disposable incomes rise.
According to the company the foray into spring water will be
followed by an entry into the packaged ice segment (Bisleri Ice) as
well into flavoured, vitamin and sparkling water categories. The
company is said to be setting up R&D facilities for ice and
studying various packaging options. Ramesh Chauhan, chairman,
Bisleri International expects to sell 10 million cases of Bisleri
Mountain Water over the next two years- a turnover of Rs200
crore. The bottled water industry is worth Rs1,000 crore in India
and is growing at 40 per cent per annum. It is projected to reach
Rs5,000 crore by 2010. The main players in the spring water
segment are Himalaya, Catch and Leh Berry. At present Himalaya
leads the segment with a 50-per cent market share.
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Bisleri claims to have a 40-per cent market share of the organized
packaged water market. The natural spring water market is very
small and accounts for 5 per cent of the entire segment. Bisleri is
projecting a turnover of Rs300 crore this financial year, as against
Rs220 crore last year.
KINLEY
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In addition to this, Kinley offers Kinley water dispensers. These
water dispensers come in four basic models. The water dispensers
are ergonomically designed to suit both domestic as well
commercial requirements.
Compacta
Elegance
Advantages of Kinley:
Available in different packs like 500 ml, 1 ltr, 2 ltr, 5 ltr and
20 ltr.
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Focusing on institutional sales to create brand awareness
aggressively.
Disadvantage of Kinley:
AQUAFINA
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market leader and a good brand that has been built over the years.
But we are gradually consolidating our bottled water business,
even if our positioning is somewhat different," says Pepsi Food's
official spokesperson.
Advantages of Aquafina:
Disadvantages of Aquafina:
not satisfactory.
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Lack of strong infrastructure.
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ANALYSIS AND INTERPRETATION
CONSUMER RELATED
60%
50%
40%
30%
20%
10%
0%
Bisleri Kinley Aqufina Others
Kinley 20%
Aquafina 12%
Others 8%
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NUMBER OF RESPONDENTS USING
MINERAL WATER FREQUENTLY
40%
35%
30%
25%
20%
15%
10%
5%
0%
Always Often Sometimes Never
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60%
50%
40%
30%
20%
10%
0%
Mineral Water Soft Drinks
40%
BRAND AWARENESS OF MINERAL
30%WATER AMONG RESPONDENTS
20%
10%
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0%
0 to 2 3 to 5 6 to 10 10 & above
Brands Respondents
0–2 40%
3–5 50%
6 – 10 10%
10 and above 0
40%
30%
20%
10%
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0%
0.5 ltr 1 ltr 5 ltr 20 ltr
SIZE
1 ltr 20%
5 ltr 5%
20 ltr 15%
Total 100%
60%
50%
40%
30%
20%
10%
0% 44
Yes No
Respondent’s view Yes No
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EFFECT OF ADVERTISING ON
54% PURCHASE
52%
50%
48%
46%
44%
42%
Yes No
Respondents Yes No
perception
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GROWING HEALTH CONSCIOUSNESS
AMONG INDIANS
80%
70%
60%
50%
40%
30%
20%
10%
0%
Yes No
Yes No
73% 27%
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RETAILER RELATED OBSERVATIONS
AND FINDINGS
60%
50%
40%
30%
20%
10%
0%
Advertised Non-advertised Both
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SIZE OF BOTTLE SELLING MORE
60%
50%
40%
30%
20%
10%
0%
0.5 Ltr 1 Ltr 5 Ltr 20 Ltr
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GROWTH DURING THE LAST FIVE
60%
50%
40%
30%
20%
10%
0%
Advertised Non- Both
advertised
50
FUTURE PROSPECTS OF MINERAL
WATER MARKET
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
prediction
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For observing retailers, 20 retailers were
40% - Bisleri
20% - Kinley
15% - Aquafina
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15%-others
The market is too congested and confused in the Delhi & its
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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. Soft
drink market might be some threat to the mineral water at
present but within few years the scenario is going to change.
Trend signifying increasing health consciousness amongst Indians
could also be observed.
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.
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.
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ANNEXURE
CONSUMER QUESTIONNAIRE
Contact no.________________________
QUESTIONS
Q 1.How often do you consume mineral water?
a) Always b) Sometimes
c) Often d) Never
a) 0-2 b) 3-5
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Q 4. Under what circumstances you opt for mineral water?
a) While traveling
d) During illness
e) Others
a)500 ml b) 1ltr.
c) 5 ltr d) 20 ltr
normal water?
a) Yes b)No
a) Yes b) No
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Q8. Does advertising of this product has any effect on your
purchase?
a) Yes b) No
day by day ?
a)Yes b) No
a) Bisleri b) Kinley
c) Aquafina d) other
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RETAILER’S QUESTIONNAIRE
Contact no.________________________
QUESTIONS
a) 2-3 b) 3-5
c) More
a) Advertised b) Non-Advertised
c) Both
a) Bisleri b) Aquafina
c) Kinley d) Others
a) 500 ml b) 1 ltr
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c) 5 ltr d) 20 ltr
a) Bisleri b) Aquafina
c) Kinley d) Others
a) Yes b) No
a) Excellent b) Good
c) Unlike d) Poor
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BIBLIOGRAPHY
Business World
A&M
Economic Times
Business India
VISUAL MEDIA…….
Cable Network
Internet
Britannica Encyclopedia
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