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PROJECT REPORT ON

COMPARATIVE BRAND ANALYSIS


AND
DISTRIBUTION NETWORK OF BISLERI

Submitted in partial fulfillment of the requirement of the award of degree in M.Com


(Entrepreneurship & Family Business) BATCH OF 2018-20

Submitted To: Submitted by:


(Department of Commerce and Management) Abhiv Jindal
GGDSD College, Chandigarh Roll No. - 1913704
Certificate

This is to certify that Abhiv Jindal completed his project as a part of partial fulfillment of
M.Com (Entrepreneurship & Family Business) program from GGDSD College, Chandigarh
affiliated from PANJAB UNIVERSITY, under my guidance and supervision. He was in constant
touch with me and the matter embodied in this is original and same is recommended for
revaluation.

I wish him all the best in his future endeavors.

Dr.Shallu Sharma (Faculty GGDSD)

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Declaration

I, Abhiv Jindal, hereby declare that the project report entitled “Comparative Brand Analysis
and Distribution Network of Bisleri” submitted in a partial fulfilment of the requirements for
the degree of Masters in Entrepreneurship & Family Business to GGDSD College, is my original
work and not submitted for the award to any other degree or diploma.

Place: Chandigarh Signature:


Date: ABHIV JINDAL

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Acknowledgement

I take this opportunity to present this project on “Comparative Brand Analysis and
Distribution Network of Bisleri” and express my gratitude towards all those who have
contributed towards the success of my project. This work would not have been possible without
the help, cooperation, constructive suggestion and well wishes of many people. I would like to
thank all of them, as mention a few here.
I owe my profound respect to my project guide DR. SHALLU SHARMA and express my deep
sense of gratitude and indebtedness for her inspiring, valuable and scholarly guidance, imperative
suggestions and personal attention at each stage of the project. Her gamut of knowledge,
dedication towards research, exemplary devotion and trust towards me has been unique and is the
prime key behind the success of this project. Her personality has been instrumental in blending an
exciting spirit and atmosphere for research. It has been a great opportunity and experience to work
with her.
I extend my sincere gratitude towards my parents who have always encouraged me & given
suggestions regarding this project. They’ve always stood by me and helped in solving all my
queries. Their support has always motivated me.

ABHIV JINDAL

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Index
S.No. Particulars Page No.
1.0 Chapter 1 – Introduction
1.1 Executive Summary 8
1.2 Introduction to Mineral Water Industry 9
1.3 Introduction of Bisleri 10
1.4 Vision, Mission & Values 12
1.5 What Makes Bisleri Stand Apart? 13
1.6 Marketing Mix of Bisleri 16
1.7 3 C’s 24
1.8 Product Mix 26
1.9 Competitor Analysis 27
1.10 Strategies Followed by Bisleri 29
1.11 Water Purification Process 31
1.12 SWOT Analysis 32
1.13 Distribution Network Analysis 33
1.14 Channel Participants 34
1.15 Channel Structure 35
1.16 Channel Format 36
1.17 Sales Force Management 37
1.18 Pricing Strategies of Bisleri 39
1.19 Supply Chain Network 40
1.20 Channel Conflicts 42
1.21 Mode of Transportation 43
1.22 4 D’s of Distribution 44
2.0 Chapter 2 – Research Methodology
2.1 Research Objectives 46
2.2 Scope of Study 47
2.3 Nature of Data 47

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2.4 Data Collection 47
2.5 Sampling Procedure 47
3.0 Data Analysis & Interpretation
3.1 Findings of Research
4.0 Challenges Ahead 61
5.0 Recommendations 63
6.0 Conclusion 65
7.0 Bibliography 66
8.0 Annexure 67

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Chapter – 1

INTRODUCTION

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Executive Summary
Bisleri is a famous brand of bottled water in India and it was found in 1965. Bisleri has 56% market
share in packaged drinking water industry in India. Bisleri’ s revenue for the year 2019 was Rs 1500 crores.
Bisleri has a very strong distribution network and it has reach to almost all regions of the country. Its
operations run throughout the subcontinent of India and are one of the leading bottled water
supplying companies. As of now, Bisleri has 122 bottling plants Pan India, amongst which 13 are
their own and 109 are licensed. It deals not only in bottled water but also in energy drinks, soda,
facial wipes, stand and faucet, ice box. Bisleri has a wide and well managed salesman appointed for
taking up the responsibility of distribution of its products to diverse parts of the country.

Bisleri has 4500 distributors and


5000 distribution trucks across
India. It uses three level of
distribution channel as it includes
dealers, wholesalers and retailers.
The participants play a vital role
in success and failure of any
business. They actually bridge
the gap between suppliers and
end consumers thus framing the outline for a company in end users’ mindset. The existing situation in
which Bisleri is operating is oligopoly. This means that companies have more pricing power than if
they were operating in perfect market circumstance. The marketing strategy provides the design for
achieving them the linkage between marketing strategies and overall corporate success is indeed
direct and vital. Bisleri has been developing the drinks for over a year and after final testing and
development, they are now all set to launch the array of economical and refreshing soft drinks. Indian
consumers are tired of the existing range of products and need something new and innovative. Bisleri
Pop’s unique flavors will stand out among the available flavors in the market and will give the
consumer a wide variety of choices. Bisleri has gained the tremendous success in the field of bottled
industry.

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Introduction to Mineral Water Industry
In recent years, the bottled driving water market has been witnessing high-decibel levels of activity, with a
host of new entrants swelling the clutter. With over 200 players jostling to be the thirst quenching favourite of
the Indian consumer, the business is growing at a rate of over 50 per cent annually.
The market is expected to reach Rs 40,306 crores by the end of 2023, from its current value of Rs 16,000
Bn, expanding at a compound annual growth rate (CAGR) of 20.75% from 2018. Expanding at a CAGR
of 18.25% from 2018 to 2023. Increasing health concerns, and unavailability of clean drinking water
have led to the growth of the bottled water market in India. The major bottled water brands operating in
India are Bislery, Kinley, and Aquafina.
In India, bottled water is sold in four main types of SKUs - one-litre bottles, two-litre bottles, 500
millilitre bottles, 250 millilitre bottles, pouches, and barrels of 15-20 litres. Among the different SKUs,
one-litre bottles have acquired the largest market share of 42%, followed by 500 millilitre bottles and
250 millilitre bottles.
In India, the core proposition of bottled drinking water lies in hygiene, as the quality of tap water is bad
and is rapidly deteriorating. This is in stark contrast with the West where 'mineral water' indicates the
attendant minerals present in the water. Mineral water in Western countries is obtained from natural springs
and is, generally, named after those springs. Most of the bottled water passed off as mineral water in India,
however, is filtered, boiled or purified by other means such as reverse osmosis. A better description of
bottled drinking water sold in India therefore, would be 'purified bottled water.
The growth of the category indicates the need for this 'mineral water' and the fact that heavyweights are eyeing
the segment points to the potential that is seen in this market. Coke's Kinley, Pepsi's Aquafina, Brittania,
Nestle, Kingfisher, Auswater-are keen on raising their stakes in the ₹ 700 crores, 700 million litres market.
The entry of Danone’s brand, Evian, the high-priced mineral water from the French Alps, shows the
perceived potential India presents in this product category. Today there are more than 200 brands, out of
which 10 of them are from top companies. In the branded segment, Parle’s' Bisleri 'is the market leader
with a share of more than 45%. Parle Agro’s' Bailey' comes a close second with market share of 15%.
Other major players in the market are' Yes 'of Kotharis, 'Ganga' of T-Series, 'Himalayan,' Jal', Prime,'
Florida' etc.

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Introduction of Bisleri

Bisleri’s history is a glimpse of the constant innovation, commitment to quality, and focus on
customer need, that have made Bisleri the benchmark for bottled water in India.
Bisleri is a famous brand of bottled water in India. Ramesh Chauhan joined the Parle group, found by
Jayantilal Chauhan, in 1963. Parle group started manufacturing soft drinks in 1949, namely, Gold
Spot, Limca, Maaza, Thums Up and Citra. Bisleri, an Italian mineral water company, was launched in
India in the year 1965, and bought by Parle from the Italian entrepreneur Signor Felice Bisleri in
1969 as the company was unable to market bottled water, and planned to exit the market. They
merely used the name and launched Bisleri soda with two variants -- carbonated and non-carbonated
mineral water. Bisleri soda, though doing well, had to be discontinued, as Parle sold their soft drink
brands to Coca-Cola in 1993. After the sale to Coca-Cola, Ramesh Chauhan dedicated himself to
develop Bisleri as a brand and bring safe drinking water into the public domain. His undying
determination and vision have made Bisleri a premium mineral water brand and a household name.

Major events at Bisleri are:

1949 – Parle group founded by late Shri Jayantilal Chauhan starts manufacturing soft drinks.

1965 – Bisleri is launched in Mumbai.

1969 - Parle bought Bisleri, from an Italian entrepreneur, Signor Bisleri.

1971 - Parle group launches LIMCA, that derives its name from 'NIMBU KA' (of lemon)

1974 - Parle group launches MAAZA, a mango-based drink.

1978 - Parle group launches THUMS UP, a cola flavoured aerated drink.

1990 - Opponents started for Bisleri in a large scale, however it was still able to survive.

1991 - Bisleri economic 20-litre jar was introduced to cater to homes and offices.

2000 – Launch of Bada Bisleri, a 1.2 litre pack

2006 - Bisleri changed its brand colour from blue to green which helps in differentiating itself from

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competition. Bisleri mountain water from the Himalayas was launched.

2009 - Bisleri launched limited edition celebration bottles, available in 250 ml and 500 ml. It ushered

in the festive season of that year.

2010 – Bisleri launches limited range of bottles with “Celebrate Cricket” labels, available in 250 ml

& 500 ml.

2011 - Bisleri launches the 'Stay Protected' campaign with the message 'Protects the One You Love'.

Home-sized pack of 15 litre is introduced as an ideal pack for home use. It also launches Club Soda

2012 - Bisleri stepped into the premium water category with Vedica - natural mountain water from

the Himalayas.

2016 - Bisleri launches four fizzy soft drinks - Spyci, Limonata, Fonzo and Pina Colada

2016 – Bisleri launches ‘Rockstar’, 300 ml bottle of mineral water.

2017 – Bisleri introduces regional language labels for mineral water.

2018 – Bisleri launches world’s first vertical manufacturing plant for mineral water.

2018 - Bisleri Launches, 'Har Paani Ki Bottle Bisleri Nahi’ campaign to create awareness among

consumers that not every packaged water bottle is Bisleri.

2019 - Bisleri Launches Spyci, Limonata and Fonzo, refreshing beverages with a unique combination

of tasty fruit juice and refreshing fizz, in a new avtar.

2020 - Bisleri launches Bisleri@Doorstep Delivery service. A new convenient platform for

consumers to place an order online and receive delivery at home.

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Vision, Mission & Values

Bisleri’s Vision
Its vision is to be the dominant player in the branded water business. They aspire to expand and be a
leader in the premium beverage category.

Bisleri’s Mission
To provide the highest quality product, keeping in mind all aspect including freshness, purity, safety
and making it easily available to the consumer at very affordable price. Their mission is to be
unbeatable leader and have satisfied loyal customers.

Bisleri’s Value
Bisleri believes in integrity, teamwork, cooperation, quality, passion, openness and transparency.

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What Makes Bisleri Stand Apart

• Powered by 122 plants, 4500 distributors & 5000 distribution trucks across
India
A symbol of goodness, trust
and purity, Bisleri has been a
household name for decades.
A leader in its category, it is
the most trusted brand of
mineral water in India. Having
a strong presence, with 122
operational plants (13
owned) and a strong
distribution network of 4500
Distributors & 5000
Distribution trucks across
India & neighboring countries,
Bisleri stands true to its
promise of providing safe,
pure & healthy mineral water
to consumers for the last 50
years.

• Consumer is at the heart of the business


A BISLERI FOR EVERYONE AND EVERY OCCASION
Bisleri’s promise of goodness comes in multiple sizes that are just right for various occasions.
Bisleri 250 ML & Rockstar 300 ML are perfect companions for party, lunch boxes and
entertaining guests. Bisleri 500 ML bottle is the perfect choice when one doesn’t want to share.
Bisleri 1 L and 2 L keeps us going for the day and quenches thirst on the go. Easy to pour 5 L jar
is a trusted partner on a weekend getaway and classic Bisleri 20 L jar ensures that there is pure,

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safe and healthy drinking water available at home all the time.

• Bisleri labels in regional language


Bisleri launched labels in regional languages across India in 2017, the first in this category to do
so. India being a multilingual country, people prefer communication in their local language too.
Hence, the move aimed to connect with the local people in different markets and help them to
identify and relate to the brand in languages they understand. It would also help consumers to
recognize the genuine Bisleri bottle and avoid buying counterfeit products or products which
spell differently but look the same. Labels were released in several local languages like Hindi,
Marathi, Gujarati, Punjabi, Tamil, Telugu, Assamese, Malayalam, Kannada, Bengali, and Oriya
across different SKUs.

• Socially Responsible
Bisleri makes a conscious effort to keep our environment safe and healthy. It is their constant
endeavour to give back to the environment and the community at large.

As a part of Social Responsibility, it has started several initiatives such as - Plastic Recycling,
Rain Water Harvesting and Ozone Treatments. It also organizes several awareness programs to
involve as many people as possible in pro-actively making our planet a healthier place to live. Its

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initiatives contribute to create a positive impact on the environment and ensure that they are
sustainable.

• Innovation Flows in the Pipeline


BISLERI GOES GREEN - Bisleri changed its blue label to green in 2006.
The change to aqua green colour was recommended to set Bisleri apart from other bottled water
brands available in blue package. It was also in line with the increasing global interest in ecology
and green earth concepts. Bisleri knew that the small, local players would easily change to green
but global brands will not.

• Delivering Highest Quality Products


Bisleri Mineral Water is not just an ordinary bottle of water. Each drop of Bisleri
water is a promise of goodness that goes through rigorous 10 STEP QUALITY
PROCESS and 114 TESTS.

It gives utmost importance to quality and believe in maintaining the highest


possible standards in hygiene. All Bisleri production facilities have their own
quality testing labs that ensure that every Bisleri product is made as per quality
guidelines set by the Bureau of Indian Standards (BIS).

The state-of-the-art central lab located at Bisleri Head Office, Mumbai, ensures
that quality standards are maintained across all Bisleri units in the country. They
also ensure uniformity in procedures followed at all locations. For this purpose,
they collect and test samples of raw and treated water every month, from each
Bisleri production facility in India. They also conduct quality tests on random
samples of all pack sizes collected from the markets every month.
All this is done to ensure that each drop of Bisleri is absolutely pure, hygienic and
safe, everywhere in India!

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MARKETING MIX OF BISLERI

The set of controllable tactical tools- product, price, promotion, and place (4 Ps) that the firm blends
to produce the response it wants, in the target markets.

1. PRODUCT
The main product of the company is the mineral water by the name of Bisleri Mineral water. Other
than mineral water the company has also the soda water under its brand name called the Bisleri Soda
Water. The concept of bottled mineral water was introduced in India, first by Bisleri, and that is the
reason, it has become a generic name for the mineral water. Bisleri has become a perfect synonym of
the mineral water for the Indian consumers.

The main challenge facing the company or any other player in this mineral water industry is that there
is no scope of invention and innovation in the product, which can be added as the additional benefits
of the product. It is just water after all. This is what the Indian customers think of the bottled water. If
we are talking about a product like television, we can think that the innovations could provide extra
benefits derived from the product. For example, other than its core usage the product can provide for
Internet facilities using conversion.

VARIANTS OF THE PRODUCT


The company is offering wide variants of the product. These include the different quantities available
of the product. Starting from the Jumbo pack (18 lt. Jar) to the 500 ml. Bottles. In between, it also

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has 1 lt., 2 lt. and 5 lt. Packs.

In terms of another variant the company has also come up with small glasses of 300ml. that are priced
at Rs.3. per glass. The company has introduced these glasses for the social occasions like marriages
and get together. This again is very competitive in the price field and also the customer is getting a
convenient product with the benefit of purity at such a low price. Now the customers would not have
to drink impure water served in unhygienic glasses.

PACKAGING
The packaging of the product is an important factor in the marketing of the product. Packaging of the
product was absolutely accepted by the customers till now. But it has been a long time the company has
changed the packaging of 1ltr. mineral water bottle.

One of the competitors of the company, Pepsi, has mineral water by the name of ‘Aquafina’. The
packaging of the Aquafina is creating the need for the company to change its packaging and make it
look sturdier. The brand Aquafina has been targeted towards the youth and that is why they have made
the bottle look attractive. Bisleri would have to give a new look to its product to stopping Aquafina
from snatching its market share.

Today, Acqua Minerals offers a variety of packaging options:150 ml, 300 ml, 500 ml, 1 litre, 02 litre, 5
litre, and 20 litre. The 5-litre bottles account for 35 per cent of sales showing a growing health concern
among the Indian society. 1 litre bottles account for 30 percent of the share, whereas the 500 ml bottles
taking up 15 per cent. The remaining sizes share the rest of the contribution.
The 2 litres bottles were introduced to slowly and steadily replace the conventional 1 litre bottles. This
would give them an advantage over others. The 500-ml category was re-focused as a trendy product,
targeted at the teenage crowd and for the roadside consumers.

Acqua Minerals is currently a supplier to Indian Airlines with 125-ml cups. The five-litre packs, launched
in December 1999 in Goa, are currently available in six cities, including Delhi, Bombay and Bangalore,
and sell over 5,000 bottles a day.

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Following is a quick overview of the various packaging options provided by Bisleri along with the target
consumers:
Size of the bottle Price per bottle Target consumer
250 ml Rs. 6 For events and functions
500 ml Rs. 10 Teenagers, college students and roadside consumers. Also aimed to
supply to the Indian Railways.
1 litre Rs. 20 General consumers and travelers.
1.2 litres Rs. 24 Consumers demanding a little more water at just a little more
price.
2 litres Rs. 30 Small offices, shopkeepers, households
5 litres Rs. 70 Households, institutes, offices, retail shops, showrooms
20 litres Rs. 80 Households, institutes, offices, schools and colleges

In addition to the above-mentioned sizes, Bisleri also provides 150 ml cups – for Indian Airlines
travelers, and 300 ml cups – for marriages and parties.

The following pie chart clearly shows the sales wise distribution of the various pack sizes:

% share of pack sizes in sales

500 ml

10 1 litre
15
35 30 2 litres

5 litres
10
others

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2. PLACE
Place stands for the company activities that make the product available to the target customers. To make
the product available to the target consumers a good distribution network has to be there to support the
good quality of the product. Here in the case of the mineral water industry the distribution network is the
important factor in being competitive and the catch lies in making water available to maximum number of
places in the country.

DISTRIBUTION NETWORK
The small-scale players built their sales by piggybacking on the generic category built up by Bisleri. It’s a
battle that Bisleri can win by sheer distribution muscle. One of the reasons why Bisleri is running
strong in this industry is its strong distribution network built over the years since its inception.
Further, Bisleri plans to increase its distribution network over the southern and eastern region, where it
is behind popular brands like Team in Tamil Nadu and in Andhra Pradesh.

Conclusion: It is very important for the companies to understand that winners would be those who will
endure a strong regional presence. Therefore, the companies should take some immediate actions to
make presence in the whole country and more important is every hook and corner of the states where
they are present today.

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3. PRICE

AN ECONOMIC FACTOR AFFECTING THE BUYER’S BEHAVIOUR

Price is the sum of values that consumer exchange for the benefits of having or using the product or
service. Price is the only element in the marketing mix that produces revenue. All other elements
represent costs.
In India, where the majority of the population comprise of the middle -income group and lower
income groups it is not hard to understand that pricing is one of the most important factors in the
buying decisions.
Bisleri has met the expectations of the consumers in terms of pricing the product and also making the
product available in variations of litres, making Bisleri both convenient and affordable. The company is
following a very aggressive pricing. Its product is available at a very reasonable price. Company
charges Rs. 2 for every 100ml. This strategy by the company is very effective in the Indian context
where the consumers are highly price conscious. The company has an edge over its competitor
Aquafina launched by Pepsi that has priced its product at Rs.20 for 750 ml.

Conclusion: To conclude from the facts that the pricing strategy of the company is very competitive
and therefore the company is giving value to the customers for money.

4. PROMOTION
Modern marketing calls for more than just developing a good product, pricing it attractively, and making it
available to the target customers, companies must also communicate with their customers, and what
they communicate should not be left to chance.

A Company’s total marketing communications program- called its Promotion Mix consists of
specific blend of advertising, personal selling, sales promotion, and public relations tools that the
company uses to pursue its advertising and marketing objectives.

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PROMOTIONAL ACTIVITY

Advertising Campaign of Bisleri before Launch of Acquafina & Kinley

Every brand needs a good ad campaign to establish itself in the market. So, it becomes very imperative to
look at various ad campaigns that Bisleri undertook to build itself as a brand.

Bisleri started its game-plan with the punch-line of ‘Pure and Safe’ and used the same catch-line for
advertising. But with the advent of many new players, all claiming the purity, it became very
imperative for Bisleri to differentiate its product so as to stand out in the market. Bisleri found the
answer in ‘sealed cap bottle’. It claimed 100% purity.
While the bottles of the other brands, it claimed, could be refilled with ordinary, or even germinated water,
Bisleri’s seal capped bottles ensured the consumer of purity of water and single-used ness of the bottles.
The ad showed a milk-man and a child showering their buffaloes and filling the ‘so-called’ mineral
water bottles with the same water and packing them with the simple polythene seal and the consumer
not knowing about the ‘purity’ of the water he is drinking. Next clip shows the Bisleri bottles being
sealed with plastic caps and ensuring the purity of water. The ad did work for Bisleri and it got its
much needed product differentiation.

In 2000, some giant brands like Pepsi and Coca-Cola entered the mineral water industry with a
big bang. Bisleri now had a big threat of maintaining its market cap. While Coca-Cola introducing its
brand ‘Kinley’ as a health care product, Pepsi projected ‘Aquafina’ as something as pure as ‘Your own
body’.
Pepsi targeted the young generation and introduced Aquafina as a fancy product to carry.
The ad campaign of Aquafina emphasized as ‘70% of your body is water’ and thus give your body the
purest water. The ad showed young vibrant models and created the atmosphere of youthfulness.
Water, Pepsi claimed, was no longer a simple beverage, but was something highly fashionable. They
complimented it by giving their bottles an attractive look. This soon caught the eye of the consumer.
All these factors made Pepsi the biggest upcoming competitor of Bisleri.

Whereas Kinley lagged behind the race, showing a doctor advising a family to take Kinley for pure

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water – not a very attractive ad campaign.
Bisleri, to counter-attack the new ‘Feel-Young’ fever had to even bolder steps. They first changed
their base-line from ‘Pure and Safe’ to ‘Play Safe’. They tried a brand-new ad campaign to catch the
fancy of consumer.

Advertisement Campaign of Competitors:


A drop-dead gorgeous body flexes its muscles on the screen. This starkly arresting black and white image
is then splashed with water. A voice-over informs you that 70 per cent of your body is water. Why not
give it the purest ... Aquafina Bottled water from Pepsi.

This kind of advertisement campaign used by the competitors is giving the company a tough time. The
competitor, Pepsi, is utilizing the brand image built by it and is again targeting the “Generation X”
maintaining the company image.

It’s an unusual ad for this category. Till now, most marketers have focused on educating the consumer
on how bottled water is a safer option, with the lead, of course, taken by the popular national brand Bisleri.
But Pepsi chose to junk this approach, and it could well afford to. Bisleri, after all, had already done most
of the hard work needed to build the bottled water category. What Pepsi needed was to establish its
brand in this crowded, fragmented market. Our task was made easier because Bisleri had concentrated on
educating the consumer, instead of building its own brand values,” says Rohit Ohri, vice president and client
services director, Hindustan Thompson Associates Limited (HTA).

"We wanted the imagery to position Aquafina as a youthful, premium and fun brand,” says Vibha Rishi,
executive director, Pepsi. The idea, she says, was not to objectify bodies so that one could drool over
them. “Instead, we are talking about your body and the need for each one to take care of his or her
body.” The ad copy, which spoke of the water content in our bodies, was actually trying to establish how
important water was to our well- being and how we need to continuously replenish it.

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Conclusion: New advertisement campaign of Bisleri is eye catching. This is what the company should
do. And also, the company should make the message clearer to the customers that it has the patent right
over the breakaway seal.
Apart from a high dose of investments on expanding bottling capacities and an ad budget that’s
risen six-fold over last year, if Bisleri wants to penetrate every possible segment of the market, it can
do that by introducing more pack sizes and establishing the brand strongly with trendy new
packaging.
Apart from creating consumer pull with campaign, the company, to increase its sales would have to do
the sales push as well. For that it would have to give the retailers and other stockiest high trade
margins and incentives for keeping the product. This is very important in case of this product because
consumers would take up what is available to them at ease and whatever retailer is giving. Bisleri has
introduced attractive schemes to push the 5ltr. bottles and margins are as high as Rs 8.

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3 Cs
CONSUMER:
The central question the company has to understand is: How do consumer respond to various marketing
stimuli the company might use? The company that really understands how customers will respond to different
product features, prices and advertising appeals has a great advantage over its competitors. The question
can be further broken down to: Who buys? When do they buy? Where do they buy? Why do they buy?

• Who buys?
In the survey conducted by us, we found that the middle income and the upper income groups are the
users of the bottled water. The lower income group is still dependent on the water from wells and hand
pumps. In the middle-income group also, people buy bottled water while travelling.

Among the various income groups, there comprise the students, the office going executive ,tourists
and the retired people. So the company should go in for strategies to target customer segments based on
appeal, prices, convenient packaging and other characteristics conforming to the customer segment the
company is targeting.

• When do they buy?


In the survey we found that the middle-income group buys mineral water while travelling. At home or
at the work place they mainly use water filters that are installed. Or, they use large pack of bottled
water like the jumbo pack (18 lt.) by Bisleri. The upper income group uses mineral water only. So,
they constitute a large part of the total market.

• Where do they buy from?


According to the survey conducted by us, the bottled water users buy the water from retail

outlets and also through tie ups with dealers. Large consumers of bottled water like
Hotels, institutions, corporate order their water requirements through dealers.
The small time but frequent consumer buys bottled water from retail outlets.

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• Why do they buy?
For obvious reasons, soaring mercury levels are directly proportional to consumption of purified bottled
water. The basic reason consumers ask for bottled water is the safety. With the growing health
hazards in the country and as the people are becoming more health conscious they are switching over
to bottled water. This is the reason that the industry is growing at fast pace . The other reason after this
is, that the bottled water is convenient to carry. They can throw the bottles after use unlike when they
carry water from home.

Consumer Concerns and Perceptions

The thinking here is that with consumer perceptions about mineral water changing, the brand Bisleri
has to Reinvent itself. Earlier, mineral water used to stand for water enriched with certain minerals
and was picked up by health-conscious consumers. This no longer holds. Mineral water has come to
mean just that—water. Albeit safe drinking water that is conveniently available. The consumer does
not really care if the water contains minerals. The most important consideration is purity of the
product.

What the company is doing to take care of the consumer’s concern?


• Tampering of seals:
Around 76 per cent of consumption happens in transit. Consumer research conducted by us revealed
that the overriding concern for this set of buyers is the tampering of the seal. Many have witnessed used
bottles being refilled at railway stations. So when a consumer buys mineral water, he would like to be
assured that the water has not been tampered with. Bisleri has rightly introduced the concept of the
breakaway seal to reinforce the purity of Bisleri mineral water and given a surety to its consumers that
what they are consuming is SAFE.

• Taste of the mineral water:


Many consumers want the mineral water to taste more like “Water”. The consumer research done by
us revealed that consumers preferred Bisleri because of its natural taste.

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Product Mix

• Bisleri water - Developed 7 unique pack sizes to suit the need of every individual.
-Non- returnable Packs: - 250ml, 500ml, 1l, 2l, 5l
-Returnable Packs: - 20L, 10L
• Bisleri soda - It comes in two different pack sizes. One is 600 ml and other one is 300 ml pack.
• Urzaa - A great tasting energy drink from Bisleri which is free of Caffeine and fortified with
essential vitamins. And it was launched in 2014.
• Vedica - Vedica is the finest of what life has to offer, taken to another altitude.
Non-returnable packs – 1L, 500Ml, 250ml
• Bisleri PoP - Bisleri Pop comes in four new flavours - PinaColada, Spyci, Limonata, and Fonzo.
• Additional product - Compact, convenient to use, travel friendly and undoubted promising
quality, that are bring to specially to make life easier and better.
• Stand & faucet, Ice box, facial wipes, chotu cool

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COMPETITOR ANALYSIS
The mineral water market is set to explode in the next couple of years. This is drawing the big guns
attention. First Britannia launched Evian. And recently, soft drinks giant Pepsi entered the fray with
Aquafina. Now, Nestle too is reportedly planning a foray. Meanwhile, Parle Agro’s Bailley has been
growing steadily. Small local players too are breathing down Bisleri’s neck riding on better trade
margins and intensive distribution (in their respective areas of operation).
The competition facing Bisleri can be categorized into a few brand names like
• Parle Bailey
• Pepsi Aquafina
• Coca Cola Kinley
With Parle’s Bailey being the main competitor and second in market share in the organized market,
Bisleri faces tremendous competition from the unorganized sector.

Aquafina
The advantage for Aquafina is that though there are over 300 labels of bottled water in the Indian market,
few can be called brands. It is necessary to remember that every product with a name is not a brand,
even Bisleri has become generic to this category.

It does not have any emotional values attached to it. So, there was no difficulty for Pepsi in creating space in
such a market which is completely different from the soft drinks market, where it will be very difficult for any
new player to find a slot. And it came up with a campaign that did have people talking. First, a series of
teasers, followed by a film that showed healthy bodies and youthful people and, of course, lots of water.
Although Aquafina is only available in a 1 litre pet bottle, priced at Rs.10, is competitive. And it is
safe. In addition to the tamper proof seal, there is a reliable method of checking whether the bottle has
been refilled. The date of manufacturing has been written on the cap as well as on the bottle. Thus, a
person who is refilling it would have to find a matching cap and bottle, the probability of which is very
low.

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Coca Cola Kinley
Coca-Cola joined the race by announcing the imminent launch of its own brand of water and, in the
process, putting to rest rumors of its so-called takeover of Bisleri. Kinley is targeting institutions.

Parle Agro’s Bailey


Bailey the brand that is owned by Ramesh Chauhan’s brother Prakash Chauhan is very popular in the
southern part of India. Southern part of India accounts for 20% of the sale of the whole water market
industry. Bisleri would have a tough competition from Bailey since the company plans to spread its
presence in that part of the country. Another thing that makes the competition difficult for the company
is the price at which its competitor is offering the product. Like Bisleri it also gives the 1 lt. For Rs20.
The only strength point of the company which it can capitalize is its generic name. And also, the
company would have to enter that market with a strong distribution base. We know the fact that Bailley
has grown at a rapid pace using the route of franchising which Bisleri has not adopted as yet. This is
another point which the company would have to take care of to face the competition.

28 | P a g e
STRATEGIES FOLLOWED BY BISLERI IN
ORDER TO RETAIN ITS MARKET SHARE

• The soft target


Selling bottled water requires constantly expanding the market. The company should also target the
market for soft drinks. All the soft drinks address three issues: fun, thirst and refreshment followed by
status to some degree. The thirst and the status value of the mineral water is well accepted. There are
very little the mineral water brands can do to add the fun element around the product. Again here, it
becomes important for the company to have a good distribution network. It should be understood that if
the mineral water is easily available everywhere then it can be said with confidence that it would be able
to replace the soft drinks as thirst quencher. If we try and look at the reasons that why consumers buy
soft drinks as thirst quenchers: we would find the answer as that either water is not available or if it is
available then safety is not assured. Therefore, backed by a good distribution network mineral water
industry can grow at a rapid rate.

• Getting in shape
Another improvement the company needs is in terms of packaging. It is often seen that the youth are
the opinion leaders, therefore it becomes very important for any consumer product to make a mark in
that generation, if it really wants to grow. The company for that, would have to come with packaging that
is sturdier and portrays itself as a hep brand.

• Distribution network
The need for improving the distribution network is not only when the company wants to target the soft
drinks market. If it wants to enter every part of the country and would face competition from competitors
like Bailley it becomes a prerequisite for the company to have a strong distribution network. Take the
example of Bailley, it can be seen that this company has grown rapidly in the past and is still on that trend.

29 | P a g e
One of the important reasons for this rapid growth is franchising.

• Threats
Bisleri will be taking the packs back and refilling them. But the packs cannot be sterilized since the
material used is PET and cannot withstand high temperature. So how can they ensure purity?

Strategy to counter threats:


Bottles are subjected to chlorine washes, hot water washes and ozone washes before refilling the
bottles. The company is betting on the home segment. It is often seen that customers are not satisfied
with filters and water purifiers. The reason being that filters and water purifiers also need to be cleaned
periodically and still do not guarantee absolutely clean water. In order to service this segment, the five
litre packs are being pushed through the route of fat dealers (wholesale dealers) who are retailers as well
as stockiest and serve as supply points from where customers can pick up the required stock. In future,
consumers will be able to call the dealer and place orders for home delivery of the five-litre pack. This is
a high turnover low-margin retailer who does not keep a store but serves a similar purpose with
other items such as rice.

• Opportunities
So far, company has not used the franchising route very aggressively unlike Parle Agro’s Bailley which
has grown very fast using this route. He has around six franchisees in Mumbai, Delhi, Chennai,
Bangalore, Goa and Rajasthan. They shunned this route so far because in most areas where they had no
presence, it was imperative that they did it themselves. Now for further expansion they can afford to use
the franchisee route.”

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WATER PURIFICATION PROCESS
Bisleri is producing by painstakingly rigorous process. Source water is put through seven stage
purification process. It is then packaged in tamper proof packs with the unique "breakaway seal" And all
is done in completely automated plants to ensure it reaches you perfectly pure and safe.
The process is Natural spring water is drawn from deep wells and the following processes are done:

1. CHLORINATION - Kills microorganisms, removes organic matter.

2. SAND FILTER - Removes suspended matter and turbidity.

3. CARBON FILTER - Removes residual chlorines and odors

4. ULTRAFICATION - Removes bacteria and make water sparkling clean

5. MICRON FILTERS - Additional safety measures of filtration

6. REVERSE OSMOSIS SYSTEM - Controls total dissolved solids (TDS).

7. 0Z0NATION - Ensures water remains bacteria -free for longer shelf life.

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SWOT ANALYSIS

STRENGTHS: WEAKNESSES:
•Bisleri is the first in the segment has built up a •Less margins of retailers or distributors, so they
brand name. avoid it.
•A generic product. •High cost of production than the competitors.
•Have spread Distribution network all over India

SWOT Analysis

OPPORTUNITIES: STRENGTHS:
•New business in bevarages & fruit based drinks. •Local players entering in to the market & selling
•Enter neighbouring markets at a very low price.
•Duplicity resulting in bringing down the Brand
name.
•Heavy market potential in this segment invite
the big players and the competition increases.

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DISTRIBUTION NETWORK ANALYSIS
Channel Decisions
A channel is an institution through which goods and services are marketed. Channels give place and
time utilities to consumers. In order to provide these and other services, channels charge a margin.
The longer the channel the more margins are added.
Channels are an integrative part of the marketer's activities and as such are very important. They also
give a very vital information flow to the exporter. As seen in chapter seven, the degree of control one
has over a channel depends on the channel type which is employed. Whilst for developing countries,
as stated earlier, channels are almost given, this is not always the case, and as exporting becomes
more and more necessary, it will not always be the case.
In deciding on channel design the following have to be considered carefully:

· Market needs and preferences.


· The cost of channel service provision.
· Incentives for channel members and methods of payment.
· The size of the end market to be served.
· Product characteristics required complexity of product, price, and packaging.
· Middlemen characteristics - whether they will push products or be passive.
· Market and channel concentration and organization.
· Appropriate contractual agreements.
· Degree of control.

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Channel Participants

Bisleri produces the goods but it is the intermediary who supplies these goods to the people who are
in need of it. To reach end consumers effectively, businesses need a well knitted network. The
network includes manufacturers, retailers, wholesalers, agents and brokers commonly known as
channel participants.
These participants play a vital role in success and failure of any business. They actually bridge the
gap between suppliers and end consumers thus framing the outline for a company in end users
mindset. In the world of retail, several types of participants make up a distribution channel.
1. Retailers:
Retailers are the gate keepers to the market for all other members of the sales distribution process.
The distinguishing feature that sets a retailer apart from other members of its distribution channel is
that the retailer is the person who ultimately sells the goods to its end consumers. Bisleri sometime
distribute directly to the retailers.

2. Wholesalers:
Wholesalers are intermediaries or middlemen who buy Bisleri products from manufacturers and
resell them to the retailers. They take the same types of financial risks as retailers, since they
purchase the products, keep them in inventory until they are resold to retailers, and may arrange for
shipment to those retailers. Wholesalers can gather product from around a country or region, or can
buy foreign product lines by becoming importers.

3. Agents and Brokers and Jobbers:


Agents (occasionally called brokers) are also intermediaries who work between suppliers and
retailers, but their agreements are different, in that they do not take ownership of the products they
sell. They are independent sales representatives who typically work on commission based on sales
volume, and they can sell to wholesalers as well as retailers. In B2B arrangements, this means they
sell to distributors and end consumers and Jobbers help to cover in semi –urban area to target, so that
bisleri have a wider reach.

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CHANNEL STRUCTURE
It takes a lot of hard work and a number of different teams all working together to deliver brand of
great-tasting water to millions of customers each year. We’ve broken down our business process into
the categories or channels below that help to identify where process will succeed.
Manufacturer process the products through their inputs and effectively done its operation to convert
into finished product, then they directly send it to the distributors and some time to the agents then
the product is passed to the wholesalers to retailers and reached to the final consumer, but yes they
make sure that the process takes minimum cost and distributing all over the targeted regions.

Before one drop of water is sourced or bottled, company take a strategic look at the marketplace to
understand where current and future opportunities exist for us to market and sell our products. Teams
in this part of the business focus heavily on analysis and reporting for informed decision making.

Each drop of Bisleri undergoes a stringent 6-step purification process and this process helps the
company to understand what level of quality they give to their valuable customer.

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Channel Format
Bisleri has a wide and well managed salesman appointed for taking up the responsibility of
distribution of its products to diverse parts of the country. The Bisleri uses three level of distribution
channel as it consists of wholesalers, dealers and retail shops.

Manufacturing plant

Company
Warehouse INSTITUTIO
NAL
BUYERS/OR
Trucks
DERS OVER
INTERNET

Distributors

INSTITUTIO
NAL
BUYERS/SE
ASONAL
PARTY
ORDERS
Retailers

Customers

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Sales Force Management
The distributor employs their own salesmen. The salesmen are divided among the territories defined
by the distributor.
The distributor has 5 routes. Out of the 5 routes, one is the main route and the other four are sub
routes. The salesmen are divided amongst these routes. This helps in avoiding horizontal conflict and
leads to better focus and evaluation of sales performance of the salesmen.
The company sales person makes a visit once every month. Rest of the month every communication
regarding stock replenishment, etc. takes place over phone. The person of the company whom the
distributors communicate with is the Sales Executive.
At times the company deploys its own men to do the distribution job for the Distributor also

Recruitment -
Hiring is announced by Bisleri International Pvt Ltd’s to appoint various officers and Managers
under Bisleri Jobs. Where company has announced to apply as soon as possible, employees will be
hired through direct Interview process with minimum process time. Any one eligible can apply by
using online mode under Bisleri Recruitment.

Name of Organization: Bisleri International Pvt. Ltd.


Number of Positions: Various

Job Title:
Sales Executive
Executive-quality
Executive Business Development / Key Corporate
Marketing Manager
Microbiologist
Sales Executive / Officer & Other
Criteria of Education:
10th, Diploma, Engineer, Graduate etc. as per the Title,

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Compensation:
Company offering best salary in their segment, just ensuing best pays for deserving candidates.

Hiring mode:
Application Submission
Personal Interview

Way to Submit Application:


Open official E-web www.bisleri.com.
Move to Career Section and select ‘Current Open Positions’ link.
Just use Title and read notification well detail
Ensure to click on ‘apply’ tab.
Once it is done keep hard copy for future use.

Selection criteria for Salesmen:


The distributor has set certain criteria for the selection of salesmen:
The candidate must be at least a high school pass.
The candidate must have knowledge of local language.
Candidates with prior relevant work experience are preferred.
The candidate if from the territory itself is preferred.

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Pricing strategies of Bisleri

(AN ECONOMIC FACTOR AFFECTING THE BUYER’S BEHAVIOR)


Price is the sum of values that consumer exchange for the benefits of having or using the product or
service. Price is the only element in the marketing mix that produces revenue.
In India, where the majority of the population comprise of the middle-income group and lower
income groups it is not hard to understand that pricing is one of the most important factors in the
buying decisions. Bisleri has met the expectations of the consumers in terms of pricing the product
and also making the product available in variations of litres, making Bisleri both convenient and
affordable.
Since Bisleri has many competitors and is facing tough competition from market. So Bisleri uses
competitor price strategy to get the market. The existing situation in which Bisleri is operating is
oligopoly. This means that companies have more pricing power than if they were operating in perfect
market circumstance. It is clear that their pricing is highly influenced by competition, because there
are many perfect substitutes and therefore, if Bisleri increases its price, many of its product customers
will start to consume its substitute product.

STRATEGY USED BY BISLERI

The marketing strategy provides the design for achieving them the linkage between marketing
strategies and overall corporate success is indeed direct and vital. Realizing the marketing objectives
is the purpose of two generic categories.
1. Price based
2. Differentiation base

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Supply Chain Network

In 1980, Bisleri adopted PET bottle concept;


Due to its features:
Environment Friendly
Cost Effective
Increased competition
Manufacturing Process:

Bisleri International had launched its 4 flavored beverage range, Bisleri Pop, only on Grofers, which

40 | P a g e
is an on-demand service mobile platform.
Consumers’ packaged good marketers are embracing a mix of m- commerce and new distribution
methods are adopted to get closer to their consumers.
Mobile apps are increasingly seen as a way to offer convenience and build consumer loyalty and
hence this partnership is seen as a natural fit for both the brands.
As a part of the tie up, consumers who click on a Pop ad will get redirected to the Grofers app, from
which they will be able to buy all four Pop flavours. The tie up extends across major tier one cities in
India including Mumbai, Delhi, Pune, Bangalore, Ahmedabad, Chennai, Gurgaon, Hyderabad,
Calcutta, Noida and Surat.
They are very happy to announce their first exclusive tie-up with Grofers for Bisleri Pop. They are
motivated by ways through which they can get closer to their customer. People have become tech
savvy and rely on mobile devices for almost everything. Offering a delivery service for their new
launch is about meeting their customers with both convenience and connection and the added bonus
of great taste.
They are excited to exclusively partner with a trusted brand like Bisleri for the launch of the new
Bisleri Pop. They are seeing a remarkable transformation in the way India shops with brands now
having unprecedented direct & instant access to consumers through their mobile app. Supported by a
robust supply chain till the consumer’s doorstep; they will work closely with Bisleri to make Bisleri
Pop the preferred drink for consumers this summer.
Bisleri has been developing the drinks for over a year and after final testing and development, they
are now all set to launch the array of economical and refreshing soft drinks. Indian consumers are
tired of the existing range of products and need something new and innovative. Bisleri Pop’s unique
flavours will stand out among the available flavours in the market and will give the consumer a wide
variety of choices.

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Channel Conflicts
Horizontal and vertical marketing conflicts involve disagreements among businesses in a marketing
channel. A marketing channel is how a product moves from its manufacturer to the consumer.
Channels have different stages, or levels. Typically, the first level of a channel is a factory. The
second level is the wholesaler who buys a large number of products to sell to retail stores, which
occupy the third and final level. When members of a channel disagree about methods or goals,
conflicts arise.

Horizontal Conflicts:
A horizontal conflict refers to a disagreement among two or more channel members at the same level.
If one wholesaler decides to branch its operations into the other wholesaler’s region, a conflict will
result. If the toy manufacturer doesn't help solve the problem, its business dealings with both the
wholesalers and the downstream retailers.

Vertical Conflicts:
Vertical conflicts involve a disagreement between two channel members on consecutive levels. A
conflict might develop between the manufacturer and the wholesaler responsible for shipping to
retailers. At the same time, the retail stores might be in conflict with the wholesaler due to its
inability to ship products on time.

Avoiding Channel Conflicts:


Conflicts can only be minimized, not avoided. The most effective approach for business owners is to
approach channel management with transparency and a willingness to find compromises that work
for all the members of the various channels to which it belongs.

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Mode of Transportation
• Bisleri has a very strong distribution network, which makes it reach out to almost all the
region in the country, company has about 3,50,000 outlets across the country.
• The Bisleri uses three level of distribution channel as it consists of wholesalers, dealers and
retail shops.
• Bisleri has 52 bottling plants across India and works on its dual- distribution strategy to gain
competitive advantage.
• On a national level, there are 2,000 trucks on call for Bisleri, while the number of trucks
averages 300 and 250 in the Mumbai and Delhi market alone.
• Every day, nearly 5,000 delivery vans drive out of these 52 strategically located Bisleri
bottling plants carrying over 1 million units of pure, sweet drinking water to replenish the
stocks of 2,500 distributors and nearly 600,000 retail outlets. Through distributors it also goes
to the institutional buyers or orders over internet.
• The company has used its own fleet of about 2000 trucks to manage the distribution network.

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4 D’s of Distribution
Distribution width - No. of distributor of a company/ Total no. of distributors.
More the Strong distribution network you have more the sales you will get.

Distribution Depth - Company sales volume through distributors/ total sales volume of all
distributors.

Display- (showcasing the product) it is one of the important factors for boost of sale, Each & Every
SKU of a products must be present to all the distributor for sale.

Discipline-process takes concentrated and focused efforts. This phase is probably the most important
where the Sales Manager and his team maps the customer well enough to FIND PAIN AREAS,
details of which have to be pulled out by careful dealing with the customer.

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Chapter – 2

RESEARCH METHODLOGY

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RESEARCH METHODOLGY
A Research Methodology defines the purpose of the research, how it proceeds, how to measure progress
and what constitute success with respect to the objectives determined for carrying out the research study. The
appropriate research design formulated is detailed below.
Exploratory Research: This kind of research has the primary objective of development of insights into the
problem. It studies the main area where the problem lies and also tries to evaluate some appropriate courses
of action.
The research methodology for the present study has been adopted to reflect these realties and help reach the
logical conclusion in an objective and scientific manner.

Research Objectives
The following are the main objectives of my Research study:
• To make a brand analysis of Bisleri as a brand.
• To conduct a market survey of Bisleri.
• The effects on Bisleri sale, profit and market share after the launch of ‘Aquafina’ by Pepsi and
‘Kinley’ by Bisleri.
• To find out the current position of Aquafina, Jal and Kinley mineral water.
• Threats caused by Aquafina, Kinley and Jal to Bisleri.
• Strategies and measures adopted by Bisleri to counter the competition by Jal & Kinley.
• To study the marketing strategies adopted by Bisleri.
• To study the advertising effectiveness Bisleri on customer.
• To analyze the awareness of consumer regarding Bisleri.
• To understand the reason behind the purchase of Bisleri product.
• To study the distribution model adopted by Bisleri.
• To understand how Bisleri manages a complex distribution network with efficiency
• Another objective of study was to perform Competitive analysis between Bisleri
and its competitors.

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Scope of Study
To conduct this research the target population was the break down service users, who are using break down
services. Targeted geographic area of Chandigarh. Sample size of 35 persons was taken.
To these 35 people a questionnaire was given, the questionnaire was a combination of both open ended and
closed ended questions.
Some dealers were also interviewed to know their prospective. Interviews with the managers of break down
service providers were also conducted. Finally, the collected data and information was analyzed and
compiled to arrive at the conclusion and recommendations given.

Nature of Data
• Primary Data: Data which is collected through direct interviews and by raising questionnaires to
retailers.
• Secondary Data: Secondary data that is already available and published. Various internet sites,
newspaper, magazines like A&M were searched in order to find information useful for completion
of this project.

Data Collection
Primary Data: The primary data has been collected by conducting a survey in various sectors of
Chandigarh.
Sampling unit: Retailers in the above-mentioned areas.
Sample size: 35 retailers

Sampling Procedure
Simple Random Sampling to select the sample
DATA COLLECTION
Sources of data:
1) Primary Data which included the input received from directly the retailers through interview.
2) Secondary data from the Industry manual, policy manuals, books and internet etc.
Method of collecting data: Interview method

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Chapter – 3

DATA ANALYSIS
&
INTERPRETATION

48 | P a g e
Findings of Research
Out of 35 retailers, everyone stored mineral water and basically these shops were centrally located to
the market and were basically general store, confectionery shop and small kirana shop.

The survey revealed that almost every shop stored mineral water, therefore it can be interpreted that
mineral water in current market scenario is on general demand and retailer enjoy selling it, as they get
good margin out of it.

Brand of mineral water kept by the retailers:


The survey revealed that out of 35 retailers surveyed, all over Chandigarh, 70% of the retailers kept
Bailey's mineral water, 25% Kinley, 30% Aquafina, 40% Yes and 50% the retailer kept Jal mineral
water.
However, it can be noted that retailers prefer Bisleri mineral water which has got a share of 70% this is
so because people or customer recalls mineral water with the brand name of Bisleri. The new entrants
basically Aquafina and Kinley are been kept by 30% and 26% of the retailers and they consider that
this product will soon capture market share as the brand name will speak its quality.

Pie chart showing percentage of different mineral water being kept by the retailers

45% 70%
50%
50%
40% 30%
26%

Bisleri Bailey’s Aquafina Kinley

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Weekly sales of mineral water from the outlet:
Out of 35 shopkeepers surveyed all over Chandigarh, the weekly sales of the mineral water
averaged approx. 225 bottles of 1 lit. each which means that a total number of bottles case or cases
sold from the single outlet averaged around 15 cases. Out of this Bisleri mineral water is sold most i.e.
approx. 45% of the cases sold from the single outlet belongs to Bisleri mineral water, whereas Kinley
acquired average of 7-8% of the total sale. Aquafina sale constitute of 10%, Bailey's sale on an
average constitute of 20% of the total sale. However other mineral water sales comprised of 18% of
the total sale.
Thus, from the above analysis it is very clear that Bisleri still holds on dominant position in the mineral
water market, but at the same time new entrants like Aquafina and Kinley with market share of 10% and
8% respectively may pose threat to Bisleri in the long run.

Pie chart showing percentage sales of following mineral water in a week

17%

45%
20%

8% 10%

Bisleri Aquafina Kinley Jal Others

50 | P a g e
Frequency of distribution visit:
Distribution is an important parameter which holds on key position for any fast-moving consumer
goods as the sale of this particular type of product highly depend on distribution network and its availability,
also frequency of distribution is taken into consideration for the sale of this kind of product. Therefore, it
can be interpreted that sale of any product depend on its distribution and thus we can say that
distribution and sales are interrelated.
The total number of retailers covered for the purpose of my analysis is 35, and out of this almost
every shop considered gets the mineral water of each brand on a regular basis i.e. on a daily basis,
therefore linkage is always there with the company regarding the demand for mineral water. This is
good sign for an almost all the company as they are in regular touch with the retailers.

Bar graph showing frequency of distributor visit to retailers

100% 100% 100% 100% 100% 100%

100%
90%
80%
70%
60%
50%
40%
30%
20%
0% 0% 0%0% 0%0% 0%
10% 0% 0% 0% 0%0%
0%
Bisleri Aquafina Kinley Bailey's JAL Others

Daily Alternatively Weekly

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Analysis regarding information about the scheme:
The consent regarding the prior information about the schemes from the retailers show varying
percentage

BRAND Yes No

Bisleri 56% 44%

Aquafina 60% 40%

Kinley 63% 37%

Bailey's 57% 43%

JAL 70% 30%

Others 40% 60%

70%

60%

50%
Yes
40%
No

30%

20%

10%

0%

Bisleri Aquafina Kinley Bailey's Others Jal

Retailers are very sensitive regarding the schemes. They prefer that product which gives them more
margins and for this they depend mainly on schemes provide by the company. However, from the
analysis it was found out that retailer’s prior information regarding the schemes is maximum in case of
Kinley that is 63% of retailer gave consent regarding the prior information on of the scheme in the
case of Kinley whereas rest of the 37% are not informed about the scheme. Followed by Aquafina,

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60%, Yes ad 40% No, then Bailey’s 57% yes and 43% NO, and Information regarding Bisleri
scheme is 56% Yes and 44% No.
Thus, it can be interpreted that, new entrants like Aquafina, Kinley are on aggressive path in order to
increase their market share and at the same time it creating effect on the sale of Bisleri by giving
incentive of schemes which the retailers prefer a lot and like to keep their product.

Availability of the various mineral water among retailers shows varying percentage

Easily Get but not Does not get


often
Bisleri 73% 18% 9%

Aquafina 75% 15% 10%

Kinley 60% 15% 10%

Bailey's 70% 20% 10%

Jal 65% 20% 15%

Others 60% 20% 20%

• From the data, it can be interpreted that availability of Bisleri mineral water among the retailers is
73% of retailers gets the product easily, whereas 18% of them feels that they do not get the
product offer and rest of the 9% retailers feels that they do not get this product at all. Thus, it
can be said that, distribution system of Bisleri is good and should try to maintain this pattern
in order to compete with Kinley and Aquafina which have strong distribution network due to
their soft drink link.
• However, in the case of Aquafina 65% of retailers gets the product regularly, 18%f get the
product on an irregular basis whereas rest of the 15% retailer do, not get the product at all,
therefore Aquafina should use its full distribution network of Pepsi in order to capture large
chunk of market size .

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• In the case of Kinley 60% retailers get the product easily whereas 15% of the retailers get
this mineral water on an irregular basis and rest of the 25% retailers do not get the product at
all.
• In the case of Jal 65% retailers get the product easily whereas 20% of the retailers get this
mineral water on an irregular basis and rest of the 15% retailers do not get the product at all.

Bisleri has strong presence in the market as it can be seen from the table that 70% of retailers gets the
product easily. 20% retailers get the mineral water on an irregular basis, whereas rest of the 10%
retailers feels that they do not get the product at all.

Pie chart showing market share of Bisleri, Jal, Bailey’s and prior to the launch of Aquafina and
Kinley.

20%
46%
14%

20%

Bisleri Bailey's Jal Others

Here we will find that sale of Bisleri has gone down by 8-10% after the launch of Aquafina and Kinley
Thus we say that new entrants like Aquafina and Kinley which has very strong brand name attached to
its tag ad with strong distribution network and aggressive promotional strategy can push away Bisleri
ad may pose threat to it by capturing larger chunk of market size.

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Analysis of the particular brand that retailers are satisfied with regard to the following
parameters

Margins

Satisfied Not satisfied

Bisleri 37% 63%

Aquafina 73% 27%

Kinley 78% 22%

Bailey's 80% 20%

Jal 67% 33%

Others 80% 20%

Margin is key factor due to which the retailers keep the product their product is being able to push away
to further to the final consumer.

• The survey conducted among 35 retailers convey that only 37% of the retailers are satisfied with
the margin of Bisleri mineral water as they feel that the margin provided by them is minimum as
compared to other mineral water. They only get a margin of Rs. 1 in a 1 lit. of bottle, whereas
in other mineral water they get the margin of Rs. 1.50 to Rs 2.0. They enjoy keeping local
brand as they get maximum margin on them. In the case of Aquafina, they get a margin of Rs.
1.50 and Rs. 2 in the case of Kinley and Bailey's. Therefore, rest of 63% retailers are not
satisfied in this particular point.

• In the case of Aquafina, 73% of the retailers feels that margin that they are getting is good
enough and rest of the 27% retailers are not satisfied with the margin.

• In the case of Kinley, 78% of the retailers are satisfied with the margin level whereas 22%
retailers are not happy about the margin level.

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• Bailey's stands parallel with Bisleri with a 80% of satisfaction level from the retailers and rest of
the 20% retailers, does not feel good about margin level. This is again on positive point for
Bailey's to compete in the market and increase its market size.

• In the case of Jal, 67% of the retailers feels that margin that they are getting is good enough and
rest of the 33% retailers are not satisfied with the margin.

• Other mineral water like Jal, Yes, Ganga, gives good margin to the retailers and therefore 80% of
retailers enjoy its margin level where 20% are still not happy about it.

Graph showing % satisfaction level in terms of margin


Satisfied Not satisfied
Bisleri 37% 63%
Aquafina 73% 27%
Kinley 78% 22%
Bailey's 80% 20%
Jal 60% 40%
Others 80% 20%

78% 80% 80%


73%
80%
63% 60%
70%
60%
50%
40%
40% 37%
30% 27%
20%
22% 20% 20%
10%
0%

Bisleri Aquafina Kinley Bailey’s Jal Others

Satisfied Not satisfied

56 | P a g e
Satisfaction level of the retailers with regard to stock pressure
Out of 35 retailers surveyed almost cent percent retailers are satisfied with stock pressure of the
various brand. Therefore, this is not a major issue that has to be dealt with great concern. Instead the all
of this brand should force the retails to keep to thrive product in order to increase their sale level.

Satisfaction level of the retailers with regard to the quality of the product

Bisleri 65%
Aquafina 95%
Kinley 80%
Bailey's 60%
Jal 70%
Others 40%

Pie -chart showing satisfaction level among the retailers regarding quality of the product from
the various players

40% 65%

70%

95%
60%
80%

Bisleri Aquafina Kinley Bailey's Jal Others

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After calculating % of retailers satisfied with the quality of mineral water, it was found out that the
Aquafina is leading ahead with its competitors, as 95% of retailers feels that quality of this particular brand
is much better than the other mineral water, followed by Kinley, where 80% retailers are satisfied by its
quality then the Jal 70%, followed by Bisleri 65%, Bailey's 60% and other mineral water 40%.
This shows that the quality of new entrants like Aquafina and Kinley is much better; thus, it can give
tough competition to the retailers in the particular parameter.

Therefore, Bisleri and Bailey's should do something in terms of its quality in order to maintain its
existing market share.

Analysis of satisfaction level among the retailers with regard to brand name

Bisleri 70%
Aquafina 95%

Kinley 90%
Bailey's 30%
Jal 60%
Others 13%

• Out of 35 retailers covered all over Chandigarh, it was found out that, Bisleri has got strong
brand image in terms of mineral water. In fact, mineral water has become generic with a brand
name of Bisleri. 70% of the retailers are satisfied with the brand image of Bisleri whereas
30% are not.
• In the case of Aquafina 95% of the retailers are satisfied with the brand image of Aquafina,
which is considered to be very good and thus it can give major threat to other mineral water by
aggressive promotional strategy. With this type of brand image, it can capture larger chunk of
market size from the pie.
• Kinely too enjoy strong brand image as 90% retailers feels that being on Coca-Cola product, the
brand value is more and therefore they find it easy to sell this particular product.
• Bailey's brand name in front of competitors like Aquafina, Kinely and Bisleri is not that much;

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therefore only 30% of the retailers are satisfied with its brand name.
• Jal brand name in front of competitors like Aquafina, Kinely and Bisleri is not that much;
therefore only 60% of the retailers are satisfied with its brand name.

Other mineral water like, Glacier, Yes, Ganga etc. does not have strong brand image. It can be seen
from the table that only 13% of the retailers are satisfied with its brand image rest of them does not.
Therefore, it can be concluded by saying that brand image of Aquafina, Jal, Kinley and Bisleri is very
high.

Analysis regarding role of advertisement in increasing market share of following mineral water

Particulars Yes No
Bisleri 60% 40%
Aquafina 92% 8%
Kinley 72% 28%
Bailey's 30% 70%
Jal 46% 54%
Others 10% 90%

Advertisement in today's competing environment plays an important role in increasing market size of
any particular product.
• It can be interpreted from the given table that advertisement has played a major role in the case of
Bisleri to maintain the current market size and compete in this competitive environment. 60% of
the retailers feels that advertisement of Bisleri has played major role in maintaining its current
market size whereas 40% does not think so.

• In the case of Aquafina, retailers feel that advertisement for this particular product has helped
it to grow and capture the market size and with this aggressive advertisement strategy, it is
expected that in market share will increase in near future. 92% of the retailers feels that due
to its advertisement, this particular product is being accepted in the market, whereas rest of
the 8% have varying reasons.

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• 30% retailers feel that Bailey's sale is due to the advertisement whereas 70% of the retailers
does not feel so. Therefore, if Bailey's want to increase its market share then it should do
something in this field also.
• 46% retailers feel that Jal sale is due to the advertisement whereas 54% of the retailers does
not feel so. Therefore, if Bailey's want to increase its market share then it should do
something in this field also.
• Other mineral water like Kinley too is banging on it add ad promotional strategy to capture larger
chunk of market size. It’s very clear from the data that approx.

• 70% retailers feel that sale of Kinley is due to its aggressive advertisement, whereas rest of
them does not feel so (Ganga, Yes, Glacier, etc.) does not follow aggressive advertisement.

Therefore, to conclude, it can be said that advertisement has major role to play in the near future when
the mineral water war has begun from the major giant players like Pepsi, Coke and Bisleri.

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Challenges Ahead
1. METHOD ADOPTED FOR DISTRIBUTION:
THE ‘ROUTESELLING’ policy adopted by BISLERI for distribution is more expensive than more
commonly followed method of appointing distributors in different towns. This reduces the profit of
company. The dealer margin is reduced due to this. Therefore, not many dealers keep BISLERI in
many areas. Indirectly this is reducing the coverage of BISLERI.

2. REUSE OF BOTTLE BY LOCAL SELLERS AND ILLEGAL MANUFACTURERS:


Market research conducted by BISLERI revealed that the other overriding concern for this set of
buyers is the tampering of seal and the reuse of bottles. Many have witnessed used bottles being
refilled at railway stations. This deteriorates the brand image of BISLERI. For example: - local sellers
fill the bottle of BISLERI with impure water and the bottles are purchased by illiterate customers as
BISLERI water but they buy water of low quality. In this way brand of BISLERI gets affected.

3. FAULTS IN PRODUCTION
Tests conducted by various authorities’ shows that it contains pesticides. In 2002, the 2cm long
insect was found in the bottle of BISLERI. This has affected its sales and reputation. The license of
its two factories one at Noida and other at Bangalore has been cancelled because of fault in
production.

4. PRESSURE BY GOVERNMENT AUTHORITY:


After insect was found in the bottles, FDA (Food& Drug Adulteration) has cancelled the production
of BISLERI. Afterwards it was allowed to resume it but in this period its customers were moved
towards other products. It is constantly under check by various authorities.

5. NOT MEETING THE DEMAND OF THE CUSTOMER:


In certain parts of south in our country big bottles of BISLERI are in huge demand but the company
is unable to meet the demand of the consumers. This is affecting the demand for the product. So,
People are forced to use other brands of mineral water.

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CHALLENGES IN FRONT OF THE BISLERI
The company had the share of more than 50% of the national market. But now the share of the company is
going down, in the pie of the national market. Until recently there was competition with only the unorganized
sector. Now, having drowned out by the small- scale emulators with a 40% share of the national market,
company now is limbering up for another contest – from the multinationals.
Other than the financial constraints up to an extent, the company has to focus on the marketing
management of the product. In light of the challenge in front of the company and its current strengths and
position, we have incorporated the marketing mix to counter the marketing strategies of the competitors
by developing its own marketing strategies.

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Recommendations
In the end I would like to say that being a market leader Bisleri have to adopt few things as follows
because previously it was working under an environment which was equivalent to monopoly. Because it
was the initiator in water trade business, but as the changing rules of business and market, one has to
adopt & implement different & effective strategies at the right time to attain a position in this competitive
world.
I would recommend the few things to the company.

• Develop new marketing strategies due to raising competition in water trade. Advertisement to
build the brand image that will provide the required ground to establish the authenticity to the
product. From the study it has been found that majority of the people does not have any brand
preference. Advertisement to build the brand image that will provide the required ground to
establish the authenticity to the product.
• Give more margins to the retailers and distributors so that they eagerly participate in increasing
the company revenue by rising sales.
• Reducing the cost of production by finding, changing & adopting new advance technologies.
• Should respond to the competitors when they give something new to the consumer by giving the
same or better.
• Should give proper service to the existing consumers.
• Reducing the delivery time and the water will be refilled within half an hour of the phone call.
• Awareness programs about the hygiene water in schools, colleges, health club & Nursing
homes.
• Displays of hot & cold dispensers and bottles at places like airports, metro stations, hotels, clubs
and airports where upper class group visits, as they are the potential customers. Placing them
in departmental stores, petrol pumps and super bazaars can also be considered.
• The company should organize camps at various parts of the city to bring about the difference
between mineral water and purified water and to tell the people how mineral water is more
hygienic than filtered water/purified water.
• To aware people the cost benefit analysis to the customer of how the mineral water would
cost less and benefit more, because people using purifier system cost too much.

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• Flavored water without sugar and artificial ingredients could be introduced so that the
consumers also has a healthy substitute to the soft drinks.
• Bulk water delivery to home at no additional cost.
• Mineral water in polybags like milk be more convenient to the consumers.
• To win over the consumer faith over the genuinety of the product the company should have
redressal forums where people can convey their grievance.
• Water storing fridges should be provided to retailers by big brands.
• Pirated or copied variants of branded water to be stopped.
• Plastic quality of bottle can be improved as especially middle-class segment don't want to
throw plastic bottles after water consumption and like the same bottle to be used in future or
domestic purposes.

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Conclusion
Bisleri have developed 8 unique pack sizes to suit the need of every individual. It is also present in
250ml cups, 250ml bottles, 500ml, 1L, 2L which are the non-returnable packs & 5L, 20L which are
the returnable packs. Selling bottled water requires constantly expanding the market. The company
should also target the market for soft drinks. All the soft drinks address three issues: fun, thirst and
refreshment followed by status to some degree. The thirst and the status value of the mineral water
are well accepted. There are very little the mineral water brands can do to add the fun element around
the product. Again here, it becomes important for the company to have a good distribution network. It
should be understood that if the mineral water is easily available everywhere then it can be said with
confidence that it would be able to replace the soft drinks as thirst quencher. If we try and look at the
reasons that why consumers buy soft drinks as thirst quenchers: we would find the answer as that
either water is not available or if it is available then safety is not assured. Therefore, backed by a
good distribution network mineral water industry can grow at a rapid rate.

The players who will endure will be those who have a strong regional presence. Take the case of
team, which enjoys immense popularity in Tamil Nadu. Similar brands with a regional presence are
Siruvani, and Koday. Thus, new players will be looking for a distinct positioning. One such brand is
Pepsi’s Aquafina, the largest selling bottled water brand in the US. After its successful test launch in
Mumbai and Bangalore, Aquafina was released in Chennai, Ahmedabad, Vadodara, and Pune.

According to the executive vice president, corporate communications, Pepsi Foods Ltd. “Aquafina will
be helped by Pepsi’s network. Moreover, Aquafina will be served absolutely chilled.” That makes
sense too, since surveys have indicated that an overwhelming majority of the bottled water that is
consumed in India is by people who are travelling.

With the big players, who have the support of the financial muscle and a large consumer base in other
categories with them, like Pepsi, Britannia, Nestle and Coke — the battle is the tougher arena of
brand building. All the multinationals are looking at high-octane advertising targeting specific consumer
segments. Sensing troubled waters ahead, Bisleri is busy working on a strategy to soak up the
competition and protect his water kingdom.

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Bibliography
Books & Journals
1. Marketing Management by Philip Kotler.
2. Business World, Business Today.
3. Market Research by Kothari
4. Article by ICFAI

Websites
• www.bisleri.com
• www.coke.com
• www.pepsi.com
• www.parle.com
• www.google.com
• www.indiainfoline.com
• www.rediff.com
• www.Jalmineralswater.com
• http://www.fnbnews.com/Top-News/volume-of-bottled-water-will-reach-3553-bn-ltr-by-
2023-53649
• https://www.maximizemarketresearch.com/market-report/india-bottled-water-market/20197/
• https://www.statista.com/outlook/20010000/119/bottled-water/india?currency=inr
• https://www.businesswire.com/news/home/20190322005165/en/Bottled-Water-Market-India-
2018-2023-Anticipating-
CAGR#:~:text=Based%20on%20volume%2C%20the%20market,bottled%20water%20marke
t%20in%20India.
• https://ibt.tpci.in/blogs/packed-water-bottles/
• https://www.thebusinessresearchcompany.com/report/bottled-water-market
• https://shodhganga.inflibnet.ac.in/bitstream/10603/96898/9/chapter-6.pdf
• https://www.valuenotes.biz/insights-publications/publications/packaged-bottled-water-
market-in-india-2013-18/

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Annexure
RETAILER’S QUESTIONNAIRE
1. Name of Retailers:
2. Name of Shop/distributor/stockist:
3. Location:

4. Are you aware of the fact that there are 186 brands in today's mineral water industry?
(Yes/No)

5. Which is the brand you stock more?


(a) Bisleri (b) Acquafina (c) Kinley
(d) Yes (e) Jal (f) Kingfisher
(g) Evian (h) Bailey (g) Any other (Pl. Specify?)

6. Which brand offer best retailer margin?


(a) Bisleri (b) Acquafina (c)Kinley
(d) Yes (e) Jal (f)Kingfisher
(g) Evian (h) Bailey (g) Any other (Pl. Specify? )

7. Which brand offer best credit scheme for retailers?


(a) Bisleri (b) Acquafina (c)Kinley
(d) Yes (e) Jal (f)Kingfisher
(g) Evian (h) Bailey (g) Any other (Pl. Specify?)

8. Which brand offer maximum variants of plastic bottles?


(a) Bisleri (b) Acquafina (c)Kinley
(d) Yes (e) Jal (f)Kingfisher
(g) Evian (h) Bailey (g) Any other (Pl. Specify? )

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9. Which brand spends more on advertising?
(a) Bisleri (b) Acquafina (c)Kinley
(d) Yes (e) Jal (f)Kingfisher
(g) Evian (h) Bailey (g) Any other (Pl. Specify?)

10. Have you ever received complaints regarding any existing brand? If Yes which brand?
(a) Bisleri (b) Acquafina (c)Kinley
(d) Yes (e) Jal (f)Kingfisher
(g) Evian (h) Bailey (g) Any other (Pl. Specify? )

11. What is the weekly sale of your famous brand?


………………………………………………………………………

12. How often do you promote local brands and why?


………………………………………………………………………

13. Do you feel any major differences between branded and unbranded mineral water?
………………………………………………………………………

14. How often do your customers asked for Bisleri, Kinley & Acquafina?
………………………………………………………………………

15. What advantages do you get by stocking Bisleri, Kinley & Aquafina?
………………………………………………………………………

16. How frequently you receive Bisleri, Kinley & Aquafina from their respective distributors?
(a) Monthly (b) Weekly (c) Twice a week (d) daily

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