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Dr Amit Rangnekar

www.dramitrangnekar.com

Case learnings
Pioneer brand strategies
Strategies to build difficult to advertise & transport brand
Brand generic to category, but not preferred
Technology driven cost cutting
Risky identity change drove volumes
Range by occasion, focussed promotion, penetration
Street smart Desi common sense in PLC management

Parle
1929: Parle Sweets, Vile Parle, Chauhan Bros, boiled sweets

1939, Biscuits (Angrez, Parsis, WWII shortage )


1949- GlucoCola- challenged by Coca Cola- Parle Cola
1961- Family split, Ramesh Chauhan (MIT) got soft drinks
1951
1971
1974
1978

Ramesh Chauhan, CMD


I am not obsessed with market
share. If you take care of your
own deficiencies it is enough.
Make your own plans, but keep
your eyes, ears and feet close to
the ground to know whats
happening around you. Simple
observations are the best.

GenericBoon
or
Curse
Bisleri- generic for bottled water
Demand Bisleri, but also accept Kinley, Aquafina,

Bailey
Lack of brand consciousness
Amul Butter- customers insist, decline other brands

Bottled water market


India
Global bottled water market $50 billion (Rs 2.5L crore) @
9%
India in Top 10, 1999 1.5B L, 2004 5B, 2009 15B, global

300 B
Indian organised sector- Rs 2500 crore, 1% GMS, @ 25%
15% MS of packaged beverages, N7Y 30%
Bisleri 60% volume MS @ 35%, 40% value MS
Bisleri- generic for bottled water

Bottled Water Market


Beverages
PC Consumption
India

Sector

Consumption B Lit

Bisleri 2011
L10Y- 20X sales, growth @ 40% CAGR, current 80%
86 plants
1 million SKU daily
Bisleri valued at Rs 4,000 crore
Bisleri succeeded as Coke & Pepsi were busy with

their Cola wars, and Nestle with their foods


business Stockist

Bisleronomics

Origin
1965, Felice Bisleri, introduced bottled water in India
1969, Parle M&A Bisleri (Demand for Bisleri Club Soda)
We bought Bisleri, but didnt look at the water

business RC
4L units, 90% soda, Water 5 retailers- 4 Mumbai, 1

Kolkata
Bisleri glass bottles, Bubbly and Still

Dilemma
Created category from scratch
Expensive, colourless, tasteless, odourless- advertise?
Product, difficult to market product- create awareness
People not used to paying for water
Target foreign tourists / NRIs, no local target consumer
Availability- top- hotels, restaurants, retailers
Post 1993, focus on Bisleri water

Competition
1,200 bottled water plants (BIS), 600 TN, 500+ regional

brands
Bottled water market 2.2X L soft drinks market: AC Nielsen
Bailey 29-60 plants, Bailley 5 lakh retail outlets
Threats- Water purifiers, Neer Railway 5L L/day
Key- dealer%, promotion, local manufacturing, capacity,

packing

Bottled water market


East, 10
share%
South, 20

West, 40

North, 30

Euromonitor 2010
http://www.euromonitor.com/bottled-water-in-india/rep

Initial Branding
Platform- Safety
Italian name- classy, international essence
1st ad- Butler with a bow tie, holding 2 bottles of

Bisleri
Base line "Bisleri is veri veri extraordinari
Spellings designed to capture consumer's attention
Bisleri perception- safe, healthy drinking water

Progress
Opportunity- water scarce & of poor quality
Increased distribution reach
Efficient trade management
Reached out to the masses, volumes and penetration
Made the category affordable

Packing / Packaging
Mid 1980s- Glass to PVC packaging
Late 1980s- PET, sparkling clear water, better water life
High price- low volumes, nascent packaging industry
1993- L bottle @Rs 5, convenience, single user- 4X growth
1998- tamper-proof and tamper-evident seal
2000- NPL 1.2L bottle, high margins, family, share water
2002: Kinley 35% overtook Bisleri 34%- ORG-MARG

Cost savings thro


Inconsistent bottle quality- hampered productivity
technology
Tapering bottles- fixing labels difficult & time consuming
2006- Rounded wide neck bottle (Alaska), 2-3 gm less

plastic/bottle, saving Rs 3 cr
Round bottle labelling increased speed 10X
PP film label- 4 colour, half costs- Rs 6 cr
Uniform design for all product sizes
Bottling capacity doubled

Bulk
Segment
2000: Bottled-water market 100 crore @ 50%, Bisleri 40% MS
Losing MS, opportunity- drinking water for commercial firms
Bulk segment entry- 12L / 20L can, price crashed- Rs 12 to Rs

3/L
Friendlier- pouring spouts, jars with dispensers
2004- Bisleri regained No 1 spot
2008- Bulk segment 60-70% sales

Insights
At wedding receptions, older guests (50+)
generally stayed away from ice creams and soft
drinks. So we introduced free sampling of Bisleri at
tables where elderly guests would sit. Soon
customers were ordering bottled water on special
occasions. Current consumption of bottled water is
far in excess of soft drinks on such occasions.

Growth drivers
Developed - TN, Gujarat, Maharashtra (30% contribution)
Opportunity- Kerala, J&K, HP, Jharkhand absent, HoReCa
Focus- bottled water focus (Nokia), survival
Coke, Pepsi, Kingfisher, Nestle- water not the flagship
Extensions- premium segment, no fruit juices or beverages
Growing hygiene-conscious, health & wellness awareness
Lack of drinking water, contaminated water

Operations
Rs 220 cr investment in 3Y- 32 new plants & distribution
MS, Kerala, J&K, HP, TN, Karnataka, UP, Orissa, Jkhand, WB
2X manufacturing capacity- Nagpur, Mumbai
Current capacity 3.50-cr cases pa
Sales force 2,500 people + 500-600 back-end
Margins wafer-thin, volumes critical, distribution crucial
Plants close to markets- take on local competition

6 step purification

1L bottled water, is made from 2.5L ground

Costs

Source- Company Officials

Cap

0.50

Bottle

2.00

Water + Treatment

0.50

Label

0.50

Carton

0.50

Transportation

1.00

Others

1.00

Labour, Marketing , Tax

4.00

Costs

10.00

Selling Price

11.50

Profit Margin

1.50 (15%)

Margins- Trade /
Institutional

30-35% / 40-60%

Pricing
SKU

MRP

Price Rs/ L

20L

80

15L

70

4.50

5L

35

2L

25

12.50

1L

15

15

500ml

10

20

250ml

24

Vedica 1L

25

25

Vedica 500ml

20

40

Distribution

Bulky, low-price, transporters unwilling- own fleet, now 2500


Complete control- 1995- 50k, 2011- 3.5L outlets
Pricing, packaging & innovation revolve around distribution
Soft drinks- glass bottles, circulation based distribution
Margins- trade 25-40%, institutions 40-60%, soft drinks 8-10%
Markets- rural, new states, penetrate existing
Exclusive outlets- chemists/stationery/ dairy- no soft drinks
Focus- 20L home delivery- 300 trucks-on-call- Mumbai, Delhi

Distribution86 Factories
C&F
Institutions
32-66%

Distributors (Trade)
3400 (6-20% margin)

Railways, Airlines,
Hotels, Clubs etc

Retailers
3.5L (13-43%
margin)

2500
Salesmen

Highest reach- Bisleri in bottled water, Refrigerated outlets Amul,


Personal care Lifebuoy, Sim Cards Airtel, Panwalla ITC

Trade Margins
SKU

250ml
500ml
1ltr (regular)
1ltr (railway)
2ltr
5ltr jar
20ltr jar
15ltr jar
1ltr vedica
500ml vedica

Distributor Institutions
Retailer
Margin % % Margin
Margin % (on PTR) % (on PTR)
Trade
(on MRP)
Margins %
25
7
10
32
29
8
19
37
38
10
30
48
60
6
6
66
34
9
20
43
17
20
0
37
18
6
8
24
13
11
11
24
30
7
17
37
43

23

49

Line extension by packs


Bulk Segment- Office,
homes, caterers, hotels

20L

Family/ friends
who share water

5L

2L

1.5L

Convenience /
single user

1L 500ml

250ml

Bottle

Glass

8 packs target individuals, families, groups, corporates


28

Sales Contribution

Bisleri Mountain Water

Claim- Own aquifer, others bore well

VP- wellness, low Na, detoxifiers, Himalayan


Premium- low volumes, high margins, loss
BMW(other mountains), BMW from Himalayas
Issues- generic extension unusual, one family colour, how does

retailer justify same pack/colour but high price?


Promotion- High-decibel print, OOH, TVC
Target- affluent, urban, health conscious & international
Reach- malls, multiplexes, 5-stars, clubs, top restaurants

Himalayan

1995: Mount Everest Mineral Water, own aquifier 1bn L

pa, HP
2007- Tata Tea M&A- Rs 25-cr, 2011 45% @210cr
Differentiation- bottled at source, 1st mover, institutional,

Rs25/L
Wellness, Tata Tea 10L retail reach, US/EU/Japan

accreditation
Challenge- justify price/ benefits, build brand, category,

reach
Multi-modal- SE by railways, institutional direct-to-market

Legal
Penchant for controversies- Coke, Himalayan, Parle brand
2006- NPL BMWfrom the Himalayas
Case-Himalayan brand exclusivity v Tatas
Tatas- Himalayancopyright
Bisleri- Himalayan generic, cannot be registered trademark
Tata Group lost exclusive rights over word Himalayan
Intellectual Property Appellate Board Registering word

'Himalayan' does not confer exclusive trademark rights

Rebranding
2006, Ubiquitous blue to international aqua green
Courageous for a generic brand
Aqua green- freshness & health, qualities associated

with water
Stood out among blue-toned competitors &

counterfeiters
Impact- Growth of 40-50%

Reason to buy- bottled


water
Price
4%

Availability
20%

Water Purity
28%

Packagingsafety
22%
Brand
26%

Survey- 150 Indian adults Jan1

Brand Extension
Existing
Category

Existing Brand

New Brand

Line Extension

Category
Extension

250ml, 500 ml,


1L, 2L, 5L, 15L
New
Category

Sub Brand
BMW from
Himalayas

BMW
New Brand
Vedika

Tag Lines
1990s- Pure and Safe
1998- 100% purity- sealed cap bottles
2000- The sweet taste of purity
2008- Play Safe- target youth
2011 Stay protected

March 2011

Stay protected
Rs 50 cr brand campaign
Traditional anti-germ 'Dettol-routeshift
TVC with animation, OOH, SNS
'Stay Protectedhighlights what brand does for

customer
Protection- health, hygiene, quality and purity-

key reasons why one buys bottled water

Where ever you are always


Stay Protected with Bisleri
Mineral water

I drink mineral
water to ensure
safety when I am
out of house.

IMC & Activation


Truck panels
Billboards
PoP- Dealer boards, Danglers, Product Stands (all

SKUs), Table top, Wall hanging, Poster


TVC- Monster ad aired from June 2011
Radio spots- Stay protected: RJs ask Whom would

they want to protect and why? Win Bisleri prizes


SNS- twitter/ face book- similar contests- publish

content, photos & videos on stay protected theme on


the micro site

Dealer Boards

Truck panels

Billboards

Animated TVC

4Ps

Product- Bottled water

Price- VFM

Place- 3.5L Retail


outlets
Promotion- IMC, dealers

Segments
Segment

Brand/s

Competitio
n

Premium natural

Evian, San Pelligrino,

Imported,

mineral water

Perrier

premium

Price/L
Rs
120-200

MNC
Natural mineral

Himalayan, BMW, Catch,

water

Vedika, Bonaqua

Packaged

Bisleri, Aquafina, Kinley,

drinking water

Bailley, Amul, Kingfisher,

NC, MNC

30

NC, MNC

15

Regional,

12-14

Oxyrich, Indian Railways,


ITC, Dabur, Reliance
Retail
Unorganised

Arul, Mala, Raigad,

STPD

Segment
Bottled
Water

Target
Offices,
Homes,
Travellers,
Occasions

Positioning Differentiatio
Safety,
Protection

Generic
brand,
trust

Brand - value proposition


Functional- Pure, safe
Emotional- trust, protection
Economic- VFM

Brand personality- Competent,


specialist

Core Brand Values


Brand Values Articulation

Safe

Break away
seal

Pure

6 step
purification

Protection

1st mover,
generic

POP & POD


POP
Bottled
water

POD
Generic
Protection

Multi packs

Safe & Pure

Affordable

(shared with
Kinley,
Bailey,
Aquafina)

Crafting the positioning


Bisleri
Nature of

Intense, Oligopoly, NC, MNC, focussed, F&B

competition

firms

Target segment

Offices, homes, travellers, occasions- mass


market

Consumer

Price insensitive, safety conscious, seek

behaviour

protection

Point of parity

Bottled water, range, affordable

Point of difference Protection, Safe & Pure, Generic


Reason to believe

Consistency, 1st mover, generic, specialist

Testing the positionProtection


Relevant- Purity and safety key purchase
parameters
Unique- Generic
Believable- Trusted
Desirable- preferred for over 2 decades
Deliverable- credibility of results and

consistency

Brand Identity & Image


Position

Protection,
trust

Identity
Image
(Perceptio
n)

Logo,
colour,
generic

Customers Mind

Pure,
safe

Aakers
Model

Extended
ch
a
Re

Pr
ot
ec
tio
n

Core

Available

Brand Essence

Safe

Generic bottled
water
Pure
Tru
s

Range
ca
c
O

ns
o
i
s

Kapferers Brand Identity Prism

Relationship
(Brand to customer)Trust

Reflection (Customer
identifies wrt brand)Safe

Personality (Soul)Sincere

Culture (Brand in
customers conscience)
Pure, friendly

Self-Image (Customer
identifies brand wrt self)Protected

Internalisation

Externalisation

Physique (Purpose)Generic bottled water

R
Br elat
an ion
dc s
us hip
tom
er
c

Int
en
se
loy
alt
y

Po

Re
W spo
ha n
t a se
bo
ut
yo
u

Low loyalty,
advocacy, attachment

ive
sit

Identity

Awareness

Generic, range, reach

Range, VFM, TOM recall

OD
/P

Quality, consistency, branding

Protection

P
PO

M
W ean
ho in
ar g
ey
ou

Pure & Safe

ns
tio
ac
re

Kellers
CBBE /
Brand
Equity
Pyramid

on
ne
ct

Building blocks

Building Brand Bisleri

Stay
Protected

New
Geographies

Alaska
Bottle

Blue to Green
Tamper proof seal

NPL
1960s

Glass
Bottle
1970s

PVC

0.5L@Rs5
PET

1980s

1990s

New
Plants

Bada 1.2L
Bulk Pack

2000s

2010+

Future
NPL Bisleri ice cubes
15L pack with tilt base for homes
BMW- international foray- Europe, US, West Asia
Enhanced / vitamin/ flavoured/ designer waters
I am not an original thinker, but like to learn

from others Chauhan

Deja Vu
If Thums Up could be sold
No money to promote all brands, owned only 4/62 bottling

plants, jacked if bottlers switched to another company


1993 sold soft drinks stable to Coca-Cola- Rs 386 cr unconfirmed
Learning- 85% of Bisleri bottling capacity owned/ controlled
Why not Bisleri?...
No need as cash-rich, zero-debt, growing business, profitable
Market buzz- "dress-up" to impress potential buyers

References

Interview Ramesh Chauhan CMD, Bisleri International, CCI, Mumbai, 2008


Bisleri site http://www.bisleri.com/about_us.html
Why Ramesh Chauhan is high on water, Anusha Subramanian, September 4, 2008, Business Today
And this is how Parle Bisleri began, Prerna Raturi | BS | June 10, 2005, Rediff
How Bisleri reinvented itself, Prerna Raturi BS | February 06, 2007, Rediff
Himalayan trek, May 27, 2008
http://businesstoday.digitaltoday.in/index.php?option=com_content&task=view&id=5348&issueid=38
Himalayan ambitions Strategist, Business Standard, Purvika Chaterjee, 10 September, 2007
How do you build a brand around water , Mumbai Mirror, February 2008, William Charles DSouza
Serve and Volley with Mr. Ramesh Chauhan Economic Times December 2007
Theres always more we can do Financial Express November 2007
Water of the GODS flows West London Times October 2007
Bisleri enters spring water segment Statesman October 2007
Bisleri to flow into US market Times of India October 2006
Bisleri to enter US market with Flavoured Water Times of India November 2006
Coca Cola neglecting beautiful Limca DNA June 2006
Bisleri's growing thirst for volumes
Bisleri says 'Stay Protected' through new film
By Ashwini Gangal, afaqs!, Mumbai, September 27, 2011
The mineral water brand's focus this year is to go after the home consumption market with a host of innovations
Preeti Khicha / Mumbai Sep 30, 2011, Business Standard

Bisleri to set up 25 new bottling plants


Press Trust Of India / Mumbai Jul 02, 2009, 01:49 IST
Tatas Loses Dispute Over Himalayan Brand on 17th February 2011Mint
Harshal Haldankar Bisleri- Stay Protected Campaign MMS-VIT Presentation 2011