A COMPARATIVE PRODUCT ANALYSIS & MARKETING RESEARCH OF BISLERI ITS COMPETITORS: AQUAFINA & KINLEY

Submitted in partial fulfillment of MMS degree of University of Mumbai, Mumbai

SUBMITTED BY:
MR. YOGESH JAYWANT PATIL MMS SEM-2 ROLL NO.04

ACKNOWLEDGEMENT

The present work is an effort to throw some light on Brand Analysis & Market Research Of Bisleri A comparative analysis with three competitors 'Acquafina', & 'kinley' . The work would not have been possible to come to the present shape without the able guidance, supervision and help to me by number of people. With deep sense of gratitude I acknowledge the encouragement and guidance received by my organizational guide I convey my heartful affection to all those people who helped and supported me during the course, for completion of my Project Report.

EXECUTIVE SUMMARY

Water is the most important liquid in the world. Without water, there would be no life, at least not the way we know it. In today's living condition, the need for Pure Drinking Water is becoming the issue for the common man. There are rapid changes that are taking place in our environment since long and the air and the water pollution is on an increase. The main source of drinking water is river and downstream which have also not been able to escape the pollution. When a consumer became aware of the problems caused by water pollution the market saw an advent of ceramic water filters, which filters the dust and suspended particles but dissolved impurities and microbiological impurities are not cleared out. The mineral balance is also not maintained. 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. The present study contemplated an exploratory research 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 affects on Bisleri sale, profit and market share after the launch of Acquafina by Pepsi and Kinley by coca cola. To find out the current position of Acquafina, hello and Kinley mineral water. Threats caused by Aquafina, Kinley and hello to Bisleri. Strategies and measures adopted by Bisleri to counter the competition by hello & Kinley.

TABLE OF CONTENTS
1. INTRODUCTION 1.1 Mineral water industry 1.2 Genesis 1.3 Expansion 1.4 Bisleri today 1.5 Vision 1.6 mission 2. PURPOSE AND OBJECTIVE 2.1 Scope of study 2.2 Objective of study 2.3 Problem definition 2.4 Rationale of study

3.

RESEARCH AND METHODOLOGY 3.1 Research objective 3.2 Nature of data 3.3 Distribution 3.4 Packaging 3.5 Challenges in front of bisleri

4.

COMPANY PROFILE 4.1 Industry profile 4.2 Manufacturing 4.3 Distribution 4.4 Packaging 4.5 Challenges in front of bisleri

5.

ANNALYSIS OF THE COMPANY 5.1 Consumers point of view 5.2 Consumers habits and practices 5.3 Competitors annyalysis 5.4 Purification process

6. 7. 8.

FUTURE PLANS SWOT ANNYALYSIS FINDING OF RESEARCH CONCLUSION BIBLIOGRAPHY ANNEXURE

INTRODUCTION Water is the most important liquid in the world. Without water, there would be no life, at least not the way we know it. In today's living condition, the need for Pure Drinking Water is becoming the issue for the common man. Eighty percent of the human metabolism consists of water. This is the reason why 90% of human diseases are water borne. There are 3 types of water impurities, which are root cause of water borne diseases. 1. Microbiological-Bacteria / virus. 2. Dissolved impurities - chemical. 3. Imbalance of Mineral Content. There are rapid changes that are taking place in our environment since long and the air and the water pollution is on an increase. The main source of drinking water is river and downstream which have also not been able to escape the pollution. When a consumer became aware of the problems caused by water pollution the market saw an advent of ceramic water filters, which filters the dust and suspended particles but dissolved impurities and microbiological impurities are not cleared out. The mineral balance is also not maintained. 1980's witnessed more changes by a tap attachment wherein Iodine resin is used to filter the water. It deactivates microbiological impurities to an extent but has side effects due to iodine and does not take care of dissolved impurities mineral balance. Late 1980's witnessed Ultra Violet based purifier, which filters dust and deactivates bacteria to a great extent. It maintains the odour and colour of water but does not clear out the dissolved impurities and mineral particles. Thus came advent of mineral water. Historically, the need for purified water within Indian homes had been kept down to a minimum. Essentially, there were three types of water that was used for different purposes. The first type was used for rinsing. The second type, which was used for cooking, was cleaner and kept covered. The third type was the cleanest drinking water and was very often boiled before use.

Since an average family needed a small quantity, not more than five or six litres a day, boiled and filtered water had been a convenient solution for some time. The fallouts were obvious. It was very difficult to convince the people that purification system was worth the price. There was no visible way to demonstrate the benefit, The otherwise somnolent market began to change once companies like Eureka Forbes targeted the office segment, while the mineral water players went after travelers. Ion Exchange was the only company which had any measure of success in entering homes with Zero-B. But clean drinking water returned on the national agenda a little later. Around 1989, drinking water became an issue again. Around early 1990sTime did a story on India as a key emerging market and that was the trigger for all the players eyeing this market."

1.1 INTRODUCTION TO MINERAL WATER INDUSTRY

CURRENT SCENERIO

The best beverage for India in the new millennium seems to be water. 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 country's bottled water business is estimated to be around Rs. 1, 100 crore, of which the branded market accounts for Rs. 700 crore and about 700 million litres in volume.

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 Rs. 700 crore, 700 million litre market. The entry of Danones brand, Evian, the high-priced mineral water from the French Alps, shows the perceived potential India presents in this product category. Clearly targeted at the premium segment of consumers, the brand is being distributed in the country by Britannia Industries. Currently, Evian has more of an institutional presence (five star

hotels) than on the retail shelves, with a 1-litre bottle being priced a hefty Rs. 80 The market today has grown to more than Rs15bn. The organised sector -- branded mineral water -- has only Rs7bn of market share. The rest is accounted for by the unorganized sector which is dominated by small regional players. The market is still growing at a rate greater than 80% per annum. Today there are more than 200 brands, out of which 10 of them are from top companies.

In the branded segment, Parles' Bisleri 'is the market leader with a share of more than 45%. Parle Agros' 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,' Hello', Prime,' Florida' etc.

1.2 GENESIS

The name that epitomizes mineral water today was first introduced in Mumbai in the early 60's. In 1965 Signor Felice Bisleri an Italian by origin, came up with the idea of selling bottled water in India. His company Bisleri Ltd. offered mineral water in two Variants- bubbly and still. In 1969 Parle bought over Bisleri (India) Ltd. and started bottling Mineral water in glass bottles under the brand name 'Bisleri'. In due course Parle switched over to PVC non-returnable bottles and finally advanced to PET containers.

1..3 EXPANSION

Under the leadership and vision of Mr. Ramesh J. Chauhan, Bisleri has undergone significant expansion in their operations. The company has witnessed an exponential growth with their turnover multiplying more than twenty times in a short span of 10 years. The average growth rate over this period has been around 40% with Bisleri

enjoying more than 60% of the market share in the organized mineral water segment. Currently Bisleri has 11 franchisees and 8 plants across India, with plans of setting up 4 new plants on the anvil. The overwhelming popularity of 'Bisleri' and the fact that it was the pioneer of the bottled water industry in India has made it synonymous to Mineral water and a household name. So naturally 'When you think of bottled water, you think Bisleri'. Rigorous Research and Development and stringent quality controls have made it market leaders in the bottled water segment. Bisleri has always been committed to offering every Indian pure and clean drinking water. Hence Bisleri water is put through multiple stages of purification, ozonisation and is hygienically packed for final consumption.

To maintain strict quality controls in every unit, Bisleri not only purchase caps from approved vendors, but also manufacture own bottles, in-house. To be at par with International standards, they have recently procured the latest state-of-the-art machinery which has not only helped them improve packaging quality but has also reduced raw material wastage and doubled production capacity. One can rest assured that they are drinking safe and pure water when they consume Bisleri. Bisleri is free of impurities and is 100% safe. Enjoy the sweet taste of Purity!

1.4 BISLERI TODAY

The Indian consumer today enjoys the sweet and pure taste of Bisleri mineral water. However in an effort to offer something special to there loyal consumers they have recently introduced Bisleri Natural Mountain Water - water brought to consumers from the foothills of the mountains situated in Himachal Pradesh. This newly launched offering has widened Bisleris product range to two variants: Bisleri with added minerals and Bisleri Mountain Water. Bisleris registered office is in Mumbai.

1.5 VISION
Our vision is to be the dominant player in the branded water business where the second player is less than 20% of our business.

1.6MISSION
We are in the business to serve the customer. He is the most important person. He is the only one who pays. He deserves the best quality and presentation at a worth of the price. We must have world class quality, at the lowest production & distribution cost. This will make us an unbeatable leader, and will have satisfied loyal customers.

To provide the highest quality product, keeping in mind all aspects including freshness, purity and safety, and making it easily available to the consumer at a very affordable price.

2.1 SCOPE OF STUDY

Marketing is a subject where a person can learn from anybody. As I was into retailers survey work of countrys leading packaged drinking water company Bisleri, I was feeling myself to be a part of organizations family. I had a very good market exposure while undergoing this project because every person came forward with a different opinion and that was very important to know the perception of the retailers. And being my first real exposure to the corporate environment, the training period proved to be very educating and offered me a great chance to learn the practical workings of the FMCG industry.

2.2 OBJECTIVE OF STUDY

The primary objectives of the introduction of Retailers scheme card and research project titled RETAILERS SURVEY IN MULUND WITH SPECIAL REFERENCE TO BISLERI are as follows:- Understand current market scenario in context of packaged drinking water. - What attracts retailers most in selection of packaged drinking water? - What are the various issues related to distribution in various markets? - What are the various schemes and strategies used by competitors to capture market? - What are the various demands of retailers? - How retailer view product of Bisleri in comparison with other companies products? - To increase secondary sales of the company? To study and to check upon and thereby to cater to the above set objectives of the project a structured questionnaire was designed and it was approved by the supervising faculty and the companies DGM.

2.3 PROBLEM DEFINATION

To understand the basis of what services does a retailer makes his choice in buying a packaged drinking water.

To understand various problems associated with distribution of product.

2.4 RATIONALE OF STUDY

Being a project for my partial fulfillment of my MBA degree I was motivated to finish this project to the best of my ability.

My interest in the field of marketing of products was a motivation factor towards this research.

Stability in operations of fmcg companies irrespective of changing financial conditions was a factor that brought me interest in knowing more about the internal workings of the fmcg industry.

3.1 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. The present study contemplated an exploratory research

3.2 RESEARCH OBJECTIVES

The following are the main objectives of my Research study:1. 2. 3. To make a brand analysis of Bisleri as a brand and product . To conduct a market survey of Bisleri. The affects on Bisleri sale, profit and market share after the launch of Acquafina by Pepsi and Kinley by Coca Cola. 4. 5. 6. To find out the current position of Acquafina, and Kinley mineral water. Threats caused by Aquafina, Kinley and Bisleri. Strategies and measures adopted by Bisleri to counter the competition by & Kinley.

3.3 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. It could be internal and external source of data. Internal source: Which originates from the specific field or area where research is carried out e.g. publish broachers, official reports etc. External source: This originates outside the field of study like books, periodicals, journals, newspapers and the Internet.

3.4 DATA COLLECTION Primary Data: The primary data has been collected by conducting a survey in the following areas. 1. 2. Mulund station area. Mulund panch Rasta market.

SAMPLE DESIGN Sampling unit: Residents customers & Retailers in the above mentioned areas.

Sample size:

10 persons

3.5 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 residents through Interview. 2) Secondary data from the Industry manual, policy manuals, books and internet etc.

Method of collecting data:

Interview method

COMPANY PROFILE 4.1Industrial profile

The origins of Bisleri lie in Italy, and the brand owes its name to founder Felice Bisleri, an Italian entrepreneur. In India, Bisleri set up a plant in Mumbai for bottling and marketing mineral water, which was first of its kind in India. However, it did not quite work. Among other reasons, the fact that the Indian consumer was unprepared to accept bottled mineral water was responsible for its failure. Consumer mindsets were more geared towards boiling water at home. In 1969, Parle bought over the' Bisleri' brand. In those days Bisleri water was available in glass bottles. Parle's taking charge of Bisleri did not make a dramatic difference to the brand's fortunes immediately. While it did gain in terms of visibility and reach (piggybacking on Parle's existing distribution network), efforts to expand the bottled water market were not exactly painstaking. Parle at that particular time was interested in making soda water and not mineral water. There were just minor initiatives on part of the company for making mineral water as it was not considered to be a very profitable business at that time a people still considered boiling water to be a safer bet than mineral water. Moreover they were not ready to pay for a commodity like water which was so abundantly available. In 1972-73 Parle changed the packaging of its bottled water to plastic bottles and that significantly made a difference in the sales. The buyers, then, were mainly the upper class - the trendy people. In 1993, Coca-Cola bought parles soft drink brands- thums-up, limca etc. While Coca-Cola actually bought over Parle's beverages, it agreed to a settlement that allowed the multinational to bottle and distribute Bisleri soda for a time frame of five years. The charge of Bisleri water, however, remained with Parle. The upsurge in the sales of Bisleri started from this point as Parle sold off its stable of brands to CocaCola. This was the time when its started concentrating on making Bisleri a success in the domestic mineral water market. The reason why Parle chose to retain the Bisleri

name was that Parle saw a fairly lucrative business of mineral water in Bisleri's equity. The real shift in companys policy towards mineral water industry came in 1998, although the conscious efforts had already been started in 1994. This change was primarily because of the fact that the people, at this time, had started becoming more health conscious.

4.2 PRODUCT PROFILE

Its a compliment being generic to the category, but its not very good when consumers think any mineral water brand is Bisleri Bisleri, a product established in India by Ramesh Chauhan, Chairman of Parle Aqua Minerals has become a generic brand. Bisleri was the first marketed bottled water in a totally virgin market. The brand has become synonymous with mineral water; consumers accept any brand offered by the retailer when they ask for Bisleri. So far Ramesh Chauhans Bisleri enjoys the largest market share of 56% in the Rs1100 crore mineral water market and is growing at the rate of 180% per annum. Annual sales of Bisleri have touched Rs400 crores. In seventies, 'Bisleri' was the only mineral water which had national presence and the sale was to the tune of approximately one hundred thousand cases valued at about Rs.60 lacs.

4.3 MANUFACTURING

A quick look at Bisleri's manufacturing reach indicates that it is represented across the country North accounts for 35% of sales for the industry, West accounts for 30%, South 20% and the East 15%. In order to be available in untapped areas Bisleri has setup 16 plants located all over the country - three-fourths of which are company owned. The balance are run by franchisees. Bisleri has 5 plants in the North, 5 in the West- two of which were setup in the last year at Ahemdabad and Surat, 4 in the South and 2 in the East. The company has bottling units located in Chennai, Bangalore, Goa, Calcutta, Mumbai, Delhi, , Uttar Pradesh, Punjab, Indore and Nepal. The new plants are being set up in states like Kerala, Orissa, Bihar and North Eastern States, which hitherto have been unexplored by the company. It is also changing its production strategy and shifting to a 10-hr production schedule with sudden increase in demand planned to be met by additional production. Bisleri has planned to expand its operations by investing Rs 60 crore in the upgradation of facilities. The 120-bottles per minute (BPM) capacity of the 16 units across the country will be increased to 240 BPM. Conscious of the environmental implications of its PET bottles, the company is to set up recycling plants at Delhi and Chennai, each with an outlay of Rs.50m. These will process 500 kg of PET per hour. The processed material will be an input for polyester yarn manufacturers. In centers other than Delhi and Chennai, the company will set up crushing units to crush the used PET bottles. The company's expansion plans will see its water bottling capacity go up from the present 400 million litres to 500 million litres. Parle Bisleri Limited (PBL) is planning to invest Rs 200 crore to increase its bottling capacity and double its turnover. The expansion will also increase the number of company's bottling plants from 16 at present, to 25. The company will set up all the new plants as green field plants. It doesnt have any intentions to acquire any existing plants.

4.4 DISTRIBUTION

It's obvious that availability holds the key to the market. For any product to be successful the distribution system has to be really good. Large tracts of the country have not been explored by the national brands,which explains the proliferation of smaller brands. Bisleris strategy is to build a direct distribution system at an all-India level. Currently, Bisleri has around 80000 retail outlets in the country with about 12000 each in the Metros of Delhi and Mumbai. It is intended to increase this number to 10 lakh outlets in order to expand brands reach. That means serious investments in company-owned trucks and carts. Parle hopes to double its existing fleet of 1000 trucks. This would make it the largest fleet owner in the country. In order to service the home segment, the 5 litre packs are being pushed through the route of Fat Dealers( wholesale dealers) who are retailers as well as stockist and serve as supply points from where customer can pick the required quota. The customer can call the fat dealer and place order for home delivery of the 5 litre pack. 180 of these dealers are already functional, and more are in the process of being appointed. "The idea is to make Bisleri all-pervasive,". The company plans to have its own distribution network in places where it has its own plants. Franchisees would manage the distribution in their respective areas of operation.

4.5 PACKAGING
Variety is spice of life. Today for any business organisation to be successful it has to provide its customers with the differentiated product that is a value buy for them. In order to cater to the changing needs of the customers the business has to continuously come out with the variants of the product so that it can target the maximum segments. Today, Acqua Minerals offers a variety of packaging options:150 ml, 300 ml, 500 ml, 1 litre, 2 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 fivelitre 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.

Following is a quick overview of the various packaging options provided by bisleri along with the target consumers: Size of the bottle 500 ml Price per bottle Rs. 7 Teenagers, Target consumer college students and roadside

consumers. Also aimed to supply to the Indian Railways. 1 litre 1.2 litres Rs. 10 Rs. 12 General consumers and travelers. Consumers demanding a little more water at just a little more price. 2 litres 5 litres Rs. 18 Rs. 20 Small offices, shopkeepers, households Households, showrooms 20 litres Rs. 40 Households, institutes, offices, schools and colleges institutes, offices, retail shops,

In addition to the above mentioned sizes, Bisleri also provides 150 ml cups for Indian Airlines travellers, 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 15 35 30 10

1 litre 2 litres 5 litres others

4.6 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.

5.1 CONSUMER POINT OF VIEW :

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.

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 thatwater. 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.

5.2 CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their drinking habits.

Brand loyalty is very low as all the products taste the same so they can buy just any product which is on the shelf, same as that of soft drinks and fruit beverages.

Availability in the chilled form and brand awareness plays a crucial role in purchase decisions.

While there is no aversion to consumption of mineral water by any age group, this product is mainly consumed by the people in the age group of 20-35 years who have less attraction of soft drinks or other synthetic drinks whereas youngsters look in for soft drinks and fruit beverages to quench their thirst.

Visibility is another factor that should be taken care of by the companies as consumers are not very brand loyal and consume whatever is in front of them.

Consumers often drink bottled water as an alternative to tap water. They think it tastes better (no chlorine taste) and perceive it to be safer and of better quality. They also look for security: food scandals in industrialized countries and water-borne diseases in developing countries greatly influence consumers attitudes. Consumers buy bottled water to feel well and to lose weight. Bottled water is perceived as a healthy alternative to other beverages. Thus, for the aerated beverages bottled water offers a potential threat.

Moreover, increasing urbanization, causing declines in tap-water quality, can also explain the popularity. Because it is untreated, natural mineral water is perceived as natural by city dwellers looking for genuine products. Higher living standards and auto usage enable people to easily bring home more and heavier bottles of water. At the office, a bottle of water is now a common sight on the desk, next to the computer and the telephone. Drinking bottled water is a sign of a rise in the social scale. Above all, bottled water has become a huge marketing success.

What the company is doing to take care of the consumers 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.

5.3 COMPETITOR ANALYSIS

COMPETITION: The mineral water market is set to explode and hit the Rs.2,000-crore mark 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 Agros Bailley has been growing steadily. Small local players too are breathing down Bisleris 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 Hello Pepsi Aquafina Coca Cola Kinley

With Parles 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. So the creative team at HTA virtually had an empty canvas to work on. 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 would have to find a matching cap and bottle, the probability of which is very low. it

Aquafina uses PepsiCo's own seven-step purification system, which it calls HydRO-7, which includes pre-filtration treatment to remove larger particles, two stages of polishing filtering, charcoal filtration, reverse osmosis, ultraviolet and ozone sterilization
[1]

. PepsiCo states in marketing material that this system removes

substances that may be in other brands of bottled water. Aquafina entered in Indian market in 2000-2001 and it used its Parent concerns established distribution network.
Now when we talk about the market, there are various startegies used by Aquafina in Rajasthan. Like they are giving away free water bottles to retailers with purchase of cola cartons and they are not letting any other drink to be stored inside the refrigerators provided by them to the retailers. In that case small retailers are unable too keep Bisleri bottles cold and propsing one of the major reason to not to buy Bisleri then to buy any other water.

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 targetting institutions.

Parle Agros Bailey

Bailey the brand that is owned by Ramesh Chauhans 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 Rs.10. 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.

STRATEGIES THAT BISLERI SHOULD FOLLOW IN ORDER TO RETAIN ITS MARKET SHARE:

1.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 addresses 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 is 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.

1. Getting in shape: The 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 more sturdy and portrays itself as a hep brand.

2. 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. One of the important reason 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 liter 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 quota. In future, consumers will be able to call the fat dealer and place orders for home delivery of the five-liter 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 Agros 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.

Price or competition

Pricing is the next most important consideration for the consumer. they have crashed the prices of the one liter and 500 ml offerings. At Rs.5, that is half the price of the one liter pack, the 500 ml pack is a steal, says Company. But what about the smaller pack eating into the one-liter sales? Answers Company, Interestingly, the smaller pack has pushed up the one liter sales. There has been a very good rub-off. Schemes for retailers for a combination of both packages are on create the push. However, one liter packs which accounted for 50 per cent of the companys turnover has come down to 30 per cent. The two-liter packs, which have practically disappeared from the shelves, have come down from 20 per cent to five per cent. The growth has come from the 500 ml and the five-liter category, which account for 15 per cent and 36 per cent of turnover respectively. Earlier, Bisleri was selling at a premium of Rs.12 for the same size. But beginning last year, it has been selling its one- liter bottles at Rs.10 each. Aqua Minerals attributes the Price slashing to retailer margins being on the higher side earlier. The competitive Rs.10-price tag has been working well for the brand. Points out Chauhan, Our sales prove that the Indian consumer is getting smarter by the day. If he can buy a high- quality product for the same price, why will he opt for an inferior brand? For frequent consumers, Bisleri introduced a half-liter bottle priced at Rs.5 some six months back. Theres also a two-liter bottle for Rs.18.

In what could be a masterstroke, Aqua Minerals is testing out the possibility of mass marketing 20-litre Bisleri bottles for an MRP of Rs.40. That works out to Rs.2 a liter. If the logistics, manufacturing and distribution do fall in place, it could change the face of the purified water market for keeps. In the current scenario, mineral water is picked up more by travelers, less by households. With its big capacity jar, Aqua Minerals wants to change that. they are trying to break the home market with the 20litre jar, company discloses.

5.4 PURIFICATION PROCESS

Bisleri is producing by painstakingly rigorous process. Source water is put through- 7 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 then l. CHLORINATION-Kills microorganisms, removes organic matter. 2. SAND FIL TER---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.

FUTURE PLANS

Bisleri was the first to market bottled water in a totally virgin markets and naturally people associate the brand with bottled water .now Bisleri is perhaps already 6 steps ahead of its competitors and will endeavors to widen its gap in the times to come, Some of the future plans of the Bisleri 1. New pack sizes in bottles and cups. 2. Increase the distribution network with an investment of over 200 crores. 3. Strengthen presence in traditionally weak areas by setting up 12 new bottling facilities at the cost of Rs 150 crores. 4. Bisleri planning to diversify into fruit juice business. It has already set up a fruit -juice plant in Chittor AP. 5. The company plans to go in the neighbouring countries like Nepal and Bhutan. 6. The company planning to open the Bisleri retail outlets ---these ere the shops where only Bisleri will be sold.

SWOT ANALYSIS

STRENGTHS: Bisleri is the first in the segment has built up a brand name. A generic product. Spreaded Distribution network all over India

WEAKNESS: Less margins of retailers or distributors, so they avoid it. High cost of production than the competitors.

OPPORTUNITIES: In flavoured water segment. In neighbouring countries.

THREATS: Local players entering in to the market & selling 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.

FINDINGS OF RESEARCH

1.

Out of 10 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 the get good margin out of it.

2. Brand of mineral water kept by the retailers

The survey revealed that out of 100 retailers surveyed, all over Delhi, 70% of the retailers kept Bailey's mineral water, 25% Kinley, 30% Aquafina, 40% Yes and 50% the retailer kept Hello 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 Aquafna and Kinley is 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% 50%

70%

50% 40% 26% 30%

Bisleri

Bailley's

Aquafina

Kinley

Yes

Hello

Others

3. Weekly sales of mineral water from the outlet

Out of 100 shopkeepers surveyed all over Delhi, 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.

Piechart showing percentage sales of following mineral water in a week

17% 45% 20% 8% 10%

Bisleri

Aquafina

Kinley

Hello

Others

4. Frequency of distribution visit

Distribution is an important parameters which holds on key position for any fastmoving 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 100, 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.

Bargraph showing frequency of distributor visit to retailers

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

Daily

Alternatively

Weekly

5. Analysis on the credit policy of the distributor/company

It was found out that no company gives the mineral water to the retailers on the credit basis that is basically they like to sell there products on a cash. However, this can one of the area where one can come and find a way to capture longer chunk of market share by offering credit to the small retailers who doesn't have sufficient liquid to invest in items like this, there if credit policy is being offered by any one of this companies for small period of time, say for a day or two, then this small retailers combined together may able to push the product in the market in a successful manner. The company must think in this content and should follow push strategy, where by they will able to have larger chunk of market size from a limited market share.

CONCLUSION

The players who will endure will be those who have a strong regional presence. Take the case of Team, which enjoys immense popularity in Maharashtra Similar brands with a regional presence are pune and mumbai. Thus, new players will be looking for a distinct positioning. One such brand is Pepsis 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. Pepsi has invested over Rs.5 crore in the new Aquafina water project in Maharashtra, which is the only Aquafina plant outside the US. According to the executive vice president, corporate communications, Pepsi Foods Ltd. Aquafina will be helped by Pepsis 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.

At 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 he 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. 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 some thing new to the consumer by giving the same or better. Should give more stress & attention to the media and advertising. Should give proper service to the existing consumers. Reducing the delivery time and the water will be refilled with in half an hour of the phone call. Awareness programmes about the hygiene water in schools & colleges. Displays of hot & cold dispensers and bottles at places like airports ,metro stations. . The company should organize camps at various parts of the city, Also road shows to bring about the difference between mineral water and purified water

RECOMMENDATIONS 1. Advertisement to build the brand image that will provide the required ground to establish the authenticity to the product. 2. Flavoured water without sugar and artificial ingredients could be introduced so that the consumers also has a healthy substitute to the softdrinks. 3. Bulk water delivery to home at no additional cost. 4. Company like Acquafina & Kinley should come up with other big bottles variant. 5. POP (Point of Purchase) displaying the cost of water at Rs. 2 per mlt as the perception of the people is that mineral water cost Rs. 10 per Lt. 6. Awareness programs at health club , schools & Nursing homes. 7. To win over the consumer belief and faith over the genuity of the product. 8. Display of hot and cold dispensers and bottles at places like hotels, clubs and airports where upper class group visits as they are the potential customers. Place like departmental stores, petrol pumps and super bazaars can also be considered. 9. Mineral water in polybags like milk be more convenient to the consumers. 10. The company should organise camps at various part of the city also road show to bring about the difference between mineral water and filter/purified water and to tell the people how mineral water is more hygienic than filtered water/purified water. 11. 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. 12. From the study it has been found that majority of the people does not have any brand preference. The company should establish brand image in mineral water with the help of advertisement & better service to the customers. 13. To win over the consumer faith over the genuinety of the product the company should have redressal forums where people can convey their grievance. 14. Water storing fridges should be provided to retailers by big brands. 15. 'Buy two bottles get one' like offers can also be introduced by big brands.

BIBLIOGRAPHY

BOOKS & JOURNALS:

MARKETING MANAGEMENT BY PHILIP KOTLER. BUISNESS WORLD, BUISNESS TODAY. MARKET RESEARCH BY KOTHARI VARIOUS ISSUES BUSINESS WORLD, BUSINESS TODAY

WEBSITES:
WWW.BISLERI.COM WWW.COKE.COM WWW.PEPSI.COM WWW.PARLE.COM WWW.GOOGLE.COM WWW.REDIFF.COM

www.managementcases.com www.icri.com

ANNEXURE
Questionnaire for Retailer Name of the Retailer :
1) Which brand does customer prefer when it comes to mineral water?

a) aquafina b) bisleri

2) Between these 2 which brand you prefer personally? a) aquafina b) bisleri

3) Amongst these two brands which given you more profit margin?why?

4) Does market fluctuation hampers the price range of these products?

5)do the natural calamities affect any of the brand good or bad ? ( calamities like improper rain or extreme summer )

6)which brand in better in market supply & which brand provides the exiting offers?

7) Do you get paid for promoting or advertising the product ?

8) when the festival season or marriage season which brand work more ?

9) when the customer ask you for mineral water which brand you generally put forward ? why ?

10) Is any complaints about any of the brand & what are those ?

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Questionnaire For Customer

Name :

1) when it comes to thirst which company brand product comes to your mind ? a) aquafina b) bisleri c) any other else brand

2) when you go to buy a mineral water which size of bottle do you prefer ?

3) Is there a particular time spam in a year when you consume more mineral water ?

4 ) as now days aquaguard is almost reaching every home so it stills gives you urge to consume mineral water?

5) amongst these two brand ( bisleri and aquafina ) which more

reliable ?

6) which mineral water product is more customers satisfactory & in what sense ?

7) which product of mineral water makes you feel satisfactory ?

8) when you consume a mineral water product what will you prefer mineral water product or price of that mineral water product ? why ?

brand of that

9)which mineral water product satisfy your each and every need of thirstiness ? why ?

10)any suggestion from your side to these two mineral water product ?

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