PROJECT REPORT ON

To study the Indian packaged water industry with focus on

BISLERI
Submitted To: Dr. Supriya Choudhary Reader Submitted By: Rahul Dhingra 05914901810 BBA (B&I) 6th Sem

In partial fulfillment of the Requirements for the award of Degree of Bachelor of Business Administration

Maharaja Surajmal Institute Affiliated To:Guru Gobind Singh Indraprastha University

ACKNOWLEDGEMENT
First of all I am deeply indebted to Department of Management, Maharaja Surajmal Institute, Janakpuri , New Delhi for allowing me to complete my research study on To study the Indian packaged water industry with focus on BISLERI It gives me immense pleasure to express my heartfelt gratitude to my respected guide Ms. Supriya (Assistant Professor) for providing me articulate guidance and ceaseless encouragement throughout study. I shall be failing in my duty if I do not acknowledge the contribution of my family for their constructive cooperation.

MEGHA JAIN ROLL NO. 06914901710 BBA (GEN) 3rd SEM

CERTIFICATE

This is to certify that the research work entitled To study the Indian packaged water industry with focus on BISLERI has been undertaken by Ms. Megha Jain under my supervision in the partial fulfillment of requirement of the graduate course (BBA). The research work is candidates original work & this project report has not been submitted to any other university for any course. This is also certified that Ms. Megha Jain is the student of BBA 2nd year in Maharaja Surajmal Institute, Janakpuri (Affiliated to GGSIPU University).

Project Guide: Ms. Supriya

CONTENTS
OBJECTIVES OF THE STUDY RESEARCH METHODOLOGY Sample Size Analysis INTRODUCTION

To the domestic packaged drinking water market MARKET SHARE COMPANY PROFILE OF BISLERI Background The Present Future Plans Technology Developments Purification Process Product & Packaging

BOTTLED WATER ANALYSIS WHY BISLERI? EXCERPTS And this is how Parle Bisleri began THE JOURNEY TILL NOW VISION AND MISSION
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 CURRENT PLAYERS

SWOT ANALYSIS

ANALYSIS AND INTERPRETATION Consumer Related Retailer Related RECOMMENDATION AND SUGGESTION CONCLUSION ANNEXURE Consumers Questionnaire Retailers Questionnaire BIBLIOGRAPHY

OBJECTIVE OF THE STUDY:

To learn about the domestic packaged drinking water market, its market distribution and Brand Bisleri in detail. To find about consumers and retailers brand preference To see whether there is a threat to the mineral water market from water purifiers and soft drinks. Whether the people of Delhi & its NCR and happy, paying for water. Whether the people of Delhi & its NCR are getting health conscious. To find the retailers view on the mineral water market and to assess the future prospect of the market. To find the potential of Mineral water market in Delhi & its NCR.

RESEARCH METHODOLOGY:
Starting a research project needs a basic preparation regarding the issues related to the topic selected. For this one needs to do some deskwork. Deskwork includes: 1. Determining the basic objectives of the study undertaken. 2. Collection of secondary data related to the topic from Internet, magazines & newspapers. 3. Study the market, which one wants to cover. 4. Analyze the objective on the basis of information collected by secondary data. 5. All the above activities at the initial stage of the project must be completed & then the main part follows.

Sample Size Regions of Delhi & its NCR were covered for the study. I took 50 consumers and 10 retailers as my respondents. They were selected by random sampling method because in this case systematic sampling is not possible since one cannot say whether a person is using mineral water or not. Analysis Then analysis of the questionnaire filled by the consumers & the retailers is done on the percentage base analysis & theoretical base analysis. On the bases of this analysis graphs were prepared showing the relationship between two variables. The analysis formed the bases of the inferences drawn and reaching the conclusion of the study.

INTRODUCTION:
To the domestic packaged drinking water market The concept of bottled mineral is quite a new one for Indian People. Since we never consider these things as necessity and especially when we are paying for natural resource like water which is available freely. The bottled water market has recently seen growth; the reason behind this may be the growing health consciousness among Indians or non-availability of pure drinking water. Most of the users are daily travelers, patients or it is used in parties/seminars. Moreover 30% of the whole mineral water customers are travelers. When governments spoke about providing drinking water to all, little did one imagine that MNCs would package it and sell it to us. The advent of the small bottles has increased consumption. Buying water near the bus stop or at the railway station has become a routine. Indian water market has many companies selling water, on an whole there are more than 300 big & small players in the market some of the big players are Bisleri, Aquafina, Kinley, Purelife, Mcdowell etc. these companies are dealing in same market, same price & also same capacity. Bisleri is owned by Parle group, Aquafina is owned by Pepsi, Kinley is owned by Coke, Nestle has Purelife. But some small players also have sufficient market share in their local market, like prime, silver drop, royal fresh are very popular in the congested region. Bisleri is most popular brand in North India. Bisleri is having big contracts like with air Indian & some part of Indian railways.

Since the early 1990s, Indian attitude have changed and people are flocking to the cities at a frenetic pace - one-third of Indian now live in urban areas. But in many parts of the country, quality of water is still a major concern. Given the extreme climatic conditions in India, especially the heat and dust, plus the fact people are now prone to dehydration because they commute further for work and social activities, the issues of safe drinking water is more prevalent than ever. As the mercury soars, so do the sales of bottled water. The advantage it has is unlike the Colas and other drinks dispensed from vending machines, a bottle fits into a handbag and can be carried conveniently. The trend of using mineral water for drinking purpose started as a means to take advantage of the therapeutic value of water. This trend gained potential momentum during 1970s and ever since bottled water was exported every year from mineral springs in France and other European countries. In western countries,the practice of bottled drinking water started during 1950s. The first launch of bottled water in India was the launch of Bisleri of Parle company during 1968-69 which was a major flop as the Indian population was not prepared to accept the concept of purchasing water. The market of bottled water remained weak and inactive for as long as 20 years. The relaunch of Bisleri in 1994, however, was a success due to the growing awareness and high consciousness of health and hygiene among people. Today many medical stores in the city are doing very well with the sale of branded bottled water. The brand name plays an impression on the human mind. Bottled water is available in quantities of 330ml, 500ml, 1lt, 1.5lt, 2lts, 5lts, 10lts, 20lts and 50lts.

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For a particular brand to be certified as bottled water it requires approval on 4 levels namely the Central, the state, the trade association, and individual company levels.

ILL EFFECTS OF DRINKING UNTREATED WATER

Typhoid Bone deformation Joint pain Hardening of arteries and muscles Gastro stomach upsets Excess content of fluoride can lead to flourisis Arsenic Poisoning

COMMONLY FOUND WATER CONTAMINATION SOURCES

Contaminated storage Tanks Cross contamination at sources Leaks in distribution network Improper functioning of Purifiers Domestic Waste Borewell or contaminated ground water Organic matters
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Industrial waste

DISTRIBUTION NETWORK OF BISLERI

And this is how Parle Bisleri began

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According to the Bureau of Indian Standards there are 1,200 bottled water factories all over India (of which 600 are in one state -- Tamil Nadu). Over 100 brands are vying for the Rs 1,000-crore (Rs 10 billion) bottled water market and are hard selling their products in every way possible -- better margins to dealers, aggressive advertising, catchy taglines.... In such a scenario, The Strategist takes a look at how it all started -- with Bisleri -- and how Ramesh Chauhan, chairman, Parle Bisleri created a market out of pure water. Bisleri mineral water was bought from the Italian company, Felice Bisleri, in 1969 -- the company had been unable to market bottled water and wanted to exit the market -- Parle too did not see any potential for the product at that time. As a soft drinks company, Parle had Thums Up, Gold Spot and Limca (cola, orange drink and lemonade) but no soft drink company was complete without a soda. So they merely used the name and launched Bisleri soda with two variants -- carbonated and noncarbonated mineral water. But three decades ago, what could they say about a category that had no market? They didn't know our target group. Then, since bottled water is colourless, tasteless and odourless, it was not an easy product to advertise. Thus, the earlier brand building efforts focused on Bisleri being healthy with adequate minerals. The Italian name added a dash of class to it. The first print ad campaign captured the international essence and showed a butler with a bow tie, holding two bottles of Bisleri. The punchline was, "Bisleri is veri veri extraordinari" (the spelling of the punchline was designed to capture the consumer's attention). The campaign was successful and we were being noticed as someone who catered to the need for safe, healthy drinking water.

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However, the real boost to mineral water came in the early-to-mid1980s when they switched to PVC packaging and later to PET bottles. The PET packaging did not just ensure better transparency -they could now show sparkling clear water to the consumers. It also meant better life for the water. Meanwhile, Bisleri soda was doing well but they had to discontinue production as they sold their soft drink brands to Coca-Cola in 1993. But Ramesh Chauhans interest was in building brands and not in bottling soft drinks. That's when he started to concentrate on developing the Bisleri water brand. There was a clear opportunity of building a market for bottled water. The quality of water available in the country was bad. It was similar to what Europe faced before World War II. The quality of water in Europe was extremely poor, which created the bottled water industry there. In India, too, not only was water scarce, whatever was available was of bad quality. Initially, though bottled water was something only foreigners and non-resident Indians consumed, they still had to increase the distribution, which meant the dealer margins reduced. And because of limited sales, the dealer margin had to be kept high to compensate low sales. Now they had to push sales. Hence, they introduced free sampling of Bisleri at the tables where the elderly guests would sit. Soon customers were ordering bottled water on special occasions. Currently, the consumption of bottled water is far in excess of soft drinks on such occasions. The other major challenge was distribution. Soft drink sales are in glass bottles and the distribution model is built around picking up empty bottles and getting them back to the factory. That's not the case with the retail bottled water packs (below 2 litre). But a product that's not available where it's needed, is useless.
The number of outlets where Bisleri is available has increased from 50,000 in 1995 to 2,50,000 at present. But that is not enough -- they need to keep looking for different avenues. Take stationery shops and chemists, for instance. They don't keep soft drinks but
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sell Bisleri. That is the kind of exclusivity we look for to get ahead of the distribution network that soft drink companies talk of.

MARKET SHARE:
Currently, Bisleri continues to lead in the Rs 700-1,000 crore organised, packaged water market with an estimated 40 per cent market share, followed by Kinley at 28 per cent and Aquafina with an 11 per cent share. In terms of volumes, the North and West remain Bisleri's biggest performing markets, despite the brand's sustained national-level presence. The market has been growing for the last three years at an unimaginable rate of 80%. The market size of bottled water is expected to surpass the size of soft drinks market very soon in the near future.

Aquafina 11%

Others 21%

Others Bislery
Kinley 28%

Kinley Aquafina

Bislery 40%

Individual Market Shares: BISLERI-40%, KINLEY-28%, AQUAFINA-11%, OTHERS21%

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Some of the specifications as per the latest notification (which were effective from April 01).
The location of packaging should be close to the source or place of origin of water. Only water obtained directly from natural or drilled underground sources can be sold as mineral water. For water to be called mineral water it should also not be subject to any chemical treatments. For water to be categorized as packaged bottle water, it can be sourced from any places. The water has to be treated and disinfected in accordance with specifications for it to be categorized as packaged bottle water. Till December 2000 only six players have applied for license for packaged drinking water and no company has applied for license in mineral water category. But around 16 applications in packaged water category and 6 applications in the mineral water category are still in the pipeline. The new regulations also prohibit any claims relating to beneficial properties of the product and the immediate casualty will be Coca-Cola with its FFPAI endorsement. Furthermore in a bit to provide standards for both drinking water and mineral water and to regulate the quality and price of bottled water, BIS approval was made mandatory from the end of 1999. However the BIS does not lay down any guidelines or practices for processing water and there is no specific industrial licensing policy for the bottled-water sector. So in effect anyone can set up a plant without establishing the source of the water and the technology used to purify it. Till recently India was not a potential consumer for packaged water hence the prospects are now huge. But with regulations somewhat
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confusing and contradictory it is likely to be a while before the manufacturers are able to realize their full market potential in a country, which is fast becoming one of the principal global markets in bottle water.

COMPANY PROFILE OF BISLERI: :: Background

In 1967, Bisleri an Italian company, started by Signor Felice Bisleri, first brought the idea of selling bottled water in India. It started a company called Bisleri India. In 1969, Ramesh Chauhan, the Chairman of Parle Exports, bought over the brand. In those days, Bisleri packaged drinking water was available in glass bottles. Being a returnable package owing to various other problems such as breakage and weight, in 1972-73, Bisleri was made available in PVC (Poly Vinyl Chloride) bottles. After this plastic packaging was introduced, things started to change, and sales increased rapidly. The upsurge in the sales of Bisleri started in 1993 as Ramesh Chauhan sold off the Parle stable of brands, including Thums Up, Limca and Gold Spot. Recognising the potential of the packaged drinking water market, he then went on to concentrate on making Bisleri a top selling brand in India.

:: The Present
It was around the year 1995, when Parle Exports took charge of the brand operations and the business took off in the market. With factories across India and a strong distribution network, Bisleri established itself as a force to reckon with in the domestic packaged drinking water market.
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Earlier the packaged drinking water market consisted of five star hotels, tourists and foreigners. As a marketing strategy, a conscious decision was taken by the company that only 40% of the sales should come from these outlets and 60% from general market. i.e. paanwallas, street shops, general stores and even non-tourists. This brought about a sea change in the perception in the consumer's mind about consumption of Bisleri. Earlier, drinking bottled water was considered to be more of a status symbol. That thinking has slowly changed to the point where today, not drinking Bisleri is considered as being behind the times. Such has been the presence and penetration of the Bisleri brand in the bottled water segment. About few years ago, in 1998, a strategy was adopted to concentrate aggressively on the home market. The habit of boiling water or using electronic gadgets was not adequate, since the source of water itself was unreliable. The bulk packages like the 2, 5 and 20 litre bottles were introduced to meet this market need. The price per litre went down as a result, making bottled water very economical for the consumer.

:: Future Plans
Bisleri was the first to market bottled water in a totally virgin market and naturally people associate the brand with bottled water. Now Bisleri is perhaps already ten steps ahead of its competitors and will endeavour to widen its gap in the times to come. Bisleri's brand positioning stresses on pure, clean and safe drinking water. Some of the future plans to maintain the top spot that Bisleri commands in the Indian market are: New pack sizes in bottles and cups
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Increase the distribution network with an investment of over 200 crores Strengthen presence in traditionally weak areas by setting up 12 new bottling facilities at a cost of Rs. 150 crores

:: Technology Developments
To make sure that the product that reaches the consumer is always of highest standard and also meets international standards, Bisleri has always been involved in improving its product packaging. One such recent development is the tamper proof break away seal. Bisleri also recognises the need to produce environment friendly products and is working on the PET project. The break away seal: Keeping in mind the consumer's need to recognise a genuine product that cannot be tampered with, Bisleri developed the break away seal. The unique cap has been patented and cannot be duplicated or tampered with. This technology development in the product ensures that the consumer will only get a highly safe product when they consume Bisleri packaged drinking water. Product packaging: To ensure purity of the bottled water, the bottles that are used are blown and filled at the factory itself, to avoid contamination.

The PET Recycling Project:

Bisleri is extremely conscious of environmental issues, since PET bottles are not biodegradable and not easy to dispose. The company
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is currently working on the PET recycling project, where they will collect bottles from various places, crush and shred them. This shredded material will then be made into ropes , PET containers for the non-food industry and other PET items like polyester fibre, flower vase, gift items etc.

WHY BISLERI?
Bisleri is totally safe & protects you from all water borne diseases. Bisleri is trusted by 50 lakhs households across the country. Bisleri is the brand leader in bottled water category.
The water is purified through six stages of purification process that includes reverse osmosis and Ozonation.

Why Bisleri is pure?

At BISLERI plants , water undergoes multi stage purification process to ensure proper blend of minerals and complete removal of microorganisms and toxic substances. So a habit of drinking PURE and SAFE BISLERI will ensure a healthy life

WHAT ADVANTAGES BISLERI PURIFICATION PROCESS HAS OVER PURIFICATION DONE BY OTHER METHODS?
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Traditional process of boiling water for purification has its limitations.It is time consuming. For boiling , water has to be heated to 100 deg.Celsius. Also , to kill microbes water should be boiled continuously for a minimum of 20 minutes. Boiling may kill the microbes but can not remove other physical impurities and toxic substances. Many home appliances are available in market for water purification. These gadgets use either filtration technique or Ultra Violet rays or a combination of the two techniques. These techniques do not guarantee 100 % purity of water. Filtration removes only the visible suspended particles and not the minute , invisible particles , toxic substances or microorganisms. The filters are cleaned rarely and all the muck accumulates inside leading to more contamination. Ideally such filters need to be cleaned every day which is cumbersome. Ultra Violate rays kill the microbes but cannot ensure removal of toxic substances and physical impurities. These purification equipment are incomplete and need continuous monitoring and maintenance. At BISLERI , through our multi stage purification process we ensure removal of toxic substances as well as physical and microbiological impurities. In our state-of-the-art processing plants we follow rigorous Good Manufacturing Practices and strict Quality Assurance norms so each and every bottle of BISLERI is made tasty, pure and safe for the consumer. PROTECT YOUR HEALTH WITH BISLERI WHICH USES 6 STAGES OF PURIFICATION

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CHLORINATION : Kills micro organisms. Remove organic matter. ARKAL FILTER : Removes suspended matter and turbidity. CARBON FILTER :Removes residual chlorine & odours

REVERSE OSMOSIS : Removes organic material.Controls total dissolved solids in the water. MICRON FILTRATION: Additional safety measures of filtration. OZONATION : Ensures water remains bacteria free for longer shelf life.

:: Product & Packaging

Bisleri is available in a range of sizes.

The Bisleri bottled water range comprises the conventional 500 ml, one litre, 1.2 litre and two litre bottles; five litre and 20 litre jars for the home segment, and smaller packs sizes of 250 ml cups and 330 ml bottles, though in very limited numbers for now.

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BOTTLED WATER ANALYSIS

Bisleri Spring Water - Still/Sparkling PARTICULARS TDS Ph Factor Calcium Chlorides Bicarbonate Magnesium Nitrate Sulphates Hardness Mg/litre 160 7.2 13.6 22 58 7.8 2 19.3 66.1

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WHERE CAN WE USE BISLERI ?

Drinking Making tea, coffee, lassi, cold drinks, mixing with drinks Kneading the dough Cooking Mixing with baby foods Mixing with medicines .

THE JOURNEY TILL NOW:

1969: Buys Bisleri bottled water from an Italian company, Felice Bisleri. It was bottled in glass bottles then. Early-1980s: Shifts to PVC bottles. Sales surge Mid-1980s: Switches to PET bottles, which meant more transparency and life for water. 1993: Sells carbonated drink brands like Thums Up, Gold Spot and Limca to Coca-Cola for Rs 400 crore. 1995: Bisleri launches a 500 ml bottle and sales shoot up by 400 per cent. 2000: Introduces the 20-litre container to bring prices down from Rs 10 a litre to Rs 2 a litre.
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1998: Introduces a tamper-proof and tamper-evident seal. 2000: BIS cancels Bisleri's licence of a water bottling in Delhi since some of the bottles did not carry ISI label; the licence is restored one-and-a-half months later. 2002: Kinley overtakes Bisleri. The national retail stores audit by ORG-MARG show Kinley's marketshare at 35.1 per cent compared to Bisleri's 34.4 per cent. 2003: Bisleri says it plans to venture out into Europe and America to sell bottled water

:: Vision
A major, diversified, transitional, integrated consumer product manufacturing company, with National Leadership and a strong environment conscience, playing a national role in safe water and Agro based drinks.

:: Mission
To provide the highest quality product, keeping in mind all aspects including freshness, purity and safety, and making it easily available to the consumer at a very affordable price. To achieve international standards of excellence in all aspects of energy and diversified business with focus on consumer delight through value and services of product and cost reduction. To enhance capital and fixed assets of the group to withstand challenges and tough market trends. To attain leadership in developing, adopting and assimilating state or art technology for competitive advantage.
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 To provide better quality of product and services through sustained market research and product development. To foster a culture of participation and innovation for employee growth and contribution. To cultivate high standards of business ethics, and total quality management for a strong corporate identity and brand equity with continuous and positive growth. To help enrich the quality of life of all the communities specially the neglected ones and preserve ecological balance and heritage through a strong environment conscience.

CURRENT PLAYERS:
The mineral water industry is in a churn. The market is proving to be yet another battlefield for an ongoing battle between the desis and the MNCs. So far, MNCs have been winning. Only time will tell what the final outcome will be but I strongly feel that here too, like in all other markets, MNCs are going to win. Though the fate Indian companies will suffer at the hands of these MNCs makes me sad, the choices the consumers will have makes me happy. A few years back, the mineral water market had been crawling at the rate of 3-4%, or even a lower figure. Indians carried drinking water in earthen pitchers, plastic or PUF bottles. But increasing
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cases of typhoid and other waterborne diseases began to be reported. In addition to this, liberalization happened and the mineral water industry began to be stirred and shaken. The market started growing an astounding rate of over 100% per anuum. The fact that there were very few players in the market meant that their business grew by leaps and bounds. Bisleri became a household name and is now generic for bottled water. The market today has grown to Rs11bn. The organised sector -- branded mineral water -has only Rs5bn of market share. The rest is accounted for by the unorganized sector which is dominated by small regional players. The market is still growing at a rate greater than 80% per annum. In the branded segment, Bisleri is the market leader as it continues to lead in the Rs 700-1,000 crore organised, packaged water market with an estimated 40 per cent market share, followed by Kinley at 28 per cent and Aquafina with an 11 per cent share. In terms of volumes, the North and West remain Bisleri's biggest performing markets, despite the brand's sustained national-level presence The boom in the market has also encouraged unscrupulous players to gain an entry. In the name of mineral water, a number of regional players have even started selling plain tap water. Many people have fallen sick after drinking this spurious mineral water. The common mans faith in the product was shaken. However, not everyone was put off. Sensing the opportunity that this segment holds, MNCs have begun to draw up
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plans to enter the market, but not without testing the waters first. They carried out the appropriate feasibility studies. However, among the first to challenge Bisleri's near monopoly was Pepsi's AquaFina followed by stiff competition from Parles Bisleri and Coca-Cola Indias Kinley. The first entrant in the bulk water category was Bisleri, while Coke, through Kinley, entered the segmen 4 years ago. Over the past five years or so, Bisleri has become a major player in the bulk water segment in the water-starved southern states. The 20-litre bulk water packs are targeted at the institutional and the home segment. Pepsi is aiming to make its brand available throughout the country soon. The company has also ruled out entering the bulk water segment in India. Meanwhile, the action is all in Coca-Colas bulk water business. The 20-litre bulk water packs are targeted at the institutional and the home segment

SWOT ANALYSIS:

BISLERI Bisleri announced the re-launch of its 20-litre home pack with a more consumer-friendly format in thread fitting and valve cap, against the conventional snap-on fittings. The existing 20-litre

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Bisleri packs are now being withdrawn and the rollout of the new jars, priced between Rs 40-60, is on. Bisleris focus on the bulk water market has grown in the past few years, mainly owing to the stiff competition posed by innumerable brands in the packaged bottled water market. Not only are there big multinational players like Coke with their huge distribution networks, regional players exist side by side, enjoying local clout. Bisleri continues to lead in the Rs 700-1,000 crore organised, packaged water market with an estimated 40 per cent market share, followed by Kinley at 28 per cent and Aquafina with an 11 per cent share. In terms of volumes, the North and West remain Bisleri's biggest performing markets, despite the brand's sustained national-level presence the fact remains that the new kids on the block are nibbling away at Bisleri's stranglehold over the bottled water segment. Only three years ago, the bottled water market was estimated at about Rs 300 crore, of which Bisleri commanded a dominant 80 per cent share. To ensure Bisleri packaged drinking water is held safe free from contaminations, ultraviolet treatment and ozonisation process is carried out. Ozone is unstable trivalent oxygen, a very powerful bactericide with no side effect, as it disintegrates into oxygen within couple of hours Sterilization effect of ozonised water continues even after water is packaged, thereby ensuring safety of Bisleri up to its final packing. To ensure high quality of packing
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materials, components like caps and bottles are manufactured inhouse from resins of quality suppliers. Good Manufacturing Practices are stringently followed at all times. Processing is religiously monitored at every stage. Testing source water, processing parameters, microbial quality, packaging material integrity and finally, shelf life studies, forms an integral part of quality and safety assurance plan.

Strengths:
Core business of company. First mover in this business since 1969. Good brand awareness and brand positioning. Available in different packs like cups, 500 ml, 1 lit, 1.2 lit, 2 lit, 5 lit and 20 lit. Has become generic name in the mineral water market.

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 Availability of Bisleri in all over India with solid infrastructure facility. Focus on customer orientation through low price strategy. Product differentiation by introducing patented break way seal cap. Best service and proper response to dealers and customers.

Weakness:
Lack of brand loyalty as MNCs are entering the market like Nestles Purelife, Pepsis Aquafina. Lack of Global Awareness in brand. Lack of proper advertising to create brand awareness. Market coverage is not fully utilized. Institutional sales are not penetrated properly. Lack of technological up gradation.

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Opportunity:
Indian bottled water industry is still at growth stage. Influence of tourists and expatriates. Bisleri as a daughter company of Parle has a strong presence in India. Unreliable municipal water quality. People are becoming health conscious.

Threats:
Numbers of players like Kinley and other local players are present in the market have already captured the market. Tough competition from MNC's like Coke & Pepsi. Fluctuation in sales due to seasonality.

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 Local manufacturers who refill used bottle Hampers the image of the industry. Water filters and soft drink industry is a major threat to industry. Coke and Pepsi are already having strong distribution network in bottle water industry with their own fleet of trucks & vans.

Bisleri goes green naturally

20 October 2006

New Delhi: The Ramesh Chauhan-promoted Bisleri International, which pioneered the packaged drinking water business in India, catering to consumers' need to have hygienic drinking water while on the move or even at home, is literally changing its colours and going for a makeover. The brand that was till now marketed as packaged drinking water (cleaned through reverse osmosis) will now be available in a naturalavatar. Bisleri International will invest Rs100 crore for the project which constitutes a Rs40- crore investment in two plants in Uttaranchal and Himachal Pradesh in line expansion, Bisleri International chairman Ramesh Chauhan said. The plants will come up next year. Chauhan said the rest of the investment of about Rs60 crore
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would go into infrastructure development. The investment would be funded through internal accruals. Launching 'Bisleri Natural Mountain Water' he said the company was looking for four more locations from where we look to source natural water. The likely locations would be in South and West India he said. Bisleri has 23 plants across the country producing bottled water. Bisleri Natural Mountain water will be available in aqua green packaging against the blue packaging of old and will be available in six sizes. The company is also planning an aggressive marketing and advertising campaign with a two-year budget of Rs60 crore. Chauhan said the new packaging has been adopted in order to stand apart from the others and in Chauhan's words, "As leader, we want to differentiate ourselves and hence have adopted this aquagreen colour," he said. Priced at a significant premium to packaged water Natural Mountain Water will be available for Rs20 per litre. The natural water segment, which accounts for about 5 per cent of the total bottled water segment, is expected to grow by leaps and bounds as health awareness and disposable incomes rise. According to the company the foray into spring water will be followed by an entry into the packaged ice segment (Bisleri Ice) as well into flavoured, vitamin and sparkling water categories. The company is said to be setting up R&D facilities for ice and studying various packaging options. Ramesh Chauhan, chairman, Bisleri International expects to sell 10 million cases of Bisleri Mountain Water over the next two years- a turnover of Rs200 crore. The bottled water industry is worth Rs1,000 crore in India and is growing at 40 per cent per annum. It is projected to reach Rs5,000 crore by 2010. The main players in the spring water segment are Himalaya, Catch and Leh Berry. At present Himalaya leads the segment with a 50-per cent market share.

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Bisleri claims to have a 40-per cent market share of the organized packaged water market. The natural spring water market is very small and accounts for 5 per cent of the entire segment. Bisleri is projecting a turnover of Rs300 crore this financial year, as against Rs220 crore last year. Chauhan says he is also preparing for an entry into the US market with his spring water and is talks with US authorities for this. He would not export India-bottled Bisleri into US, but would set up a bottling operation there as transportation costs are a huge obstacle in sourcing the product from India. "We are in the process of getting the regulatory approvals for the venture," Chauhan said. He said Bisleri was at par with companies in the developed world as far as meeting international standards were concerned.

KINLEY
Kinley Watera product of the Coca-Cola Company-is the established market leader in the drinking water segement. A product offering of the Worlds No. 1 beverage company, Kinley Water is brought to You with the time-tested expertise of the CocaCola. Backing Kinley Water, is the promise of delivering Trust in every Drop. Kinley Waters 25 litre bubble top containers made of Lexan- a polycarbonate polymer (plastic) that is made specially for the purpose. Unlike other brands which use recycled plastic, Kinley bubble tops are made from what is known as Virgin Plastic.

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In addition to this, Kinley offers Kinley water dispensers. These water dispensers come in four basic models. The water dispensers are ergonomically designed to suit both domestic as well commercial requirements. Refrigerator Model with Hot and Cold facility Hot and Cold Model Compacta

Elegance

Advantages of Kinley:
Good brand positioning. Available in different packs like 500 ml, 1 ltr, 2 ltr, 5 ltr and 20 ltr. Easy availability of product in all over India after Bisleri with solid infrastructure facility. Benefit as a product of Coca-Cola.

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 Focusing on institutional sales to create brand awareness aggressively. Use of technological up gradation.

Disadvantage of Kinley:
Lack of proper service to customers. Lack of strong infrastructure. Non-availability of a variety of range like Bisleri. Focus on distributors not on small retailers.

AQUAFINA
PepsiCo India launched the packaged water bottle brand Aquafina about five years ago in a 750-ml pack, basically targeting the youth. The brand now retails in conventional retail pack sizes of 500-ml and 1-litre bottle Aquafinas market share in the retail segment is estimated at about 12 per cent and it remains to be seen how PepsiCo succeeds in penetrating the bulk water market. Pepsi Foods, too, expects its Aquafina brand to turn national by the year-end. "Bisleri is the
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market leader and a good brand that has been built over the years. But we are gradually consolidating our bottled water business, even if our positioning is somewhat different," says Pepsi Food's official spokesperson.

Advantages of Aquafina:
Strong distribution network. Good brand awareness and brand positioning. Available in different packs like 500 ml, 750 ml, 1 ltr. Easy availability of product in all over India. Benefits as a product of Pepsi. Focusing on institutional sales to create brand awareness. Use of technological up gradation.

Disadvantages of Aquafina:
Compared to Bisleri and Kinley the service from Aquafina is not satisfactory.

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 Lack of strong infrastructure. Non-availability of a variety of range. Market coverage is not proper. Focus on wholesalers not on small retailers.

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ANALYSIS AND INTERPRETATION

CONSUMER RELATED

WHICH BRAND DO YOU PREFER WHILE BUYING MINERAL WATER?

60% 50% 40% 30% 20% 10% 0% Bisleri Kinley Aqufina Others

Name of Brand Bisleri Most Preffered Kinley Aquafina Others

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Consumer preferences 60% 20% 12% 8%

NUMBER OF RESPONDENTS USING MINERAL WATER FREQUENTLY

40% 35% 30% 25% 20% 15% 10% 5% 0% Always
Always 20%

Often
Often 27%

Sometimes
Sometimes 38%

Never
Never 15%

According to the survey conducted in Delhi & its Ncr it was analyzed that 38% of the mineral water users go in for an occasional use while there are still 15% of the respondents who never go for packaged water.

RESPONDENTS CHOICE AMONGST MINERAL WATER AND SOFT DRINKS

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60% 50% 40% 30% 20% 10% 0% Mineral Water Soft Drinks

Mineral water 55%

Soft drink 45%

Determining whether, in a thirst condition, an average individual opts for mineral water or soft drink, one can observe that the ratio is quite similar still more preferring Mineral water.
50% 40%

BRAND AWARENESS OF MINERAL 30% WATER AMONG RESPONDENTS

20% 10% 0%
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0 to 2

3 to 5

6 to 10

10 & above

Brands 02 35 6 10 10 and above

Respondents 40% 50% 10% 0

The observation shows that most of the people know only about the main brands which are owned by the big companies and are advertised hugely. Mainly 3 5 brands only comes to the minds of the customer in regards to mineral water.

CUSTOMER PREFERENCES FOR

60% 50% 40% 30% 20% 10% 0%
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BOTTLE

0.5 ltr

1 ltr

5 ltr

20 ltr

SIZE

Size of Bottle (in ltrs.) 0.5 ltr 1 ltr 5 ltr 20 ltr Total

Consumer preferences 60% 20% 5% 15% 100%

CUSTOMERS PREFERENCES REGARDING PRICE WORTH OF MINERAL WATER

60% 50% 40% 30% 20% 10% 0%
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Yes

No

Respondents view % of respondents

Yes 42%

No 58%

The observation shows that most of the people are not happy paying the price, the companies are charging for the product. They feel that the price should be a little lower.

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EFFECT OF ADVERTISING ON
54% 52% 50% 48% 46% 44% 42% Yes No

PURCHASE

Respondents perception % of respondents

Yes

No

46%

54%

The observation shows that most of the populations buy the Mineral water just for the sake of buying it rather than buying it due to its advertising. Very few people are actually affected by the advertisement of the product. In the interior parts, people who do not watch much of a TV generally does not know the importance of ads. So they buy it only for the sake of buying it.

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GROWING HEALTH CONSCIOUSNESS AMONG INDIANS

80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No

Yes 73%

No 27%

The observation shows that most of the population in Delhi & its NCR now a days is getting Health Conscious. The reason being the knowledge of the fact that the normal water which we get is not always very hygienic and may cause many diseases.

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RETAILER RELATED OBSERVATIONS AND FINDINGS TYPES OF BRANDS RETAILERS KEEP

70% 60% 50% 40% 30% 20% 10% 0% Advertised Non-advertised Both

Advertised 35%

Non-Advertised 5%

Both 60%

According to survey, 35% of retailer go in for advertised products and non-advertised products do not have any weight Around 60% retailer believe in the combination of both (advertised and non-advertised version). The survey was based on retailers.

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SIZE OF BOTTLE SELLING MORE

60% 50% 40% 30% 20% 10% 0% 0.5 Ltr 1 Ltr 5 Ltr 20 Ltr

Size of bottle % of respondents

0.5 ltr 60%

1 ltr 20%

5 ltr 5%

20 ltr 15%

Surprisingly both 0.5 Ltr and 1 Ltr version are selling well but 5 ltr are selling very less as compared to others.

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GROWTH

DURING

THE

LAST

FIVE

YEARS ACCORDING TO RETAILERS

60% 50% 40% 30% 20% 10% 0% Advertised Nonadvertised Both

Retailers view % of retailer

Yes 67%

No 33%

Last five year seen a tremendous growth in the mineral water segment. The growth rate has been very high, owing to increased health consciousness amongst the population, arising from scarcity of potable drinking water.

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FUTURE PROSPECTS OF MINERAL WATER MARKET

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Excellent Good Average Poor

Retailers prediction % of retailers

Excellent

Good

Average

Poor

42%

30%

15%

13%

Saturation for mineral water market is expected with in the next 5 years after which the market will stabilize from todays point of view the market looks quite disruptive because of heavy competition.

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For

observing

retailers,

20

retailers

were

identified in some of major areas in the city. Following inferences were drawn . 1. Initially we enquired about the numbers of brands that the retailers sell and most of them specified not more than 3 4 . This indicates that the retailers prefer only the main brands. 2. Most of the retailers usually keep highly advertised brands. 3. Here two basic question as to which brands are selling more and which one is being supplied more were combined. The answer was obvious and i.e., the one which is sold more is supplied more and it is Bisleri (in most cases). 4. The retailers answers as to which size of bottle is selling more were inclined towards the 1 ltr. and 500 ml bottles with certain exceptions. 5. It was a mixed reaction of the retailers when asked about the highest margin paid to them by a company out of 100 40% - Bisleri 20% - Kinley 15% - Aquafina

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15%-others

RECOMMENDATION AND SUGGESTION

Campaign, stalls to beat local brands & create awareness. Retailers need to concentrate on 5 and 20 litr bottle which can be possible only if properly advertised & home delivery of jars are done to the end customers. The market is too congested and confused in the Delhi & its Ncr region, so the company should properly promote & strengthen the distribution channel to survive the competition.

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CONCLUSION
After analysis of the data & facts we have collected from consumer & the retailers & matching them with the objectives one can say that there is very good future for mineral water market. Soft drink market might be some threat to the mineral water at present but within few years the scenario is going to change. Trend signifying increasing health consciousness amongst Indians could also be observed. Market has seen a tremendous growth from the early nineties & now it is increasing by 70% to 90% every year so one can easily say there is great potential in the mineral water market. It could also be observed that the living standards of the People improving & as they are becoming health conscious are ready to pay for water now. On the question of survival of so many companies government has made policies & restrictions from April 2001 which will force many manufactures to shut down their factories. But due to potential in the market companies with quality product will survive. Finally from the data collected at both primary and secondary level one can confidently say that Bisleri as packaged water brand is the current market leader.

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ANNEXURE
CONSUMER QUESTIONNAIRE Name of the respondent______________ Address of the respondent____________ Contact no.________________________

QUESTIONS Q 1.How often do you consume mineral water? a) Always c) Often b) Sometimes d) Never

Q 2. When felling thirsty you opt for? a) Mineral water b) Soft drink

Q 3. How many brands of mineral water are you aware of? a) 0-2 c) 6-10 b) 3-5 d) 10 and above

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Q 4. Under what circumstances you opt for mineral water? a) While traveling b) During parties, meeting, seminars c) When drinking water is not available d) During illness e) Others Q5. Which size of bottle do you prefer? a)500 ml c) 5 ltr b) 1ltr. d) 20 ltr

Q6. Do you think mineral water is much more hygienic than normal water? a) Yes b)No

Q7. Do you think the price the companies are charging, is worth the product? a) Yes b) No
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Q8. Does advertising of this product has any effect on your purchase? a) Yes b) No

Q9. Do you think Indians are getting more health conscious day by day ? a)Yes b) No

Q10. Which brand do you prefer while buying mineral water? a) Bisleri c) Aquafina b) Kinley d) other

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RETAILERS QUESTIONNAIRE
Name of the respondent______________ Address of the respondent____________ Contact no.________________________

QUESTIONS Q1. How many brands of mineral water do you sell (specify)? a) 2-3 c) More Q2. What types of brands do you have? a) Advertised c) Both Q3. Which brand is selling more? a) Bisleri c) Kinley b) Aquafina d) Others b) Non-Advertised b) 3-5

Q4. Which size of bottle is selling more? a) 500 ml b) 1 ltr

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c) 5 ltr

d) 20 ltr

Q5. On which brand do you get more margins? a) Bisleri c) Kinley b) Aquafina d) Others

Q 6. Do you feel there is growth in the mineral water market in the last 5 years? a) Yes b) No

Q 7. What is the future prospect of this market? a) Excellent c) Unlike b) Good d) Poor

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BIBLIOGRAPHY
PRINT MEDIA --- Business World A&M Economic Times Business India

VISUAL MEDIA. Cable Network Internet Britannica Encyclopedia

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