Bislery case study

BackgroundMarket leader in 1971Increased selling in 250 towns in 1997 from 60 towns in 1993In the early 1990s, Parle Bisleri became synonymous with branded water and had a market share of 70%Faced competition from new entrants in late 1990sIn 1990s focus was on pure and safe water

BackgroundIn 2000-01, it faced another challenge from Cola majors, Pepsi and Coca-Cola and the confectionery giant, NestleDistibution network was a problemIn September 2000, Parle Bisleri launched its Play Safe ad campaignAdded fun element to Bisleri to rejuvenate the brand The ultimate aim was to increase Bisleri's turnover from Rs 4 billion in 2000 to Rs 10 billion by 2003

Need identification

Need identification

Everyone positioned their products on the purity platform, so the need to differentiate aroseLarge shops and commercial complexes were fast emerging as attractive targets and Bisleri attracted them with bulk packsPeople were hygiene conscious so Bisleri started pure and safe campaign

Need identification Bisleri planned to target the soft drinks market by adding a fun element to the productSmall packs to attract the market where there were no competitorsBisleri sensed that a strong distribution network would help in the long run.Bisleri identified that the 1 litre pack was not considered trendy

Segmentation,Positioning,Targeting

Segmentation,Positioning,TargetingThe market was segmented into premium, popular and bulk They changed their segments as per market situation keeping the old intactThey changed strategy and grew market share in Bulk segmentEvery new entrant in the mineral water market adopted the purity so shift necessitedThe ad campaign of play safe saw a shift in positioning from "pure and safe" to "play safe

Packaging and pricing

Packaging and pricingUse of packaging to differentiate their productsIntroduction of tamper proof sealsIn 2000 Bisleri's 5 and 20 litres packs accounted for 20% of its salesIn 2000, Bisleri launched the 1.2 litre pack. This added to the five pack sizes that Bisleri had (500 ml, one, two, five and 20 litres) The new pack was priced at Rs 12

Packaging and pricingIn 2000, Bisleri also launched smaller packs like the 300 ml cupThe new design of 500ml and 5 lt bottle was patentedThe new pack allowed better brand displayVertical labelling was easier on flat sleeved packages It made label information visible from all sides of the bottleIn place of the round ringed bottles, Bisleri would be available in hexagonal flat-sleeved bottles

Distribution

DistributionKinley and Aquafina made huge investments in bottling plants and distributionKinley and Aquafina got the advantage of their distribution network in the country through Coca Cola and Pepsi Coca-Cola Indias Kinley unit planned to double the number of water bottling plants to 16 Pepsis Aquafina announced that it would add seven more plants to the existing five

DistributionBranded mineral water which sold in only 60 towns in 1993, was available in 250 towns in 1997 In 1998, Bisleri's market share came down to 60%, while Parle Agro's Bailley had 20% The remaining 20% was shared by regional players In 1998, the branded mineral water market had grown to a 424 million litre business, valued at Rs 4 billion

DistributionIn contrast, Bisleri had only 15 bottling plants and three franchiseesKinley had 500,000 outlets compared to Bisleri's 350,000

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Late 1990s ad campaign brand image'There is just one BisleriPrint-and-TV campaign - "pure and safe." Safety feature - tamper proof sealsWeakness of conventionally sealed bottles -"breakaway" seal

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September 2000Play Safe ad campaign to make its brand stand apartTargeted the youth and hoped to convey a social messageShift in positioning from "pure and safe" to "play safe"Our observation is that people consume mineral water not for the minerals, but for safety. Hence the word "safe" is critical." -Mr. Chauhan CEO of Parle Bisleri Ltd

Current Situation

Current SituationTough competition from competitors to the aggressive marketing strategies of bisleriKinley trying to build market on trust factorCoca-Cola announced that it would enter the bulk segment where Bisleri was a dominant player The 20 litre bulk water packs would be targeted at institutional and home segmentCola giants are shifting their focus to branded water in India

Learning

LearningSegmentation, targeting and positioning is very importantDistribution network plays a very important rolePackaging and pricing play an important role in brand building and brand recallingInnovation is the key for success of a firm so it is important to change with time Advertisements help in promotion of the brandCustomer is the king

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