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Summer Training Project Report on
Marketing strategy of mineral water
AT
BISLERI
Submitted to University of Jammu
In the partial fulfilment of the requirement for the award of degree of
Bachelor of Business Administration
SUBMITTED BY:
ISHAN RAINA
Roll No: 3
DEPARTMENT OF MANAGEMENT
TRIKUTA COLLEGE OF COMPUTER SCIENCE 7 MANAGEMENT STUDIES
JAMMU
INDUSTRY GUIDE: COLLEGE GUIDE:
Mr. ASHOK K KOUL Miss. NANCY SHARMA
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ACKNOWLEDGEMENT
This making of any report calls for contribution and cooperation from many others
besides the individual alone. It is the result of meticulous effort put in by many
minds that contribute to the final report submission and this work too is not an
exception.
Thus, one of the best parts of writing this report is the opportunity to thank those
who have contributed towards it.
First and foremost, I would like to take the opportunity to express my sincere
gratitude to Ms. Nancy Mam for his valued insights, suggestions and continuous
support, without which this project would not have reached successful completion.
I would like to thank all the respondents who took time out of their busy schedule
to fill out the questionnaires and have interaction with me. All the above, made
considerable contribution to which these few lines can hardly do justice to their
patience and generous support.
Last but not the least, i would like to thank my friends , my family.
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PREFACE
Theoretical knowledge is of no use, until and unless it is applied into some
practical aspect. We must lay stress on the proper implementation of what we have
learned in class at real life incidents to obtain optimum output.
Thus to apply all theoretical knowledge gained so far onto the practical field, The
submission of this project report is the part of the curriculum of BBA course.
This Summer Project has provided me with the full fledged experience about the
business arena of wholesome Indian packaged water industry. It gave me
complete training about practice of marketing strategies in the real life industry and
helped me gain the first hand experience of my future career in marketing.
This project shows the various steps and activities performed in order To Study
Marketing Strategies of Bisleri"
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EXECUTIVE SUMMARY
My internship at BISLERI, Delhi was a great exposure to the industry. After going
through my summer training, I had a first hand experience of how an industry as
well as Marketing department functions.
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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.
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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 amajor 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 brandedbottled water. The brand name plays an impression on the human mind. Bottled
water is available in quantities of 330ml, 500ml, lit, l lt, 1.5lts, 2 lts, 5 lts, l0 lts, 20
lts and 50 lts. For a particular brand to be certified as bottled water it requires
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approval on 4 levels namely the Central, the state, the trade association, and
individual company levels.
THE PACKAGED DRINKING WATER INDUSTRYAN
OVERVIEW
MARKET SHARE
Currently, Bisleri continues to lead in the Rs 700-1,000 crore organised, packaged
water market with an estimated 36% market share, followed by Kinley at 25% and
Aquafina with an 15% 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.
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Individual market shares:
BISLERI-36%, KINLEY-25%, AQUAFINA-15%, OTHERS-24%
36%
15%
25%
24%
Bisleri
Aquafina
Kinley
Others
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Due to the demand for water, a large number of "mineral water manufacturers"
have been spawned selling little more than tap water to the unsuspecting
consumer, the majority of whom are still very native about mineral' water.
Pepsi Co's Aquafina brand, which debuted the bottled water business in
September 1999, targets the youth sector and concentrates on just one pack size,
750ml priced ten rupees. Coca-Cola is the most recent entrant (May 2000) with
its Kinley, brand and in a controversial and unsuccessful marketing campaign, it
obtained an endorsement from the Federation of Family Physicians' Association
of India (FFPAI), a lesser known body of doctors for its brand.
Estimates show that there are around 100 small regional players in the bottle
water market and the number have been growing at an unbelievable 70%-100%
per year, year on year, for the past four years. This has enticed a number of
international brands in the market besides Coca-Cola and PepsiCo-Nestle (Pure
Life), Britannia, Lever, United Breweries and Shaw Wallace. Danone Pairs
launched Evian some time back and even imported hundreds of cases for VIPguests celebrating the Hindu festival, Kumbh Mela.
The government has been forced to sit up, take notice and tighten regulations
after comprehensive sample tests were taken by consumer groups and found that
a number of the smaller and more unscrupulous "opportunistic" players were
selling little more than tap water.
Until recently the government of had set standards only for mineral water and
even the PFA (Prevention of Food Adulteration Act) and BIS (Bureau of Indian
Standards) were deficient when compared to international markets.
Under the new regulations 48 specifications are to be met for water to become
mineral water and for packaged drinking water there are 43 specifications. But
small players are bound to fall out of the market by April 1, 2001 when the new
regulations were supposed to be enforced
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BISLERI - COMPANY PROFILE
Mineral Water under the name 'Bisleri' was first introduced in Mumbai in glass
bottles in two varieties - bubbly & still in 1965 by Bisleri Ltd., a company of
Italian origin. This company was started by Signor Felice Bisleri who first
brought the idea of selling bottle water in India.
Parle bought over Bisleri (India) Ltd. In 1969 & started bottling Mineral water
in glass bottles under the brand name 'Bisleri'. Later Parle switched over to PVC
non-returnable bottles & finally advanced to PET containers. . 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 as people still considered boiling water to
be a safer and better than mineral water. Moreover they were not ready to pay
for a commodity like water, which was so abundantly available.
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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- Thumps-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 Coca-Cola. This was the time when it 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.
Since 1995 Mr. Ramesh J. Chauhan has started expanding Bisleri operations
substantially and the turn over has multiplied more than 20 times over a period
of 10 years and the average growth rate has been around 40% over this period.Presently we have 8 plants & 11 franchisees all over India. We have our
presence covering the entire span of India. In our future ventures we look to put
up four more plants in 06-07. We command a 60% market share of the
organized market. Overwhelming popularity of 'Bisleri' & the fact that we
pioneered bottled water in India, has made us synonymous to Mineral water & a
household name. When you think of bottled water, you think Bisleri.
We at Bisleri value our customers & therefore have developed 8 unique pack
sizes to suit the need of every individual. We are present in 250ml cups, 250ml
bottles, 500ml, 1L, 1.5L, 2L which are the non-returnable packs & 5L, 20L
which are the returnable packs. Till date the Indian consumer has been offered
Bisleri water, however in our effort to bring to you something refreshingly new,
we have introduced Bisleri Natural Mountain Water - water brought to you from
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the foothills of the mountains situated in Himachal Pradesh. Hence our product
range now comprises of two variants : Bisleri with added minerals & Bisleri
Mountain Water.
It is our commitment to offer every Indian pure & clean drinking water. Bisleri
Water is put through multiple stages of purification, ozonised & finally packed
for consumption. . Rigorous R&D & stringent quality controls has made us a
market leader in the bottled water segment. Strict hygiene conditions are
maintained in all plants.
In our endeavour to maintain strict quality controls each unit purchases
performs & caps only from approved vendors. We produce our own bottles in-
house. We have recently procured the latest world class state of the art
machineries that puts us at par with International standards. This has not only
helped us improve packaging quality but has also reduced raw material wastage
& doubled production capacity. You can be rest assured that you are drinking
safe & pure water when you consume Bisleri. Bisleri is free of impurities &100% safe. Enjoy the Sweet taste of Purity.
How Parle Bisleri began..
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. Excerpts from a
conversation with Prerna Raturi:
Can I be honest? When we bought Bisleri mineral water from the Italian
company, Felice Bisleri, in 1969 -- the company had been unable to market
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bottled water and wanted to exit the market -- we too did not see any potential
for the product at that time.
As a soft drinks company, we had Thums Up, Gold Spot and Limca (cola,
orange drink and lemonade) but no soft drink company was complete without a
soda. So we merely used the name and launched Bisleri soda with two variants -
- carbonated and non-carbonated mineral water.
But three decades ago, what could we say about a category that had no market?
We 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.
However, the real boost to mineral water came in the early-to-mid-1980s when
we switched to PVC packaging and later to PET bottles. The PET packaging did
not just ensure better transparency -- we could now show sparkling clear waterto the consumers. It also meant better life for the water.
Meanwhile, Bisleri soda was doing well but we had to discontinue production
as we sold our soft drink brands to Coca-Cola in 1993. But my interest was in
building brands and not in bottling soft drinks. That's when I started to
concentrate on developing the Bisleri water brand.
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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, we 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 we had to push sales.
But to reach out to the masses, we had to make the category more affordable.
The introduction of a comfortable-to-carry 500-ml bottle for just Rs 5 in 1995
not only answered that need, but also meant doing away with carrying the
excess water or throwing it away if you were to buy a one-litre bottle.
The idea was a success and gave the company a growth of 400 per cent. We
also introduced the 1.2 litre bottle in 2000, which was aimed at those who share
their water. This also gave us the advantage of higher margins that a crate (12
bottles) generated.
With other brands joining the fray, things were hotting up -- the bottled-water
market was estimated at Rs 300 crore (Rs 3 billion) and was growing at 50 per
cent a year. Bisleri had captured 40 per cent of the market.
We realised it was time to move to the next level -- the bulk segment. Several
commercial establishments had no access to piped water. We tapped into this
segment by introducing the 12-litre container, followed by the 20-litre can. The
bulk segment also helped bring down the price per litre from Rs 10-12 a litre to
about Rs 3 a litre.
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At present, the bulk segment constitutes 60 to 70 per cent of our sales and we
intend to increase it to 80 per cent in the next two years. With water scarcity in
several cities, even households are demanding bottled water now.
The home pack was made more user-friendly by introducing pouring spouts and
jars with dispensers. At the same time, we were constantly looking for new
ways to tap the market. We noticed that during wedding receptions, the older
guests (above 50 years of age) generally stayed away from ice cream, soft
drinks and so on.
Hence, we 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. I still have the mindset of a soft
drink seller. 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 2,00,000 at present. But that is not enough -- we need to keep looking
for different avenues. Take stationery shops and chemists, for instance. They
don't keep soft drinks but sell Bisleri. That is the kind of exclusivity we look for
to get ahead of the distribution network that soft drink companies talk of.
Production ,consumption and details regarding water industry:
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MARKETING STRATEGY
It is complete and an unbeatable plan designed specifically for attaining the
marketing objective of a firm. The marketing objective indicate what the firm
want to achieve. The marketing strategy provides the design for achieving them
the linkage between marketing strategies and over all corporate success is
indeed direct and vital. Realizing the marketing objectives is the purpose of two
generic categories .
1. Price based
2. Differentiation based
PRICE BASED MARKETING STRATEGY:
A business that opts for the price route in its competitive battle will enjoy
certain flexibilities in matter of its product and use prices as main competitive
level . it will price its product to suit the varying competitive demands . it will
be enjoying certain inherent cost advantages , which permits it to resort a price
based fight . The major forms where such cost advantage can occurs are
economies of sale , absolute cost advantages ,. Benefits of early entry a large
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market share build over a time . it provides freedom in the matter of pricing but
after producing a particular product and getting stuck in the face of the
competition , one can not successfully opt for a price led strategy .
THE DIFFERENTIATION BASED STRATEGY:
marketing strategy based on differentiation works on the principle that any
aspect of the offer and any activity of the firm can be made distinctive
compared with the competiting offers. Right from technology, plant location to
post sale and service a company can perceptibly differentiate and many buyer
values. Companies usually choose those functions , Which give them the
greatest relative advantage.
Different firms adopts different strategy stances as their situational design
differ-
Broadly strategy stances can be classified under three heads-
ve Strategy-
Offensive Strategy also known as confrontation strategy , is a strategy of
aggression. A firm that is not presently the leader usually employs it, but it
aspires to leadership position in the Industry.
-
The leader who has the compulsion to defend his position against the
confrontation of powerful existing competitors or to dislodge the leader from
his topmost position usually employs it.
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A firm practicing the niche strategy neither confronts other nor defends itself. It
cultivates a small market segment for itself with unique products / services
supported by a unique marketing mix.
FORMULATING THE MARKETING STRATEGY-
Formulating the marketing strategy consists of two main steps-
1- Selecting the target market-
It does not fully bring out the import of the inseparable linkage between the
two. When the selection of the target market is over an important part of the
marketing strategy of the firm is already determined, defined and expressed.
2-Assembling the marketing mix-
Assembling the marketing mix means assembling the four Ps of marketing in
the right combination.
The firm has to find out how it can generate the best sales and profit. It plans
different marketing mixes with varying levels of expenditure on each element
and tries to figure out the effectiveness of each combination in terms of the
possible sales and profit.
ADVERTISING CAMPAIGN:
While designing the advertisement campaign, it is necessary to keep in mind the
opinion leaders. Youth are the opinion leaders of the present time. And thus it
becomes necessary to design the campaign keeping the youth in mind. The
opinion leaders would further trickle down the message to the less active
members of the society.
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This is exactly what Bisleri is doing. Bisleri has started an advertisement
campaign stressing the point of purity and flaunting the patent right the
company has over the breakaway seal. The company has tried to put the
message across louder, by using the ad campaign that catches the eye of
everyone, specially the youth.
CONTENT OF THE CAMPAIGN:
Bisleri that was looking for a differentiator decided to make the breakaway seal
the symbol of purity. The tamper-proof seal was developed, around which the
communication was woven. The campaign stresses the safety provided by the
breakaway seal by illustrating the ease with which conventionally sealed bottles
can be refilled and recycled.
The objective with the campaign would have been to highlight the tamper-proof
seal and create doubt in the consumers mind of the purity of the other brands.
That is, Bisleri is the only one that guarantees purity and keeps you Safe.
To conclude: We find that new advertisement campaign of Bisleri is eye
catching. This is what the company should do. And also the company should
make the message clearer to the customers that it has the patent right over the
breakaway seal. In the survey we found that the consumers are aware of the
breakaway seal but are not aware that the company has the patent right.
Apart from a high dose of investments on expanding bottling capacities and anad budget thats risen six-fold over last year, if Bisleri wants to penetrate every
possible segment of the market, it can do that by introducing more pack sizes
and establishing the brand strongly with trendy new packaging.
Apart from creating consumer pull with campaign, the company, to increase its
sales would have to do the sales push as well. For that it would have to give the
retailers and other stockiest high trade margins and incentives for keeping the
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product. This is very important in case of this product because consumers would
take up what is available to them at ease and whatever retailer is giving.
ADVERTISING CAMPAIGN OF BISLERI
Every brand needs a good advertising campaign to establish itself in the market.
So it becomes very imperative to look at various ad campaigns that Bisleri
undertook to build itself as a brand. Bisleri started its game plan with the punch
line of Pure and Safe and used the same catch-line for advertising. But with
advent of many new players, all claiming the purity, it became very imperative
for Bisleri to differentiate its product so as to stand out in the market. Bisleri
found the answer in sealed cap bottles. It claimed 100% purity. While the
bottles of the other brands, it claimed, could be refilled with ordinary, or even
germinated water, Bisleris seal capped bottles ensured the consumer of purity
of water and single-used ness of the bottles. The ad showed a milk-man and a
child showering their buffaloes and filling the so-called mineral water bottles
with the same water and packing them with the simple polythene seal and theconsumer not knowing about the purity of the water he is drinking. Next clip
shows the Bisleri bottles being sealed with plastic caps and ensuring the purity
of water. The ad did work for Bisleri and it got its much needed product
differentiation.
In 2000, some giant brands like Pepsi and coca-cola entered the mineral water
industry with a big bang. Bisleri now had a big threat of maintaining its market
cap. While Coca-cola introducing its brand Kinley as a health care product,
Pepsi projected Aquafina as something as pure as Your own body. Pepsi
targeted the young generation and introduced Aquafina as a fancy product to
carry.
The ad campaign of Aquafina emphasized as 70% of your body is water and
thus give your body the purest water. The ad showed young vibrant models and
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created the atmosphere of youthfulness. Water, Pepsi claimed, was no longer a
simple beverage, but was something highly fashionable. They complimented it
by giving their bottles an attractive look. This soon caught the eye of the
consumer. All these factors made Pepsi the biggest upcoming competitor of
Bisleri (whereas Kinley lagged behind the race, showing a doctor advising a
family to take Kinley for pure waternot a very attractive ad campaign).
Bisleri, to counter-attack the new Feel-Young fever had to even bolder steps.
They first changed their base line from Pure and Safe to Play Safe. They
tried a brand new ad campaign to catch the fancy of consumer. The new ad
showed a young romantic couple on a marooned island, when the girl
seductively attracts the guy and he follows her in trance. The moment he gets
hold of her, she whispers something in his ears. The next few shots show the
guy looking for something in frenzycan not find it.rushes towards the
chemists shop.buys something (keeping the audience in suspenseor
rather implicitly pointing for ). The girl opens it and.POOF.takes out
a bottle of Bisleri and quenches her thirst. Caption: Play Safe. This campaign
was to catch the attention of youth and a new Indian society which is supposed
to be not-so-prudish. Thus Bisleri has taken a very bold step. The T.V. ads
have been complimented by print ads also. 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.
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AQUAFINA ADVERTISEMENTS AND BISLERI
A drop-dead gorgeous body flexes its muscles on the screen. This starkly
arresting black and white image is then splashed with water. A voice-over
informs you that 70 per cent of your body is water. Why not give it the
purest. Aquafina Bottled water from Pepsi.
This kind of advertisement campaign used by the competitors is giving the
company a tough time. The competitor, Pepsi, is utilizing the brand image built
by it and is again targeting the Generation X maintaining the company image.
Its an unusual ad for this category. Till now, most marketers have focused on
educating the consumer on how bottled water is a safer option, with the lead of
course, taken by the popular national brand Bisleri.
But Pepsi chose to junk this approach and it could well afford to. Bisleri, after
all, had already done most of the hard work needed to build the bottled watercategory. What Pepsi needed was to establish its brand in this crowded,
fragmented market. Our task was made easier because was made easier because
Bisleri had concentrated on educating the consumer, instead of building its own
brand values," says Rohit Ohri, vice president and client services director,
Hindustan Thompson Associates Limited (HTA). We wanted the imagery to
posit~on Aquafina as a youthful, premium and fun brand," says Vibha Rishi,
executive director, Pepsi. The idea, she says, was not to objectify bodies so that
one could drool over them. "Instead, we are talking about your body and the
need for each one to take care of his or her body." The ad copy, which spoke of
the water content in our bodies, was actually trying to establish how important
water was to our well- being and how we need to continuously replenish it.
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While the thinking was clear that the imagery had to be built in and around
purity, HTA did toy with a couple of other ideas and situations. Initially, the
idea was to focus more strongly on the fun aspect and create a story line
complete with a smart idea and a twist at the end. "But we gave it up because
we felt that the story might take the mind away from the purity aspect that was a
must to highlight," says Ohri.
So HTA adopted a minimalist approach and created a film with little clutter and
no props, which tried to capture the emotion of "feeling good about yourself'.
While the film and the imagery are completely the work of HT A, the strategic
thinking comes from the Mother Company in the US.
Aquafina, in fact, is the largest-selling bottled water brand in the US with a 12
per cent market share, and India is the first country outside of the US where
Aquafina is being bottled. Even in the US, the ad talks of the percentage of
water in our bodies, but the handling is a little more serious. For example, the
film will show an emotional moment where someone starts crying, and then youwill hear the voice-over, 85 Per cent of xour eye are wa4ep. "There is no
internal law that forces us to follow the international positioning. But seeing the
quality of thinking that has gone into this, we decided to stay with this
positioning, though the statements here are quite different," explains Rishi.
Aquafina, like all offerings that come from the Pepsi stable, also imbibes the
core values of the mother brand. It addresses the Pepsi-user base, largely the
youth, and like Pepsi ,it is also being positioned as a hip brand. But Aquafina is
a lot that Pepsi is not. It is a little bit older, mature and affluent, and not as mass
based as Pepsi.
Pepsi's role in the communication is that it is the source of credibility for the
product and, of course, establishes the youthfulness of the brand. But Aquafina
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is a brand in its own right and with each piece of communication, its personality
will emerge," feels Ohri. But while Aquafina is being given a distinct identity, it
is also being targeted at the Pepsi consumer and is addressing their need for safe
and reliable drinking water. Will this not cannibalize Pepsi sales? "Water does
eat into the cola market," agrees Rishi, "but we can't build a business for Pepsi
based on people's lack of access to safe drinking water.
How can any business be built on deprivation?" Both will have to co-exist and
carve a market out for themselves, And~ while Pepsi targets the 18-25 year
olds, Aquafina also includes the 30-somethings together with the college crowd.
Like Pepsi, Aquafina too is looking to command a premium without being
unaffordable.
It is being positioned as a premium product, not via pricing, but in imagery and
packaging. Priced at Rs. 10 in Delhi for a 750ml. bottle, it is priced marginally
higher than the competition that gives you one liter for Rs. 10. The swirl shaped
PET bottle resembles the Pepsi family and is sturdier and more hip than mostothers in the category that take their design cues, it seems, from the one liter
refined oil bottles in the market. The decision to break the norm and come up
with a 750 ml pack size was more driven by the fact that water is fundamentally
consumed on the go and the 750 ml size is easy to carry around. "It is ideal for
an half-an-hour in the sun, one liter gets too bulky," says Rishi. Pepsi's future
plans at the moment don't include commg up with size variants. They have also
ruled out the possibility of catering to the bulk market, which actually
constitutes 30 per cent of the total bottled water market that stands at 70 million
liters annually, and is growing anywhere between 30 and 50 per cent.
Pepsi, obviously, is looking for a big slice of this burgeoning market, but as
Subroto Chattopadhyay, executive vice president, marketing, Pepsi, says, "We
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have a building blocks approach, first we have to build the brand, and then the
volumes.
Bisleri is tackling the situation by building the brand on the purity plank. Akin
to brand building in soft drinks, an aggressive print-and-TV campaign is being
backed by hoarding, point-of-sale material, and every interface with the
consumer is being used as an opportunity to reinforce the message. For instance,
all the vehicles used for supply have been painted in bright blue, bear the Bisleri
logo and sport catchy baselines like . "Play Safe".
Bisleri with added Minerals:
Bisleri Mineral Water contains minerals such as magnesium sulphate and
potassium bicarbonate which are essential minerals for healthy living. They not
only maintain the pH balance of the body but also help in keeping you fit and
energetic at all times.
Bisleri Mountain Water:
Bisleri Natural Mountain emanates from a natural spring, located in Uttaranchal
and Himachal nestled in the vast Shivalik Mountain ranges. Lauded as today's
'fountain of youth', Bisleri Natural Mountain Water resonates with the energy
and vibrancy capable of taking you back to nature. Bisleri Natural Water is
bottled in its two plants in Uttaranchal and Himachal Pradesh and is available in
six different pack sizes of 250ml, 500ml, 1 litre, 1.5 litre, 2 litre and 5 litres.
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PACKAGING AND DISTRIBUTION:
PACKAGING
Variety is spices of life. Today for any business organization to be successful it
has to provide its customer with the differentiated product that is a value buy for
them. In order to cater to yhe changing needs of the customer the business has
to continuously come out with the variants of the products so that it can target
the maximum segments.
Today Aqua Minerals offers a variety of packaging options: 1 lit, 2 lit, 5 lit, 20
lit. The 5 liters bottles account for 35 % of sales showing a growing health
concern among the Indian society. 1 liter bottles account for 30% of the share .
The 2 liters bottle introduced to slowly and steadily replace the conventional 1
liter bottle. The 5 liters packs, launched in Dec 1999 in Goa, now available
everywhere.
DISTRIBUTION
Its 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 that
means serious investment In company owned trucks and carts, this would make
it the largest fleet owner in the country. Bisleri has around 80,000 retail outlets
in the country with about 12,000 each in the Delhi and Mumbai. It is intended to
be increased this no. to 10,00,000 in order to expand brands reach.
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The company will invest approximately Rs.200 cr. to procure 2000 trucks and
hire same no. of sales people . the company plans to have its own distribution
network in places where it has its own plant
DISTRIBUTION NETWORK:
The small-scale players built their sales by piggybacking on the generic
category built up by Bisleri. Its a battle that Bisleri can win by sheer
distribution muscle. One of the reasons why Bisleri is running strong in this
industry is its strong distribution network built over the years since its inception.
Further, Bisleri plans to increase its distribution network over the southern and
eastern region, where it is behind popular brands like sTeam in Tamil Nadu and
in Andhra Pradesh.
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MARKETING MIX:
The set of controllable tactical tools- product, price, promotion, and place (4
Ps), that the firm blends to produce the response it wants, in the target markets.
The 4Ps
PRODUCT
The main product of the company is the mineral water by the name of Bisleri
Mineral water. Other than mineral water the company has also the soda water
under its brand name called the Bisleri Soda Water. The concept of bottled
mineral water was introduced in India, first by Bisleri, and that is the reason, it
has become a generic name for the mineral water. Bisleri has become a perfect
synonym of the mineral water for the Indian consumers.
The main challenge facing the company or any other player in this mineral
water industry is that there is no scope of invention and innovation in the
product, which can be added as the additional benefits of the product. It is just
water after all. This is what the Indian customers think of the bottled water. If
we are talking about a product like television we can think that the innovations
could provide extra benefits derived from the product. For example other than
its core usage the product can provide for Internet facilities using conversion.
PLACE
Place stands for the company activities that make the product available to the
target customers. To make the product available to the target consumers a good
distribution network has to be there to support the good quality of the product.
Here in the case of the mineral water industry the distribution network is the
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important factor in being competitive and the catch lies in making water
available to maximum number of places in the country.
PRICES FOR FOLLOWING PACKAGING VARIANTS
(AN ECONOMIC FACTOR AFFECTING THE BUYERS BEHAVIOR)
Price is the sum of values that consumer exchange for the benefits of having or
using the product or service. Price is the only element in the marketing mix that
produces revenue. All other elements represent costs.
In India, where the majority of the population comprise of the middle-income
group and lower income groups it is not hard to understand that pricing is one of
the most important factor in the buying decisions.
Bisleri has met the expectations of the consumers in terms of pricing theproduct and also making the product available in variations of litres, making
Bisleri both convenient and affordable. The company is following a very
aggressive pricing. Its product is available at a very reasonable price.
1 Ltrs Rs. 20
2 Ltrs Rs. 30/-
5 Ltrs Rs. 50/-
20Ltrs Rs. 90/-
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PROMOTION
Modern marketing calls for more than just developing a good product, pricing it
attractively, and making it available to the target customers, companies must
also communicate with their customers, and what they communicate should not
be left to chance.
A Companys total marketing communications program- called its Promotion
Mix consists of specific blend of advertising, personal selling, sales promotion,
and public relations tools that the company uses to pursue its advertising and
marketing objectives.
COMPETITION
IN
MARKET
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 Bailey 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
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Kingfisher
Sahara india
With coca cola kinley , pepsi aquafina being the main competitors and second in
market share in the organized market, Bisleri faces tremendous competition
from the unorganized sector also.
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 750 ml pet bottle, the pricing, at Rs.10,
is competitive. And it is safe. In addition to the tamper proof seal, there is a
reliable method of checking whether the bottle has been refilled. The date of
manufacturing has been written on the cap as well as on the bottle. Thus a
person who is refilling it would have to find a matching cap and bottle, the
probability of which is very low.
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COCA COLA- KINLEY
Coca-Cola joined the race by announcing the imminent launch of its own brand
of water and, in the process, putting to rest rumors of its so-called takeover of
Bisleri. Kinley is targeting institutions.
Parle Agros- Bailley
Bailley 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 Bailley 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.
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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 36% in the
Rs 4000 crores mineral water markets 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.
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 is
run by franchisees. Bisleri has 5 plants in the North, 5 in the West- two of which
were setup in the last year at Ahmedabad and Surat, 4 in the South and 2 in the
East. The company has bottling units located in Chennai, Bangalore, Goa,
Calcutta, Mumbai, Delhi, Jaipur, Uttar Pradesh, Punjab, Indore and Nepal. The
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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 crores 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 liters to 500 million liters. Parle Bisleri Limited (PBL) is
planning to invest Rs 200 crores 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.
FACTS
Bottled drinking water samples of some top brandsBisleri (Parle Bisleri Pvt.
Ltd.), Bailley (Parle Agro Pvt. Ltd.), Aquafina (Pepsico India Holding Pvt.
Ltd.), Kinley (Hindustan Coca Cola Beverage Pvt.
Ltd.) and of other less popular brands like Best, Royal Aqua, Seagull etc., which
were being sold and manufactured in Mumbai and nearby areas like Pune and
Daman, were purchased randomly. All the samples were purchased from retail
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outlets in the market and from railway station and were checked for proper seal,
date of manufacture and batch number.
Even the top brands, which claim to use treatment methods like purification
filtration, activated carbon filtration, demineralization and reverse osmosis were
found to contain residues of pesticides. It might be due to the reason that the
manufacturers may be by-passing the raw water after partial treatment and
remixing it with the fully treated stream so as to cut down the cost of treatment.
On the basis of the results different brands can be rated in terms of total organ
chlorine and organ phosphorus pesticides from least to most contaminated as-
Aquafina Macblue
Bailley Kinley
Seagull Sheetal
Bisleri Brilliant
Bally Apurva
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RESEARCH METHODOLOGY
Definition of Research:
The word research is derived from the Latin word meaning to know. It is a
systematic and a replicable process which identifies and defines problems,
within specified boundaries. It employs well designed method to collect the data
and analyses the results. It disseminates the findings to contribute to generalize
able knowledge.
The five characteristics of research are:
I. Systematic problem solving which identifies variables and testsrelationships between them
II. Logical, so procedures can be duplicated or understood by othersIII. Empirical, so decisions are based on data collectedIV. Reductive, so it investigates a small sample which can be generalized to a
larger population
V. Replicable, so others may test the findings by repeating it
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Research Methodology:-
The research conducted by Exploratory Research this type of research is
Qualitative and Quantitative.
Qualitative refers to the characters of the data or process by which the data are
gathered.
The research process consists of a series of closely related activities. Why a
research study has been undertaken. Why a research study has been undertaken,
how the research problem has been defined, in what way and why the
hypothesis has been formulated, what data has been collected and what
particular method has been adopted and a host of similar other question are
usually answered when we talk of research methodology concerning a research
problem or study.
Sampling:-
The data was to be collected only from the Consumers and Retailers. A
questionnaire was prepared and interviewing with Retailers and Consumers.
A decision has to be taken concerning a sample unit before selecting the number
of samples. It may be geographical as well as individual.
Size of Sample:-
This refers the number of items (Outlets) to be selected from the finite universe
to constitute a sample size. The survey was conducted of 50 outlets in Delhi
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RESEARCH DESIGN
MEANING OF RESEARCH DESIGN
The formidable problem that follows the task of defining the research problem
is the preparation of the design of the research project, popularly known as the
research design. Decisions regarding what, where, when, how much by what
means concerning an inquiry or a research study constitute a research design.A research design is the arrangement of conditions for collection and analysis
of data in manner that aims to combine relevance to the research purpose with
economy in procedure. In fact, the research design is the conceptual structure
within which research is conducted; it constitutes the blueprint for the
collection, measurement and analysis of data. As such the design includes on
outline of what the researcher will do from writing the hypothesis and its
operational implications to the final analysis of data. More explicitly, the design
decisions happen to be in respect of :
at will be the sample design ?
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TOOLS AND INSTRUMENTS USED FOR THE STUDY
It is necessary for a researcher to define conceptual structure which research
would be conducted. The function of research design is to provide for the
collection of relevant evidence with minimal expenditure of efforts, time and
money.
The means of obtaining the information is through :
a) Primary data like questionnaire and mock interview.
b) Secondary data like magzines, news paper and net etc.
PROCEDURE OF DATA COLLECTION
Data compilation is an intermediate stage between data collection and analysis.
Data compilation involves classification and summarization in order to makedata amenable to analysis.
In dealing with any problem, once the sample has been selected the data must
be collected from the sample population. There are several ways of collecting
appropriate data which differ considerably in context of money cost, time and
other resources. They can be broadly classified in to two categories.
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Two sources to collect data are namely:
1. Primary Source
2. Secondary Source
PRIMARY SOURCE OF COLLECTING DATA
The Primary Data that I collected were the first hand information which I
received through personal interviews with the consumers and through
questionnaires. This data gave the most vital information for making my
analysis of the prevailing purchasing behavior of the consumers.
QUESTIONNAIRE TECHNIQUE
The method of collecting data mailing and personally distributing questionnaire
to the respondents is the most extensively employed technique in various
economical surveys. This method is quit popular, particularly in case of big
inquiries. A typical questionnaire consists of a number of questions arranged
and printed in definite order on a form or a set of forms. The questionnaire is
given to the respondents who are expected to read and understand the questions
and write the response in the given space meant for the purpose in the
questionnaire.
Mock interviews
Mock interviews are basically just to save the time of both the respondents and
the researcher and along with this, it is assumed as a best means for collecting
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data where respondents are not so literate to answer to question tailored in the
questionnaire.
SECONDARY SOURCE OF DATA COLLECTION
Secondary Data involved in my research were the information that I collected
through the various broachers and pamphlets of the company which were
provided to me during the analysis.
RESEARCH DESIGN :
The research design which has been used in the project report is descriptive in
nature.
SAMPLE DESIGN:
The sample design which has been use in this project report is simple random
sampling.
SAMPLING UNIT :
A decision has to be taken concerning a sample unit before selecting the number
of samples. It may be geographical as well as individual. Here Delhi region has
been taken as a geographical unit and retailers as an individual unit.
SIZE OF SAMPLE:
This refers the number of items (Outlets) to be selected from the finite universe
to constitute a sample size. The survey was conducted of 50 outlets.
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RESULT
AND
DISCUSSION
FINDINGS
The following findings are obtained and are based on primary data:-
1. Which brand of bottle water do you sale more?
2. The brand customer prefer more:
3. Why do you prefer to sell this particular Brand?
4. On what basis customer prefer to purchase?
5. Do you get any customer complaints for Bisleri?
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6. Are your suggestions considered by Bisleri?
7. On what basis you motivate a customer to purchase a particular Brand?
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SWOT ANALYSIS
STRENGTHS
Old and famous brand name
Better packaging
Effective distribution network
Famous as pure & safe among consumer
Good product mix
Frequent quality checking
Better management
Give regular follow up to distributor
Indian image
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Better sales force
Sponsoring various culturalprogram
Good intcentives to dealer
WEAKNESS
one liter packs which accounted for 50% of the companys turnover has come
down to 30 %. The two-liter packs, which have practically disappeared from the
shelves, have come down from 20 % to 5 %. 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.15 each. Aqua
Minerals attributes the Price slashing to retailer margins being on the higher
side earlier.
The competitive Rs.15 price tag has been working well for the brand.
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.
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OPPORTUNITIES
So far, bisleri 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. We
shunned this route so far because in most areas where we had no presence, it
was imperative that we did it ourselves. Now for further expansion we can
afford to use the franchisee route.
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 he ensure purity?
Strategy to counter threats and others?
We subject the bottles to chlorine washes, hot water washes and ozone washes
before we refill the bottles.
The company is betting on the home segment. 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. The company
has so far appointed 180 such dealers. This is a high turnover, low-margin
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retailer who does not keep a store but serves a similar purpose with other items
such as rice or wheat.
CONCLUSION
Bisleri have developed 8 unique pack sizes to suit the need of every individual.
It is also present in 250ml cups, 250ml bottles, 500ml, 1L, 1.5L, 2L which are
the non-returnable packs & 5L, 20L which are the returnable packs.
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 are 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.
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RECOMMENDATIONS
ll provide the required ground
to establish the authenticity to the product.
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.
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.
water would cost less and benefit more, because people using purifier system
cost too much.
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LIMITATIONS
A small segment of the market has been covered for the research purpose, so
the conclusion cannot be generalized.
The data collected cannot be free from errors, since some of the respondents
failed to give correct information.
Study accuracy totally based upon the respondents response.
Stipulated short span of time for doing research.
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BIBLIOGRAPHY
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Philip Kotler
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Bisleri 2007
India Today Annual Addition 2008
Business Today,
Business World August 2008
www.bisleri.com
www.discovery.com
www.google.com
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QUESTIONNAIRE
1. Which brand of water bottle you sale?
a. Kingfisher.
b. Kinley.
c. Aquafina.
d. Bisleri.
e. Others.
2. The brand customer prefer more:
a. Kingfisher.
b. Kinley.
c. Aquafina.
d. Bisleri.
e. Others.
3. Why do you prefer to sell this particular brand?
a. Availability.
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b. Cust. Demand.
c. Quality.
d. Profit Margin.
4. On what basis customer prefer to purchase mineral water?
a. Brand.
b. Quality.
c. Price.
d. Availabilty.
5. Do you get any customer complaints for Bisleri?
a. yes
b. no.
6. Are your suggestions considered by the company?
a. Yes
b. No.
7. On what basis you motivate a customer to purchase a particular brand?
a. Quality.
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b. Price.
c. Brand
d. Availabitliy.
8. When a customer talk of mineral water, which brand comes into his mind?
a. Kingfisher.
b. Kinley.
c. Aquafina.
d. Bisleri.
e. Others.