strategic managment of bisleri
TRANSCRIPT
INDEX
SR NO. TOPICS PAGE NO.
1 Introduction 2
2 Literature Review 4
3 Objective of the study & Research methodology 7
4 Company Profile 10
5 Competitor Analysis 12
6 Strategic Decisions 15
7 Extended value chain analysis 16
8 Current business strategy 20
9 Strategic development in Bisleri 23
10 Functional strategies 25
11 Evaluation of the strategy adopted 27
12 Marketing Mix of Bisleri 29
13 SWOT analysis of Bisleri 36
14 Expansion & Future Plans of Bisleri 41
15 Questionnaire 43
16 Recommendation & Conclusion 53
17 Bibliography 55
1
INTRODUCTION
The global bottled water industry consists of selling of flavored as well as unflavored water.
With regards to Indian context there is sale of only unflavored water. The bottled water segment
is rapidly growing which has a total market size of more than $ 1.5 billion. The market is mainly
controlled by the organized sector with over 500 brands existing in the market. A growth in the
sector has been viewed mainly because of the health conscious people, improper water supply
and the unpredictable municipal water supply. With a high growth rate and low entry barriers has
attracted many players in this segment. The market operates in lower margins, the price increases
when the cost of packaging and transportation increases the major players in the market are
trying to establish themselves in bulk water business through brand equity, whereas the
unorganized players are resisting them by using differentiation strategy. Parle acquired Bisleri
from an Italian entrepreneur Mr. Felice Bisleri in 1967. The company established its first plant in
Mumbai in the same year. The company was the first player in the bottled water industry and so
it has gained first mover advantage. The company has undergone changes over the years. There
was a strategic shift in the direction of the company over the years. We have selected Parle
Bisleri for the analysis purpose mainly because, it is important to study how a company with a
single product brand has maintained its market position? We have gained insights about the
strategic decisions taken by the company over the years, which have enabled it to gain
sustainable competitive advantage
Water is the most important liquid in the world. Without water, there would be no life, at least
not the way we know it. In today's living condition, the need for Pure Drinking Water is
becoming the issue for the common Man. Eighty percent of the human metabolism consists of
water. This is the reason why 90% of human diseases are water borne.
When a consumer became aware of the problems caused by water pollution the market saw an
advent of ceramic water filters, which filters the dust and suspended particles but dissolved
impurities and microbiological impurities are not cleared out. The mineral balance is also not
maintained.
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1980's witnessed more changes by a tap attachment wherein Iodine resin is used to filter the
water. It deactivates microbiological impurities to an extent but has side effects due to iodine and
it does not take care of dissolved impurities mineral balance.
Late 1980's witnessed Ultra Violent based purifier, which filters dust and deactivates bacteria to
a great extent. It maintains the odor and color of water but does not clear out the dissolved
impurities and mineral particles. Thus came advent of mineral water. Historically, the need for
purified water within Indian homes had been kept down to a minimum. Essentially, there were
three types of water that was used for different purposes. The first type was used for rinsing. The
second type, which was used for cooking, was cleaner and kept covered. The third type was the
cleanest – drinking water – and was very often boiled before use.
Since an average family needed a small quantity, not more than five or six liters a day, boiled
and filtered water had been a convenient solution for some time .The fallouts were obvious. It
was very difficult to convince the people that purification system was worth the price. There was
no visible way to demonstrate the benefit. The otherwise somnolent market began to change
once companies like Eureka Forbes targeted the office segment, while the mineral water players
went after travelers.
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LITERATURE REVIEW
FDA defines bottle water as "water that is intended for human consumption and that is sales in
bottle or other containers, with no added ingredients except that may contain safe and suitable
antimicrobial agents"
In the year 1980 we were able to see more changes by introduction of a tap attachment where
Iodine resin was used to filter the water. Iodine deactivates the microbiological impurities to a
great extent but with this it also has side effects due to iodine and does not take care of dissolved
impurities mineral balance.
In the same year Late 1980's it was visible that Ultra Violet based purifier, which filters dust
and deactivates bacteria to a much greater extent as compared to Iodine. U.V. based purifiers
maintain the odor and color of water but even they do not clear out the dissolved impurities and
mineral particles. Thus came the concept of mineral water.
Reporting requirements are significantly less stringent for bottled water facilities and allow the
industry much latitude in assessing risks as well as make assessment of compliance difficult. A
regulation body was set in place to periodically and systematically collect, compile, and assess
complied statistical Information and was provided by the international Bottled water association
(IBWA) on the bottled water industry. The IBWA has set the current annual market for bottled
water at about two billion gallons. Wells and natural springs are the main sources for 75 percent
of bottled water and for rest the source is the municipal water supplies. Wells and springs are
considered to be the sources from ground water.
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.
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2000: BIS cancels Bisleri's licence of a water bottling in Delhi since some of the bottles did
notcarry 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
market share 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
2004: water king, Mr Ramesh Chauhan, set to take brand Bisleri across the globe.
2005: Bisleri has announced its plans to foray into the domestic fruit juice market and ear
marked an investment of Rs 100 crore for up gradation of its Chittor plant and setting up of a
new facility.
2006: Bisleri Natural Mountain water will be available in aqua green packaging against the blue
packaging of old and will be available in six sizes.
2009: Parle Bisleri changed the look introduced a new variant (natural mountain water)and
announced it’s plan to launch the brand in US- a huge market for designer waters.
2012: Bisleri International has decided to register the mango drink brand — Maaza — in eastern
European countries, and launch the brand through a franchisee operation.
2014: Company plans to concentrate on markets such as Jammu and Kashmir, Kerela, Southern
part of Tamil Nadu and Punjab,which are its Weaker links to steer a 40% annual growth in sales.
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 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 annum. The fact that there were
very few players in the market meant that their business grew by leaps and bounds.
The market today has grown to Rs11bn. The organized 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, Parle’s Bisleri is the market leader with a share of more than
60%. Parle Agro’s Bailley comes a close second with market share of 15%. Other major players
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in the market are Yes of Kotharis, Ganga of T-Series, Himalayan, Hello, Nestlé’s Pure Life,
Pepsi’s Aquafina, Coca-Cola’s -Kinley Prime, and Florida etc.
Sensing the opportunity that this segment holds, MNCs began to draw up plans to enter the
market. Today the market is proving to be yet another battlefield for an ongoing battle between
the Desi’s and MNC’s. Last year the industry had around 170 brands. This figure is over 300
presently. The major foreign players are Coca-Cola promoted Kinley, Pepsi’s Aquafina,
Britannia’s Evian, Nestlé’s Perrier, Herbert sons and Danone International.
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OBJECTIVE OF THE STUDY & RESEARCH METHODOLOGY
To analyze the marketing strategies of the company with
To determine the market share of Bisleri Brand of Bottle Water.
To find out the preference level of respondents regarding Bisleri Brand of Bottle.
To assess the brand awareness of the Bisleri in the Mineral Water Segment.
To Study the brand positioning of Bisleri.
Importance:
This report is useful for the researchers who are willing to do research on the Mineral
water Industry and its present competitors in the market.
This report shows the problems associated with the Mineral water industry in the market
as it helps in removing these problems.
This report can be useful as a secondary data for Mineral water industry.
This report helps in knowing the current and future scenario of Mineral water industry.
This report helps in knowing market position of different Mineral water industry.
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Research methodology:
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.”
Data compilation is an intermediate stage between data collection and analysis. Data compilation
involves classification and summarization in order to make data 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.
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 through questionnaires. This data gave the most vital
information for making my analysis of the prevailing behavior of the consumers.
SECONDARY SOURCE OF DATA COLLECTION
Secondary Data involved in my research were the information that I collected through the
various broachers, internet, and websites of the company.
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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.
SIZE OF SAMPLE:
The size of sample is 20 respondents from whom I collected and analyzed the data
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COMPANY PROFILE
The origins of Bisleri lie in Italy , and the brand owes its name to founder Felice
Bisleri, an Italian entrepreneur. In 1967, Bisleri set up a plant in Mumbai for bottling
and marketing mineral water, which was first of its kind in India. However, it didn’t
work well. Among other reasons, the fact that the Indian consumer was unprepared to
accept bottled mineral water was responsible for its failure. Consumer mindsets were
more geared towards boiling water at home.
In 1969, Parle bought over the Bisleri brand. In those days Bisleri water was available
in glass bottles. Parle's taking charge of Bisleri did not make a dramatic difference to
the brand's fortunes immediately. While it did gain in terms of visibility and reach
(piggybacking on Parle's existing distribution network), efforts to expand the bottled
water market were not exactly painstaking. Parle at that particular time was interested
in making soda water and not mineral water. There were just minor initiatives on part of
the company for making mineral water, as it was not considered to be a very profitable
business at that time 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.
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 Parle’s 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.
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The real shift in company’s policy towards mineral water industry came in 1998,although
the conscious efforts had already been started in 1994. This change was primarily because
of the fact that the people, at this time, had started becoming more health conscious.
The brand of Bisleri itself is the core competency for Bisleri. The seal of Bisleri bottles help the
consumers clear their doubts on the purity of water. The company maintains the physical and
financial resources very efficiently and effectively. These resources when combined helps in
maintain and retaining customer’s expectations to achieve the targets of the company. The
intellectual capital of the brand plays a major role as the bottle seal of Bisleri is patented. Bisleri
has a very strong distribution network, which makes it reach out to almost all the region in the
country, company has about 350000 outlets across the country. The company worked on its dual-
distribution strategy to gain competitive advantage.
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Competitor Analysis
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 Agro’s Bailey has been growing steadily.
Small local players too are breathing down Bisleri’s neck riding on better trade margins
and intensive distribution (in their respective areas of operation).
The competition facing Bisleri can be categorized into a few brand names like
Parle Bailey
Pepsi Aquafina
Coca Cola Kinley
With Parle’s Bailey being the main competitor and second in market share in the
organized market, Bisleri faces tremendous competition from the unorganized sector.
Lets take a look at them:
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
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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.
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 Agro’s- Bailley
Bailley the brand that is owned by Ramesh Chauhan’s 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
it’s 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 it’s 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.
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 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 annum. The fact that there were very few players in the market meant that their
business grew by leaps and bounds. Bisleri The common man's 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 plans to enter became a household name and is now generic for bottled water.
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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 target edat the institutional
and the home segment
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Strategic directions
We have used an off matrix to find out the strategic options which are available with
ParleBisleri, in terms of its product and market. An off Matrix From the analysis we have found
that the company can use market penetration and product development strategy. The company
has used the penetration strategy by making available products in different sizes.
The company uses innovative concepts like 1.2 liter bottle which helps to offer consumers more
content at lower price. The company is also penetrating the market by shifting its focus from
retail market to the bulk water segment. The company uses its own distribution network to cater
the bulk water segment.
The company thus penetrates the market bypassing the competition present in the retail segment.
We can also observe that the company is using product development strategy. The company is
planning to introduce new products like fruit juices under the brand name µAlfa¶. We propose
that the company should focus more on market development and introduce new products thus
increasing its product portfolio (Bureau, 2005). This will not only decrease the risk of operating
with single product but also enables to make use of its competences to develop new products.
The bottled water industry is expected to grow at 18% CAGR in the year 2017. The sale of
bottled water industry is expected to reach at 6466.8 million liters translating to market worth of
more than $ 1.5 billion
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Extended value chain analysis
When we see the value chain analysis of Bisleri we can easily analysis that the Bisleri is good
enough in logistic system to operate the business smoothly. The value that the customer
perceived in Bisleri is its operation its cap or packaging. The Bisleri add a lot of value at its each
operation. Bisleri also have the first mover advantage over its competitor. Its brand image or
brand name is helps to attract a pool of customer. Let us see how Bisleri add the value at each
steps of value chain and how Bisleri gain the competitive advantages through various operation
and activities. Porter Value chain
We can divide the Bisleri¶s activities in two parts on the basis of value chain model.
• Primary activities.
• Supportive activities
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Primary activities:
Bisleri is a leading organization in packaged bottled water. Bisleri¶s primary activities are
Inbound logistics:
The raw material for Bisleri drinking water is water, plastic grain for bottle, packaging
equipment, minerals, bottle cap and labels. Bisleri has good inventory system and transportation
system. Its inbound logistic is good enough to supply the Bisleri water regular. This helps to
available the product at everywhere. The product availability adds the value to the customer.
BISLERI manages all the semi finished, finished goods and raw material in stores department. In
store department they all keep the stock of rejected bottles or cap to reuse it. Every day 5o tones
of stock dispatch from the store house. So this increases the availability of product to consumer.
The models are made from polymers like HDPE, LLDPE, PET grains.
Operation:
Bisleri manages its seven department of different operation where hygiene and safety concern is
primary focused. Different departments are:
• Filter department.
• Caps department
• Water treatment plant
• Water blowing department
• Water testing laboratory
Stores department. Filter department is responsible for the filling and packaging of bottles under
the rigid control of the hygiene and safety. In the caps department the PET material is used to
make the cap and
Plastic bottles by using 6 Ekou injection modeling machine of 180 and 330 as per the
requirement of market. Caps are made from a mixture of HDPE and LLDPE using 4 Cincinnati
Milacron and 2 Windsor injection-molding machines. Water treatment plant where the water is
make pure and safe. Water laboratory taste checks the quality before and after packaging. The
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scraps or used bottle again send to HORAI department for the recycle of bottles. Stores
department manages the all raw material and scraps. Bisleri add value at each steps of its
operation. Customer perceived Bisleri as pure and safe water with cap security.
Outbound logistics:
The outbound logistic of Bisleri is very strong. To increase the capacity and to cover the
maximum market Bisleri increased its transportation by increasing the number of trucks
from1000 to 2000 trucks. Bisleri uses the route mapping method, in this method the route of
transportation and operation is designed in such a way that it takes minimum time to transport
the stuffs. Bisleri makes route sheet along with the scheduled to make sure the things happen in
an effective manner. Current Bisleri manages 16 plants at 14 locations in different part of India
to increase the availability of product. Bisleri plan to open the 25 new plants till 2010 to increase
the growth of 40%. So it will decrease the supply time and make the product easily available.
Bisleri decide to increase its distribution network by 30%.
Marketing and sales:
Bisleri uses competitor price strategy to get the market. As Bisleri has the first mover advantage
and the market is full of competition so they decide to increase the advertising expenses for ad
campaign. Bisleri itself is known as mineral and pure water. The branding and segmentation of
Bisleri is very strong as it cover household to big hotels. To target the customer Bisleri launched
different product line with different prices and different size of bottles. The Bisleri uses three
level of distribution channel as it consists of wholesalers, dealers and retail shop.
Services:
Bisleri has a vast distribution channel so the service and delivery quality of Bisleri distinct it
from others.
Supporting activities:
Firm infrastructure:
Bisleri manage its network by establishing it unit near by the resources where the availability of
water is enough to run the business. Bisleri has the vast and strong distribution channel.
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Technology and Development:
As the competition in the market is increasing Bisleri¶s main focus in on to develop new brands
and new technology to increase the customer satisfaction. Bisleri¶s unique bottling packaging
and temper seal cap technique distinct itself from others. There unique and safe production
process also helps to attract the large pool of customer. Bisleri has a good inventory management
that helps Bisleri in continuous supply of water.
VRHN analysis:
The company has a motive always to beat its competitors and gain competitive advantage.
VRHN analysis will help in assessing all that a company gives which differentiates it from its
competitors.
Valuable:
The purification process of Bisleri is a valuable resource for it. Organization and micron
filtration is included in its process to purify the water. The transport facility of Bisleri is regarded
as a valuable resource. It has large fleet of trucks to supply the bottles and make the product
available. More than 75 vans are there in Mumbai to carry the bottles from the manufacturing
plant to its distributor.
Rare:
Bisleri is launching water in fruity flavor which is rare. The peach and green apple flavor water
will be available to its customers. This rare combination makes it unique. Natural mountain
water which is also launched by Bisleri is rare. The green packaging of Bisleri is also rare. The
distribution network of Bisleri is also rare as its bottles are available in all its stores.
Hard to imitate:
The bottle of Bisleri have a seal which has a patent, which is hard to imitate.
Non substitutable:
There are substitutes for water but water is the sole agent for thirst-quenching. So we can say
that for the company the product itself is non substitutable.
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CURRENT BUSINESS STRATEGY
The next part in our analysis is to find out the present business strategy adopted by Bisleri and
the way in which it has implemented. We will then evaluate the strategy adopted, considering the
external environment and its core competences. The Porters generic strategy states that the
organization can achieve competitive advantage through three ways,
Year 1969 to 2000:
In 1969, Parle acquired Bisleri with an aim to increase its product portfolio. Parle introduced
Bisleri soda in carbonated and non carbonated types to get a hold in soda market. The product
was initially packed in glass bottles. Initially the perceived value of the product was low as well
as the price was low. The product was basic and thus we can say that company used No-frills
strategy. As the company saw potential in bottled water segment, the company used
differentiation in the form of packaging. In 1980, the company changed the packaging from glass
bottles to PVC (Polyvinyl chloride) to PET (Polyethylene terephthalate).There was a shift in
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paradigm for Bisleri when it sold its soft drinks brand to Coca Cola in 1993.The company
removed soda water from market and now focused its attention to packaged drinking water. The
initial consumers of packaged water were foreigners and NRIs (Non-resident Indians). There
were no competitors in the market, so Bisleri adopted low price strategy. The aim of using this
strategy was to penetrate the market and establish a significant market share. The price of the
product was as low as Rs 5 for 500ml bottle. The company achieved low price by reducing its
operational costs. The company had initially 15 plants and the product was sold through over
50000 outlets. So we can see that in period 1969 to 2000 the company used no frills and low cost
strategy. The company shifted the position from point 1 to point 2. Now let us analyze the
strategies adopted by Parle Bisleri from 2001 to 2014 (Anonymous, 2007).
Year 2001 to 2014:
In August 2000, Coca Cola saw potential in bottled water industry and entered this market by
introducing its brand Kinley. The market saw entry of big player’s like Pepsi through its brand
Aquafina and Nestle through its brand Pure Life. The other players in the market include the
Tata¶s through its brand Himalaya, Manikchand through brand Oxyrich and Parle Agro through
its brand Bailey. The organized bottled water segment which was initially dominated by Parle
Bisleri saw entry of many players.
Currently there are about 8-10 players in the organized sector. In the response to the growing
competition Bisleri started using hybrid strategy. According to this strategy differentiation was
based on quality; however with number of competitors the differentiation based on quality
became difficult. Bisleri has now used differentiation in the form of packaging, price and
distribution. The company differentiates through distribution by targeting new channels like
chemists and stationery shops which were not used earlier. The company has used its own fleet
of about 2000 trucks to manage the distribution network (Iyer, 2014). The company
differentiated in the terms of packaging by making available the products in different shapes and
size.
The company has used tamper proof seal to assure good quality. The company has patented the
tamper proof seal technology and has created barriers for its competitors. The packaged water
industry has bifurcated in two segments, retail and bulk water segment. The company has in
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response to entry of new players have used refocusing strategy. The present strategy of Bisleri
involves targeting the bulk water segment, pricing competitively, strengthen distribution,
innovate on packaging and product line Extension. The Company by passes the competition and
reduces operational cost by targeting the bulk bottled water segment. The company has shown
innovation in packaging by changing the shape and color of pack from blue to aqua green. The
company operates in hypercompetitive environment, so it is necessary that company changes its
strategies according to the dynamic environment. It uses HYBRID strategy.
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STRATEGIC DEVELOPMENT IN BISLERI
Parle Bisleri Pvt Ltd has owned one of the top-three packaged brands in the country, has
formulated plans for a diversification into the fruit juice business. The company has already
established a fruit juice concentrate plant in Chittor, Andhra Pradesh. Plans are going on to
identify a place for the company’s offered second plant that is likely to be established in the
eastern or northern part of India. Company has decided to make an investment of Rs 100 crores
the fruit juice projects in the next three years. This amount will be generated through internal
accumulation and institutional loans.
The company is going to begin with mango and guava juice to begin with will be marketed
under the Alfa umbrella brand. Company has realized that fruit juices have come out as a fancy
drink after water. It is a logical business series for the bottled water producing company to adapt
to the fruit juice segment. Bisleri has to establish its market in the region through a restore
marketing strategy and a focus on enhanced and innovative packaging. The idea is to be raised
by hundred percent in the next one year and 250 percent in the next three years. The company is
planning to increase its presence in the eastern part of India. It has assigned Orient Beverages
Ltd as its only franchisee in West Bengal, Jharkhand and Orissa. Company has firmed up
expansion plans for Sikkim. The company has also prepared to explore for business opportunities
in adjacent countries like Nepal and Bhutan in the future. Bisleri is facing severe challenges from
both family and outside competitors. There is a big threat to the leadership of Bisleri in the
mineral-water market. The company is in the process of developing a market strategy for its next
innovation that is enhanced water. The company is planning to launch mineral and protein-
added, packaged water in various essences. There are three major brands in the bottled water
market Aquafina, Bisleri and Kinley.
Penetration strategy-
Bisleri has announced to establish twenty-five bottling plants across country to fulfill the
customer requirements. The company has formulated strategies for market penetration,
expansion and growth for this fiscal. Bisleri had achieved the growth of 36 percent growth and
high customer loyalty in the year 2008-2009. Now Bisleri is aiming to achieve 40 percent growth
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by this year and sketched a powerful penetration strategy that consist of a dual distribution plan-
entering newer markets including towns and rural areas which includes smaller and interiors
markets and curiously looking forward to enter newer territories and augmenting shelf existence
In the metros and present markets. The company is also establishing dedicated channels for its 20
Liters jars to certify that every corporate and household receives service at their door step.
Market strategy development and implementation:
Market strategy includes the analysis, strategy development and implementation. First, company
has developed a vision about the market of interest to the company and then selected market
target strategies, establishing objectives and developing and implementing the strategies. It
includes managing and marketing program positioning strategies formulated to fulfill the value
needs of the customers in every market target. Strategic marketing is a process of market-driven
strategy development, taking into consideration a consistent varying business environment and
the requirement to bring excellent customer value.
Bisleri has developed strategic marketing to concentrate on organizational performance instead
of focusing on increasing sales. The marketing strategy of Bisleri tries to bring excellent
customer value by integrating the customer-influencing strategies of the business into an
organized set of market- driven activities. The company has connected its strategic marketing
with the organizational environment and views marketing as a liability of the whole business
instead of a specialized purpose. There is marketing’s boundary orientation between the
organization and its customers, competition and channel members. The marketing processes are
centralized to business strategy planning process. Strategic marketing supplies the knowledge for
environmental screening, for choosing what customer group to serve, for directing product
specifications and for selecting competitors for position against. Bisleri has successfully
integrated cross-functional strategies which are decisive for offering excellent customer value.
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FUNCTIONAL STRATIGIES
Organizational structure
In this part we are going to discuss about the organization structure and marketing strategies of
Parle Bisleri. We have taken Mintzberg¶s organizational configuration as reference. Mintzberg
suggests that there can be six organizational structures depending upon the environment. We can
observe that the company operates in a dynamic environment and has simple processes. So the
company is more suited to have a CEO controlled structure.
The company follows the Decontrolled structure. The Chairman and founder of the company
Mr. Ramesh Chauhan controls and directs all the organizational processes. The company follows
a centralized decision making and all strategic decisions are taken by the Chairman. The
company has grown over the year under the leadership and vision of Mr. Ramesh Chauhan. The
present organization structure is suitable as the company has single product and the centralized
decision making enables flexibility to changing conditions which is necessary for the success of
the organization.
Marketing strategy
The strategic situation analysis considers competitor and market analysis, market segmentation
and incessant erudition of markets. Formulating marketing strategy checks customer targeting
and positioning strategies, market relationship strategies and planning for latest products.
Marketing program development includes product, price, distribution and promotion strategies
formulated and applied to fulfill the value needs of target buyers. Strategy execution and
management considers marketing strategy implementation, control and organizational design.
The marketing strategy adopted by the company has also changed over the years. In the initial
years when it was the sole player in the bottled water market it positioned itself as luxury item.
The punch line was µVery very extraordinary¶. The entry of players like Pepsi and Coca Cola
made it to change the strategy. Now the company positioned itself as quality product to gain the
trust of the consumers.
25
The catch line now said µPure and safe¶. In the recent years there were cases where insecticide
contents were found in bottled waters of some major players including Bisleri. This strongly
affected the sales of Bisleri which decreases about 15%. The company carried out a rebranding
exercise to recover from the dent created by this incident. The company has changed its
packaging and the color has been changed from blue to aqua green. The company is now
positioning itself as best product. The present catch line says µPlay safe¶. The company uses
medium such as television, hoardings, magazines and company trucks for advertising purpose.
Funding strategy
The financial strategies will change according to the phase in which the business is operating.
We can find that Parle Bisleri is in maturity phase. The business risk is medium to high. So if we
use growth/share matrix, we can find that the company can use debt and equity for funding
purpose. The company currently uses only debts as source of finance. However, we would like to
propose that the company should use a mix of debt as well as equity. The company should come
up with an Initial Public Offering (IPO). The money raised through the IPO can be used to
finance its expansion plans and developing new products. The use of equity as source of finance
will reduce the financial risk for the company. Growth/ share matrix
26
EVALUATION OF STRATEGY ADOPTED
The strategic evaluation can be based on quantitative and qualitative criteria. The quantitative
analysis requires use of financial ratios like return on investment, profit margin, earnings per
share, return on equity, etc. Parle Bisleri is a Private Limited company, so the financial data is
not readily available. So, to evaluate the strategy we adopt the following procedure,
Compare performance of the company with the industry averages. The company has maintained
its position over the years and still remains a market leader with market share of 38.5%. The
company industry is growing at rate of 17% whereas the company is growing at rate of 36%. The
company is targeting a growth rate of 40% in the year 2010. Thus the company’s growth rate is
well above the industry growth rate. The company has plans to increase the number of plants.
With the establishment of new plants, the company will have total55 plants, with its competitors
Kinley having 16 plants and Aquafina with 11 plants. While evaluating the strategies adopted by
the company we have considered suitability, acceptability and feasibility.
Suitability:
The company has adopted market penetration strategy. From the PESTLE analysis we can find
that the external environment is favorable for the growth of industry. There has been growth in
IT and other allied industries in tier 1 and tier 2 cities. So there is increase bulk water
consumption. The bulk water consumption is untapped by the organized players. The strategy
adopted by Bisleri is suitable in this context. The company has its own fleet of 2000 trucks also
company has enabled online ordering of bulk water. This facilitates the penetration in this
segment. Also the core competencies of Bisleri include its Brand name and distribution channel.
The company can use these competencies to introduce more products in the market and thus
product development strategy is also suitable them. The company uses its capabilities like
control over distribution network and tamper proof to reinforce the quality perception in the
minds of the consumer. The company plans to adopt expansion by increasing the capacity of
current plants and establish new plants thus facilitating the penetration. The company uses
Hybrid strategy. This strategy is suitable for the company because the company is the market
27
leader. The company has been present since 1969 and hence has achieved learning curve. This
enables the company to provide differentiated product at lower price.
Feasibility:
The feasibility of the strategy adopted by company depends upon the resources and
competencies. We do not have financial data of the company however we can infer from
company analysis that the company has sufficient financial resources to support the expansion
strategies. The company also has internal resources and sufficient reach to support the expansion
strategies. From the value chain analysis, we can infer that the strength lies in its human
resource, logistics and marketing. These capabilities will help the company to set up new plants,
increase the number of distributors and cater to demand of the market. The expansion plans will
help to reduce the per crate cost. Presently the company spends Rs. 35 per crate. The expansion
will help to bring this cost to Rs. 5 per crate. The company can use the savings in promotional
activities and to increase the logistics. This will also help to reduce the cost of production and
thus the company will be able to supply the product at lower prices as compared to the
competitors. Thus, we can conclude that the expansion and hybrid strategies adopted by the
company are feasible. These strategies are well supported by the financial capabilities and the
resources of the organization.
28
MARKETING MIX OF BISLERI
According to Philip kotler “marketing mix is the mixture of controllable marketing variables that
the firm uses to pursue the sought level of sales in the targeted marke. In simple words marketing
mix is the combination of four basic elements /ingredients under one head. The 4Ps ie Product,
Place, Price, and Promotion.
PRODUCT
Types of products BISLERI values their customers & therefore have developed 8 unique pack
sizes to suit the need of every individual. They presently have 250ml cups,250ml bottles, 500ml,
1L, 1.5L and 2L which are the non-returnable packs &5L, 20L which are the returnable packs.
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.
In endeavor to maintain strict quality controls each unit purchases pre-forms &caps only from
approved vendors. BISLERI produces its own bottles in-house;they have recently procured the
latest world class state of the art machineries that put them at par with International standards.
This has not only helped BISLERI improve its 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! Rigorous Research and Development and stringent quality
controls have made BISLERI market leaders in the bottled water segment. BISLERI has always
been committed to offering every Indian pure and clean drinking water. Hence BISLERI water is
put through multiple stages of purification, Ozonisation and is hygienically packed for final
29
consumption. The machines which are used for the blowing and filling of the bottles are also
cleaned twice a month. All the tanks are also cleaned by the use of chemicals. The machines
which are used for the blowing and filling of the bottles are also cleaned twice a month. All the
tanks are also cleaned by the use of chemicals. There is an online monitoring system where the
batches of bottles are shown and once the batch crosses a certain limit, an alarm is heard.
Everyday almost one lakh bottles are passed through the monitoring system. Moreover, in case
there is a problem regarding the batch for example, the cap seal of a particular bottle is not there
or labeling is not done properly, the system records that and immediately the production is
halted. This is followed as per the Bureau Standards and if any mistake occurs then the whole
batch is discarded.
BISLERI has a separate creative department which promotes the different sizes of the bottles.
They have introduced new mountain water which is in hexagon shaped bottle and is a new up
gradation done by them. This helps in attracting new customers and creates a new sensation in
the market. Also 2 years ago anew soda bottle was introduced which was named as BISLERI
Fizzy bringing a huge demand among customers. Moreover, the creative department has an
expansion scheme which was introduced in October 2011 which was a compact and ideal gift for
the customer.
Value Engineering is redesigning the product already existing. The redesigning of the bottle has
definitely taken place in BISLERI. Earlier they had a blue coloured bottle and then to bring in a
different change, BISLERI decided to redesign the bottle to green colour.
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PRICE
Price plays as very important role as it is the only Price which helps in getting revenue:
Firstly one can explain the factors which affect the pricing decision ie.- Price is directly
related to:
1. Demand
2. Competition
3. Break-even Point.
Secondly, if there is a novel product or almost no competition, one can Go for higher
price in the beginning, make good profits to face Competition and innovations at a latter
date.- However if you are entering a competitive market your entry price should be low to
ensure big volumes to earn reasonable profits. In the beginning BISLERI had no
competition, so the price of BISLERI was high, gradually the promoters dropped the
price.- Buy Huge quantity at cheap rate, after confirming demand and sell at cheap price,
make them addictive, then gradually increase price)
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 the product 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.
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PACKAGINGS PRICE (IN RS)
Per Bottle
20 litre 70
5 litre 50
1.5 litre 22
1 lite 18
500 ml 10
330 ml 8
250 ml cup 5
BISLERI is in the business to serve the customer. It deserves the best quality and presentation at
a worth of the price. They have world class quality, at the lowest production & distribution cost.
This makes them unbeatable leaders, and helps them in having satisfied loyal customers.
BISLERI values its customers & therefore have developed 8 unique pack sizes to suit the need of
every individual. At present they provide 250ml cups, 250ml bottles, 500ml, 1L, 1.5L, 2L which
are the non-returnable packs & 5L, 20Lwhich are the returnable packs. For the customers bisleri
has come up with a new scheme called the “REDUMTION” scheme designed specially for the
customers. In the Redumtion scheme BISLERI provides for Rs 300 a 20ltBISLERI bottle, 2
fridge bottles, a 1.5l bottle, a 250ml bottle and a fridge stand.
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PLACE
BISLERI has a specific distribution channel which they follow Distribution Chann
From the manufacturing plant the bottles will come directly to the stockiest. Taking out the C&F
agent from the distribution channel, so as to increase the margin to other elements in the chain.
The whole MUMBAI area is been divided into 4 zones: SOUTH , WEST ,CENTRAL and
NORTH. The total number of stock list would be 12. In the area of SOUTH MUMBAI there
would be 2 stockists, one in the area of FORT and other in the area of MUMBAI CENTRAL. In
the case of FORT it will require 5 distributors covering the area from DADAR to C.S.T and
WADALA to C.S.T. The other stockiest at MUMBAI CENTRAL will require 2 distributors to
cover the area from DADAR to CHURCHGATE.
In the area of west MUMBAI there would be 3 stockists in the area of ANDHERI, BORIVALI
& VIRAR, Covering the area from MAHIM to DHANU road. In the area of Mahim to Andheri 5
distributor would be there, In the area of Jogeshwari to Dahisar 5 distributor would be there, in
the area of DAHISAR to DAHANU road 4 distributor would be there.
In the area of CENTRAL MUMBAI 4 stockists would be needed. The stockiest would be in
GHATKOPAR, KALYAN, AMBERNATH, and TITWALA. The stockist in the GHATKOPAR
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would cover the area between MATUNGA to MULUND. The stockiest in KALYAN would
cover the area between THANA to KALYAN and it would require 3 distributors. The stockist in
AMBERNATH would cover the area from KALYAN to KARJAT. A stockiest in TITWALA
would cover the area from KALYAN to KASARA and would require 3distributors.In the case of
NORTH MUMBAI there would be 3 stockists. It would cover area of PANVEL, URAN,
ALIBAUG, PENN, MAHAD, and VASHI. In the area of PANVEL stockiest 3 distributor would
be needed and in the area of MAHAD stockist it would require 3 distributor and same is the case
with Vashi. In the case of KHOPOLI and ALIBAUG direct water would be supplied to the
distributons
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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 Company’s 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.
Bisleri follows different promotion strategies and uses different ways to promote their product
like
Advertisements:
Advertisements are paid and and electronic way of communication ie to convey the message to
the customers, bisleri comes up with different and attractive advertisements on televisions and
cinema halls to attract customers today advertisements really attract the customers and by
looking at the attractive advertisement people buy the product more.
Direct Mail:
Direct mail is an avenue of promotion that targets a definite audience with a specific
letter,brochure, or offer Different potential customer groups have various needs that can be
“bull’s-eyed” with a distinct service or product. For instance, we can draft a personalized letter to
hotels, gyms, canteens and a different message to offices. In hotels where consumption of water
is more as compare to the office so we can give them additional discount and better services
compare to the office. In the case of the office where we there is less consumption of water and
less availability of space we can promote our 5-litre jar, 10 litres jar and 20 litre jars
Building and Vehicle Identification:
Our OWN signs are an advertisement in them. For example a van or a tempowhich is green in
color, than all know that it is BISLERI cargo service’s van or tempo, same in the case of coca-
cola it is red color and blue in case of Pepsi.
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SWOT ANALYSIS OF BISLERI
Strength
Extensive range of products
BISLERI is a providing a wide range of products to pull all types of customers. E.g. twelve litres
and twenty litres of bottle are for organization’s purpose and 500 ml and one litre is suitable for
individual purpose.
Strong brand image
BISLERI has been a generic name for mineral water and that is the reason maximum people
purchase BISLERI water only. Around seventy lakhs people have put their trust in BISLERI. For
example- when consumers go to purchase the mineral water then they ask for BISLERI even
though other brands are available in the shop.
High quality standard
BISLERI has been maintaining its quality standard for last few decades. Each bottle of BISLERI
goes through a précised process of multi stage purification which consists of ozonisation and
micron filtration. It holds six phases of distillation procedure which guarantee the quality, safety
and purity of water which is suitable for drinking purposes. It is examined very accurately at
every stage of manufacture which adds one more unit to its strength.
Marketing
Bislery has a strong and effective strategy for marketing of its products. It is using print and
electronic media for its marketing and hoardings at the point of sale to supports their TV
advertisements. For example vehicles are painted in light green with logo of BISLERI easy
punchline as ³drink and drive´
Increasing popularity
The popularity of BISLERI is growing at rapid pace. It has become the first preference of people
when they go to purchase the mineral water. BISLERI is enjoying a growth of 60% per year.
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Weakness
Reusable bottles
According to some relevant market research it is found that bottles are reused and refilledwith
unhealthy water at railway stations. The tampering of seal and reuse of bottles is amatter of
concern for consumers and for company also. It defame the brand image of thecompany. For
example- some local sellers fill BISLERI bottles with impure and unhealthywater and they sell it
to uneducated customers as BISLERI water which affects their healthand brand image of the
company.
Errors in production
Some faults have been found in the production process of Bisleri products. In some puritytests
pesticides were found in water. In the year 2002, tests were conducted by authoritiesthey found 2
cm insect in Bisleri bottle. That has reduced its sales and brought down thereputation of the
company. Some factories lost their license due to faults in production.
Government pressure
FDA has stopped the production of BISLERI due to insects and pests were found inBISLERI
bottles. Later, Government gave the permission to resume their production butconsumers were
not satisfied and moved towards other brands. It is tested by variousauthorities constantly.
Unable to fulfill the demand of the customer
In some parts of south India big BISLERI bottles are in great demand but the company is notable
to fulfill the demand of consumers for individual purpose. It is reducing the demand for
BISLERI and that is why people are bound to purchase other brands of mineral water.
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Opportunity
Field growing at rapid pace
Water seems to be the best beverage for India in the upcoming time period. In last several years, it has been indicated that drinking water market has shown high level of activity with several new competitors. The worth of the bottled market is expected to be increased from Rs.1000 crore to Rs.5000 crore by 2010.
Effective utilization of distribution chain
It is becoming a generic name for mineral water and if company can use the distribution channelin order to provide the product to place where consumer require it most then company can gain more success in this field. This company can establish good relations with dealers and other distributors to market the product all across the world.
Expansion in Europe
Bisleri has introduced its product in European market which has brought lots of opportunities for the company in the bottled water market. It will recover the loss of brand image; the company has faced when insect was found in the market. It will be a strong response to critics and it will enhance the trust of the consumer in Bisleri. It will improve the quality and provide international brand image.
Introduction of premium pack
Bisleri has a range of its premium products. This is manufactured for use in five-star hotels and other first-class consumers. The cost of this pack will be Rs. 20 per litre. It will create tough competition with EVIAN, the greatest player in this field whose product costs Rs. 85 per litre.
Alteration of image
The company has changed its colour from blue to green and by doing this company has offered a new product to the customers and they will enjoy a fresh product.
Increasing production
The company is focusing on the market and looking forward to increase the production by establishing new more plants. It will enhance the capacity of production of the company.
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Threat
Entry of big players
The market growth is showing that the demand for the mineral water is increasing. Therefore,
big players are focusing on the market; players like Pepsi, Coke, Britannia and nestle are curious
to increase their stakes in the market. Due to the tough competition between Pepsi and Coke,
BISLERI can be dissolved.
Entry of new players New players are entering the market in order to capture some shares. Some
of the players like Tata-Tea and Godrej are looking forward to launch their product and this will
heat the competition. There are some other brands like EVIAN, ATCO, BRILLIAN water, DS
FOODSare also looking forward to launch their products. Hindustan lever is also looking
forward to launch its product in the product and this will lead to a tough competition.
Water filter manufacturing companies
It is facing competition from water filter manufacturing companies like Eureka forbes. They are
marketing their product in the market which has reduced the sales volume of bottled water.
Unauthorized manufacturers
In rural areas BISLERI is facing a tough competition from unauthorized manufacturers. The
local manufacturers sell their products at a low price than branded products.
New Government policy
Previously, government was not charging any tax on extracting the water from the ground.
According to new policy, government will impose tax on extracting the ground water and this
increase the cost of production. This will lead to high price of products which every consumer
cannot afford. The high production cost can be compensated by cutting down the market
expenses but this will affect the quality of the product.
39
40
EXPANSION & FUTURE PLANS OF BISLERI
Ramesh Chauhan(owner) may be short, stocky and nearing 70, but his enthusiasm and vibrancy
over the years has not diminished an iota. After all, despite the entry of a slew of MNCs
(including Coca- Cola with KINLEY and PepsiCo with AQUAFINA and their cutting edge
marketing gimmicks, Chauhan has not lost his first mover advantage in the segment. He has been
able to sustain and grow his market share in the over Rs.2000 crore Indian bottled water mart.
“We have no competitor. Our biggest competition is our own incompetence,” he grins,
describing how it is the unorganized sector, which is presently walking away with the largest
chunk of their potential consumers. BISLERI claims 66%market share of the organized segment.
“If we were present where the unorganized players are selling, they would not be there at all,”
grimaces Chauhan.
Parle Bisleri Limited is undertaking a major expansion to increase its manufacturing facility as
also to widen the distribution network. The total project cost is estimated around Rs 260 crore.
Of this, Rs 60 crore will be utilised to expand the existing manufacturing facilities wherein the
bottling capacity would be doubled to 200 million cases per day. Around Rs 200 crore will be
spent on increasing its distribution network five-fold over the next two years. As a result, the
company will have 10-lakh retail outlets backed by a fleet over 5,000 vehicles. Parle Bisleri also
plans to procure recycling plants from Japan, for its PET bottles, and set up at least two such
plants in Chennai and Delhi at a cost of Rs five crore each by this year-end. Crushed and
compacted bottles from other parts of the country will be transported to the two plants and a
better part of the compacted PET will go into manufacturing polyester yarn. Though the
company plans to come out with an IPO, two years down the line, the present capital expenditure
plan will be financed entirely through internal accruals.
After dominating the Indian mass packaged drinking water market with a 60 per cent
share, BISLERI is all set to make a splash abroad. In the next few months, it will start
exporting BISLERI Mountain Water to take on the likes of French brand Evian in the premium
packaged drinking water space. “Now that we have launched BISLERI in a new hexagonal
bottle, it is getting alot of appreciation. We’ll soon be launching it in Europe and America in 2-
41
3months time,” says Chairman, BISLERI International, Ramesh Chauhan. says BISLERI is
aiming for at least $ 3 - 4 million of sales in the first year. However, BISLERI isn't eyeing the
lucrative foreign market alone.
The Tata’s, too, want to go abroad with the revamped Himalayan mountain water brand. The
company plans to introduce new products like flavored and sparkling water, both in the domestic
and the international markets. “We would be looking at the entire consumer pyramid which
straddles every kind of product offering, but that has to be on the plank of wellness. So that'sthe
platform we are creating,” CEO, Mount Everest Mineral Water, Pradeep Poddar says. BISLERI,
too, plans to launch its own brand of flavored water by the end of the year
. And certainly, for the Indian companies that have so far been restricted to India's $ 500-million
market, quenching the thirst of billions of more customers makes great business sense.
BISLERI International Private Limited, India’s largest selling mineral water company, has
announced plans to establish 25 new bottling plants across India to meet growing consumer
demand. The company is aiming to achieve a 40%growth rate in the current fiscal year. Speaking
in Mumbai, BISLERI International Chairman and Managing Director Ramesh Chauhan said,
"With the additional plants it will now be easier to reach every corner of the country.
Besides, with every new plant, there would be would be increased capacity. "The company,
which already has 52 bottling plants, is planning to invest Rs 500million ($10.4million) in setting
up these new bottling plants in Maharashtra, Kerala, Jammu and Kashmir, Himachal Pradesh,
Tamil Nadu, Karnataka, UP, Orissa, Jharkhand and north Bengal states. With a 60% share in the
Rs12billion ($250 million) mineral water category, BISLERI is also venturing into flavored
water later this year, having already launched BISLERI Fizzy Soda and BISLERI Mountain
mineral water.
The company has outlined an aggressive market penetration strategy; a dual-distribution plan,
reaching newer markets, including townships and rural India. The company is also setting up
dedicated channels for its 20 litre jars to ensure that every household and company gets service at
their door step.
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QUESTIONAIRE
1. Do you prefer packaged drinking water?
PARTICULARS RESPONDENTSYes 12No 8Total 20
Yes60%
No40%
Interpretation:
The above diagram shows that 60% people prefer packaged drinking water.
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Q.2. Which brand of packaged drinking water do you prefer most?
BRAND RESPONDENTSBisleri 14%Aquafina 6%TOTAL 20
Bisleri70%
Aquafina30%
Interpretation:
According to above diagram most of the respondents prefer Bisleri brand as compared to
Aquafina in packaged drinking water
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Q.3. What attracts you towards your packaged drinking water brand?
PARTICULARS RESPONDENTSImage of brand 8%Quality of water 9%Price 2%Availabilty 1%Total 20
image ofbrand40%
quality of water45%
price10%
availability5%
Interpretation:
According to above diagram 40% people prefer their brand because of brand image,45% people
says that they prefer their brand because of quality of water.
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Q.4. Which brand of packaged drinking water is more effective in advertising by you?
PARTICULARS RESPONDENTSBisleri 12Aquafina 8Total 20
Interpretation:
The above diagram shows that Bisleri packaged drinking water brand is moreeffective than any
other brand that is 60%.
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bisleri60%
aquafina40%
Q.5. How do you rate the following water brand?
BISLERIPARTICULARS RESPONDENTSGood 14Poor 6Total 20
AQUAFINAPARTICULARS RESPONDENTSGood 8Poor 12Total 20
Good70%
Poor30%
Bisleri
Good40%
Poor60%
Aquafina
1. Interpretation
According to above diagram of Bisleri, 70% respondents in India says that Bisleri is a good
brand.
2. Interpretation
According to above diagram of Aquafina 40% in India says that Aquafina mineral water is a
good brand.
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Q.6. Is the price quoted by the company justified?
BISLERIPARTICULARS RESPONDENTSYes 18No 2Total 20
AQUAFINAPARTICULARS RESPONDENSYes 14No 6Total 20
Yes90%
No10%
Bisleri
Yes70%
No30%
Aquafina
1.Interpretation:
According to above diagram of Bisleri 70% respondents says that price of Bisleri are justified.
2.Interpretation:
According to above diagram of Aquafina 60% respondents says that price of Aquafina are not
justified.
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Q.7. Would you change your brand preference considering the price factor?
BISLERIPARTICULARS RESPONDENTSYes 6No 14Total 20
AQUAFINAPARTICULARS RESPPONDENTSYes 10No 10Total 20
Yes30%
No70%
Bisleri
Yes50%
No50%
Aquafina
1.Interpretation:
The above diagram of Bisleri shows that 60% consumers of Bisleri will not change their brand
just because of price.
2. Interpretation:
According to above diagram of Aquafina 50% people can change their brand because price.
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Q.8. Have you used home delivery service of Bisleri or Aquafina?
BISLERIPARTICULARS RESPONDENTSYes 16No 4Total 20
AQUAFINAPARTICULARS RESPONDENTSYes 14No 6Total 20
Yes80%
No20%
Bisleri
Yes70%
No30%
Aquafina
1.Interpretation:
According to above diagram of Bisleri 80% respondents have used home delivery services of
Bisleri.
2.Interpretation:
According to above diagram of Aquafina 30% respondents have used home delivery services of
Aquafina.
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Q.9.What are the factors that drive you to buy packaged drinking water?
PARTICULARS RESPONDENTSHealth Reasons 15Price 2Non Aerated 3Total 20
health reasons75%
price10%
non aerated15%
Interpretation:
The pie chart shows that people buy packaged drinking water majorly due to health reasons.
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Q.10. What is your perception towards bisleri?
PARTICULARS RESPONDENTSBest 16
Good 3Average 2Total 20
best76%
good14%
average10%
Interpretation :
Bisleri has gained a very good image amongst the people as majority of the people rated it best.
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RECOMMENDATION & CONCLUSION
On the basis of the analysis done, we would like to suggest following recommendations,
• The brand recall of Bisleri is stronger as compared to its competitors. However, problem arises
when the brand is not available and customer ends up buying the brand of competitor. The
company should therefore invest heavily on logistics. The company can acquire smaller
unorganized players to extend the reach or can tie up with major local players.
• In Indian villages, even today there is shortage of safe drinking water sources and there is
spread of water borne diseases due to contaminated water. The company should therefore focus
on rural market penetration.
• The company is a single product portfolio company. The company should try to introduce more
product more beverage products in the market. The company will require funds for the expansion
and other projects. The company should fund these projects and plans by coming up with an IPO.
Introducing equity in the capital structure will reduce the interest burden on the company.
• The company should form a joint venture with some companies who have greater rural
distribution network to introduce products catering to rural market.
Conclusion:
The analysis of Parle Bisleri has helped us to understand the different strategies adopted by it to
sustain and grow in the hypercompetitive market. From the analysis we have found that the
strength lies in its brand, packaging, logistics and marketing. However, the company is subjected
to higher risk, as it is a single product company.
The bottled water industry which is dominated by Bisleri is facing problems due to arrival of
bigger players like Pepsi and Coca Cola. The company has bypassed the competition by shifting
the focus towards bulk water segment. However we feel that the company needs to strengthen its
present business and diversify in related business. The company can typically form alliances and
joint ventures. We feel that tough time for Bisleri is about to come and the company will be
severely affected if it does take proper strategic decisions in the present scenario.
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With the big players, who have the support of the financial muscle and a large consumer base in
other categories with them, like Pepsi, Britannia, Nestle and Coke — the battle is the tougher
arena of brand building. All the multinationals are looking at high-octane advertising targeting
specific consumer segments. Sensing troubled waters ahead, Bisleri is busy working on a
strategy to soak up the competition and protect his water kingdom.
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BIBLIOGRAPHY
Websites:
www.bisleri.com
www.discovery.com
www.google.com
www.studymode.com
Newspapers:
Times Of India
The Hindu
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