INTRODUCTION

Water is the fountain of all life. Even a toddler will tell you it is a prime need of the body.
Sixty percent of our body weight is made up of it. Water can also be the cause of much misery
especially in India, where contaminated water continues to bring down millions with diseases
such as diarrhea, dysentery, typhoid, jaundice and gastro-enteritis.

THE PACKAGED DRINKING WATER INDUSTRY AN OVERVIEW

India is the tenth largest bottled water consumer in the world. In 2002, the industry had
an estimated turnover of Rs.10 billion (Rs.1,000crores).Today it is one of India's fastest growing
industrial sectors. Between 1999 and 2004, the Indian bottled water market grew at a compound
annual growth rate (CAGR) of 25 per cent - the highest in the world. With over a thousand
bottled water producers, the Indian bottled water industry is big by even international standards.
There are more than 200 brands, nearly 80 per cent of which are local. Most of the small-scale
producers sell non-branded products and serve small markets.

OVERVIEW OF THE MARKET SHARE

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

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Individual Market Shares:

BISLERI-40%, KINLEY-28%, AQUAFINA-11%, OTHERS-21%
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.

SEGMENTATION
The mineral water market is segmented according to the type of consumers:
Foreign Tourists
Foreign tourists have been the main consumers of the mineral water as they face a lot of
digestion problems due to different food habits.
Domestic Tourists
Domestic tourists have switched to mineral water mainly because of safety and hygiene
factors.
Health/Fashion Conscious
Like soft drinks, drinking mineral water is also considered fashionable by some people.

The mineral water market is also segmented along pack sizes:

One litre bottle
This is meant to spell safety and security for consumers. It is positioned on a prestige
platform for the achiever segment - who like to make a fashion statement by drinking
mineral water. This segment gets the maximum sales.
500ml bottle
This size has been introduced in the market to target the individual and local travelers.
PET bottles

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The size of the PET bottles varies from 10 to 20 litres. These are mainly for institutional
sales (Wedding parties, Hotels, Corporate, etc.)

SWOT ANALYISIS OF THE INDISN PACKAGED DRINKING WATER

INDUSTRY
STRENGTHS
The industry is growing @ 40%.
In India the market is huge & untapped
Growing awareness among the people about the importance of mineral water
WEAKNESSES
Many players entering in the race.
Any local person can start manufacturing.
Rural population is not using the packaged water.
Not very economical.
Quality not properly maintained.
OPPORTUNITIES
Sustained market growth increase in coming years.
Literacy rate growing and hence the awareness of safe drinking water to avoid the
diseases.
Huge population & untapped market.
THREATS
Many substitutes available,
Too many players will dilute the market & the profit margin.

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MAJOR PLAYERS
With over 200 players jostling to be the thirst-quenching favorite of
the Indian consumer, the business is growing at a rate of over 50 per cent annually. The
country's bottled water business is estimated to be around Rs. 1,100/- crore, of which the
branded market accounts for Rs. 700 crore and about 700 million litres in volume.
After the Cola wars the time has come for water wars. Here we discuss the major players and
warriors in the bottled water market.
1. BISLERI
The brand is a product of Parle International and presently is the market leader with more
than 45% market share. The company pioneered the concept of bottled water in the Indian
market as early as 1967. The company is also credited with SKUs of 500ml, 1.2 ltr, 1.5 ltr and 2
ltr in the Indian market
The re-launch of Bisleri in 1993, however was a success due to growing awareness and high
consciousness of health and hygiene among people. In 1993, when Ramesh Chauhan,
Chairman, Parle Bisleri sold his right to market Bisleri brand to Coca-Cola, Bisleri, which
underwent the new management for a period of 5 years, remained largely neglected. On getting
the rights back, he started building Bisleri as a mineral water brand. Bisleri had a brand name, a
product, the brand building of Bisleri started in a small way in 1998, which bore fruit in 19992000 when it grew by 140%.
Positioning

Playing Safe

Target audience

Health and hygiene conscious people

Personality

Guardian, Authoritative, Reliable

Punch Line

Play Safe

USP

Pioneer advantage in bottled water industry, old player with lot of

Experience

In the case of 500ml and 1 litre it directly supplies to the retailer

In the case of 20 litre jar they have appointed distributor over the area to reach through the
corporate. But then also they lack in providing better service to the customer.

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2. KINLEY
This brand was first introduced in the country in March 1998, when COKE launched Kinley
Soda. The company entered in the business in May00 through its brand, Kinley. The company
tied up with Kothari Beverages, of Yes brand of mineral water, for manufacturing cokes brand at
Yes facilities. Starting with Bangalore, Kinley mineral water was rolled out nationally in a
phased manner.
Positioning: Safety and health oriented
Target audience

Health and hygiene conscious people

Personality

Trustworthy, Strong, Confident

Punch Line

Boond Boond mein Vishwas

USP

Belongs to the Coca Cola lineage, gains advantage from the

distribution and retail network

Error: Reference source not foundIn the case of 1 litre and 500ml it directly supplies to the
retailer without any distributor.
In the case of 20 litre jar they have their own distributor.
These above 2 are the top players in the market other brands present are:3. AQUAFINA
Entered the bottled water business in September 1999 by test launching its first in Mumbai and
then in Bangalore. PEPSI with its AQUAFINA brand has backing of a good distribution
channel of 60000 outlets, its refrigerators at retail outlets which stock its cold drinks along with
Aquafina as well. Initially Aquafina was available in just one pack-750 ml and was priced at Rs.
10. Now they also have competing packages of 500ml and 1 ltr ml pack priced at Rs.6 and Rs. 10
respectively. The main target audience for Aquafina is the youth segment.
4. NESTLE
With its mass-market product branded PURE LIFE has banked on its distribution network for
chocolate, which are marketed through a large chain of retail outlets. Pure Life is aimed to have a
National presence; the second brand which is being tried for by the company is aimed at
targeting the regional markets. Pure Life is for Mass Market like hotels, restaurants and caf
segment and Perrier for the bars, San Pellegrino for the restaurants, but nestle is not yet into
home & office segment.
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The company has priced the Pure Life brand very competitively in the market.

5. THERMAX
A player of Technical Expertise is THERMAX, through a joint-venture with US-based
CULLIGAN WATER TECHNOLOGIES largely into industrial water purification. It has
entered into the household segment with the launch of 20-litre packs of drinking water branded
as Good Water, priced at Rs.60 per pack. GOOD WATEREVERFLO is positioned for
organizations that are actively improving the quality of the workplace for employees and visitors.
It is an ideal solution to those wanting to make pure, safe drinking water available, without
buying and maintaining in-house equipment like purifiers, water coolers etc. However the
company has no plans to introduce smaller package for its product

6. BAILEY
Though a pioneer in this field; Mr. Ramesh Chauhan Chairman- of Parle Bisleri had to contend
with several new entrants in this segment. For starters, his own brother, Mr. Prakash Chauhan
through Brand Bailey has been trying to emulate the Bisleri success through the franchising
route, but Bailey has never been successful in it. The brand is a product of Parle Agro, the
company of Frooti fame. The company presently is the second largest player in the market with
share of 20%. The company has recently extended its Bailey brand name for its soda water. It is
also credited with forming a new segment of 330ml SKU in the market
Target audience

Health and hygiene conscious people

Personality

Guardian, Authoritative, Reliable

Punch Line

I want my bailey

USP

Pioneer advantage in bottled water industry, old player with lot of

Experience

7. EVIAN
Evian by DANONE INTERNATIONAL is marketed by BRITANNIA INDUSTRIES in India.
The high-priced mineral water from French Alps is clearly targeted at the premium segment of
consumer. Currently Evian has more of an Institutional presence (5 star hotels) than on retail
shelves. With 1 litre bottle being priced a hefty Rs.80

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

The Present
It was around the year 1995, when Parle Exports took charge of the brand operations and the
business took off in the market. With factories across India and a strong distribution network,
Bisleri established itself as a force to reckon with in the domestic packaged drinking water
market.
Earlier the packaged drinking water market consisted of five star hotels, tourists and
foreigners. As a marketing strategy, a conscious decision was taken by the company that only
40% of the sales should come from these outlets and 60% from general market, i.e. paanwallas,
street shops, general stores and even non-tourists.
About few years ago, in 1998, a strategy was adopted to concentrate aggressively on the home
market. The habit of boiling water or using electronic gadgets was not adequate, since the source
of water itself was unreliable. The bulk packages like the 2, 5 and 20 litre bottles were
introduced to meet this market need. The price per litre went down as a result, making bottled
water very economical for the consumer.
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Technology Developments
To make sure that the product that reaches the consumer is always of highest standard and
also meets international standards, Bisleri has always been involved in improving its product
packaging. One such recent development is the tamper proof break away seal. Bisleri also
recognizes the need to produce environment friendly products and is working on the PET
project.

Product packaging
To ensure purity of the bottled water, the bottles that are used are blown and filled at the
factory itself, to avoid contamination.

Purification Process
At BISLERI plants, water undergoes multi - stage purification process to ensure proper
blend of minerals and complete removal of microorganisms and toxic substances. So a habit of
drinking PURE and SAFE BISLERI will ensure a healthy life
PROTECT YOUR HEALTH WITH BISLERI WHICH USES
6 STAGES OF PURIFICATION
1. CHLORINATION: Kills micro organisms. Remove organic matter.
2. ARKAL FILTER: Removes suspended matter and turbidity.
3. CARBON FILTER: Removes residual chlorine &odours
4. REVERSE OSMOSIS: Removes organic material. Controls total dissolved solids in the
water.
5. MICRON FILTRATION: Additional safety measures of filtration.

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6. OZONATION: Ensures water remains bacteria free for longer shelf life.

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

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

THE JOURNEY TILL NOW

1969: Buys Bisleri bottled water from an Italian company, Felice Bisleri. It was bottled in glass
bottles then.
Early-1980s: Shifts to PVC bottles. Sales surge
Mid-1980s: Switches to PET bottles, which meant more transparency and life for water.
1993: Sells carbonated drink brands like Thums Up, Gold Spot and Limca to Coca-Cola for Rs.
400 crore.
1995: Bisleri launches a 500 ml bottle and sales shoot up by 400 per cent.
2000: Introduces the 20-litre container to bring prices down from Rs 10 a litre to Rs 2 a litre.
1998: Introduces a tamper-proof and tamper-evident seal.
2000: BIS cancels Bisleri's license of water bottling in Delhi since some of the bottles did not
carry ISI label; the license 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 earmarked
an investment of Rs 100 crore for upgradation of its Chittor plant and setting up of a new facility.

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BOTTLED WATER
Consistent quality and taste are two of the principal differences between bottled water
and tap water. While bottled water originates from protected sources - largely from underground
aquifers and springs - tap water comes mostly from rivers and lakes.

THE MANUFACTURING PROCESS

Processing and Quality Assurance

The casing tube itself is protected with stainless steel mesh to give a preliminary filtration to
the water.

Ultra filtration gives water reduction in turbidity and adds sparkle

Activated carbon purifier to remove color and odour in water

Reverse osmosis membrane has porosity of less than 0.01 micron the process renders water
free of microorganisms and also reduces dissolved solids

To ensure mineral water is held safe free from contamination, ultraviolet treatment and ionization
www.nrdc.org/water/drinking/

process is carried out. Ozone is unstable trivalent oxygen, a very powerful bactericide with no
side effect, as it disintegrates into oxygen within couple of hours.
Labeling
The Name of the Product shall be the appropriate terms as defined. Water containing carbon
dioxide that emerges from the source and is packaged directly with its entrapped gas or from
which the gas is mechanically separated and later reintroduced at a level not higher than
naturally occurring in the water, may bear on its label the words naturally carbonated or naturally
sparkling. Packaged water which contains carbon dioxide at levels than those naturally occurring
in the source of the product shall be labeled with the words carbonated, carbonation added or
sparkling.
Rules and Regulations
The Bureau of Indian Standards (BIS) has just recently got involved in the process. In September
2000, the Government of India made it mandatory for all bottled water companies to get an ISI

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mark, including imported bottled water brands like Evian and Perrier. The Ministry of Health and
Family Welfare had set a deadline of Mar 29, 2001 for complying with the new norms.

www.nrdc.org/water/drinking/

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MARKET CATEGORISATION
The market initially had only one SKU of 1 litre this was followed a by a number of smaller and
bigger SKUs. Based on these SKUs we can divide the entire market into two segments:

Retail consumption market

Household & Institutional consumption market

Each of these consumption markets have a number of SKUs under it. Some of the most
consumed SKUs in retail market are 500ml, 1 litre, 1.2 litre, 1.5 litres, 2 litres, and 5 litres.
Recently Bailley has launched 330ml pack targeted against 330ml pack size of soft drinks
especially the aluminum-can drinkers.
The institution market is largely constituted by the hotel industry, caterers, offices, parties, travel,
tourism, hospitals etc. The SKUs that are available in this market are 10 litres and above besides
this we have pack size of 250ml plastic cups.
The market can also be divided on the basis of the price at which this bottled water is available
into three categories:

Super premium mineral water

Premium local natural mineral water

Popular or plain bottled water

INDIA TO FACE SEVERE WATER CRISIS IN THE FUTURE

The per capita water availability in India is projected to decline to about 1,140 cubic
meters per year in 2050 from 1820 cubic meters per year recorded in 2001 according to the
Intergovernmental Panel on Climate Change (IPCC).
"India will see a severe water crisis in 20 years if the government doesn't change its ways and
clashes are already taking place because the resource is so scarce." This was the warning by the
World Bank way back in 2005. "Estimates reveal that by 2020, India's demand for water will
exceed all sources of supply.
All these reports point to just one thing for us now. That we should he on serving water and be
judicious in its use. If water is wasted today then it is our future generation which will suffer
because of it. So everyone needs to make a point from now to save water in any way they can.
If we cannot do that then the future is very clear.

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INDIAN SCENARIO
In 1967, Bisleri set up a bottling plant for manufacturing and marketing its mineral water
but that time the concept of mineral water was failed. The brand was later on sold off to Parle
group acquired the Bisleri of Italy for launching soda water but later launched bottled water also.
The launch at that time was a big flop as concept of buying Water that ton the Indian public did
not accept form. The market remained dormant for quite long (for a period of 20 years or so).
The market throughout this period was formed only by the premium products that too available
through 5-star hotels.
In early 1990s with onset of liberalization policy by the Indian government, coming in of cola
majors, sell out of local soft drink brands of Campa, Thumbs Up, Gold Spot etc. by pane to
coke and other factors led Bisleri to test waters again. Bisleri re-launched its bottled water in
1994. With exposure of media and exposure to international life styles, deteriorating levels of
portable water, increases in a number of water borne classes, increases in awareness about health
and hygiene and other related factors led to acceptability of concept of mineral water. The market
has not looked back ever since then and has grown leaps and bounds to such an extent that a
number of genuine as well as fly-by-night operations have entered it to milk it.

Bottled water slaking consumers thirst.

The Indian bottle water industry has grown phenomenally over the past decade. A major
part of the demand stems from out of home consumption by people on the move, because the
quality of drinking water available otherwise is suspect. Of course, some also consume bottled
water (or high price mineral water in some instance) as a style statement. While it has its positive
aspect, the bottle water industry is often questioned for its over-extraction of the ground water.
Its very high cost of delivery and massive generation of solid waste in the form of nonbiodegradable plastic bottles is this industry really slaking in consumer's thirst or is it being too
expensive and wasteful

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Life Cycle of the Industry

3

www.bottledwterindia.web
Here 1990 was selected as base year and from 1990 sales in bottled water has increased

year by year but not that much level to 2004-05 so this covers under introduction stage of
bottled water industry. After increase in awareness among people and known side effects of non
purified water, people have moved from tap water to bottled water and this change has increased
sales of bottled water in market. Until 1992, the demand for bottled water in India was mostly
limited to foreign tourists, corporate meetings, conferences, etc. The introduction of bulk
packaging extended the market to new and numerous consumers (Jose Raphel, 1998). In this
period firms focus on branding and patenting for maintaining right to produce played an
important role.

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Advertising express May 2008, pg-55

SWOT ANALYSIS OF BISLERI

Strengths
Core business of company.
First mover in this business since 1969.
Good brand awareness and brand positioning.
Available in different packs like cups, 500 ml, 1 lit, 1.2 lit, 2 lit, 5 lit and 20 lit.
Has become generic name in the mineral water market.
Availability of Bisleri in all over India with solid infrastructure facility.
Focus on customer orientation through low price strategy.
Product differentiation by introducing patented break way seal cap.
Best service and proper response to dealers and customers.

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

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

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Threats
Numbers of players like Kinley and other local players are present in the market have already
captured the market.
Tough competition from MNC's like Coke & Pepsi.
Fluctuation in sales due to seasonality.
Local manufacturers who refill used bottle Hampers the image of the industry.
Water filters and soft drink industry is a major threat to industry.
Coke and Pepsi are already having strong distribution network in bottle water industry with
their own fleet of trucks & vans.

PEST ANALYSIS

Political Analysis
Government failure to provide safe drinking water.
Laws encouraging ground water exploration.
Environmental regulations.

Economic Environment

Developing Economy.

Better infrastructure:

Social Environment

Scarcity of water.

Health conscious people.

Population growth rate.

Technological Environment
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Economies of scale

Sales and distribution management

ROLE OF DISTRIBUTION CHANNELS To adjust the discrepancy of assortment
through the process of sorting, accumulation, allocation, and assorting To minimize the
distribution costs through routinising and standardizing transactions to make exchange more
efficient and effective To facilitate the searching process of both buyers and sellers by
structuring the information essential to both the parties To provide a place for both parties to
meet each other and reducing uncertainty
HOW DO DISTRIBUTION CHANNELS CONTRIBUTE Intermediaries can improve
the efficiency of the exchange process Channel intermediaries adjust the discrepancy of
assortment through the performance of the sorting process Marketing intermediaries hang
together in channel arrangements to provide for the routinisation of transactions Channels
facilitate the searching process
DISCREPANCIES IN THE PROCESS OF EXCHANGE Need to break the bulk
Need to provide assortment
THE COST AND CONTROL ASPECTS OF INTERMEDIATION Direct Distribution
Indirect distribution Control Cost efficiency
DISTRIBUTION CHANNEL STRATEGY Setting distribution objectives in terms of the
customer requirements Finalizing the set of activities that are required to be performed to
achieve the channel objectives Organizing the activities so that the responsibility of
performing the activities is shared among the entities who are meant to perform these activities
Developing policy guidelines for the smooth functioning of the channel on a day to day basis
DISTRIBUTION CHANNEL MANAGEMENT (CONTD.) Distribution channel
management encompasses all activities dealing with the distribution function of the firm The
distribution strategy provides guidelines for decision making The distribution management
function can be viewed as happening in two phases: the ex ante phase and the ex poste phase
DISTRIBUTION CHANNEL MANAGEMENT (CONTD.) The ex ante phase involves
all the activities that are associated with the design and establishment of the distribution channel.
These activities actually take place before the distribution channel actually starts functioning.
The exposte phase involves managing the day to day activities of the channel wherein the
behavior of the individual channel members are coordinated
CHANNEL MANAGEMENT TASKS Distribution Channel Strategy Channel Objective
Activity Finalization Organizing the activities Developing Policy Guidelines Design of the
channel structure Establishing the channel Motivating Channel Members Resolving Conflicts
among channel members Ex ante Phase Ex Poste Phase
The channel design is normally meant to give a clear idea about: The number of
channel entities in the channel network, The way in which they are linked, The roles and
responsibilities of the entities in the network The rewards for participating in the activities and
also Clear cut guidelines for the major activities to be performed during the normal
functioning of the channel. Channel Design
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 WHAT ARE THE SERVICE OUTPUTS Waiting time Breaking the bulk Spatial
convenience Assortment
DISTRIBUTION CHANNEL DESIGN To consume a product Service outputs have to be
delivered Channels Participates in channel flows Activities have to be performed Thus performs
activities

CONCLUSION

After analysis of the data & facts we have collected from consumer & the retailers &
matching them with the objectives one can say that there is very good future for mineral
water market. Soft drink market might be some threat to the mineral water at present
but within few years the scenario is going to change. Trend signifying increasing health
consciousness amongst Indians could also be observed.
Market has seen a tremendous growth from the early nineties & now it is increasing by
40% every year so one can easily say there is great potential in the mineral water market.
It could also be observed that the living standards of the people improving & as they are
becoming health conscious are ready to pay for water now. On the question of survival of
so many companies government has made policies & restrictions from April 2001 which
will force many manufactures to shut down their factories. But due to potential in the
market companies with quality product will survive.
Finally from the data collected at both primary and secondary level one can confidently say
that Bisleri as packaged water brand is the current market leader.

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