INDEX

Sr.No

Contents

Page
No.

Objectives of Study

Introduction

PEST Analysis

Political Factors
Social Factors
Economic Factors
Technological Factors

5
6
7
8

Analysis

10

Findings

11

Recommendation and Suggestions

13

Conclusion

14

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OBJECTIVE OF THE STUDY

To learn about the PEST factors impacted the working of particular organization in last
five years.

To do analysis on the basis of the PEST factors,

To Give recommendations and learning on the basis of study conducted for the Bisleri
company in India.

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Introduction
Bisleri was originally an Italian company created by Signor Felice Bisleri, who first brought
the idea of selling bottled water in India. Bisleri originated in Italy in a place called Nocera
Umbra from a spring called Angelica. In 1965, it was introduced in Mumbai in glass bottles
in two varieties - bubbly & still. In 1969, it was bought over by Parle. Later Parle switched
over to PVC non-returnable bottles & finally advanced to PET containers.
The original Parle Company was split into three separate companies owned by the different
factions of the original Chauhan family:
In the mid-1980s it switched to PET bottles which are meant for more life and clearness for
mineral water. In 1995, it launched 500 ml bottle and in 2000 it introduced container of 20
litres to reduce the price. In1998, it introduces a tamper-evident and temper-proof seal. In
2009 it first introduced its mineral water in Mumbai in the year 1965, in a glass bottle in two
varieties namely, bubbly and still. Signor Felice Bisleri was the main man behind the idea of
selling bottled water in India. Starting the year 1995, Mr. Ramesh J. Chauhan began
expanding the brand of Bisleri in terms of its operations significantly, since then the turnover
of Bisleri shot up remarkably to about 20 times in 10 years and the average growth rate of the
brand was 40%during this phase. The company dominates a 60% market share of the
organized market. The devastating popularity of the brand Bisleri and the fact that they
initiated bottle water in India has made them synonymous to Mineral water in the country.
In 1995 Jamhshed J. Chauhan started expanding Bisleri operations. In 2003 Bisleri
announced its venture to Europe. All shares are held by Mr. Ramesh J Chauhan and his
family.
The brand name Bisleri is so popular in India that it is used as generic name for bottled water
in India. Bisleri has 36% market share in packaged drinking water in India
It is available in 8 pack sizes: 250ml cups, 250ml bottles, 500ml, 1 litre, 1.5 litre, 2 litre, 5
litre, and 20 litre. Its operations run throughout the subcontinent of India and is one of the
leading bottled water supplying companies in India. As of 23 October 2012, Bisleri has 18
plants, 13 franchisees & 58 contract packers all over India.

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PEST ANALYSIS
We have considered Bisleri mineral water industry for the analysis. The key points are given
below followed by the analysis.
Political

There are various political parties protesting against the pricing of mineral water.
There is stable government at the centre with liberal policies.
The government has imposed price ceiling on bottled water.

Economical

There is an increase in per capita income.

Most of the people are from middle and upper middle class.
There is no licensing policy adopted in this sector.
There is availability of cheap labor.
The government is promoting new bottling plants through public-private partnership.

Social

Bottled water was earlier considered as a status symbol.

Bottled water is now the only source of pure drinking water in areas where there is

scarcity of water.
The bottled water is considered to be safe as compared to ordinary tap water.
There in increase in health consciousness of people.

Technological

The bundling of technologies like distillation, reverse osmosis, activated carbon filter,

etc helps in better quality of water.

There has been a shift in packaging from bottles made of glass to bottles made of
PET. This helps in recycling and reducing environmental pollution.

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Political Factors
Political change, from one party to another in control- for example the rise in private
healthcare and the privatizations under Conservative governments.
The government plays a role within the operation of manufacturing these products in terms of
the regulations. There are potential fines set by the government on companies if they do not
meet the standard of laws.
Various political parties are protesting on the prices of the bottled water. The range according
to them are too high and rather be reduced so it can reach to lowest segment of people also.
Even government is emphasizing on price ceiling that is fixing the price of bottled water at
various places where it is essential. A price ceiling is a government-imposed price control or
limit on how high a price is charged for a product. Governments intend price ceilings to
protect consumers from conditions that could make necessary commodities unattainable.
There is no industrial licensing policy present currently which attracts many players to enter
in this industry.
The following are some of the factors that could cause Bisleri company's actual results to
differ materially from the expected results are:

Changes in laws and regulations, including changes in the accounting standards,

taxation requirements, and environmental laws in domestic or foreign jurisdictions.

Political conditions, especially in the international markets, including civil unrest,

government changes and restrictions on the ability to transfer capital across borders.
Their ability to penetrate the developing and emerging markets, which also depends
on the economic and political conditions, and how well they are able to acquire or
form strategic business alliances with local bottlers and make the necessary
infrastructure enhancements to the production facilities, distribution networks, sales
equipment and technology.

FDA has stopped the production of BISLERI due to insects and pests were found in BISLERI
bottles. Later, Government gave the permission to resume their production but consumers
were not satisfied and moved towards other brands. It is tested by various authorities
constantly

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Social factors
Social change involves changing attitudes and the lifestyles. The increasing number of
women going out to work, for example, led to the need for the time-saving products for the
home.
People are now concerned with the low availability of drinking water.
Earlier bottled water was considered to be status symbol as only few people used to prefer it,
later when people discovered the causes of ill health due to unreliable sources of water they
started switching to bottled water.
Many Indian citizens are practicing healthier lifestyles these days. This has affected the
industry as many are switching to the bottled water. The need for the bottled water and other
more convenient and healthy products are in important in the average day-to-day life.
Media is also playing a vital role in highlighting the issues related to polluted water and make
people aware of the diseases that are frequent due to this contaminated water. Hence the
package drinking water is trending.
The bottled water is now days a common preference amongst the people, so instead of
drinking tap water or the ordinary served water in hotels or restaurants prefer ordering
packaged drinking water, which is the one of the target market for Bisleri.
Contaminated water due to water pollutants which are released in rivers has led to the growth
of mineral water industry. Bisleri being the oldest of all has major advantage as people are
aware of the brand and the availability is very high. In some areas the supply is
comparatively then the demand for mineral water.
Scarcity of water is also influencing people to switch to more reliable source of drinking
water, Hence Bisleri being one of the affordable brand has the upper hand amongst the
population. The 20 Lt. Bottle of Bisleri barely cost around 70 to 80 Rupees, which is easily
available and can be used for 3 to 4 days in a family of average 5 people.

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Economic Factors
It was from 2009 Bisleri began to expand their market via route of online marketing through
retail shops the emergence of e-commerce as a preferred platform for shopping has forced
brands to build e-commerce sites. However, such initiatives are yet to gain scale.
The reasons for this are several. A senior executive of a consumer electronics firm operating
its own e-commerce portal for a few months said e-commerce marketplaces offered
consumers the option to compare similar products from other brands, but this wasn't the case
with company-owned portals. "Also, online is just a very small portion of our total sales. As
we need to stick to traditional sales channels, it's not possible for us to offer discounts on our
site. But an e-commerce marketplace can easily offer these. And, consumers get the same
product at a much cheaper price," the executive added.
Staying competitive in an increasingly global market environment calls for the importance of
enterprises being present across the globe. With the increasing economic growth in
developing Asia countries like China and India, SMEs are increasingly looking to
internationalize and explore global market for commercial advantage and knowledge
(Altbach et al., 2007). This outlines the internationalization considerations for the Indian
bottled water company Bisleri International (Bisleri). This intends to analyze the motivation
and

benefits

of

internationalization

of

Bisleri

(India)

to

China

and

propose

internationalization process and form that best suits the company by using the academic
frameworks related to the economic, learning and network theories of internationalization.
From 1995-2005, the turnover multiplied by 20 times. The company has a strong financial
position and has the potential to invest globally. Two years ago, Bisleri had forayed into the
premium water segment with the launch of Bisleri Natural Mountain Water. Bisleri sees 2011
bringing in growth at 35% .Water is the safest bet in this economy - that's the mantra that
helps Parle Bisleri's chairman, Ramesh Chauhan claim that a 35-40% growth for the
company in 2011 is certain.
Also the labor required to work in these plants are cheap and easily available so it also act as
a source of employment to people.
Bottled water major Bisleri International is planning to set up its own exclusive retail outlets
Bisleri Shopees in India as it looks to counter shopkeepers pushing rival brands. The
marketing budget will be about Rs 50 crore this year, a big step up from an almost
nonexistent budget last year to protect its market leadership.

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Technological Factors
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.
The break away seal
Keeping in mind the consumer's need to recognize a genuine product that cannot be tampered
with, Bisleri developed the break away seal. The unique cap has been patented and cannot be
duplicated or tampered with. This technology development in the product ensures that the
consumer will only get a highly safe product when they consume Bisleri packaged drinking
water.
Product packaging
To ensure purity of the bottled water, the bottles that are used are blown and filled at the
factory itself, to avoid contamination.
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
What advantages bisleri purification process has over purification done by other methods
Traditional process of boiling water for purification has its limitations. It is time consuming.
For boiling, water has to be heated to 100 deg. Celsius. Also, to kill microbes water should be
boiled continuously for a minimum of 20 minutes. Boiling may kill the microbes but cannot
remove other physical impurities and toxic substances.
Many home appliances are available in market for water purification. These gadgets use
either filtration technique or Ultra Violet rays or a combination of the two techniques. These
techniques do not guarantee 100 % purity of water.
Filtration removes only the visible suspended particles and not the minute, invisible particles,
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toxic substances or microorganisms. The filters are cleaned rarely and all the muck
accumulates inside leading to more contamination. Ideally such filters need to be cleaned
every day which is cumbersome. Ultra Violate rays kill the microbes but cannot ensure
removal of toxic substances and physical impurities.
These purification equipment are incomplete and need continuous monitoring and
maintenance.
At BISLERI, through our multi - stage purification process we ensure removal of toxic
substances as well as physical and microbiological impurities. In our state-of-the-art
processing plants we follow rigorous Good Manufacturing Practices and strict Quality
Assurance norms so each and every bottle of BISLERI is made tasty, pure and safe for the
consumer.
Protect your health with Bisleri which uses 6 stages of purification.
CHLORINATION: Kills microorganisms. Remove organic matter.
ARKAL FILTER: Removes suspended matter and turbidity.
REVERSE OSMOSIS: Removes organic material. Controls total dissolved solids in the
water.
MICRON FILTRATION: Additional safety measures of filtration.
OZONATION: Ensures water remains bacteria free for longer shelf life.

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ANALYSIS
The PEST analysis helps us to analyze the various factors affecting the Indian bottled water
industry. We can observe that governmental policies regarding the quality of packaged water
are very stringent and all the companies have to adhere to the BIS standards.
The liberal government policies, and promotion of bottling plant through public private
partnership are favorable to the industry. The lower cost of set up and availability of cheap
labor has attracted many small as well as big players. There have been incidents where
pesticide contents have been found, also there have been instances where small companies
have been found using plastic unsuitable for human health. There is therefore constant
pressure on companies to maintain quality of product and packaging. There has been increase
in health consciousness among people and unavailability of safe drinking water in low tier
cities is favoring the sales of bottled water. The technological advances in purification
processes help in enhancing and maintaining quality of water.
There is no industrial licensing policy present currently which attracts many players to enter
in this industry. The lower margin associated and low entry barriers considerably affect the
larger players. We can observe that the companies adhering to the environmental standards,
using proper packaging gains advantage. The price war is not possible in this industry as the
government has imposed ceiling on the price of bottled water. However there is much
possibility that companies start competing through differentiation.
The bottled water is considered as a status symbol so it can be possible that companies enter
the unexplored area of flavored drinking water. The scarcity of safe drinking water in many
areas creates opportunity for the players to cater to this growing demand. There have been
instances of protest against the bottled water companies against the pricing strategy and over
the depletion of scarce resources. However this will have very meager impact on the industry
considering the growing demand for pure and safe drinking water. We can observe that the
overall scenario for the industry is favorable for small as well as larger players. The industry
has considerable growth prospect in newer areas and the macro environmental factors attracts
new players.

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FINDINGS
Bisleri as a brand gains the competitive advantage. It has goodwill in the market. The concept
of the bottled water is prevalent in the western countries as people are very health conscious.
The bottled water slowly and gradually came into existence as Coca-Cola and Pepsi entered
the market. As people think of the mineral water Bisleri is the first name which came into
their mind.
Bisleri has launched itself into many different brands, as Bisleri mountain water and many
more. Bisleri whenever advertise itself on television or on press the only one message which
is delivered is Bisleri is safe and pure.
The bottles are sealed and refilled and recycled on timely basis. The seal of Bisleri bottles
help the customers to remove the doubts which were created in their minds about the purity
of the brand. Thus, the brand itself is the core competency of Bisleri. It dominates the market.
As packaged water industry is growing at a fast rate (2.5%PA). Bisleri has a market share of
60%.
Bisleri maintains the physical and financial resources very efficiently and effectively. These
resources when combined helps in maintain and retaining customers expectations to achieve
the targets of the company. Entering into various segments of the society as it produces
premium, popular and bulk invests a large number and an efficient human resources. The
intellectual capital of the brand is playing the major role as the bottle seal of Bisleri is patent.
Bisleri provides a safe drinking water which maintains and take care of the health of the
people leading and attaining the threshold resources. As Aquafina and Kinley the major
competitors of Bisleri are entering with various strategies to beat the competition Bisleri also
focused itself to increase the awareness of the brand through advertising and fulfilling
customers minimum requirements by giving them pure and safe mineral water to drink.
The various segments it entered into covers different price ranges. The price ranges within 10
to 110 which can be easily available for every section of the society. Bisleri keeps on
advertising again and again that it works on safe and pure form of bottled water, which shows
its complementary resources and competencies. Analyzing these threshold resources and
competencies is important for the organization to sustain itself in the market with the same
position. The seal of Bisleri is also acting as its unique resource as it has got the patent and
other organizations cannot imitate it. The brand Bisleri itself acts as a unique resource as it is

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so popular in the minds of the people that they dont switch to other bottled water easily from
Bisleri.
It started reinventing and focusing on its distribution network which also plays its major core
competency. There were about 15 bottling plants of Bisleri and three franchisees all total
there were 350000 outlets of Bisleri. It works through manufacturers to clearing and
forwarding agents to distributors and finally to the ultimate customers. It has 52 bottling
plants all over the country as in Delhi, Goa, Mumbai, UP, Jaipur, Chennai, Rudrapur and
Bangalore. It is going to expand it by setting up new 25 bottling plants across India which
will help it achieve 40percent more of the growth rate in the fiscal. The new bottling plants
are being placed in Maharashtra, Karnataka, Tamil Nadu, Orissa, Kashmir, Jharkhand, Kerala
and north Bengal. These plants are going to be partly set up the franchisees and partly by the
company itself. The company is also going to double the capacity of manufacturing in
Mumbai and Nagpur.

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RECOMMENDATION AND SUGGESTION

Campaign, stalls to beat local brands & create awareness.

Retailers need to concentrate on 5 and 20 litr bottle which can be possible only if

properly advertised & home delivery of jars are done to the end customers.
The market is too congested and confused in the Delhi & its Ncr region, so the
company should properly promote & strengthen the distribution channel to survive

the competition.
Can enter into premium segment market.
They can tie up with large commercial complex, hotels & airlines industries as they

are the emerging sector.

They can target the youth segment.
Launching trendy packs to attract more and more customers.

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CONCLUSION

The base of BISLERI water is very strong in the Indian market. Its managing director
is one of the biggest achiever in the packed water bottled market.

It is found that its weakness lies in the production. The company was in trouble
because of its production related techniques.

The company has a lot of opportunity which can be exploited in the future which will
give the company a profit, proper utilization of opportunities will be a key to survive
in the market.

But with more and more competitors entering the market, there are also various threat
to company. One wrong step can lead to a white-wash of company from the market in
the future.

There is very good future for mineral water market. Soft drink market might be some
threat to the mineral water at present but within few years the scenario is going to
change. Trend signifying increasing health consciousness amongst Indians could also
be observed.

Market has seen a tremendous growth from the early nineties & now it is increasing
by 70% to 90% every year so one can easily say there is great potential in the mineral
water market.3

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.

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