A Project On Product Management Of Bisleri

In partial fulfillment of the Post-Graduate Diploma in Management (PGDM) Batch: 2010 12

Submitted by:

Under the Supervision of

Ankit Bhavsar (02)

S.Y.P.G.D.M (4 t h SEMESTER)

MR. Devang Desai

Submitted to

GIDC ROFEL Business School

(AICTE Approved)

1|Page

ACKNOWLEDGEMENT
No serious and lasting achievement or success one can be ever achieved without the help of friendly guidance and co-operation of so many people involved in the work.

I am also very grateful to Dr. DEVANG DESAI Our project guide without whose help and guidance, the project would not have been possible.

Concluding, I thank to all those persons who are involved directly or indirectly in manner to accomplish this project.

Ankit Bhavsar

2|Page

INDEX
SR. NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 PARTICULARS OVERVIEW OF WATER BOTTLE INDUSTRY HISTORY OF THE BISLERI THE JOURNY OF THE BISLERI MARKETING MIX SEGMENTATION STRATEGY TARGETING STRATEGY POISIONING STRATEGY PACKAGING DISTRIBUTATION ADVERTISING CAMPIGN OF BISLERI COMPETITION SWOT ANALYSIS OF BISLERI CONCLUSION BIPLOGRAOHY PAGE NO. 3 5 7 8 10 11 11 12 12 14 15 17 22 23

3|Page

OVERVIEW OF WATER BOTTLE INDUSTRY

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. This is the reason why 90% of human diseases are water borne. There are 3 types of water impurities, which are root cause of water borne diseases. 1. Microbiological-Bacteria / virus. 2. Dissolved impurities - chemical. 3. Imbalance of Mineral Content. There are rapid changes that are taking place in our environment since long and the air and the water pollution is on an increase. The main source of drinking water is river and downstream which also have not been able to escape the pollution. 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. 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. The global bottled water industry consist the sale of flavored and unflavored. In India there is sale of only still unflavored water. The industry in Asia-pacific region is growing at rate of 13.2% generating annual revenues of $15 billion in 2009. In India the bottled water sector is the fastest growing sector and the total market size is around Rs 2000 crores. There are more than500 brands present in the industry and the market is mainly controlled by organized sector. The health consciousness among the people, improper water supplies and unpredictable municipal water supply are the various factors which have caused the growth of the sector. The strong growth rate and lower entry barriers have attracted many players. The major players in the market include Parle Bisleri, Kinley,
4|Page

Aquafina, Oxyrich and Bailley. With the growing competition the established players are undergoing a makeover. The major players have introduced new bottle shapes, labels and communication campaign. The off-trade channel which consist of distribution of bulk bottled water is growing on the grounds of unreliable supply of water in many cities during summer. The unorganized players have major presence in the off trade business. The flavored water segment is a niche category and has presence in North India and major cities in India. As the consumer base increases the growth rate for bottled water is expected to increase. The market operates on lower margins, the unit prices are expected to increase on account of high costs in packaging and transportation. The major players after their branding exercise are now concentrating on expansion of their manufacturing and distribution capacities. The major players are trying to establish themselves in bulk water business through brand equity whereas the unorganized players are resisting them through differentiation.

History of the Bisleri

Bisleri was emanates from Italy and the brand name is derived from its founders name Mr.Felice Bisleri, an Italian entrepreneur. In the year 1967, Bisleri established its plant in Mumbai to market actual mineral water which was not successful. In 1969, the company wanted to quit from the business and then it was bought by Chauhan with an intention to convert it in to a soda brand .But today it has captured a huge percent of share in Indian market and making its mark in the international market. In 1969, bottled water of Bisleri was bought from Italian company and then later it was bottled in glass bottles and then in 1980 it shifted to PVC bottles. 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. In the present scenario Bisleri has about 8 plants and 11
5|Page

franchisees all across the country. 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. Bisleri has developed 8 exclusive pack sizes to suit the needs of the consumer. They have come up with to two categories for that, namely, non-returnable packs and returnable packs. In the first category they have 250ml cups, 250ml bottles, 500ml, 1Ltr, and 1.5Ltr and 2Ltr bottles and under their turn able packs they have 5Ltr and 20Ltr cans. In effort to offer its customers something refreshingly new, they recently introduced Bisleri Natural Mountain Water it is the water from the foothills of the mountains located in Himachal Pradesh. So, presently Bisleri has two variants: Bisleri with added minerals and Bisleri mountain water. The minerals found in its mineral variant contain minerals such as magnesium sulphate and potassium bicarbonate. These two minerals that are used are considered to be essential minerals for healthy living. Bisleri over the years has become the brand cum market leader in the bottled water segment primarily because of its rigorous R&D and strict quality control procedures it follows. They maintain severe hygiene conditions in all its plants. The water packaged for consumption is put through multiple stages of purification, then it is ozonized and then only the water is packaged for the final consumption.

VISION
Our vision is to be the dominant player in the branded water business where the second player is less than 20% of our business.

MISSION
We are in the business to serve the customer. He is the most important person. He is the only one who pays. He deserves the best quality and presentation at a worth of the price. We must have world class quality, at the lowest production & distribution cost. This will make us an unbeatable leader, and will have satisfied loyal customers.

VALUES
Integrity, Leadership, Teamwork, Co-operation, Quality, Passion, Openness and Transparency.
6|Page

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 licence of a water bottling in Delhi [ Images ] since some of the bottles did not carry 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 marketshare at 35.1 per cent compared to Bisleri's 34.4 per cent.

7|Page

Marketing mix
PRODUCT
The main product of the company is the mineral water by the name of Bisleri Mineral water. Other than mineral water the company has also the soda water under its brand name called the Bisleri Soda Water. The concept of bottled mineral water was introduced in India, first by Bisleri, and that is the reason, it has become a generic name for the mineral water. Bisleri has become a perfect synonym of the mineral water for the Indian consumers. The main challenge facing the company or any other player in this mineral water industry is that there is no scope of invention and innovation in the product, which can be added as the additional benefits of the product. It is just water after all. This is what the Indian customers think of the bottled water. If we are talking about a product like television we can think that the innovations could provide extra benefits derived from the product. For example other than its core usage the product can provide for Internet facilities using conversion.

PLACE
Place stands for the company activities that make the product available to the target customers. To make the product available to the target consumers a good distribution network has to be there to support the good quality of the product. Here in the case of the mineral water industry the distribution network is the important factor in being competitive and the catch lies in making water available to maximum number of places in the country.

PRICE
Price is the sum of values that consumer exchange for the benefits of having or using the product or service. Price is the only element in the marketing mix that produces revenue. All other elements represent costs. In India, where the majority of the population comprise of the middle-income group and lower income groups it is not hard to understand that pricing is one of the most
8|Page

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. 1.2 Ltrs Rs. 10/2 Ltrs Rs. 20/5 Ltrs Rs. 40/20 Ltrs Rs. 120/-

PROMOTION

Modern marketing calls for more than just developing a good product, pricing it attractively, and making it available to the target customers, companies must also communicate with their customers, and what they communicate should not be left to chance. A Companys total marketing communications program- called its Promotion Mix consists of specific blend of advertising, personal selling, sales promotion, and public relations tools that the company uses to pursue its advertising and marketing objectives.

9|Page

Segmentation strategy
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

Fashion Conscious
Like soft drinks, drinking mineral water is also considered fashionable by some people. The mineral water consumer is mainly in the age group of 20-35 years and is an educated middle class person. This is also the segment of fruit drinks, which have usually been positioned as fun and health drink for young adults.

One litre bottle

This is meant to spell safety and security for consumers. It is positioned on a p r e s t i g e p l a t f o r m f o r t h e a c h i e v e r s e g m e n t w h o l i k e t o m a k e a f a s h i o n 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
The size of the PET bottles varies from 10 to 20 litres. These are mainly for institutional sales (Wedding parties, Hotels, Corporate, etc.)

10 | P a g e

Targeting strategy

Targets middle segment people. Price of the Bottle is such that can be affordable to the all segments. Company planning to target more towards lower segment. Launched 300ml cup targeted at marriages and convention.

Positioning Strategy
Sparking clear water Bisleri position their product on the purity platform. Launch an ad campaign Pure And Safe Bisleri shifted from initial Pure And Safe positioning to a new Play Safe positioning. Sept 2000 shift in positioning from Pure and safe to Play safe People consume mineral water not for mineral but for safety.
11 | P a g e

PACKAGING
Variety is spices of life. Today for any business organization to be successful it has to provide its customer with the differentiated product that is a value buy for them. In order to cater to the changing needs of the customer the business has to continuously come out with the variants of the products so that it can target the maximum segments. Today Aqua Minerals offers a variety of packaging options: 1 lit, 2 lit, 5 lit, 20 lit. The 5 liters bottles account for 35 % of sales showing a growing health concern among the Indian society. 1 liter bottles account for 30% of the share. The 2 liters bottle introduced to slowly and steadily replace the conventional 1 liter bottle. The 5 liters packs launched in Dec 1999 in Goa, now available everywhere.

BRAND BISLERI

PACKAGINGS

PRICE (in Rs.) Per bottle 70 50 22 18 10 8 5

20 litre 5 litre 1.5 litre 1 litre 500 ml 330ml 250 ml cup

DISTRIBUTION
Its obvious that availability holds the key to the market .For any product to be successful the distribution system has to be really good. Large tracts of the country have not been explored by the national brand, which explains the proliferation of smaller brands. Company owned trucks and carts; this would make it the largest fleet owner in the country. Bisleri has around 80,000 retail outlets in the country with about 12,000 each in the Delhi and Mumbai. It is intended to be increased this no. to 10, 00,000 in order to expand brands reach.
12 | P a g e

The company will invest approximately Rs.200 cr. to procure 2000 trucks and hire same no. of sales people. The company plans to have its own distribution network in places where it has its own plant

Distribution Channel

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.

DISTRIBUTION NETWORK
The small-scale players built their sales by piggybacking on the generic category built up by Bisleri. Its a battle that Bisleri can win by sheer distribution muscle. One of the reasons why Bisleri is running strong in this industry is its strong distribution network built over the years since its inception. Further, Bisleri plans to increase its distribution network over the southern and eastern region, where it is behind popular brands like steam in Tamil Nadu and inAndhraPradesh.

13 | P a g e

Distribution Network Of Bisleri

ADVERTISING CAMPAIGN OF BISLERI

Every brand needs a good advertising campaign to establish itself in the market. So it becomes very imperative to look at various ad campaigns that Bisleri undertook to build itself as a brand. Bisleri has started an advertisement campaign stressing the point of purity and flaunting the patent right the company has over the breakaway seal. The company has tried to put the message across louder, by using the ad campaign that catches the eye of everyone, especially the youth. Bisleri started its game plan with the punch line of Pure and Safe and used the same catch-line for advertising. It claimed 100% purity. While the bottles of the other brands, it claimed, could be refilled with ordinary or even germinated water, Bisleris seal capped bottles ensured the consumer of purity of water and single-used ness of the bottles. The ad showed a milk-man and a child showering their buffaloes and filling the so-called mineral water bottles with the same water and packing them with the simple polythene seal and the consumer not knowing about the purity of the water he is drinking. Next clip shows the Bisleri bottles being sealed with plastic caps and ensuring the purity of water. The ad did work for Bisleri and it got its much needed product differentiation

14 | P a g e

COMPETITION

Bailley

Bailley the brand that is owned by Ramesh Chauhans brother Prakash Chauhan is very popular in the southern part of India. Southern part of India accounts for 20% of the sale of the whole water market industry. Bisleri would have a tough competition from Bailley since the company plans to spread its presence in that part of the country. Another thing that makes the competition difficult for the company is the price at which its competitor is offering the product. Like Bisleri it also gives the 1 lt. For Rs.10. The only strength point of the company, which it can capitalize, is its generic name. And also the company would have to enter that market with a strong distribution base. We know the fact that Bailley has grown at a rapid pace using the route of franchising, which Bisleri has not adopted as yet. This is another point, which the company would have to take care of to face the competition

15 | P a g e

AQUAFINA

Aquafina was first launched in the US in 1994. With its unique purification system and great taste, Aquafina soon became the bestselling brand in the country.In India, Aquafinas journey began with its launch in Bombay in 1999 and it was rolled out nationally by 2000. On the strength of its brand appeal and distribution, Aquafina has become one of Indias leading brands of bottled water in a relatively short span of time. Aquafina goes through a five step state-of-the-art purification process to give consumers pure water and perfect taste. Aquafina has been built through refreshing and sharp advertising. The What a Body campaign has helped the brand to drive premium, modern and youthful imagery in an otherwise undifferentiated category. Bottled across India in 19 plants, Aquafina is available across more than half a million outlets. Catering to diverse consumer needs and occasions, it is available in various pack sizes like 300ml, 500ml, 1 ltr and 2 ltr bottles and in bulk water jars of 25 ltrs. Aquafina is the face of PepsiCos water conservation initiatives and builds awareness about Pepsicos efforts to replenish and restore the water table through its pack labels.

16 | P a g e

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 organizations 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 prcised process of multi stage purification which consists of ionization 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 punch line as drink 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 50% per year. Its small pack is increasing its popularity
17 | P a g e

for individual purpose and its bulk pack is creating huge demand which is conducive to captivating the market. The bulk segment of BISLERI is generating 60-70% of total revenue and company is looking forward to augment it to 80%.

Distribution channels
BISLERI has around eighty thousands outlets in India. It distributes products directly to retailers through its large fleet of truck by using a system known as route selling in which truck driver is trained as a service man. This helps in maintaining the freshness of water and shape of bottles.

The safety seal

In order to deliver the quality product to the customer every bottle of BISLERI is sealed with a unique cap which is patented and cannot be replicated. This is a technical strength of the company which guarantees that customer will get product of standard quality not duplicated.

Weaknesses
Reusable bottles
According to some relevant market research it is found that bottles are reused and refilled with unhealthy water at railway stations. The tampering of seal and reuse of bottles is a matter of concern for consumers and for company also. It defames the brand image of the company. For example- some local sellers fill BISLERI bottles with impure and unhealthy water and they sell it to uneducated customers as BISLERI water which affects their health and brand image of the company.

Errors in production
Some faults have been found in the production process of Bisleri products. In some purity tests pesticides were found in water. In the year 2002, tests were conducted by authorities they found 2 cm insect in Bisleri bottle. That has reduced its sales and brought down there putation of the company. Some factories lost their license due to faults in production.

18 | P a g e

Government pressure
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.

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.

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 channel in 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
19 | P a g e

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.

lteration 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.

Threats
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 them Competition. There are some other brands like EVIAN, ATCO, BRILLIAN water; DS FOODS are also looking forward to launch their
20 | P a g e

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.

21 | P a g e

CONCLUSION
1. 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.

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

3. 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.

4. 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.

22 | P a g e

BIBLIOGRAPHY
1) 2) 3) www.bisleri .com http://www.rediff.com/money/2005/jun/10spec.htm http://www.domainb.com/companies/companies_p/ parle_bisleri/index.html 4) 5) http://www.mallenbaker.net/csr/nl/49.html http://www16.brinkster.com/nikhilpahwa/content/ weblog/news_display.asp?PageIndex=5 6) 7) http://www.india- today.com/btoday/20010916/feature1. www.bis.org.in

23 | P a g e