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Case learnings
Pioneer brand strategies
Strategies to build difficult to advertise & transport brand
Brand generic to category, but not preferred
Technology driven cost cutting
Risky identity change drove volumes
Range by occasion, focussed promotion, penetration
Street smart Desi common sense in PLC management
Parle
1929: Parle Sweets, Vile Parle, Chauhan Bros, boiled sweets
GenericBoon
or
Curse
Bisleri- generic for bottled water
Demand Bisleri, but also accept Kinley, Aquafina,
Bailey
Lack of brand consciousness
Amul Butter- customers insist, decline other brands
300 B
Indian organised sector- Rs 2500 crore, 1% GMS, @ 25%
15% MS of packaged beverages, N7Y 30%
Bisleri 60% volume MS @ 35%, 40% value MS
Bisleri- generic for bottled water
Sector
Consumption B Lit
Bisleri 2011
L10Y- 20X sales, growth @ 40% CAGR, current 80%
86 plants
1 million SKU daily
Bisleri valued at Rs 4,000 crore
Bisleri succeeded as Coke & Pepsi were busy with
Bisleronomics
Origin
1965, Felice Bisleri, introduced bottled water in India
1969, Parle M&A Bisleri (Demand for Bisleri Club Soda)
We bought Bisleri, but didnt look at the water
business RC
4L units, 90% soda, Water 5 retailers- 4 Mumbai, 1
Kolkata
Bisleri glass bottles, Bubbly and Still
Dilemma
Created category from scratch
Expensive, colourless, tasteless, odourless- advertise?
Product, difficult to market product- create awareness
People not used to paying for water
Target foreign tourists / NRIs, no local target consumer
Availability- top- hotels, restaurants, retailers
Post 1993, focus on Bisleri water
Competition
1,200 bottled water plants (BIS), 600 TN, 500+ regional
brands
Bottled water market 2.2X L soft drinks market: AC Nielsen
Bailey 29-60 plants, Bailley 5 lakh retail outlets
Threats- Water purifiers, Neer Railway 5L L/day
Key- dealer%, promotion, local manufacturing, capacity,
packing
West, 40
North, 30
Euromonitor 2010
http://www.euromonitor.com/bottled-water-in-india/rep
Initial Branding
Platform- Safety
Italian name- classy, international essence
1st ad- Butler with a bow tie, holding 2 bottles of
Bisleri
Base line "Bisleri is veri veri extraordinari
Spellings designed to capture consumer's attention
Bisleri perception- safe, healthy drinking water
Progress
Opportunity- water scarce & of poor quality
Increased distribution reach
Efficient trade management
Reached out to the masses, volumes and penetration
Made the category affordable
Packing / Packaging
Mid 1980s- Glass to PVC packaging
Late 1980s- PET, sparkling clear water, better water life
High price- low volumes, nascent packaging industry
1993- L bottle @Rs 5, convenience, single user- 4X growth
1998- tamper-proof and tamper-evident seal
2000- NPL 1.2L bottle, high margins, family, share water
2002: Kinley 35% overtook Bisleri 34%- ORG-MARG
plastic/bottle, saving Rs 3 cr
Round bottle labelling increased speed 10X
PP film label- 4 colour, half costs- Rs 6 cr
Uniform design for all product sizes
Bottling capacity doubled
Bulk
Segment
2000: Bottled-water market 100 crore @ 50%, Bisleri 40% MS
Losing MS, opportunity- drinking water for commercial firms
Bulk segment entry- 12L / 20L can, price crashed- Rs 12 to Rs
3/L
Friendlier- pouring spouts, jars with dispensers
2004- Bisleri regained No 1 spot
2008- Bulk segment 60-70% sales
Insights
At wedding receptions, older guests (50+)
generally stayed away from ice creams and soft
drinks. So we introduced free sampling of Bisleri at
tables where elderly guests would sit. Soon
customers were ordering bottled water on special
occasions. Current consumption of bottled water is
far in excess of soft drinks on such occasions.
Growth drivers
Developed - TN, Gujarat, Maharashtra (30% contribution)
Opportunity- Kerala, J&K, HP, Jharkhand absent, HoReCa
Focus- bottled water focus (Nokia), survival
Coke, Pepsi, Kingfisher, Nestle- water not the flagship
Extensions- premium segment, no fruit juices or beverages
Growing hygiene-conscious, health & wellness awareness
Lack of drinking water, contaminated water
Operations
Rs 220 cr investment in 3Y- 32 new plants & distribution
MS, Kerala, J&K, HP, TN, Karnataka, UP, Orissa, Jkhand, WB
2X manufacturing capacity- Nagpur, Mumbai
Current capacity 3.50-cr cases pa
Sales force 2,500 people + 500-600 back-end
Margins wafer-thin, volumes critical, distribution crucial
Plants close to markets- take on local competition
6 step purification
Costs
Cap
0.50
Bottle
2.00
Water + Treatment
0.50
Label
0.50
Carton
0.50
Transportation
1.00
Others
1.00
4.00
Costs
10.00
Selling Price
11.50
Profit Margin
1.50 (15%)
Margins- Trade /
Institutional
30-35% / 40-60%
Pricing
SKU
MRP
Price Rs/ L
20L
80
15L
70
4.50
5L
35
2L
25
12.50
1L
15
15
500ml
10
20
250ml
24
Vedica 1L
25
25
Vedica 500ml
20
40
Distribution
Distribution86 Factories
C&F
Institutions
32-66%
Distributors (Trade)
3400 (6-20% margin)
Railways, Airlines,
Hotels, Clubs etc
Retailers
3.5L (13-43%
margin)
2500
Salesmen
Trade Margins
SKU
250ml
500ml
1ltr (regular)
1ltr (railway)
2ltr
5ltr jar
20ltr jar
15ltr jar
1ltr vedica
500ml vedica
Distributor Institutions
Retailer
Margin % % Margin
Margin % (on PTR) % (on PTR)
Trade
(on MRP)
Margins %
25
7
10
32
29
8
19
37
38
10
30
48
60
6
6
66
34
9
20
43
17
20
0
37
18
6
8
24
13
11
11
24
30
7
17
37
43
23
49
20L
Family/ friends
who share water
5L
2L
1.5L
Convenience /
single user
1L 500ml
250ml
Bottle
Glass
Sales Contribution
Himalayan
pa, HP
2007- Tata Tea M&A- Rs 25-cr, 2011 45% @210cr
Differentiation- bottled at source, 1st mover, institutional,
Rs25/L
Wellness, Tata Tea 10L retail reach, US/EU/Japan
accreditation
Challenge- justify price/ benefits, build brand, category,
reach
Multi-modal- SE by railways, institutional direct-to-market
Legal
Penchant for controversies- Coke, Himalayan, Parle brand
2006- NPL BMWfrom the Himalayas
Case-Himalayan brand exclusivity v Tatas
Tatas- Himalayancopyright
Bisleri- Himalayan generic, cannot be registered trademark
Tata Group lost exclusive rights over word Himalayan
Intellectual Property Appellate Board Registering word
Rebranding
2006, Ubiquitous blue to international aqua green
Courageous for a generic brand
Aqua green- freshness & health, qualities associated
with water
Stood out among blue-toned competitors &
counterfeiters
Impact- Growth of 40-50%
Availability
20%
Water Purity
28%
Packagingsafety
22%
Brand
26%
Brand Extension
Existing
Category
Existing Brand
New Brand
Line Extension
Category
Extension
Sub Brand
BMW from
Himalayas
BMW
New Brand
Vedika
Tag Lines
1990s- Pure and Safe
1998- 100% purity- sealed cap bottles
2000- The sweet taste of purity
2008- Play Safe- target youth
2011 Stay protected
March 2011
Stay protected
Rs 50 cr brand campaign
Traditional anti-germ 'Dettol-routeshift
TVC with animation, OOH, SNS
'Stay Protectedhighlights what brand does for
customer
Protection- health, hygiene, quality and purity-
I drink mineral
water to ensure
safety when I am
out of house.
Dealer Boards
Truck panels
Billboards
Animated TVC
4Ps
Price- VFM
Segments
Segment
Brand/s
Competitio
n
Premium natural
Imported,
mineral water
Perrier
premium
Price/L
Rs
120-200
MNC
Natural mineral
water
Vedika, Bonaqua
Packaged
drinking water
NC, MNC
30
NC, MNC
15
Regional,
12-14
STPD
Segment
Bottled
Water
Target
Offices,
Homes,
Travellers,
Occasions
Positioning Differentiatio
Safety,
Protection
Generic
brand,
trust
Safe
Break away
seal
Pure
6 step
purification
Protection
1st mover,
generic
POD
Generic
Protection
Multi packs
Affordable
(shared with
Kinley,
Bailey,
Aquafina)
competition
firms
Target segment
Consumer
behaviour
protection
Point of parity
consistency
Protection,
trust
Identity
Image
(Perceptio
n)
Logo,
colour,
generic
Customers Mind
Pure,
safe
Aakers
Model
Extended
ch
a
Re
Pr
ot
ec
tio
n
Core
Available
Brand Essence
Safe
Generic bottled
water
Pure
Tru
s
Range
ca
c
O
ns
o
i
s
Relationship
(Brand to customer)Trust
Reflection (Customer
identifies wrt brand)Safe
Personality (Soul)Sincere
Culture (Brand in
customers conscience)
Pure, friendly
Self-Image (Customer
identifies brand wrt self)Protected
Internalisation
Externalisation
R
Br elat
an ion
dc s
us hip
tom
er
c
Int
en
se
loy
alt
y
Po
Re
W spo
ha n
t a se
bo
ut
yo
u
Low loyalty,
advocacy, attachment
ive
sit
Identity
Awareness
OD
/P
Protection
P
PO
M
W ean
ho in
ar g
ey
ou
ns
tio
ac
re
Kellers
CBBE /
Brand
Equity
Pyramid
on
ne
ct
Building blocks
Stay
Protected
New
Geographies
Alaska
Bottle
Blue to Green
Tamper proof seal
NPL
1960s
Glass
Bottle
1970s
PVC
0.5L@Rs5
PET
1980s
1990s
New
Plants
Bada 1.2L
Bulk Pack
2000s
2010+
Future
NPL Bisleri ice cubes
15L pack with tilt base for homes
BMW- international foray- Europe, US, West Asia
Enhanced / vitamin/ flavoured/ designer waters
I am not an original thinker, but like to learn
Deja Vu
If Thums Up could be sold
No money to promote all brands, owned only 4/62 bottling
References