Bisleri project for management student

Marketing of maineral water-Bisleri

Executive Summary Package drinking water: The fountain of all life. Even a toddler will tell you it is a prime need of the body. Sixty per cent 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. Getting pure drinking water from municipal taps in cities and towns is now a luxury. At home most people are forced to either boil water or install purifiers. While traveling or eating out in restaurants, buying bottled water has become a necessity. This need has seen an explosion of companies marketing “safe drinking water” in bottles across the country. Now around 100 companies sell an estimated 424 million liters of bottled water valued at around Rs. 200 crore in the country annually. The tradition of bottled water and mineral water is not very old. Even in western countries the practice of bottled drinking water started in 1950s. The trend of having mineral water gained grounds in the market. Since ancient time people have used water from mineral springs, especially hot springs, for bathing due to its supposed therapeutic value for rheumatism, arthritis, skin diseases, and various other ailments. Depending on the temperature of the water, the location, the altitude, and the climate at the spring, it can be used to cure different ailments. This started the trend of using mineral water for drinking purpose to exploit the therapeutic value of the water. This trend started gaining momentum in mid 1970s and since then large quantities of 1

Marketing of maineral water-Bisleri bottled water from mineral springs in France and other European The concept of bottled has been quite prevalent in western countries due to greater health consciousness and higher awareness about health and hygiene countries are exported every year. In INDIA with exposure of media and exposure to international life styles, deteriorating levels of potable water, increase in a number of water borne cases, increase 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 operators have entered it to milk it.

Table of Content 2

Marketing of maineral water-Bisleri

Chapt

PARTICULARS

Pg. No.

er 1

GENERAL INTRODUCTION

1-3

1.1 Objective 1.2 Research Methodology 1.3 Scope Of Study 1.4 Limitations 1.5 Sample 2

PACKAGE DRINKING WATER

4-9

2.1 How is Bottle water different from Tap water 2.2 Competition 2.3 Types Of Bottle Water 2.4 Growth In Bottle water Industry

3

BISLERI

10 - 12

3.1 Introduction 3.2 Expansion 3.3 Bisleri Today

4

MANUFACTURING PROCESS

12 -18

4.1 Storing Of Water 4.2 6 Stages Of Water Treatment Plant 3

Marketing of maineral water-Bisleri 4.3 Blowing Process 4.4 Blowing Plant 4.5 Filling Part 5

MARKETING MIX

19 - 36

5.1 Product 5.2 Price 5.3 Place 5.4 Promotion 5.5 Segmentation 5.6 Marketing Practices 5.7 Trade Promotion Tools 6

CASE

37- 42 6.1 How Bisleri Reinvented Itself & Stayed at the Top even when New companies came into the market 6.2 Colour Of Money 6.3 Market Buzz

7

FUTURE

43- 45

7.1 Future Plans 7.2 Bisleri’s plans Of Expansion

OBJECTIVE Through this project my objective has been to understand the following: • To know about the current scenario of bottle water market. 4

Marketing of maineral water-Bisleri • The reasons for a stunted growth in the package drinking water brand • To know how the brand BISLERI still rules the bottle water market • To know the marketing strategies applied by BISLERI, its manufacturing process its 4 Ps etc and what is its impact on the consumers • To understand and realize the needs and wants of consumers and how to fulfill them • Finally I carried out a survey to find out which is the most preferred brand by the people & the survey was carried on in south Mumbai specially in areas like church gate and colaba.

How is bottle water different from tap 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. 5

Marketing of maineral water-Bisleri

Another factor to consider is the distance tap water must travel and what it goes through before it reaches the tap. In compliance with international regulations, bottled water is sealed and packaged in sanitary containers. If a bottled water product is found to be substandard, it can be recalled. This can’t happen in case of tap water. According to regulations in the US, when bottled water is sourced from a community water system the product label must state so clearly. However, if the water is subject to distillation, de ionization or reverse osmosis, it can be categorized that way, and does not have to state on its label that it is from a community water system or from a municipal source. Processing methods such as reverse osmosis remove most chemical and microbiological contaminants

6

Marketing of maineral water-Bisleri

Competition The bottled water industry has two other industries as its biggest competitors in from of Water purifiers industry and the soft drinks industry. Though the water purifier industry should be credited to have done the spadework, for setting up the foundation of bottled water industry but still it acts as competitors especially in the household and institutional consumption market. So the water purifier is a strong competitor in household and institutional market the soft drinks market is a strong rather very strong competitor in the retail consumption market. Bottled water became a product in the West during the 1920’s and developed rapidly. Huge market size, numerous local brands and controlled price mechanism are some of the features of the market there. Consumers in the West are quality conscious and display brand loyalty. Indian consumers lack on both the counts. In Asia, Indonesia is the largest and the oldest market for bottled water. In India, bottled water is still not perceived as a product for masses though; the scene is changing slowly thanks to low pricing and aggressive marketing strategy adopted by new entrants. Some surveys show that truck drivers on highways form a major chunk of bottled water drinkers. Penetration in rural areas is another significant factor that is likely to play a key role in the development of the bottled water trade. In comparison to global standards India’s bottled water segment is largely unregulated. Safe water is rated with a different yardstick in different countries. In India, the aspect has been overlooked for long. Indian consumers tend to believe that any bottled water is safe water. This may not be the case. 7

Marketing of maineral water-Bisleri

Types of Bottled Water

There are several different varieties of bottled water. The product may be labeled as bottled water, drinking water or any of the following terms. Artesian Well Water: Bottled water from a well that taps a confined aquifer (a water bearing underground layer of rock or sand) in which the water level stands at some height above the top of the aquifer. Drinking Water: Drinking water is another name for bottled water. Accordingly drinking water is water that is sold for human consumption in sanitary containers and contains no added sweeteners or chemical additives (other than flavors, extracts or essences). It must be calorie-free and sugar- free, Flavors, extracts or essences may be added to drinking water, but they must comprise less than one-percent- by –weight of the final product or the product will be considered a soft drink. Mineral Water: Bottled water containing not less than 250 parts per million total dissolved solids may be labeled as mineral water. Mineral water is distinguished from other types of bottled water by its constant level and relative proportions of mineral and trace elements at the point of emergence from the source. No mineral can be added to this product. Purified Water: Water that has been produced by distillation, deionization, reverse osmosis or other suitable process can be labeled as purified bottled water. Other suitable product names for bottled water treated by one of the above processes may include “distilled water” if it is produced by distillation, “de-ionized water” if the water is produced by deionization, or “reverse osmosis water” if the process used is reverse osmosis.

8

Marketing of maineral water-Bisleri Sparkling Water: Water that after treatment and possible replacement with carbon dioxide contains the same amount of carbon dioxide that it had at emergence from the source. Spring Water: Bottled water derived from an underground formation from which water flows naturally to the surface of the earth. Spring water must be collected only at the spring or through a borehole tapping the underground formation finding the spring. Well Water: Bottled water from a hole bored drilled or otherwise constructed in the ground, which taps the water of an aquifer.

Growth in Bottle Water Industries: • It was in 1967 that BISLERI set up a bottling plant for manufacturing and marketing its mineral water, which failed badly. • In 1968-69 the brand “ BISLERI” was sold to the “Parle group” by the Italian company, Parle group launched BISLERI soda and mineral water, but again the concept failed as the Indian customer was not ready to buy water in bottled form. • The market remained dormant for the next two decades (i.e. from 1970 to 1990) the market throughout this period was formed mainly by the premium segment like five- star hotels. • In the early 1990’s was the onset of liberalization policy, and sell-off of major soft drinks brands, BISLERI was compelled to test the waters again. • Today the demand of bottled water is increasing at a much higher rate that of carbonated soft drinks. The market size of bottled water too is 9

Marketing of maineral water-Bisleri expected to surpass the size of soft drinks market in near future. HLL, which too has identified the bottled water as a growth area of future, is presently looking or some suitable brand for acquisition. Britannia too evinced some initial interest in the market but now seems to have postponed its plans. The existing players too are set to expand their distribution network to have their presence across the country. • The market is also expected to undergo a major consolidation phase. As one of the major factors that are important for success in the market is the distribution network, the players with deep pockets are expected to go for acquisition of existing small regional players to spread their network across the country. Already Coke has tied up with Yes for manufacturing of its brands in areas where it doesn’t have presence.

• Though Coke and Pepsi have both, well established distribution network as well as bottling & manufacturing plants, they seems to be at advantage but players like HLL and Nestle with strong financial muscle can easily turn the tables in their favor through acquisition route.

10

Marketing of maineral water-Bisleri

The following table shows the growth in the package drinking water industry

Year 1996-97

Growth rate 3-4 %

1997-00

10 %

2000-02

50 %

2002-04

70 %

2004-09

90%

11

Marketing of maineral water-Bisleri

Introduction of Bisleri In 1967, Bisleri an Italian company, started by Signor Felice Bisleri, 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.Marketing and Brands Blog Bisleri a brand name synonymous to mineral water in India. It has approximately 60% market share in packaged drinking water in country. Brand is owned by Parle Company, which bought over Bisleri in 1969 from Italian company. Initially, Bisleri faced the problems of acceptance from consumers. It was difficult to advertise for a company something as a bottled water, which is colourless, tasteless and odourless. In mid eighties company changed its packaging to PET bottles which shows transparency and clear water to consumers. This gave mineral water market a boost. In India, water is scarce and quality is poor so initially the consumers were only foreigners and NRI’s. Therefore, to increase its customer’s base, company came up with comfortable and affordable price bottle which was a great success and showed 400% growth. India bottled water market is appox is worth Rs 1,000-1,200 crore (Rs 1012billion). Seeing this growth over the years, many new players have entered the market. Amongst them Kinely from Coke, Aquafine from Pepsi, kingfisher and now Himalayan from Tata are main players of industry. There are many ups and down in last couple of years but brand recall of Bisleri is amazing which helped company. In order to differentiate form other players company tries to come up with different and new campaigns on regular intervals 12

Marketing of maineral water-Bisleri In case of food and water, whenever people are suspicious of the quality of product they don’t eat unhygienic food and instead of having non purified water they prefer to stay thirsty. Bisleri itself seems to play on this need for safety, coining the popular tag-line ‘Play it safe’. The advertising helped differentiate the product from its competitors who, more or less, communicated nothing. Bisleri’s seal was also breakaway (hence irreplaceable), even though this manufacturing process of sealing seems to be slow and could clog up the assembly line. Somewhere along the now that space was occupied by Aquafina and Kinley. The “safe” breakaway seal was replaced by a regular seal, but the change wasn’t communicated and more variants (packaging) emerged. Some of these variants were sold simultaneously. They were manufactured in different parts of Delhi, and one had the website www.bisleri.com printed on it, while the other had www.bisleri.co.in printed. So, the mistake was a complete lack of communication on Bisleri’s part. Now they have a new product out - a mineral water brand (as opposed to a packaged drinking water brand), and they are advertising it. Still, there are three types of Bisleri bottles in the market in Delhi right now. Now again Bisleri changed its packaging and came up with a new bottle. It has been general feeling that Kinley’s new packaging is more acceptable by the people as it is easy to grip it. In a packaged water market, where the product is not so differentiated, the company has to constantly innovate new branding techniques, distribution channels, advertising and in fact new packaging techniques. According to the Bureau of India [ Images ]n Standards there are 1,200 bottled water factories all over India (of which 600 are in one state -- Tamil Nadu). Over 100 brands are vying for the Rs 1,000-crore (Rs 10 billion) bottled water market and are hard selling their products in every way possible -- better margins to dealers, aggressive advertising, catchy taglines.... In such a scenario, The Strategist takes a look at how it all started -- with Bisleri -- and how Ramesh Chauhan, chairman, Parle Bisleri created a market out of pure water. Excerpts from a conversation with Prerna Raturi: Western Express Highway in Mumbai has been the route to success for two well-known men. One was the make-believe super biker cum thief Kabir aka 13

Marketing of maineral water-Bisleri John Abraham in the Bollywood flick Dhoom; and the other is the crafty Ramesh Chauhan, who has masterminded the runaway success of the Rs.500 crore bottled water brand, BISLERI in the country, from his 1st floor office in the

sparkling

green

aqua

fill

BISLERI

building.

BISLERI was originally an Italian Company created by Signor Felice BISLERI who first brought the idea of selling bottled water in India. BISLERI then was introduced in Mumbai in glass bottles in two varieties – bubbly & still in 1965. Parle bought over BISLERI (India) Ltd. in 1969 & started bottling Mineral water in glass bottles under the brand name ‘BISLERI’. Later Parle switched over to PVC non-returnable bottles & finally advanced to PET containers. Since 1995 Mr. Ramesh. J. Chauhan has started expanding BISLERI operations. In 2003 BISLERI announced its venture to Europe. For over 30 years, BISLERI has been the pioneer in the bottled water industry with its innovations and an eye for perfection. And ever since it was established in 1969, BISLERI has constantly searched for inspiration in nature.

14

Marketing of maineral water-Bisleri

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.

15

Marketing of maineral water-Bisleri

EXPANSION Chauhan 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: Expansion plans 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.

16

Marketing of maineral water-Bisleri Under the leadership and vision of Mr. Ramesh J. Chauhan, BISLERI has undergone significant expansion in their operations. The company has witnessed an exponential growth with their turnover multiplying more than twenty times in a short span of 10 years. The average growth rate over this period has been around 40% with BISLERI enjoying more than 60% of the market

share.

Currently BISLERI has 11 franchisees and 8 plants across India; with plans of setting up 4 new plants on water industry in India which has made it Synonymous to Mineral water and a household name. So naturally 'When you think of bottled water, you think BISLERI'.

17

Marketing of maineral water-Bisleri

BISLERI TODAY BISLERI values its customers & therefore has developed 8 unique pack sizes to suit the need of every individual. We are present in 250ml cups, 250ml bottles, 500ml, 1L, 1.5L, 2L which are the non-returnable packs & 5L, 20L which are the returnable packs. Till date the Indian consumer has been offered BISLERI water, however in our effort to bring to you something refreshingly new, we have introduced BISLERI Natural Mountain Water - water brought to you from the foothills of the mountains situated in Himachal Pradesh. Hence our product range now comprises of two variants: BISLERI with added minerals & BISLERI

Mountain

water

It is capturing its market in India as well as other continents. BISLERI has been no 1 and is capturing Indian market by providing best quality over a period of long time. None of the water products in line are able to compete with BISLERI and thus BISLERI stand unique in the market. Bisleri’s commitment is to offer every Indian pure & clean drinking water. BISLER water is put through multiple stages of purification, ozonised & finally packed for consumption. . Rigorous R&D & stringent quality controls has made BISLERI

a

market

leader

in

the

bottled

water

segment.

BISLERI’S endeavor to maintain strict quality controls each unit purchases performs & caps only from approved vendors. BISLERI produces their own bottles in-house; & have recently procured the latest world class state of the art machineries that puts them at par with International standards. This has not only helped them improve packaging quality but has also reduced raw material wastage & doubled production capacity. You can be rest assured that you are

18

Marketing of maineral water-Bisleri drinking safe & pure water when you consume BISLERI. BISLERI is free of impurities & 100% safe. Enjoy the Sweet taste of Purity !

Manufacturing Process BISLERI manufacturers its own products and has its own manufacturing unit which includes various machines, the whole manufacturing process is carried on by BISLERI at its plant. The whole manufacturing process is divided into different parts and it consists of different activities like water purification treatment, blowing of the bottles, filling of the bottles, packing of the bottles etc. The manufacturing process of BISLERI is carried on in different parts: Storing Of Water The water is taken from the boring well and then is stored in huge tanks, BISLERI has 6 tanks of 50,000 litres each, and water is first taken from the boring well and stored in these tanks.

19

Marketing of maineral water-Bisleri Tanks in which water is Stored

6 STAGES OF WATER TREATMENT PLANT: 1. OZONATION 2. FILTERATION 3. CARBON FILTERATION 4. RESERVE OSMOSIS SYSTEM 5. MICRO FILTERATION 20

Marketing of maineral water-Bisleri 6. OZONE TREATMENT 1) OZONATION: The process of ozonation ensures that the water remains free from bacteria, so that the water can have a longer life and the machine used for this process of ozonation is called ozonator.

2) FILTERATION: The process of filteration removes suspended particles from the water by sand filteration.

3) CARBON FILTERATION: The stage of carbon filteration removes bad odour and colour from water and purifies it.

4) REVERSE OSMOSIS SYSTEM: This stage of reserve osmosis system controls all the dissolves solid particles and it converts hard water into soft water.

5) MICRO FILTERATION: Under this stage of micro filteration additional safety measures are taked to guarantee purity of water. In this stage addition of mineral magnesium sulphate and potassium bicarbonate is processed. 21

Marketing of maineral water-Bisleri

6) OZONE TREATMENT: The ozone treatment increases the shelf life of water. To ensure mineral water is held safe free from contamination, ultraviolet treatment and ozonisation 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. Sterilization effect of ozonised water continues even after water is packaged, thereby ensuring safety of Mineral Water up to its final packing. To ensure high quality of packing materials, components like caps and bottles are manufactured in-house from resins of quality suppliers. Good Manufacturing Practices are stringently followed at all times. Processing is religiously monitored at every stage. Testing source water, processing parameters, microbial quality, packaging material integrity and finally, shelf life studies, forms an integral part of quality and safety assurance plan.

22

Marketing of maineral water-Bisleri

Bisleri to have own distribution network Sudha Menon PUNE, April 4 PARLE Drinks plans to put up its own distribution network across the country for the Bisleri mineral water brand. The company will invest approximately Rs. 200 crores to procure 2,000 trucks and hire the same number of sales people by end-2000 to extend the penetration of the brand. Mr. Ramesh Chauhan, Chairman, Parle Drinks, said he expects an almost 400 per cent growth in business when the number of trucks transporting Bisleri mineral water doubles from the current 1,000.

Predicting that he expects his company's turnover to touch Rs. 1,000 crores within the next two years, he said the idea is to ensure that the Bisleri brand reaches every nook and cranny of the country. He said: ``The key to success in any business is the distribution and if you have that in your control, you have won more than half the battle.''

Meanwhile, Mr. Chauhan, who puts Parle's 1999-2000 turnover at Rs. 350 crores (up from Rs. 160 crores last fiscal), also plans to grow the market with the five-litre value pack, targeted mainly at homes and institutions.

23

Marketing of maineral water-Bisleri This bottle, priced at Rs. 25, essentially makes mineral water available to the consumer at Rs. 5 a litre. The one-litre bottle is available at Rs. 12, while the half-litre one is priced at Rs. 5. Mr. Chauhan is now on the look-out for highquality cups to make the water available in smaller quantities.

Consumers who buy the five-litre value pack have to pay a Re. 1 deposit to the retailer, which can be redeemed once the bottle is returned. The five-litre packs, launched last December in Goa, are currently available in six cities, including Delhi, Bomba y and Bangalore, and sell over 5,000 bottles a day, according to Mr. Chauhan.

``The company hopes to make the value packs available across India in the next couple of months,'' he added.

He is, meanwhile, dispatching people to Japan this week to procure a recycling plant for the PET bottles and said at least two such plants would be set up in Chennai and Delhi at the cost of Rs. 5 crores each, by the end of the year.

Crushed and compacted bottles from other parts of the country will be transported to the two plants, Mr. Chauhan said, adding that a better part of the compacted PET will go into the manufacture of polyester yarn: ``I have already discussed _ with Relian ce and a couple of other manufacturers _ the possibility of selling the polyester yarn thus manufactured.'' He hopes to ensure that all used Bisleri bottles come back to retailers by offering incentives.

The company plans to double its advertising budget from the Rs. 3 crores of last year to Rs. 6 crores next year, according to Mr. Chauhan, who said it will also promote the five-litre pack with events and PoP displays.

24

Marketing of maineral water-Bisleri With business growing exponentially, Mr. Chauhan is convinced that water is the business to be in: ``Bisleri is almost a generic name, the No. 2 in the business is way behind me, and I hope to keep it that way.''

25

Marketing of maineral water-Bisleri

BLOWING PROCESS: A small tube like plastic which is known as ‘PRE-FORM’ is blown with the help of a machine called SIDEL which has a temperature of about 80 to 90 degree Celsius, when this PRE-FORM is put into the SIDEL machine it is blown up by its heat and turns out into a bottle in a specific shape according to the mould plates available in the SIDEL machines which gives the bottles a specific shape

PRE-FORM

26

Marketing of maineral water-Bisleri

BLOWING PART The small tube made from plastic known as PRE-FORM; initially was manufactured but due to hygienic reasons it was stopped and now it is got from outside and is out sourced. The SIDEL machine is only used for blowing the empty bottles. Even the caps of the bottles are outsourced as the manufacturing of the caps would involve a lot of time. So the SIDEL machine only helps in the blowing of the bottle according to mould plates available in it which give it a perfect shape and the PRE-FORM and the bottle caps are outsourced.

SIDEL

27

Marketing of maineral water-Bisleri

FILLING PART Once the empty bottles are made and blown up the water is filled into it. The machine used for filling the water in the blown bottle is called Dynathronic. The speed of this Dynathronic machine is that in one minute 110 bottles can be filled. There are 7 stages to the filling process; they are: 1) The bottle is sterilized with air pressure 2) Then the bottle is filled with water 3) The bottle is sealed with a cap 4) Labeling of the bottle takes place 5) All mandatory information such as marking the batch number, manufacturing date, expiry date and MRP. 6) Inspection of the bottle such as checking, sealing, printing and filling. 7) Lastly the bottle is packed.

28

Marketing of maineral water-Bisleri

Marketing Mix 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 market” In simple words marketing mix is the combination of four basic elements / ingredients under one head. The 4Ps ie Product, Place, Price, and Promotion.

29

Marketing of maineral water-Bisleri

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.

Products Produced by BISLERI

30

Marketing of maineral water-Bisleri

BISLERI with added Minerals BISLERI Mineral Water contains minerals such as magnesium sulphate and potassium bicarbonate which are essential minerals for healthy living. They not only maintain the pH balance of the body but also help

in

keeping

you

fit

and

energetic

at

all

times.

Bisleri Mountain Water BISLERI Natural Mountain emanates from a natural spring, located in Uttaranchal and Himachal nestled in the vast Shivalik Mountain ranges. Lauded as today's 'fountain of youth', BISLERI Natural Mountain Water resonates with the energy and vibrancy capable of taking you back to nature. BISLERI Natural Water is bottled in its two plants in Uttaranchal and Himachal Pradesh and is available in six different pack sizes of 250ml, 500ml, 1 litre, 1.5 litre, 2 litre and 5 litres.

Himalayan Water The water that almost descends from the Gods: The Himalayas, the abode of the Gods, where the earth meets the heavens and where in lies nature's untouched bounty. White glaciers, snow-capped 31

Marketing of maineral water-Bisleri mountains and a plethora of exotic herbs and other flora that have therapeutic properties. This is where you'll find a treasure trove of hidden natural spring water that flows through natural purifying filters, mineral rich rocks and herbs from which it absorbs many healing properties. We bottle this pristine spring water directly at source, at the foothills of the Himalayas. And now the customers, will get every drop of purity, right here, in this bottle. BISLERI Mountain Water is available in 500ml. bottles & 1 litre bottles.

Quality 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

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. 32

Marketing of maineral water-Bisleri 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. This shows that the whole batch is replaced and stopped which indicates high quality control. Even practically every 2 days testing and sampling of the water and its bottles are done in the market and in their Quality Department to check in case anything is wrong or not. In fact there is a quality checker under the quality department for the final checking done of the water before it is entered the market. There is also a warehouse where the 20 litre bottles are kept for 48 hours to allow the ozone to settle in it. This helps in prevention of any germs or harmful chemicals and also purifies the water. The cost of quality undoubtedly is very efficiently taken care of in BISLERI, there are times when the cost of quality increases i.e. in the rainy seasons the cost increases because the water is purified twice than the normal seasons as sometimes the water might be dirty due to the rains, bisleri doesn’t take any risks and does not compromise with their quality. Online Monitoring System

33

Marketing of maineral water-Bisleri

Design Creativity: 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 a new 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 2008 which was a compact and ideal gift for the customer. This includes a 20litre bottle, 2 fridge bottles, 1.5 litre bottle and a 34

Marketing of maineral water-Bisleri 250 ml bottle with a fridge stand .This was experimented for a month and which resulted in the lot of demand.

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.

Old Bottle

New Bottle

Labeling Labeling plays a very important role BISLERI takes good care about the labeling as it tries to create and come up with an exciting and attractive label as it will attract the customers; also labeling plays an important role as it gives a lot of information about the product ; like what are the contents of a bottle how 35

Marketing of maineral water-Bisleri is it made what does it consist etc. Also labeling gives a lot of information about the product ie the price of the product; manufacturing date; expiry date etc.

PRICE Price plays as very important role as it is the only P 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) 36

Marketing of maineral water-Bisleri BRAND

PACKAGINGS

PRICE (in Rs.) Per bottle

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

70 50 22 18 10 8 5

Customer Delight 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, 20L which 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 20lt BISLERI bottle, 2 fridge bottles, a 1.5l bottle, a 250ml bottle and a fridge stand.

PLACE BISLERI has a specific distribution channel which they follow: Distribution Channel 37

Marketing of maineral water-Bisleri

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 stockiest 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. 38

Marketing of maineral water-Bisleri

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 stockist would be in GHATKOPAR, KALYAN, AMBERNATH, and TITWALA. The stockist in the GHATKOPAR 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 3 distributors. 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 distributors.

Promotion Positioning

:

Playing Safe

39

Marketing of maineral water-Bisleri Target audience :

Health and hygiene conscious people

Personality

:

Guardian, Authoritative, Reliable

Punch Line

:

“Play Safe”

To keep your company humming with profitable work, it’s vital to advertise your services. Your company is going to require the maximum exposure you can afford. This constant exposure will alert potential customers who you are and where you are when they need a sign. By positioning YOUR name at their fingertips and even literally displaying it in front of their eyes, they’ll call YOU for identification products and services. There are all types of promotion. They range from direct mail, word of mouth, advertising in newspapers and telephone directories to radio and T.V. spots, cold calls and telemarketing. Whatever the medium, consider the cost. Advertising will usually is an expense that remains in your budget. 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

40

Marketing of maineral water-Bisleri 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. The brochure or letter should contain information about our product, which we want to target and which is different and better than other product. In case of bottled water we can differentiate our product than other through the quality of water, price, packaging, service that is very important. In a country like India where religion and festival play an important role in one’s life, we can send post cards or greeting cards to not only our own customer but also to the prospective customer.

Building and Vehicle Identification Our OWN signs are an advertisement in them. For example a van or a tempo which 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. 41

Marketing of maineral water-Bisleri

Price packs A banded pack is two related products banded together for example: toothpaste and toothbrush. In the case of summer where in India the climate is very humid and hot, and consumption of water is also high, so in that case with the purchase of every one 1 litre bottle a free cold tissue paper can be provided.

Tie-in-promotions In this case where two or more brands or companies team up to increase pulling power. Nowadays there is a craze of Sikkim super lotto so with a purchase of every 20 litre jar the ticket will be available at RS.5.

But today frankly bisleri is recognized by the punch line ‘PURE N SAFE’ it has established itself so well that there is no need of any promotion as whenever a person goes to buy a bottle of mineral water he says ‘GIVE ME A BISLERI’ and does not say give me a bottle or 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. 42

Marketing of maineral water-Bisleri

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

CONSUMER HABITS AND PRACTICES •

Consumers are growing more health conscious and are more careful of their drinking habits. 43

Marketing of maineral water-Bisleri •

Brand loyalty is very low as all the products taste the same so they can buy just any product which is on the shelf, same as that of soft drinks and fruit beverages.

• Availability in the chilled form and brand awareness plays a crucial role in purchase decisions. • While there is no aversion to consumption of mineral water by any age group, this product is mainly consumed by the people in the age group of 2035 years who have less attraction of soft drinks or other synthetic drinks whereas youngsters look in for soft drinks and fruit beverages to quench their thirst. • Visibility is another factor that should be taken care of by the companies as consumers are not very brand loyal and consume whatever is in front of them. Consumers often drink bottled water as an alternative to tap water. They think it tastes better (no chlorine taste) and perceive it to be safer and of better quality. They also look for security: food scandals in industrialized countries and waterborne diseases in developing countries greatly influence consumers’ attitudes. Consumers buy bottled water to feel well and to lose weight. Bottled water is perceived as a healthy alternative to other beverages. Thus, for the aerated beverages bottled water offers a potential threat. Moreover, increasing urbanization, causing declines in tap-water quality, can also explain the popularity. Because it is untreated, natural mineral water is perceived as “natural” by city dwellers looking for genuine products. Higher living standards and auto usage enable people to easily bring home more and 44

Marketing of maineral water-Bisleri heavier bottles of water. At the office, a bottle of water is now a common sight on the desk, next to the computer and the telephone. Drinking bottled water is a sign of a rise in the social scale. Above all, bottled water has become a huge marketing success.

45

Marketing of maineral water-Bisleri

STRENGTH

1. QUALITY STANDARD:Every bottle of BISLERI is put through a rigorous Multi

stage

purification

processes

which

includes

micron

filtration and ozonisation. It acquires 6 stages of purification processes which ensure quality water which is pure and safe for drinking purpose. Good manufacturing are the strength all the time processing in religiously monitored at every stage.

2. TRUST FOR BRAND:More than 50 lakhs people trust the BISLERI. They buy only BISLERI water because it has became generic name for mineral water. For example: - When people go to buy the mineral water many of them ask for BISLERI, even though they get other brand.

3. LARGE RANGE OF PRODUCTS:BISLERI offers a large range of products which attracts consumer of all categories. For example: - 1 litre or 500 ml pack is useful for individual buyers, 12 litres or 20 litres 46

Marketing of maineral water-Bisleri is useful for organization. Therefore it attracts large number of customer.

4. MARKETING:BISLERI is promoted by an aggressive print & TV. TV is backed by a Hoarding & point – of – sale material. Every interface with customer is used as an opportunity to reinforce. For example: - All vehicles used for supply have been painted in light green, bears the BISLERI logo & sport catchy baseline likes “drink and drive”.

5. DISTRIBUTION SYSTEM. With little belief in the distributor system, the company leverage its large fleet of truck to supply bottled water directly to retailers through a system called ‘Route Selling’ where the driver of truck is trained to be a service person. This ensures that water supplied is fresh and bottles are in good shape. BISLERI has more than 80,000 outlets in the country.

47

Marketing of maineral water-Bisleri 6. EXPERIENCE OF MR.CHAUHAN (M.D OF BISLERI) From the vast experience of marketing Gold Spot and Thums Up, Mr. Chauhan knows that distribution plays a crucial role in the successful marketing of bottled drinks. He knows that making fresh water available within a particular period of time is crucial for its success. He is pursuing a multipack and multi- price strategy.

7. BULK – SEGMENT IS USEFUL FOR HOUSEHOLDS ALSO:Households in certain parts of the country spend a huge amount of money on fuel in order to purify the water. They are supposed to buy the impure water and then they have to spend money to purify it. For instance the water scarce south people spend large some of money to buy water and still more to purify it. The 12 litre product is hit in various cities of south.

8. GROWING POPULARITY:The popularity of BISLERI is increasing rapidly day by day. People in the market when it comes to mineral water a person goes to any shop and asks for BISLERI as his/her first preference. BISLERI is seeing a growth of almost 48

Marketing of maineral water-Bisleri 50% per year. With the small pack being popular among individuals user its bulk pack is also generating the huge demand which is capturing the market for BISLERI. Today 6070 % of total income of BISLERI comes from its bulk segment and the company is planning to increase it up to 80%.

9. THE BREAK AWAY SEAL:Keeping in mind the consumers need to recognize a genuine product that cannot be tempered with. The unique cap has been patented and cannot be duplicated. This technical strength ensures that the consumer will only get a high safe product when they will drink BISLERI.

MISSION STATEMENT

“To provide the highest quality product, keeping in mind all aspect including freshness purity and safety 49

Marketing of maineral water-Bisleri

and making it easy available to the consumer at very affordable price.”

RAMESH CHAUHAN (M.D. OF BISLERI INTERNATIONAL PVT LTD)

50

Marketing of maineral water-Bisleri

WEAKNESS 1.METHOD ADOPTED FOR DISTRIBUTION:THE ‘ROUTESELLING’ policy adopted by BISLERI for distribution is more expensive than more commonly followed method of appointing distributors in different towns. This reduces the profit of

company. The dealer margin is

reduced due to this .therefore not many dealer keeps BISLERI in many areas. Indirectly this is reducing the coverage of BISLERI.

2. REUSE OF BOTTLE BY LOCAL SELLERS AND ILLEGAL MANUFACTURERS:Market research conducted by BISLERI revealed that the other overriding concern for this set of buyers is the tampering of seal and the reuse of bottles. Many have witnessed used bottles being refilled at railway stations. This deteriorates the brand image of BISLERI. For example: - local sellers fill the bottle of BISLERI with impure water and the bottles are purchased by illiterate customers as BISLERI water but they buy water of low quality. In this way brand of BISLERI gets affected.

51

Marketing of maineral water-Bisleri 3. FAULTS IN PRODUCTION:Tests conducted by various authorities shows that it contains pesticides. In 2002 the 2cm long insect was found in the bottle of BISLERI. This has affected its sales and reputation. The license of its two factories one at Noida and other at Bangalore has been cancelled because of fault in production.

4. PRESSURE BY GOVERNMENT AUTHORITY:After insect was found in the bottles, FDA (Food & Drug Adulteration) has cancelled the production of BISLERI. Afterwards it was allowed to resume it but in this period its customer were moved towards other products. It is constantly under check by various authorities.

5. NOT MEETING THE DEMAND OF THE CUSTOMER:In certain parts of south in our country big bottles of BISLERI are in huge demand but the company is unable to meet the demand of the consumers. This is affecting the demand for the product. So People are forced to use other brands of mineral water. 52

Marketing of maineral water-Bisleri

OPPORTUNITY

1. FAST GROWING FIELD:The best beverage for India in the new millennium seems to be water. In recent years, the bottled drinking water market has been witnessing high decibel level of activity, with a host of new entrants. The bottled water market which worth Rs. 1000 crore is expected to be Rs. 5000 crore by 2010. This will increase a lot of scope for bottled water market.

53

Marketing of maineral water-Bisleri 2. BISLERI CAN UTILISE ITS DISTRIBUTION CHAIN:With BISLERI becoming a generic name for bottled

drinking

water.

If

company

can

manage

the

distribution chain of the product to make it available where the consumer needs it the most, the company may well succeed in his gamble with water. For this the company can connect it with dealers and other distributors who will market the products for them all around the world.

3. EXPANSION IN EUROPE:The launch of BISLERI in the European market on 4th September, 2003 has created a lot of scope for BISLERI

in

the

field.

This

will

also

compensate

the

deterioration of image; BISLERI has suffered after insect was found in the bottle. It will silence the critics and it will also increase the faith of the customer for the brand. It will create an international brand image and the quality will increase.

4. LAUNCH OF PREMIUM PACK:The company also has its premium product range. This is prepared keeping 5-star hotels and other premium customer. This pack will be sold at Rs. 20 per litre. This will give a tough competition to the EVIAN, the biggest 54

Marketing of maineral water-Bisleri player in the premium water range which sells its 1 litre water at a hefty of Rs.85 per litre.

5. CHANGE OF IMAGE:The company has changed the colour of the product. It has changed from blue to green. By changing the colour, the company has provided a new product to the consumers; they will be getting a new and a refreshing product.

6.INCREASE IN PRODUCTION:BISLERI is eyeing the Market and is in the process of increasing the production by setting 4 new plants adding to its 23plants. This will increase the production capacity of the company.

THREAT

55

Marketing of maineral water-Bisleri 1. MARKET IS EYED BY THE BIG PLAYERS:The growth of the market indicates the need for the mineral water. Due to this the heavy weights are eyeing the market. Coke, Pepsi, Britannia, Nestle, Auswater—is keen on raising their stakes in this market. With the cut throat competition between Coke and Pepsi, BISLERI is not safe.

2. ENTERING OF NEW PLAYERS:To get some share in the market many new players are entering in the market. Among them major names are Godrej, which is launching its product AQUA-PURE and Tata-Tea is looking forward to but Himalayan, this will increase the competition. Also Britannia which is distributing EVIAN is planning to launch its own brand. There are also new entrants ATCO with BRILLIANT water, DS FOODS with CATCH are also coming. Even Hindustan lever is planning to enter into the market. This is give a tough competition to the current water brands including BISLERI.

3. WATER FILTER MANUFACTURERS:BISLERI is not only getting competition from

mineral

water

maker

but

is

also

facing

a

tough

competition from various water filter manufacturers such as Eureka Forbes (Aqua guard). They have been marketing there purifiers in the market which has decreased the sales of bottled water supply to homely customers. 56

Marketing of maineral water-Bisleri

4. ILLEGAL MANUFACTURERS:Company is facing a tough competition from illegal manufacturers in the rural areas. The illegal manufacturers provide water at a very cheaper rate then the branded

manufacturers.

There

are

1000’s

of

illegal

manufacturers which are providing the water at a very cheaper rate. This is a serious problem for branded manufacturers. This companies also use the fake name of branded bottled water i.e. BISLERI and supply their products in the market.

5. STRONG DISTRIBUTION CHANNEL OF THE OTHER MANUFACTURERS:Analysts feel that BISLERI’S break away seal will not at all be effective the company having strong distribution channel will only survive. This rings the warning bell for BISLERI because among other players Kinley and Aquafina are having a strong distribution network of Coke and Pepsi. Nestle will be banking on its chocolate distribution network. Even though the BISLERI has a strong networks but its concentration on bulk segment can lead to improper network. For example: - A chemist who is selling the 1 litre pack may not sell the 20 litre pack. This could disturb the network.

57

Marketing of maineral water-Bisleri

6. NEW GOVERNMENT POLICY:For preparing 1 litre of mineral water 3 litre of ground water is required. Government was not charging tax on the extraction of the ground water. Now by introducing the new policy government is going to impose tax on the extraction of the ground water, this will increase the production cost because of which the companies will be forced to increase the price which all consumers’ of all categories can not afford. The companies can compensate the high production cost by reducing their marketing expenses but this will keep the consumer unaware about the product. This is also effect the quality of the bottled water.

MARKETING PRACTICES Presently most of the players in the Indian market are selling their product claiming it to be mineral water. All the players are vying to grab a few points of market share and they are trying to get their brands endorsed by some or other authority. Recently Coca-Cola has got its brand, Kinley, endorsed by the Federation of Family Physicians Associations of India (FFPAI) to create an image of being recommended by doctors and thus of the product being safe and 58

Marketing of maineral water-Bisleri healthy. Similarly other companies to claim to have purified their water “n” number of times to show the superiority of their product. Many players are pitching their product against water purifier industry by claiming their product to be superior to that purified by these water purifiers. Many players are marketing on the price factor as well as the size factor. While others are focusing on particular target segment. Overall different players are playing different tunes in order to establish their brands in the market

59

Marketing of maineral water-Bisleri

Bisleri Feels The Heat Continued In 1998, the branded mineral water market had grown to a 424 million litre business, valued at Rs 4 billion. There were 200 brands available in the country. In their bid to garner greater market share, many companies, including Parle Bisleri tried to make quality and the purification processes they used their unique selling proposition (USP). In 2000, the branded water market had grown to Rs 7 billion. New players like Pepsi's Aquafina, Coca-Cola's Kinley and Nestle's Pure Life entered the market. The market was segmented into premium, popular and bulk segments (Refer Table I for the price range in different segments).

The premium segment was the least crowded with just four brands: French transnational-Danone's Evian and Ferrarelle and Nestle's Perrier and San Pellagrino. The popular segment was where most of the action was.

Bisleri, Bailley, Aquafina, and Kinley were some of the dominant brands in this segment. In the bulk segment (5, 12 & 20 litres), Bisleri was a major player with Kinley and Aquafina staying out of this segment.

As product differentiation on the basis of quality became increasingly difficult, with each company claiming that its brand was safe and pure, companies began to use packaging to differentiate their products. Bisleri introduced a tamper proof seal in the 500 ml bottle.

However, analysts felt that Bisleri's efforts to reinforce its pure and safe image with a tamper proof seal may not be all that effective as competitors also had similar tamper proof sealed bottles. They felt that it was companies with strong distribution channels that would do well in the long run. Pepsi's Aquafina was strongly placed because it had the backing of Pepsi's distribution network in the country. 60

Marketing of maineral water-Bisleri

In August 2000, Coca-Cola India launched its bottled water brand, Kinley. Some analysts said that it would be difficult for Kinley to make a dent in the branded water market in India because it was already overcrowded and highly competitive. Commenting on Kinley's launch, Ramesh Chauhan (Chauhan), CEO of Parle Bisleri Ltd said, "It will be tough for anyone to beat us in this game. We will remain market leaders."4

By 2001, the mineral water market was worth Rs 10 billion and was growing at the rate of 40% a year. Kinley and Aquafina made inroads into the market and by March 2001, Kinley had a 10% market share, Aquafina had 4% and the share of Bisleri had come down to 51%. By June 2001, Bisleri's market share was 47% and Aquafina and Kinley together accounted for over a third of the market (Refer Table II).

In 2001, both Kinley and Aquafina were making huge investments in bottling plants and distribution. By 2002, Coca-Cola India planned to double the number of water bottling plants to 16 and Pepsi announced that it would add seven more plants to the existing five. In contrast, Bisleri had only 15 bottling plants and three franchisees. Kinley had 500,000 outlets compared to Bisleri's 350,000. Analysts felt that Kinley and Aquafina had an edge over Bisleri because of their strong distribution network.

61

Marketing of maineral water-Bisleri

TRADE PROMOTION TOOLS Price –off (off- invoice) A straight discount off the list price on each case purchased during a stated time period. For instance, if a new bottled jar is introduced than this promotional tool will encourage them to buy the mew product. Sales contests It aims at inducing the sales force or dealers to increases their sales results over stated period with prizes going to those who succeed. Specialty advertising This type of advertising consist of useful, low-cost items bearing the company’s name or brand name with their contact number this items are ball- pens , calendars, memo pads, which are used by dealers and sales people very often.

BISLERI reinventing itself and staying at the top even when many new companies came in the packaged drinking water market

This is a simple case which talks about the various marketing strategies adopted by Parle BISLERI Ltd. to arrest the sliding market share of its branded water brand—BISLERI. BISLERI tried to regain its share by repositioning its brand. The case discusses in detail the ad campaigns and other marketing strategies used by BISLERI to reposition the brand.

62

Marketing of maineral water-Bisleri "Old cola rivals Coke and Pepsi are discovering there is more money in water than coloured water. Things are warming up in the Rs 10 billion bottleddrinking water market and competitors, including Parle's Ramesh Chauhan, face the threat of a whitewash." In the early 1990s, Parle BISLERI Ltd's (Parle BISLERI) Bisleri1 had become synonymous with branded water and had a market share of 70%. In the late 1990s, BISLERI’S market share began to erode with new players entering the market. The new players also positioned their products on the purity platform and BISLERI felt the need to differentiate itself from the crowd. In the late 1990s, BISLERI launched its Pure and Safe ad campaign to convince the consumers that it was the only pure and safe branded water in the market. However, in 2000-01, BISLERI faced another challenge. The Cola majors, Pepsi and Coca-Cola and the confectionery giant, Nestle, also entered the branded water market in India. Pepsi and Coca-Cola had an established distribution network. BISLERI realized that with the new players also clambering on to the purity plank, it had to reposition itself to arrest its declining market share. In September 2000, Parle BISLERI launched its Play Safe ad campaign. The company tried to add a fun element to BISLERI to rejuvenate the brand. The ultimate aim was to increase BISLERI’S turnover from Rs 4 billion2 in 2000 to Rs 10 billion by 2003. In the early 1990s, the branded mineral water industry was worth Rs 3 billion, producing around 95 million litres in 1992. Parle’s BISLERI brand launched in 1971, was the leader with 70% market share. After 1993, the branded mineral water

industry

saw

some

hectic

activity.

On an average, every three months, a new brand was launched and another died. 63

Marketing of maineral water-Bisleri In the late 1990s, many international brands were planning to enter the branded mineral water market... In the late 1990s, Parle BISLERI launched an ad campaign to create a distinct brand image—'There is just one BISLERI.' Hoardings and point-of-sale promotion material backed an aggressive print-and-TV campaign, and every interaction with the consumer was used as an opportunity to reinforce the message that BISLERI was "pure and safe." The entire campaign was built around the tamper proof seals. The campaign focused on the safety provided by the "breakaway" seal, by illustrating the ease with which conventionally sealed bottles could be refilled and recycled. Said Ashok Kurien, CEO, Ambience D'Arcy, BISLERI’S ad agency, "Our objective with the campaign was to highlight the tamper-proof seal and create doubt in the consumer's mind of the purity of the other brands. That is, BISLERI the only one that guarantees purity." In 2000, in the face of competition from the new entrants, BISLERI decided to penetrate every possible segment of the market by introducing more pack sizes and to establish the brand strongly with trendy packaging..

64

Marketing of maineral water-Bisleri

Comprision of Kinley and Bisleri KINLEY moved it off the No.1 slot a couple of years ago, but BISLERI brand recall is eyebrow-raising -- the 38-year-old brand is still generic to bottled water in India, which is worth Rs 1,000-1,200 crore (Rs 10-12billion). And that is in spite of the more than 1,200 bottled water factories and 100 brands scampering for their share of the Rs 1,800-crore (Rs 18 billion) bottled water market (Source: Technopak Advisors). Still, 100 competitors means you can't sit back and relax, even if the market is surging ahead at 40 per cent a year; you need to keep up the buzz around your brand. Which is why in October last year, Parle Bisleri changed the look and feel of its flagship product, introduced a new variant (natural mountain water) and

announced

its

plans

to

launch

the

brand in the US -- a huge market for designer waters. BISLERI has ambitious plans to invest Rs 220 crore (Rs 2.2 billion) in its new variant, manufacturing planets and distribution: it will invest Rs 100 crore (Rs 1 billion) -- funded through internal accruals -- in the natural mountain water business, including Rs 40 crore (Rs 40 million) for two plants in Uttaranchal and

Himachal

Pradesh,

and

Rs

60

crore

(Rs

600 million) for infrastructure development -- increasing the existing manufacturing facility as well as widening the distribution network. Over the next two years, the company will also spend more than Rs 60 crore (Rs 600 million) on aggressive marketing. It also plans to launch branded ice and flavoured and vitamin-enriched water. But, laughs Parle BISLERI chairman Ramesh Chauhan, "Those may have to wait. I am still overwhelmed by the current changes." To be sure, the changes are noteworthy. For decades now, BISLERI has been sold in conical bottles -- a legacy from the 1960s when the water was sold in 65

Marketing of maineral water-Bisleri glass beer bottles. Although it switched to PET in the 1980s, the shape didn't change. Instead, the company just added some more shapes: conical one-litre bottles, hexagonal half-litre ones and rectangular two-litre bottles. "We were just bumbling along," admits Chauhan. Now, both regular bottled water and the mountain water variant are sold in a streamlined, round shape, while the ubiquitous blue of the logo has given way to a more international looking aqua green. "It takes courage for a generic brand like BISLERI to make such a major change," says Ashok Kurien, CMD, Ambience Publicis Advertising, the agency that has been associated with Parle BISLERI for over 20 years.

The Colour of Money

66

Marketing of maineral water-Bisleri Chauhan claims the changes are already bearing results -- apparently, sales are up 50 per cent on a month-on-month basis. Equally importantly, the packaging changes have helped Parle BISLERI shave costs. Earlier, fixing labels on differently shaped bottles -- especially the ones that are tapered at the neck -- was difficult and time consuming. Labeling round bottles has increased the speed 10 times. Eight months ago, the company also launched the prototype of a rounded bottle with slightly wider necks ("Alaska neck", in industry terminology). The change in design meant using 2-3 grams less of plastic in every bottle, which added up to an annual saving of Rs 3 crore (Rs 30 million). Even the new label helped the company cut costs -- by up to Rs 6 crore (Rs 60 million) a year. The earlier shrink label has been replaced with one made of superior biaxially-oriented polypropylene film that can not only take more colours, but costs half of shrink labels. Now Chauhan is hoping the new bottle design will help improve the output as well. "Earlier, the quality of the bottles wasn't consistent - some were thicker than others, some were bent around the bottom and so on. All this hampered our efforts to increase productivity," he says. With a uniform design for all product sizes, the company aims to double bottling capacity in its 23 plants, to 200 million cases a day, by the first half of 2007.

Market buzz 67

Marketing of maineral water-Bisleri By and large, most brand analysts approve of BISLERI’S attempt to reinvent itself. Says Harish Bijoor, CEO, Harish Bijoor Consult Inc, "The aqua green is representative of freshness and health, two qualities you associate with water." The changed colour scheme also helps the brand stand out in a sea of almostuniformly blue-toned bottles of water, the colour that was brought into India by BISLERI. Aqua green connects with the images of water, agrees A G Krishnamurthy, chairman, AGK Brand Consulting, and former chairman and MD of Mudra. The extension into mountain water, though, has taken some market watchers by surprise, especially since it carries the same brand name (which is virtually synonymous in India with plain bottled water). "I did not expect them to use the same name since BISLERI is generic to packaged water," emphasises Arvind Singhal, chairman, Technopak Advisors. He adds that while building a new brand from scratch would have meant huge costs for the company (perhaps up to half the present turnover of the company), the opportunity it afforded would have been worth the investment. There's another potential problem with the new launch: it looks the same as the regular version, has the same brand name, and is just another type of water -but costs Rs 8 more. Isn't there a risk in that strategy of confusing customers who may think their retailer is trying to rip them off? "Look at the label closely before you jump to conclusions," warns Kurien. Well, the mountain water bottles do show a mountain in the green label background and also clearly state what kind of water it is, with the cap bearing the same image.

68

Marketing of maineral water-Bisleri Kurien adds that even the crates for the new variant look different because of the clear image of mountains on them. "We tried to create a family colour for all BISLERI brands as well as make the difference clear," he defends. Chauhan, too, feels that people demanding mountain water are a select few, who will know what they are buying. Natural mineral water is a very niche category at present, accounting for just 2-5 per cent of the packaged water industry. Still, BISLERI will have to deal with entrenched competition - Himalaya and Catch have been present in this category for some time now. And BISLERI is prepared for a battle. In November, it kicked off a high-decibel print, outdoor and television campaign, anchored by Ambience. The company has been targeting malls, multiplexes, five-star hotels and premium restaurants to stock the variant, in a bid to reach out to its target customer -- affluent, urban and health conscious. It will probably do well, predicts Bijoor. "We are entering a generation that is more concerned about health and wellness than ever before," he points out. Chauhan is equally optimistic about the success of his new ventures. He is counting on natural water sales crossing Rs 200 crore (Rs 2 billion) in the next two years. Meanwhile, the market is buzzing with talks that the action surrounding Bisleri is a "dress-up" to impress potential buyers for the brand -- speculation has extended to the level that the brand has been valued at close to Rs 150 crore (Rs 1.5 billion).

69

Marketing of maineral water-Bisleri

Future Plans Mumbai: 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 a lot of appreciation. We’ll soon be launching it in Europe and America in 2-3 months time,” says Chairman, BISLERI International, Ramesh Chauhan. 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's the 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.

70

Marketing of maineral water-Bisleri 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’s Plans of Expansion 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 500 million ($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 dualdistribution 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. 71

Marketing of maineral water-Bisleri Anjana Ghosh, Director, BISLERI International Private Limited, said, "The unavailability of clean drinking water, increase in water contamination and health awareness among consumers has led to the growth of mineral water segment. In the wake of rising consumption of mineral water even in the rural hinterland there is a huge growth opportunity in India. "BISLERI has become a strong consumer brand over the years and today we have a long-standing relationship with our distributors and consumers”, she added. The company´s distribution network is being expanded to meet the increasing retail and consumer demands. On a national level, there are 2,000 trucks on call for BISLERI, while the number of trucks averages 300 and 250 in the Mumbai and Delhi market alone. Every day, some 5,000 delivery vans drive out of the 52 strategically located BISLERI bottling plants carrying over 1 million units of pure drinking water to replenish the stocks of 2,500 distributors and nearly 600,000 retail outlets.

DATA ANALYSIS 72

Marketing of maineral water-Bisleri Packaged drinking water BISLERI One significant observation made from the study was that the number of players in the market are increasing at a very fast pace, especially the entry of multinationals. Thus it is believed that a research to find out the awareness level and recall level of the brand “BISLERI” vis-à-vis other major brands will give an idea about where does the brand exists in the mind of the consumers. This might help the brand to identify the reason for the decreasing market share.

Survey objective The Primary objective of the survey is to find out how does BISLERI fair in the Awareness and recall level as compared to the major competitor.” The Secondary objective is to find out the advertising medium by which the Bottled water consumers are most influenced with.

Scope of Survey The survey intended to target consumers in South Mumbai region specially Church Gate and Colaba and the survey was done only in south Mumbai specially in areas like Church Gate and Colaba.

Survey was done in three parts 73

Marketing of maineral water-Bisleri 1. Survey of college going students and people, the brand of package

drinking water preferred by most of the students and the people 2. Survey of shopkeepers ---- asking them which is the most selling

package water brand at their shop. 3. Survey of different hotels as different hotels sells different water brands

ANEXURES 74

Marketing of maineral water-Bisleri Questionnaire. Dear respondent, I am a student, doing my TYBMS. This Questionnaire is a part of an academic project on “Bottled water Industry”. A few minutes of yours to fill the questionnaire will be of immense help. Thank you.

1. Which Brands of Mineral water are you aware of? ________________ ________________ ________________ ________________ ________________

2. Which Brand/s do you prefer? ________________ 3. Why do you prefer this particular Brand? ________________________________________________________ 4. What influences your decision to buy a particular Brand? 

Brand Image



Advertising



Price



Availability



Size / Package

5. From which media did you come to know about the various brands? 

Television 75

Marketing of maineral water-Bisleri 

Magazines



Newspapers



Retail outlets



Others

6. Are you aware of the brand BISLERI? 

Yes



No

7. Have seen any advertisements of “BISLERI”? 

Yes



No

8. If yes, where?

9. How do you rate the following brands: G for Good -----------------

BRANDS

Price

A for Average ---------------- P for Poor

Availability

Convenience

Quality (Purity)

BISLERI 76

Marketing of maineral water-Bisleri BAILEY AQUAFINA KINLEY

Personal information

Name: _____________________________ Area of Residence: __________________ Occupation: _______________________ Age: _____________________________

Thank you

Brand Preference

77

Marketing of maineral water-Bisleri

70 60 50 40 30 20 10 0 b isleri

k in ley

aq u afin a

b alley

S eries1

78

Marketing of maineral water-Bisleri

Influences in deciding to buy a particular Brand

price 20%

advertisment 30%

size 10%

band image 40%

79

Marketing of maineral water-Bisleri

Media influence in deciding the Brand

others television

retail outlet newspaper magazine

The Survey was done in areas of south Mumbai like Church Gate, Colaba and so on. Many college going students were asked about their brand preferences and also many people specially office going people who carry mineral water. Also survey of different shops were done as different shops sell different brands of water, also survey of different movie theaters were done as which brand do they sell and also hotels, as different hotels sell different brands. The survey was done in many parts:

80

Marketing of maineral water-Bisleri 1. Mineral water is famous among youngsters because they buy a lot of packaged water as its hygienic and as they say it looks cool. Today specially youngsters as brand freak and want a trendy and a stylish type of bottle and also cool and attractive advertisements influence them a lot. Different colleges sell different brands of package water may be as they have a contract or due to the likeness of the students towards a particular brand. A few of the colleges were the survey was done are: H.R College--- BISLERI JAI Hind College—AQUAFINA Lala Lajpat Rai College—BISLERI, BALLEY K.C College--- BISLERI Sydnehm College--- KINLEY Hinduja College-- Bisleri

2.

Further even survey was done of various theaters as different theaters sell different brands for Eg if a theater has a contract with coca cola then it can also sell the mineral water brand KINLEY as it’s a coca cola brand so the theater which has a contract with coca cola it cannot sell any other brand than KINLEY as it belongs to coca cola.

Different theaters sell different brands of package water like: Regal Cinema—BISLERI Sterling-- AQUAFINA Metro--- KINLEY 81

Marketing of maineral water-Bisleri New Excelsior—BISLERI 3. Survey of different hotels was also done as different hotels also sell different mineral water brand which also depends on their contract as for Eg if a hotel has a contract with Pepsi then they will sell the water brand AQUAFINA and so on. A few of the hotels are: Bombay Blues—AQUAFINA Noodle Bar--- AQUAFINA Ming palace--- KINLEY Mahesh Lunch Home—BISLERI Food Inn—BISLERI 5 Spice--- KINLEY

82

Marketing of maineral water-Bisleri

Over all view 60 50 40 30 20 10 0 S e rie s 1

b is le ri 60

a q u a f in a 45

k in le y

b a lle y

50

30

When we talk about package drinking water brands there is a very minor difference between all the brands but BISLERI still rules the package drinking water market and can be called as the king. But brands like AQUAFINA, KINLEY are also catching up specially KINLEY which as developed itself in a very short span of time and there is a very minor difference between all the brands.

83

Marketing of maineral water-Bisleri BISLERI though as an advantage above all the as it is recognized people really prefer this brand and BISLERI is so famous that it does not need much promotion. A simple example can be given is that “whenever we go to buy a bottle of mineral water we do not say “give me a bottle of water but we say GIVE ME A BISLERI’’ after this there is nothing much to be said.

84

Marketing of maineral water-Bisleri

85

Marketing of maineral water-Bisleri

CONCLUSION The important increase in India can be easily explained through the growth of the population and problems of water quality and water supplies. 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. Bottled water is a particularly competitive market, hence companies need to develop diverse marketing strategies, such as accessing new markets by owning or developing partnership with regional brands, developing new products (such as flavored water) or by-products (such as cosmetics) and developing services (home and office delivery of water) Today more and more companies are coming up in the package drinking water market as there is a lot of scope in bottle water market as seeing the increase in Indian population. Today the people of India are very hygienic and only prefer bottle water which increases in the scope of bottle water market. By looking at the increasing demand of bottle water companies have to see that they use modern marketing strategies and also come up with trendy bottles and satisfy the wants of the consumer.

86

Marketing of maineral water-Bisleri

Bibliography While working on this project I did a lot of surveys by asking people personally about the brand of package drinking water they prefer; as well as caring on survey by questionnaires. Most of the project was made on the basis of Primary data. I personally visited the BISLERI plant at Western Express Highway Andheri East, visiting the plan was an experience of a life time I say the whole manufacturing process and how the water is purified and then packed. Most of the project was done by myself by my observation as I had visited the BISLERI plant an the certificate is attached above I personally visited the Marketing Manager of BISLERI where he told me about their marketing strategies and how they carried on their distribution and how BISLERI is able to maintain its standard at the top. All the information collected was my own where I did lot of surveys of students, people etc I even personally visited different theaters and shops and hotels in the areas of south Mumbai specifically colaba and church gate as different theaters, hotels and shops sell different brands of water. Also a questioners survey was done to find out the most preferred brand by the people. Apart from this I visited sites like— www.bisleri.com www.managementcases.com www.icri.com I referred a few news papers like economic times etc 87

Marketing of maineral water-Bisleri But most of the survey was done by me as I personally visited the BISLERI plant at Western Express Highway Andheri East and met the marketing manager personally.

88