IS IT STILL A BRAND?

An analysis

by Group

11Brand

Man Sec A

WATER MARKET SEGMENTATION - INDIA

• Geographic

(a) City Size - Major cities and Sub urbs : targeting the areas ( like Delhi , Mumbai ) where demand of packaged drinking water is high

(b) Climate – Hot and Humid : Specially more no of Bisleri owned stores in locations like Rajasthan where there are chances of impulse purchase

• Demographic

(a) Income- customers in tier -2 and tier -3 cities have a potential to become the regular customers

(b) Family size – New packaging to attract more customers individual and also families

(c) Corporates – Bulk packs can be targeted to corporate clients located in locations Delhi , Mumbai, Pune, Hyderabad , Bangalore ,Chennai

• Psychographic

(a) Lifestyle –Targeting customers who are sports oriented, travel freak

(b) Personality – Targeting the health conscious customers

• Behavioral

On the basis of usage rate

(a) Introduction of small packs (500 ml bottles and 250 ml cups) in response to entry of MNC along with a launch of a 1.2 liter bottle priced at Rs 12 compared to Rs 10 for the 1 litre bottle

(b) It also became the first company to launch ‘bulk’ packs of 5 litres, 12 litres and 20 litres, targeted at large shops, commercial establishments, parties and the home segment, due to increased competition in the retail segment from the marketing and distribution muscle power of the Cola majors

WATER MARKET SEGMENTATION - INDIA

• Bottled water industry, colloquially called, the mineral water industry, is a symbol of new life style emerging in India.

• The packaged drinking water in India, which is estimated at Rs.850 Cr with over 200 brands floating in the market, most of which have restricted territorial distribution.

• growing market in India as quality consciousness among the consumers is on the rise with a growing rapid rate of around 20%.

• At this growth rate, the Rs 7000million per year market is estimated to overtake the soft drinks market soon

• . There are more than 180 brands in the unorganized sector. The small players account for nearly 19% of the total market.

• The per capita consumption of bottled water in India is less than half a litre per year, compared to 111 litres in France and 45 litres in the US.

• These points to the future potential beyond the high growth.

Source : NIIR Project Consultancy Services

FUTURE HIGHLIGHTS

• Behavioral Segment

Bisleri currently holds 8 SKU ‘s to cater to the different demands pattern of customers . It is one of the first company to launch bulk packs targeting to the Large Retail Accounts and Commercial institutions.

• Geographic Segment

Bisleri International has set up ‘Bisleri Shoppe’, an exclusive retail format to sell bottled water. This move will boost the brand visibility and counter competition. It is planning to have 10 exclusive Bisleri Shoppes by the year-end.

• Psychographic Segment

Packaging :- Continuous innovation in the packaging of the Bisleri bottles according to the different consumers needs.

• Demographic Segment

Bisleri Shoppe will be setup in only those cities where there is a large potential to gain acquire a large customer base.

BISLERI’S STANDING IN EACH SEGMENT

• Bisleri started off at time time when the bottled water market was lull.

• Being a new concept, it took time settling in until it reached a stage where it became a unanimous brand for mineral water. It was mainly owing to unsafe water supply and shortage of the same that led to this. It was at this point that Bisleri gained its consumer mileage blooming the industry by 70%.

• At this very point, the MNCs splurged into the market which resulted in the launch of a large number bottled water brands.

• They pumped in lot of money to promote their brands along-with using new promotion and marketing strategies which resulted in the dilution of Brand Bisleri.

• Moreover, as pointed out it in the case too, it all boils down to the distribution channel to reach more consumers.

• For instance, Kinley, being a Coc brand had an extensive distribution network along-with more production facilities; thus making it easy for it to overpower Bisleri in just two years.

HIGHEST IN AWARENESS BUT NOT THE MARKET

LEADER

• Market Research revealed that people consume mineral water not for the minerals, but for safety. Hence using the word "safe" is critical.“

• All brands focused on positioning the products as “pure and safe” but Bisleri wanted to establish the product in the minds of the youth hence the word “play” was used.

• The campaign targeted the youth and hoped to convey a social message: young people need to make sure they are safe even when they are having fun. The ad campaign saw a shift in positioning from "pure and safe" to "play safe." 

• The objective with the new campaign was thus to highlight the tamper-proof seal which was consumer friendly and difficult to duplicate and also to create doubt in the consumer's mind of the purity of the other brands.

 

THE “PLAY SAFE” CAMPAIGN

SWOT ANALYSIS

Market Share

BisleriKinleyAquafinaOthers

• Bisleri is the Market Leader with 36% Market Share. Has 55 plants.

• Kinley (25%) enjoys Coca Cola’s distribution channel. Has 16 plants.

• Pepsico’s Aquafina (15%) is the official water supplier for sporting events. Has 11 plants.

• Tata’s Himalayan is the only natural mineral water from India to achieve international accreditations and Genuine Natural Mineral Water status in Europe, the US, Japan and France.

• Other players are Bailey, Kingfisher, Mcdowell, Railway Neer, Manikchand Oxyrich, Nestle purelife, Perrier, Evian etc.

MAJOR PLAYERS IN THE INDUSTRY

• Ensure availability on every shelf and provide good after-sales service.

• Set up new bottling plants so that market penetration becomes an easier task.

• Target Tier III cities and rural markets .

• Present services like free-home delivery service and ordering of bottles online should be made available in many more cities.

• Acquire Local brands

• “Bisleri Shoppe” the exclusive retail Bisleri shop should be opened in smaller cities as well.

• Vedica Bisleri’s Mountain water variant which faces competition from Himalayan mineral water from Tata Global Beverages,has already got an advantage in the overseas markets, since it enjoys the distribution network of Starbucks.Bisleri could similarly tie up with Dunkin Donuts,Mcdonalds or Caribou Coffee.

• Bisleri International Ltd plans to launch flavoured water ,  worldwide consumer preference is skewing towards “functional drinks” rather than carbonated ones but flavoured water is more expensive than carbonated drinks.Hence any new product should be appropriately priced.

PLAN OF ACTION