Group-5Raghav Rohila- PGP/15/039Vikas Rai Arora-PGP/15/062

Manish Kumar Day- PGP/15/93Robin Biswajeet- PGP/15/171

Arushi Joshi-PGP/15/209

Bisleri VedicaGO-TO-MARKET STRATEGY

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Integrated Marketing Communications Project

Introduction and Market &Analysis Introduction and Market &Analysis

•The bottled water business in India can be divided into three segments in terms of price:-

Segment Brands Price

Premium water

Evian, San Pelligrino and Perrier

80 to 110

Natural Water

Qua, Himalayan ,Vedica, Catch

25 to 50

Packaged water

Bisleri, kinley ,Aquafina, Oxyrich

10 to20

Market Scenario:-•Approximately 1 Mn bottled water is sold each day in India•Packaged water market 15 % of the overall packaged beverage Industry•The natural mineral water (where Vedica will be Positioned) constitutes 6% of Market• increasing scarcity of safe drinking water, changing life styles and aggressive expansion by market players•3300 registered plants bottling water and 12000 unregistered

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Objective of the Case• Understand the bottled water market and different segments present in India• Analyzing the competition and how bottled water from Bisleri is placed in the market•Preparing a go to market strategy for Vedica, Bottled water brand of Bisleri

FINANCIALLY STRONG MARKET•Market size is 5000 Cr in fiscal 2012-2013 • Estimated to cross 10,000 Cr mark by 2015•CAGR = 19 %•Bisleri is in top with 43% market share followed by Aquafina (15%) & Kinley (11%)•Natural water market is growing at a phenomenal rate of 40-50 %

SITUATION ANALYSISPORTER’S FIVE FORCES

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HIGH: Bisleri, Bailey, Aquafina, Kinley, Yes, Ganga, Himalayan, Evian, Perrier and various other local brands

Industry Competitors

HIGH: HUL water purifier and various new local brands. ShawWallace potential competitor in premium segment

Potential Entrants

Threat of Substitutes

HIGH: Soft drinks, aqua guard, tap water and Nimbu Pani, soft drink/aerated beverages market

Supplier’s Power

HIGH: Suppliers ability to raise price or reduce quantity supplied of PET bottles orlabelling material

Buyer’s Power

HIGH: Large no. of brands fighting for their market share

Market and Competitor Analysis Market and Competitor Analysis

Major Competitors - Vedica will compete with premium Mineral water Companies as well as natural Mineral water CompaniesMajor Competitors - Vedica will compete with premium Mineral water Companies as well as natural Mineral water Companies

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The GO-TO-MARKET STRATEGY

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DISCOVER

•The current market size is approximately 5000 crores with 1 mn packaged bottled sold everyday in the Indian Market•The Natural Mineral bottled water category consists of 6 % of total market•The Natural Mineral bottled market is assumed to be worth 300 crores•With very few players like Tata’s Himalayan , Qua and catch “Vedica mountain” of Bisleri has a very good opportunity to capture a chunk of this pie•Bisleri is the market leader in packaged bottled water industry and hence leverage its brand for establishing a Brand Identity of “vedica Mountain Water”

DIAGNOSE

•Indian Bottled water industry id divided into three categories in terms of cost:- Premium, Natural and Packaged•Pricing 1 ltr bottles at Rs 50 and 500ml bottles at Rs 25 ,Vedica will be directly competing with Himalayan, Qua and also to the likes of Evian• With Imported bottled water such as Evian , Perrier etc priced very high at INR 80-110 , Vedica has an opportunity to fill itself in a “masstige” segment (between mass and prestige markets)

Analysis for Go to Market Strategy

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SEGMENTATION

NATURE LOVERSPrimary attraction is due to love for nature & natural productsAttracting feature is purity associated with natureMainly socialites & nature fanaticsVery small and niche segment, low volumes

FASHION STATEMENTOnly reason for consumption is status symbol associated with consumption of natural water Mainly college crowd driven by compulsion or peer pressure Very little repeat purchase since wallet size is low

HEALTH CONSCIOUSConsume mainly due to mistrust on open water & contamination possibilityNatural water gives confidence of purity & good fir healthTravelers(Domestic & Foreign), Professionals, Restaurant dinersBrand name & trust are prime drivers

TARGETING

HEALTH CONSCIOUS SEGMENT1.Product characteristics of purity would appeal to this segment because of their health related need2.Larger potential market size3.High chance of repeat purchase since such people are travelling and hence need the product on a daily basis4.Main sales channel through institutional sales rather than retail sales5.Higher income group hence pricing would be acceptable

PURCHASE CHANNELS USED BY TARGET SEGMENT

1. Organized retail outlets2. Airports & outlets at other travel channels3. Restaurants & eateries in Malls & Movie Theaters4. Conferences & Summits5. Sports & other high profile events6. Hotels, Motels and other such organizations in the hospitality sector

DIAGNOSE

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COMMUNICATION STRATEGY & PLAN

• Pre Launch Strategy– Press releases– Samples in Airlines and star hotels– Sneak peaks on R&D– Focus on essence of spring

Water(Uttarakhand)

Google Ads & Search OOH/ Beauty SalonTV Ads+ Brand Ambassadors

Press Releases Print Ad Co-Marketing

In store branding

Contest Sponsors

• Launch Strategy– Printed media– Social media– Outdoor media– Proper use of Bisleri distribution

channels for promotion

DESIGN

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Post Launch Strategy• Review Website listings• Paid Online listings• Digital campaigning• Push on Institutional Sales

Digital Marketing Break up

Email and sms marketing•Email and sms to be sent to many consumers in tie up with Network operators about the Introductory product

Display AdsDisplay and banner Ads on Highly visited websites such as youtube and many other websites

Social Media•Sales promotions or discounts on facebook or twitter page•Engagement through Events by Bisleri

Blogs•Industry Blogs•Forums•Discussion boards especially in Eco- friendly oriented websites

Internet •Search engine optimization•Paid listings•Unique templates in Yahoo Advertising

COMMUNICATION STRATEGY & PLANDESIGN

•Focus on the purity of water•Show water as part of the user’s personality•Appealing to youth •Indulgence & Royal feeling•Feel of nature’s freshness•Print ads to be given in Lifestyle Magazines,

Conference brochures etc

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Escalator digital signage in selected stationsOutdoor billboardAirport advertisingAds on Volvo bus services

High-end magazines, e.g. Print Ads in health/ personal care/ fashion Magazines for both male and females. E.g. Femina, vogue, Filmfare, GQ, Forbes, fortune , Wedding Essentials Magazine etc

Key messages Vedica’s elegant image and package Designed from the ground Product benefits of unique water source and

good for health

ATL Activations: Promoting Pristine PurityATL Activations: Promoting Pristine Purity

OOH (Out-of-Home)

Television Commercials

The TVC would focus on the pristine purity of Vedica. It would portray a young women experiencing the purity and beauty of the Himalayas (mountains) as and when she gulps each drop of Vedica.

The imagery will be that of the himalyas while the purity of the glaciers will be portrayed

Print Ads

Promoting ‘Pristine Purity’Promoting ‘Pristine Purity’

• We can set up small kiosks in get-together areas of corporate office buildings, SEZs to create awareness about the pristine purity of Vedica among our target customers i.e working class people

• The kiosks can also be used to focus on working women professionals and create awareness about the functional benefits of Vedica which will induce them to consider Vedica for their family

• We can set up small kiosks in get-together areas of corporate office buildings, SEZs to create awareness about the pristine purity of Vedica among our target customers i.e working class people

• The kiosks can also be used to focus on working women professionals and create awareness about the functional benefits of Vedica which will induce them to consider Vedica for their family

Cricket, Hockey tournaments Charity Dinner Sponsor for Fashion show –lifestyle

product Product Placement in Movies

Event Sponsorship Kiosks in SEZs, malls

Vedica will come up with a jingle making competition. The medium: Radio channels. Vedica has to tie up with a major radio channel The jingle will have to focus on the pristine purity of Vedica and its benefitsOpen to students above the age of 18. During any particular time or show on a particular day callers can call and share a jingle. They have to come up with a jingle live on radio on the given themeThe best jingle gets a gift hamper.All the best Jingles enter into a national round and three best jingles are chosen by Vedica and will be used in their ads. The makers of these jingles will then a get a huge cash prize. Create a huge brand awareness and customer engagement among the youth

Theme: Save water + Benefits of Pure Mineral waterTarget: School children (class 5-8)

Vedica will organise a boot camp in metros (say Mumbai and Delhi) where major pvt schools of that city will be invited. The event will be for students in the 11-14 years age bracket. Each school should be persuaded to send maximum number of students. They will be educated on the importance of water and how each one can contribute to safe waterThey will also be educated on the diseases caused from water and the benefits of safe and pure drinking waterThere will be a quiz for each of the separate class where teams from different school will participate. The winners of the quiz will receive prizes and certificates.

Vedica BootcampVedica Bootcamp THE JINGLE OF INDIATHE JINGLE OF INDIA

GO TO MARKET STRATEGY : Below The Line Activations

Small Sku of Vedica will be distributed to the students in the bootcamp. The attractive packaging will strike a chord with the young ones also. Through the students, Vedica as a brand will create awareness in many families as well. This entire event will greatly boost the brand image of Vedica.

GO TO MARKET STRATEGY : Distribution ChannelGO TO MARKET STRATEGY : Distribution Channel

• Offer credit to the restaurants, hotels, clubs and bar owners

• offer them a price reduction on the product price at the time of billing for a limited period of time.

• Objective: stimulate higher than normal purchase orders and push through products

• Benefits retailers & distributors

Institutional Trade Promotions

offer them a price reduction on the product price at the time of billing for a limited period of time.

Provide retailers with the racks/hangars/other promotional merchandise to provide adequate shelf display area and visibility

Retail merchandising support (on shelf price cuts, retailer feature advertisements, in-store displays)

Objective: category management Benefits all parties

Retail: Mix of Consumer + Trade Promotions

Bisleri Old Commercial

http://www.youtube.com/watch?v=UMNB4ZuKOEwInsights: Protection & Hygiene; Length: 1.45 Mins

Bisleri Vedica Commercial & CMD’s InterviewInsights: Natural Essence; Length: 2.39 Mins

http://www.youtube.com/watch?v=Ey9oLtAjlMg

GO TO MARKET STRATEGY : Distribution StrategyGO TO MARKET STRATEGY : Distribution Strategy

From our survey we find the preference for the place of purchase.The product should be positioned in fine dines, high end restaurants , hotels and pubs. They should also be present in the grocery markets in international airports and high end hyper and supermarts

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CUSTOMER ENGAGEMENTDESIGN

Objective: 1.To engage the potential customer segment & make him aware about Vedica 2.To create a positive buzz around Vedica in the marketplace & increase visibility

Execution1.Billboards to publicize contest on Vedica website2.QR code scanners on purchase locations directing to mobile website3.Facebook Page to direct to Contest4.On the Bottle advertisement

Contest Concept1.Asks the customer to relive the moments which she/he spent with Nature2.Upload photographs on website with family/friends/spouse in natural location3.A short caption describing “why nature is important to you”4.20 Winners get an all paid holiday in a Himalayan Resort in Uttarakhand

Benefits for Brand VEDICA1.Website used to communicate the Vedica concept & its natural content2.Substantial increase in Top of Mind Awareness value for Vedica due to customer engagement

http://saileshks15.wix.com/bisleri-vedica#!home/mainPage

CHANNEL & MARKET SELECTION

Geographical • High per capita Income group cities/states to be

initially focused• Top 5 states with highest per capita income • All Tier 1 cities and metros to be targeted• More focus on institutional sales

•The figures indicate that the premium water business is prominent in Metro cities and natural water is prominent in Tier 1 and 2 cities•The figures indicate that the premium water business is prominent in Metro cities and natural water is prominent in Tier 1 and 2 cities

Preferred Channels•Channels where high income individuals shop•Malls & Shopping Centres•Organized retail outlets Spencer, Reliance, Big Bazar etc. •Food Courts - malls, sports complex•In store promotion to grab customer attention•Outdoor marketing

DEPLOY

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Distribution ChannelLeverage on the existing distribution channel; Add new channels to increase the reach to new set of customers

As per research, Premium water brands perform better in on-trade channel since the prestige of water brands enhanced the image of outlet & allowed the outlet to justify high mark ups

Three-Five star HotelsHigh End restaurantsHospitality Chains Like Haldiram, Nirulas,

Entertainment Chains like Malls, Theatres, High End Movie Halls

Airports Special Events, World Conferences and IPL Matches,

STRATEGIC ALLIANCES PRE-LAUNCHDEPLOY

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PUSH STRATEGY IN TRADE CHANNELDEPLOY

OBJECTIVE:1.To ensure that the channel partners have enough incentive to sell Vedica2.To beat the competition in market & capture the shelf space at strategic locations

Cost of 1 litre Normal VedicaCap cost 0.25 0.25Bottle cost 2.5 5Treatment cost 0.25 0.25Label cost 1 1Carton cost 0.5 0.5Transportation cost 1 3Others 0.5 0.5Total cost 6 10.5Selling Price 15 50Margin Available 9 39.5

Why it makes sense1.As per the cost structure shown, there is not much difference in terms of product cost for Vedica except packaging & transportation cost2.High margin money available which can be passed to channel to push the sales3.High margin can also be used for marketing & other selling expenses

PRICING STRUCTURE IN TRADE CHANNELNormal Bisleri Purchase Price Selling Price Scheme Total Margin Percentage Margin/Litre 1/2 Litre, 24 bottles 225 240 3 bottles free 45 20% 3.331 litre, 12 bottles 165 180 3 bottles free 60 36% 4.00

Vedica Purchase Price Selling Price Scheme Total Margin Percentage Margin/Litre 1/2 Litre, 24 bottles 500 600 4 bottles free 200 40% 14.291 litre, 12 bottles 520 600 2 bottles free 180 35% 11.25

PROPOSED STRUCTURE FOR VEDICA

Target for VEDIKA1.Give more margin to retailer as compared to conventional packaged water2.To push half a litre bottle in the market since that is the size most convenient for the target segment3.Increased visibility for Vedica uniquely transparent bottles in the consumers\

Appendix: Sample Creative 1 – Pureness of Nature

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Appendix: Sample Creative 2 -Dance with Vedica

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Appendix: Sample Creative 2 -Billboard

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THANKS !!!

Bisleri Commercialshttp://www.youtube.com/watch?v=UMNB4ZuKOEw

Insights: Protection & Hygiene; Length: 1.45 Mins

Bisleri Vedica Commercials & CMD’s Interview

Insights: Natural Essence; Length: 2.39 Mins

http://www.youtube.com/watch?v=Ey9oLtAjlMg