Kinley - Report

8/10/2019 Kinley - Report

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(1.3)

LIMITATIONS

1)

This project was made on the basis of both Primaryas well as Secondarydata whereby I

interacted with various college students and office going people. But, I also personally wanted to

visit the BISLERI plant as I would have gotten a firsthand experience to see the whole

manufacturing process and how the water is purified and then packed.

2) That couldnt be done as the Marketing Manager was not available and concerned authorities did

not permit me to carry out my survey at the BISLERI plant.

3) Due to time constraint the survey was conducted only in few areas among a few students and

people in the south Mumbai region.


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Chapter 2

PACKAGE DRINKING WATER

(2.1) How is bottle water different from tap water?

Consistent qualityand tasteare 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.

Another factor to consider is the distancetap water must travel and what it goes through before

it reaches the tap. In compliance with international regulations, bottled water is sealed and

packagedin sanitary containers. If a bottled water product is found to be substandard, it can be

recalled. This cant 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

(2.2) 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.


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Bottled water became a product in the West during the 1920s 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 quali ty consciousand 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 Indias 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.


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(2.3) 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- byweight 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.


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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.

(2.4) 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 groupby 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 1990s 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 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.


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Chapter 3

BISLERI

(3.1) Introduction

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 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 varietiesbubbly & 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.

(3.2) 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


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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.

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 11franchisees and 8plants 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'.

(3.3) 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 arethe 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 iscapturing 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.


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Bisleris 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.

BISLERIS 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 drinking

safe & pure water when you consume BISLERI. BISLERI is free of impurities & 100% safe.

Enjoy the Sweet taste of Purity !


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Chapter 4

Manufacturing Process

(4.1)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.

Tanks in which water is Stored


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(4.2) 6 STAGES OF WATER TREATMENT PLANT:

1. OZONATION

2. FILTERATION

3.

CARBON FILTERATION

4. RESERVE OSMOSIS SYSTEM

5. MICRO FILTERATION

6. OZONE TREATMENT

1) OZONATION:

The process of ozonation ensures that the water remains free from bacteria, so that thewater 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:


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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.

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.


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(4.3) BLOWING PROCESS

A small tube like plastic which is known as PRE-FORM is blown withthe 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


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(4.4) BLOWING PLANT

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

(4.5) FILLING PART


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Chapter 5

Marketing Mix

According to Philip kotler marketing mix is the mixture of controllable marketing variablesthat 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.


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(5.1) 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


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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 Himachalnestled 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 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


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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.

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


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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 doesnt take any risks and does not compromise with their quality.

Online Monitoring System


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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 250 ml bottle with a fridge stand .This was experimented for a

month and which resulted in the lot of demand.


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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 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.


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(5.2) PRICE

Price plays as very important role as it is the only Pwhich helps in getting revenue:

Firstly one can explain the factors which affect the pricing decision i.e.

- 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)

BRAND PACKAGINGS PRICE (in Rs.)

Per bottle

BISLERI

20 litre 70

5 litre 50

1.5 litre 22

1 litre 18


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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 stockiestwould 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 require5 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.

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

BBOOTTTTLLIINNGGPPLLAANNTT

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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.

(5.4) Promotion

Positioning : Playing Safe

Target audience : Health and hygiene conscious people

Personality : Guardian, Authoritative, Reliable

Punch Line : Play Safe

To keep your company humming with profitable work, its vital to advertise your services. Your

company is going to require the maximum exposure you can afford. This constant exposure will


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In a country like India where religion and festival play an important role in ones life, we can

send post cards or greeting cards to not only our own customer but also to the prospective

customer.

The Telephone Directory

The local telephone directory is a publication that will be one of your earliest and primary

advertising mediums. Most businesses that advertise in the yellow pages find it profitable to do

so. Since our potential customers (corporate) mostly all uses a yellow pages or a telephone

directory, it would be profitable to allocate a portion of our advertising expense to include this

avenue of promotion.

Word of Mouth

Reputation can precede you! Satisfied and happy customers can do more to promote your

business than the most expensive, flashiest ads. In this sense, talk really is cheap.

Just our ONE customer can tell several acquaintances about our products and services that we

provide are not only different but also better than others. Leaving additional business cards that

the client can pass along can do this.

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 services van or tempo, same in the case of coca -

cola it is red color and blue in case of Pepsi.

Free trials

Inviting prospective purchases such as hotels, corporate, gyms, and theaters to try the product

without charging them any thing in the hope that they would be our future customers.


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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 lottoso with a purchase of every 20 litre jar the ticket

will be available at RS.5.

Banners

One question I would like to ask is that, how would you know that here PCO is available?

We come to know through the small banner which is hanging near the shop where it is available.

From the long distance also we can make out that here pco is there. In the same way where our

water bottled water is available we can put up a small banner with our brand name that this

mineral water is available here. The banner should be very attractive to the eyes. A yellow

banner symbols the PCO, STD, ISD, and XEROX.

Trolleys

The retail outlet to which we give our product we can also supply them trolleys to keep our

product so the retailer should not worry about the space it will needed to store the product.

Radio

It would be very profitable to advertise in Radio Mirchi, 92.5 go, Radio City. The time would be

in evening, afternoon when people are traveling. For advertising on it the number is: 6969100

Rail advertising


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To increase the awareness of the product, with the cheapest cost. Advertising inside the railway

train with the list of various station of harbour, central and western and the advertising firm

which does this type of advertising is DAY AND NIGHT ADVERTISING(5117601)

Mobile tempo

This is one of the new advertising avenues that have emerged. A van or a tempo, which roams in

the area with a big hoarding on its back. Shoppers stop, Essel world are some of those who have

advertised .the advertising, which undertakes this type of work, is KION ADVERTISING-

9820052222

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

(5.5) 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.

Fashion Conscious

Like soft drinks, drinking mineral water is also considered fashionable by some people.


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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.)

(5.6) CONSUMER HABITS AND PRACTICES

Consumers are growing more health consciousand are more careful of their drinking habits.

Brand loyaltyis 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.


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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 20-35 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 water-borne 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 heavier bottles of water. At the office, a bottle of water is now acommon 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.

(5.7) 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 healthy.


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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

(5.8) TRADE PROMOTION TOOLS

Priceoff (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 contestsIt aims at inducing the sales force or dealers to increases their sales results over stated period

with prizes going to those who succeed.

Chapter 6

CASE

(6.1) 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 brandBISLERI.

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.


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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 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-litreones 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.

(6.2) The Color of Money:

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 save 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).


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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, thequality 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.

(6.3) Market buzz

By and large, most brand analysts approve of BISLERIS 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 almost-uniformly 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.


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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.

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.


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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).


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Chapter 7

Future

(7.1) 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. Well 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 Tatas, 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.

And certainly, for the Indian companies that have so far been restricted to India's $ 500-millionmarket, quenching the thirst of billions of more customers makes great business sense.


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(7.2) BISLERIs Plans of Expansion

BISLERI International Private Limited, Indias 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 andBISLERI Mountain mineral water.

The company has outlined an aggressive market penetration strategy; a dual-distribution 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.

Anjana Ghosh, Director, BISLERI International Private Limited, said, "The unavailability ofclean 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.


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"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 companys 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.


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Chapter 8

DATA ANALYSIS

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--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.

(8.1) 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.

(8.2) 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 Charni Road,

Church Gate and Colaba.


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(8.3)The Survey

Brand Preference

Influences in deciding to buy a particular Brand

0

10

20

30

40

50

60

70

b i sler i k in ley aq u afin a b al l ey

Series1

price

20%

size

10%

band image

40%

advertisment

30%


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Media influence in deciding the Brand

The Survey was done in areas of south Mumbai like Charni Road, 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, a survey of different movie

Theatres and Hotels was done to find out which brand of packaged drinking water they sold.

The survey was done in many parts:

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 are 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:

TelivisionRetail OutletNewspaperMagazine


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Hinduja College-- BISLERI

H.R College--- BISLERI

JAI Hind CollegeAQUAFINA

Lala Lajpat Rai CollegeBISLERI, BALLEY

K.C College--- BISLERI

Sydnehm College--- KINLEY

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 its 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:

ROXY - BISLERI

Regal CinemaBISLERI

Sterling-- AQUAFINA

Metro--- KINLEY

New ExcelsiorBISLERI

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 BluesAQUAFINA


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Chapter 9

CONCLUSIONS AND SUGGESTIONS

The important increase in India can be easily explained through the growth of the population andproblems 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.

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 has

developed itself in a very short span of time and there is a very minor difference between all the

brands.

By looking at the increasing demand, 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


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ANNEXURES

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

Magazines

Newspapers

Retail outlets


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Documents

Kinley - Report