2. Introduction Amity Business School
• Packaged drinking water ensures safe, clean, potable water for
human consumption.
• Bottled water represents the fastest growing segment of the
global beverage market with a market share of around 38%.
• World bottled water market is expected to reach $65.9bn by
2012, stimulated by rising population.
• The market is expected to grow rapidly in the coming years
due to growing consumer concerns about fitness, water quality
and health.
3. Growth Reasons Amity Business School
– Higher Disposable Income
Affordable Price
Increased On The Importance of Hygiene
Go Behaviour
Increased Avalability
4. Major Players In
Packaged Water Industry Business School
Amity
Parle's Bisleri
Coca Cola Kinley
PepsiCo Aqua Fina
Manikchand Oxyrich
Parle Agro Bailley
Rail Neer
Himalaya
5. Introduction to Bisleri Amity Business School
• A Italian origin company by Signor Felice who first bought
the idea of selling bottle water in india.
• Mineral water under the name Bisleri was first introduced in
Mumbai in glass bottles in two varieties – bubbly & still in
1965.
• Parle bought over Bisleri in India In 1969.
• Currently 54 bottling plants , 9 plants are company owned &
rest are franchisee or contract packers.
6. Amity Business School
• Company put through multiple stages of purification,
ozonised & finally packed for consumption.
• Company commitment to offer every Indian pure & clean
drinking water from office desk to home kitchen
• The company is growing at rate of 36% & is targeting a
growth rate of 40% by 2012.
7. Amity Business School
• Bisleri Today
The consumer today enjoys the sweet and pure taste of Bisleri mineral
water. However in an effort to offer something special to its loyal
consumers it has recently introduced Bisleri Natural Mountain Water -
water brought to you from the foothills of the mountains situated in
Himachal Pradesh. This newly launched offering has widened its
product range to two variants: Bisleri with added minerals and Bisleri
Mountain Water.
Bisleri’s Vision
Its vision is to be the dominant player in the branded water business
where the second player is less than 20% of its business.
Mission Statement
“To provide the highest quality product, keeping in mind all aspect
including freshness purity and safety and making it easy available to the
9. Promotion
Amity Business School
• Print-and-TV campaign
– PLAY SAFE
– The Sweet taste of Purity
– Bisleri The Mountain Water
– Bisleri bottle falling from mountain
• Safety feature - tamper proof seals.
• Weakness of conventionally sealed bottles -"breakaway"
seal
• Shelf space at retail stores.
10. Segmentation Amity Business School
• The branding and segmentation of Bisleri is very strong as it
cover household to big hotels.
• Geographic
City Size: Mostly Major Cities & Sub Metros
Climate:Hot & Humid
• Psychographic
Lifestyle:Travel Freak
Personality:Health Conscious
• Demographic
Family Size: Mostly Individual & also Families
Corporate
11. Targeting Amity Business School
• To target the customer Bisleri launched different product line with
different prices and different size of bottles.
• Price of the Bottle is such that can be affordable to the all segments
• Company planning to target more towards lower segment with the
introduction of small pet glasses.
13. Market Segments Amity Business School
SEGMENT COMPANY BRAND PACKS PRICE (Rs)
Popular 250 ml 3
500 ml 5
Parle Bisleri Bisleri
1 litre 10
Bulk Parle Bisleri Bisleri 5 litres 25
Parle Bisleri Bisleri 20 litres 60
14. Positioning Amity Business School
• Bislere position their product on the purity
platform
• Launch an ad campaign Pure And Safe
• Sept 2000 shift in positioning from Pure
and safe to Play safe
• People consume mineral water not for
mineral but for safety said by chauhan
15. Positioning
Amity Business School
• Where is the Product in the
Customer’s Mind
Mineral
Water
BISLERI
Bisleri
Aquafina Brain Cells
Kinley
Oxyrich
Himalaya
Brilliant
Best
16. SWOT Analysis Amity Business School
STRENGHTS WEAKNESSES
Nearly 60% share in market.. Highly priced products.
Well established distribution channel. High costs of production.
Initiaters advantage. Distributers reluctant to change.
Brand recognisation. Awareness-The customer are not aware of the 7
Only company in 1.5ltr segment. stage purifying process of Bisleri and the added
Best quality product accepted. minerals which are available.
Number Of Variants- Bisleri is available in a large
number of variants which makes it consumer friendly
as per their requirement.
OPPORTUNITIES THREATS
Growing Indian packaged drinking water market. Nearly 200 brands in this sector.
Expected to cross 1100 crore mark. Many new players entering market.
Scarcity-The metropolitans and big cities have a Competitors ability to invest. Eg-Pepsi and coke.
scarcity of pure drinking water which Bisleri can Price sensitive customer-People focus more on low
cater. price.
Increase in production. Increasing Duplicity-The duplicity in the market is
rising inspiteof steps taken by the management.
18. Amity Business School
• Bargaining Power of Suppliers
Increase in the cost of Raw Material (cap cost , labeling cost, bottle cost,
carton cost)
Suppliers supply raw material to local players
As plastic bottle banned another substitute will be glass bottle
• Threat of Substitutes
Substitute are Fruit Juices, Health Drinks ,Soft Drinks
Juices like Real , Slice Mangola , Priya gold Treat, Coca Cola
19. Amity Business School
• Intensity of Rivalry Firms
Local brands are major contributing 80% of market share
Around 200 registered brands in India
• Bargaining Power of Buyers
Local brands are available in the market in the cheap price
Buyers have choice from wide variety of suppliers
Demand is more in the market but branded suppliers is less compare to
local suppliers
• Barriers to Entry / New Product
New entrants in the market like Amul “Narmada Neer”
Market is growing which attracts new entrants
20. Competitors Analysis Amity Business School
• The company has maintained its position over the years and still
remains a market leader with a market share of 38.5% whereas
Kinley has a market share of 21% only and Aquafina covers only
14%
• Kinley has a cost price of manufacturing a bottle up to Rs 12.25 and
it sells the bottles for Rs. 14/15 which gives it a profit margin of Rs
1.75/2.75. Whereas, Bisleri has a profit margin of Rs 2 as its cost
price is Rs 10 and the selling price is Rs 12. Aquafina on the other
hand earns a profit margin of Rs 2 with cost price as Rs 8 and selling
price as Rs 10.
• Bisleri has total 55 plants, while competitors Kinley having 16
plants and Aquafina with 11 plants.
21. Market Potential Amity Business School
• Market potential of Bisleri :
The number of customers purchasing the product.
Amount purchased.
Frequency of purchase.
Market Potential = (how many * how much * how often)
• Though there are large number of manufacturers yet there exists a
wide gap between demand and supply.
• A number of units can be set up in North Eastern Region to meet
the local demand in institutions, hotels, restaurants, offices, tourist
• and household.
22. Market Sizing Strategies
Amity Business School
• Bisleri uses competitor price strategy to get the market. As Bisleri has the
first mover advantage and the market is full of competition so they decide to
increase the advertising expenses for ad campaign.
• The present strategy of Bisleri involves targeting the bulk water segment,
pricing competitively, strengthen distribution, innovate on packaging and
product line extension.
23. Amity Business School
• Bottom Up Approach
Knowing customers profile.
How much & how often they purchase Bisleri?
How many potential customers do you have in the market based on
your customer profiles? How can you reach them?
• Cluster Analysis
Bisleri identifies key segments in the population that are more likely
to purchase their products than the average consumers. Knowing in
which clusters people reside provides a reasonable means of
understanding and predicting how they will behave
Understanding which clusters are more likely than others to
purchase allows better targeting
24. Sales Force Management Amity Business School
• The distributor employs their own salesmen. The
salesmen are divided among the territories defined by
the distributor.
• The distributor has 5 routes. Out of the 5 routes, one is
the main route and the other four are sub routes. The
salesmen are divided amongst these routes. This helps
in avoiding horizontal conflict and leads to better focus
and evaluation of sales performance of the salesmen.
• The company sales person makes a visit once every
month. Rest of the month every communication
regarding stock replenishment, etc. takes place over
phone. The person of the company whom the
distributors communicate with is the Sales Executive.
• At times the company deploys its own men to do the
distribution job for the Distributor also
25. Recruitment Amity Business School
• The distributor has set certain criteria for
the selection of salesmen
i. The candidate must be at least a high school
pass.
ii. The candidate must have knowledge of local
language.
iii. Candidates with prior relevant work
experience are preferred.
iv. The candidate if from the territory itself is
preferred.
26. Amity Business School
Incentives for the salesmen
• A basic salary of around Rs 2500 to Rs 3500 is given
irrespective of the performance of the salesman.
• No incentives are given to the salesmen for distributing
Bisleri as no such support is received from the company.
• No targets are also fixed for the salesmen as company
does not give them any target. The entire distribution
runs on the general demand of the market i.e. on the
market pull only.
27. Distribution Levels Amity Business School
• Bisleri has a very strong distribution network, which makes it reach out
to almost all the region in the country, company has about 350000
outlets across the country.
• The Bisleri uses three level of distribution channel as it consists of
wholesalers, dealers and retail shops.
• Bisleri has 52 bottling plants across India and works on its dual-
distribution strategy to gain competitive advantage.
• 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.
28. Amity Business School
• Everyday, nearly 5,000 delivery vans drive out of these 52
strategically located Bisleri bottling plants carrying over 1 million
units of pure, sweet drinking water to replenish the stocks of 2,500
distributors and nearly 600,000 retail outlets
• Through distributors it also goes to the institutional buyers or orders
over internet.
• The company has used its own fleet of about 2000 trucks to manage
the distribution network.
30. Distribution Chhanel Amity Business School
MANUFACTURING PLANT
COMPANY WAREHOUSE INSTITUTIONAL
BUYERS/ORDERS OVER
INTERNET
TRUCKS
DISTRIBUTORS INSTITUTIONAL
BUYERS/SEASONAL PARTY
ORDERS
SELLING
ROUTE
SELLING
ROUTE
RETAILERS
CUSTOMERS
31. Price Margins for the Amity Business School
products
• Based on the primary data from the distributor; following
are the margins which the distributor gets from the
company for various capacities:
Capacity (Liters) Cost Price (Rs)/Crate Selling Price (Rs)/Crate Margin (Rs) Schemes to Retailers
½ Liter (24pc per crate) 158 168 10 3 bottles of 500ml are
given free to retailers
1 (12pc per crate) 114 124 10 3 and sometimes 4
bottles of 1l are given
free to retailers
2 (9pc per crate) 148 158 6 2 bottles of 2 l are given
free
20 54 58 4 Two MRP, Rs 60 & Rs 70,
for both Retailer pays
the same.
32. Core Competency Amity Business School
• The brand of Bisleri itself is the core competency for
Bisleri.
• The seal of Bisleri bottles help the consumers clear their
doubts on the purity of water.
• Bisleri has a very strong distribution network, which
makes it reach out to almost all the region in the country.
33. Amity Business School
TRADE PROMOTION TOOLS
• Price –off (off- invoice)
A straight discount off the list price on each case
purchased during a stated time period.
• 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.
35. Amity Business School
When you talk of packaged drinking water, what brands
come to your mind?
5% Bisleri
15%
35% Aquafina
Kingfisher
25% Kinley
20% Others
36. Amity Business School
Which brand of packaged drinking water are most
asked/wanted by customers ?
1)Bisleri 2)Aquafina 3)Kingfisher 4)Kinley 5)Others
4.50% 10.50%
Aquafina
25% Bisleri
Kingfisher
50%
Kinley
10% others
37. Amity Business School
How much is your monthly sale of various brands?
2.00%
Bisleri
20%
Aquafina
8%
60% Kingfisher
Kinley
10% Others
38. Amity Business School
Are you satisfied with the current margin that Bisleri offers you?
a)Yes b)No
yes
no
39. • When you talk of mineral water,Amity Business School
what
brands come to your mind?
5% Bisleri
15%
35% Aquafina
Kingfisher
25% Kinley
20% Others