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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.
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
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 10-
12billion). 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
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Marketing of Mineral 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
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Marketing of Mineral 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.
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Marketing of Mineral Water-Bisleri
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.
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.
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Marketing of Mineral Water-Bisleri
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.
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.
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Marketing of Mineral 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.
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Marketing of Mineral Water-Bisleri
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.
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.
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Marketing of Mineral 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.
Well Water: Bottled water from a hole bored drilled or otherwise constructed
in the ground, which taps the water of an aquifer.
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Marketing of Mineral Water-Bisleri
• 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
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.
• 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.
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Marketing of Mineral Water-Bisleri
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Marketing of Mineral 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.
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Marketing of Mineral 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.
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.
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Marketing of Mineral Water-Bisleri
1. OZONATION
2. FILTERATION
3. CARBON FILTERATION
5. MICRO FILTERATION
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Marketing of Mineral 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:
3) CARBON FILTERATION:
The stage of carbon filteration removes bad odour and colour from water
and purifies it.
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.
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Marketing of Mineral 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.
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Marketing of Mineral Water-Bisleri
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.
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Marketing of Mineral 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 high-
quality 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.
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.
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Marketing of Mineral Water-Bisleri
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Marketing of Mineral 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
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Marketing of Mineral 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
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Marketing of Mineral 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.
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Marketing of Mineral 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”
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Marketing of Mineral 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.
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Marketing of Mineral 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.
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
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Marketing of Mineral 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.
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Marketing of Mineral 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.
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Marketing of Mineral 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.
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Marketing of Mineral Water-Bisleri
250 ml bottle with a fridge stand .This was experimented for a month and which
resulted in the lot of demand.
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
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Marketing of Mineral 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.
- Buy Huge quantity at cheap rate, after confirming demand and sell at
cheap price, make them addictive, then gradually increase price)
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Marketing of Mineral Water-Bisleri
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
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Marketing of Mineral 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.
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.
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Marketing of Mineral Water-Bisleri
Promotion
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Marketing of Mineral Water-Bisleri
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.
Advertisements
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Marketing of Mineral Water-Bisleri
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.
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Marketing of Mineral 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.
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Marketing of Mineral 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:
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.)
• Consumers are growing more health conscious and are more careful of their
drinking habits.
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Marketing of Mineral 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.
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.
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.
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Marketing of Mineral Water-Bisleri
SWOT ANALYSIS
STRENGTH
1. QUALITY STANDARD:-
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Marketing of Mineral Water-Bisleri
4. MARKETING:-
5. DISTRIBUTION SYSTEM.
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Marketing of Mineral Water-Bisleri
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.
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8. GROWING POPULARITY:-
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MISSION STATEMENT
RAMESH CHAUHAN
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WEAKNESS
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3. FAULTS IN PRODUCTION:-
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Marketing of Mineral Water-Bisleri
OPPORTUNITY
3. EXPANSION IN EUROPE:-
5. CHANGE OF IMAGE:-
6.INCREASE IN PRODUCTION:-
49
Marketing of Mineral Water-Bisleri
THREAT
50
Marketing of Mineral 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.
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
52
Marketing of Mineral Water-Bisleri
Overall different players are playing different tunes in order to establish their
brands in the market
53
Marketing of Mineral Water-Bisleri
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.
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.
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Marketing of Mineral 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.
55
Marketing of Mineral Water-Bisleri
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.
56
Marketing of Mineral 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 bottled-
drinking 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.
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.
57
Marketing of Mineral Water-Bisleri
In the late 1990s, many international brands were planning to enter the branded
mineral water market...
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..
58
Marketing of Mineral Water-Bisleri
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
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Marketing of Mineral 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.
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Marketing of Mineral 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
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Marketing of Mineral Water-Bisleri
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.
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.
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Marketing of Mineral 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.
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.
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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Marketing of Mineral 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.
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.
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Marketing of Mineral 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.
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.
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Marketing of Mineral Water-Bisleri
"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.
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.
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Marketing of Mineral Water-Bisleri
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.
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
marketshare.
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
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Marketing of Mineral Water-Bisleri
DATA ANALYSIS
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
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Marketing of Mineral Water-Bisleri
ANEXURES
69
Marketing of Mineral Water-Bisleri
Questionnaire.
________________
________________
________________
________________
5. From which media did you come to know about the various brands?
Television
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Marketing of Mineral Water-Bisleri
Magazines
Newspapers
Retail outlets
Others
8. If yes, where?
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Marketing of Mineral Water-Bisleri
BAILEY
AQUAFINA
KINLEY
Personal information
Name: _____________________________
Occupation: _______________________
Age: _____________________________
Thank you
Brand Preference
72
Marketing of Mineral Water-Bisleri
70
60
50
40
30
20
10
0
b isleri k in ley aq u afin a b alley
S eries1
73
Marketing of Mineral Water-Bisleri
price
advertisment 20%
30%
size
10%
band image
40%
74
Marketing of Mineral Water-Bisleri
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.
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Marketing of Mineral Water-Bisleri
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:
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.
Regal Cinema—BISLERI
Sterling-- AQUAFINA
Metro--- KINLEY
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Marketing of Mineral 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
Food Inn—BISLERI
5 Spice--- KINLEY
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Marketing of Mineral Water-Bisleri
60
50
40
30
20
10
0
b is le ri a q u a f in a k in le y b a lle y
S e rie s 1 60 45 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.
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Marketing of Mineral Water-Bisleri
79
Marketing of Mineral Water-Bisleri
80
Marketing of Mineral Water-Bisleri
Case Study
Reinventing Bisleri: Introduction
In the early 1990s, Parle Bisleri Ltd's (Parle Bisleri's) 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 Bisleri'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.
In the late 1990s, many international brands were planning to enter the branded
mineral water market. According to some analysts, the main reason for the
boom in branded water was the fact that people were becoming more health and
hygiene conscious. Branded mineral water which sold in only 60 towns in 1993,
was available in 250 towns in 1997. In 1998, Bisleri's market share came down
to 60%, while Parle Agro's3 Bailley had 20%. The remaining 20% was shared
by regional players.
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Marketing of Mineral Water-Bisleri
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.
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.
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."
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
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Marketing of Mineral Water-Bisleri
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.
However, one area in which Bisleri seemed to have an advantage over Kinley
and Aquafina was the bulk segment. In 2000 Bisleri's 5 and 20 litres packs
accounted for 20% of its sales. In 2001, the company planned to have 75% of its
sales from bulk packs of 5 and 20 litres. According to analysts the bulk segment
had vast potential, and was expected to grow fast. In 2000, 40% of the branded
water consumption was in eateries, homes and restaurants.
Large shops and commercial complexes were fast emerging as attractive targets
for mineral water marketers and Bisleri wanted to be the first to establish itself
in the bulk pack segment.
Bisleri reportedly wanted to focus on the bulk segment because Pepsi and Coca-
Cola seemed to be strong in the retail segment and would take some time to
strengthen their presence in the bulk segment.
Said Vibha Paul Rishi, executive director (marketing), of Pepsi, "The bulk
segment is not our core strength, so we would like to confine Aquafina to the
retail segment for the time being."5 To strengthen its presence in the bulk
segment, Bisleri was investing heavily on marketing and distribution.
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Marketing of Mineral Water-Bisleri
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 is 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. In 2000, Bisleri launched the 1.2 litre pack.
This added to the five pack sizes that Bisleri had (500 ml, one, two, five and 20
litres). The new pack was priced at Rs 12.
This pack was targeted at the regular mineral water consumer who is
accompanied by a friend and also restaurants and hotels. In the long run, Bisleri
planned to replace the standard one litre pack with the 1.2 litre pack. The
company felt that although the one litre pack accounted for 35% of sales in
terms of volume, it had problems in the form of leakages, loose caps and foreign
particles in the water. Bisleri thought that a heavier 1.2 litre bottle would solve
most of these problems.
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Marketing of Mineral Water-Bisleri
The retailer price for a crate of 1.2 litres bottles would be Rs 120, against a total
cost (including excise and sales tax) of Rs 60.87 to the company. Thus, the
company would have a margin of Rs 59.13 per crate. The comparable margin
for a crate of 1 litre bottles was Rs 44.57. This meant that the company would
have an extra Rs 14.56 per crate. Bisleri planned to spend this amount on
advertising and marketing.
In 2000, Bisleri also launched smaller packs like the 300 ml cup. This 300 ml
cup was targeted at large gatherings like marriages and conventions. A study
conducted by Bisleri showed that its one litre pack was not considered trendy
enough.
Analysts' felt that since Bisleri had become generic to the category, the one litre
pack was not really considered a brand but merely synonymous with the
product. The new look was expected to correct this perceptions. In place of the
round ringed bottles, Bisleri would be available in hexagonal flat-sleeved
bottles. The new pack was already introduced in 500 ml and 5 litre sizes and
would be used for other packs. The new design was patented to prevent it from
being copied by others.
Said Chauhan, "The new pack is trendy and has been well accepted by the
consumers as we have experienced in the case of 500 ml and 5 litre sizes." The
new pack also allowed better brand display. Vertical labeling was easier on flat
sleeved packages. It made label information visible from all sides of the bottle.
Bisleri also planned to target the soft drinks market. Chauhan was confident that
by 2003, the water business would grow at the cost of the soft drink market.
Most analysts agreed that this was possible. In 2000, pure bottled water sold
over 500 million litres a year. Soft drinks sold over 1 billion litres a year. With
an annual growth rate of 40% for water, water sales was expected to catch up
with soft drinks. Bisleri planned to target the soft drinks market by adding a fun
element to the product. Chauhan felt that soft drinks were all about quenching
thirst and having fun.
While it was widely accepted that branded water quenched thirst, there was very
little that branded water could do to provide a fun element. Chauhan said that
Bisleri would soon launch an ad campaign to address this problem. By 2000, the
smaller players also began to position their products on the purity platform.
They also offered better trade margins. New entrants like Aquafina and Kinley
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concentrated purely on building their brands in a big way. Bisleri had to come
out with an ad campaign to make its brand stand apart.
In September 2000, Bisleri launched its Play Safe ad campaign. In the print ad,
a lady in a bikini is shown lying face down, soaking up the sun. A part of the
lady's body is shielded by a bottle of Bisleri with the message: Play Safe on the
bottle. The television version of the ad ran for 45 seconds. The film opens with
a couple sitting on a beach in front of a bonfire. The girl suddenly starts running
and is followed by the boy.
As she collapses on the sand, she whispers something in his ear which sends
him back to the bonfire. He rummages through the bags, but can't find what he
is looking for. He rushes to the nearest chemist's and picks up a huge carton.
Back at the beach, he opens the carton, and finds 500 ml Bisleri bottles inside.
The girl quenches her thirst, almost in ecstasy, as the boy watches her with a
comical expression on his face. Then comes the message: Play Safe.
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."
According to Ambience D'Arcy, the shift had been necessitated by the fact that
every new entrant in the mineral water market adopted the purity. Said
Chauhan, "Our observation is that people consume mineral water not for the
minerals, but for safety. Hence the word "safe" is critical."
The boy's face breaks into a smile. The ad also shows a father running behind
his son's school truck to hand over a Kinley bottle. Commenting on the ad,
Pandrang Row, executive creative director, McCann-Erickson, Kinley's ad
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Marketing of Mineral Water-Bisleri
agency said, "We were trying to show images where people had to trust the
water they were drinking, or giving their children. Kinley is the water you use
when you need to be able to trust what you're drinking or giving someone to
drink."
In late 2001, Coca-Cola announced that it would enter the bulk segment where
Bisleri was a dominant player. The 20 litre bulk water packs would be targeted
at institutional and home segment. Kinley's brand positioning of trust and purity
would be maintained. With the entry into the bulk segment, Coca-Cola aimed to
garner a market share of 40% by 2002. Sanjiv Gupta, Senior Vice-President,
Coca Cola India said, "We are aiming to be either number one or a close
number two within a year."
Analysts felt that with the cola giants shifting their focus to branded water in
India, Bisleri would be the worst sufferer. Chauhan was already planning to sell
a 49% stake in Bisleri. However, according to some analysts; he would wait till
2003 when Bisleri was likely to touch a turnover of Rs 10 billion, before selling
out the 49% stake. Others felt that given the pace at which Kinley and Aquafina
were eroding Bisleri's marketshare, 2003 could be too late. What remained to be
seen was whether Bisleri's new positioning would help it to increase its turnover
to Rs 10 billion by 2003.
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CONCLUSION
The important increase in India can be easily explained through the growth of
7the 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.
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.
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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.
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.
www.bisleri.com
www.managementcases.com
www.icri.com
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.
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