WIZARDS

OF
BARTER

THE WATER CHALLENGE

The bottled water industry in India is on a growth spree at a CAGR of 22% and is expected to
touch Rs. 160 billion by 2018. India is one of the Top 10 consumers of packaged bottled
water in the world. According to a study, there are more than 200 bottled water brands in
the country with more than 80% local brands. The top five players account for almost 70%
of the market share. (Exhibit 1)
The per capita consumption of bottled water is still low, less than 5 litres in a year compared
to the global average of 24 litres per year. There is a huge potential for bottled water
industry in India and many MNCs are planning to enter this segment in the near future.
Key Growth Drivers
Indias packaged bottled water industry saw a boom in the 1990s after Bisleri was launched.
The growth in the packaged water industry is owing to the rise in health awareness, poor
quality of tap water and ease of availability of bottled water. More Indian consumers are
opting for bottled water in their homes if they do not have water purifiers and when they
are away from home.
Bottled water is still not perceived as a product for the masses, though this scenario is
rapidly changing. Bottled water recorded growth in tier II and tier III cities of India during
2014 which bears testimonial to this fact. The western region accounts for 40% of the
bottled water market while the eastern region just 10% and the consumption of bottled
water varies with the level of prosperity of the region. Many of the manufacturing facilities
are located in South India with 600 plants in Tamil Nadu alone. Bottled water business can
be categorised into three segments according to the price: premium natural mineral water,
natural mineral water and packaged drinking water.
But penetration of major players into the tier II and III markets and rural areas is still low
and these markets are dominated by regional players. Besides, there are small local players
which are imitating the trademarks of these branded players.

History of Bottled Water industry in India

Mineral bottled water in India under the name 'Bisleri' was first introduced in Mumbai by
Bisleri Ltd., a company of Italian origin in 1965. Mineral bottled waters were in glass bottles
in two varieties - bubbly and still in 1965. This company was started by Signor Felice who
first brought the idea of selling bottled water in India. Parle bought over Bisleri (India) Ltd. In
1969 they started bottling mineral water in glass bottles under the brand name 'Bisleri'.
Later Parle switched over to PVC non- returnable bottles and finally advanced to PET
containers. Since 1995 Mr.Ramesh J. Chauhan has started expanding Bisleri operations
substantially and the turnover has multiplied more than 20 times over a period of 10 years
and the average growth rate has been around 40% over this period. Presently, it has 8
plants and 11 franchisees all over India. Pepsis Aquafina and Coca colas Kinley entered the
market in 2000.
Competitive landscape
Parle Bisleri Ltd is the market leader with a market share (value) of 39%. The company
maintained its leadership in the category due to high levels of consumer loyalty for its Bisleri
brand and strong distribution. The image of the Bisleri brand was enhanced through many
digital campaigns in the recent years. One of the disruptive digital campaigns was Kiss to
Drink Campaign which was launched in 2013. (Exhibit 2) This campaign, targeted at the
youth was humorous and it managed to create an instant connect with the target audience.
Kinley also launched the campaign Boond Boond mein sacchai in 2014 that propagated, in
an emotional way, the importance of speaking the truth. The campaign, inspired by real life
instances, was aimed at making people realise that life is peaceful when there is nothing to
hide. This campaign attempted to engage the audience in an emotional manner. (Exhibit 3)
The market leader Bisleri is one of the most trusted bottled water brands in India and it
recorded the largest growth in value in 2014. While international players including PepsiCo
and Coca-Cola continued to extend their distribution and focused on enhancing the
presence of their bottled water brands, domestic players maintained the leading positions
in the category during 2014.

Given the huge potential of bottled water industry and the current competitive scenario, a
well-known FMCG company in India is planning to enter this bottled water space and is
thinking about a marketing strategy to launch the new brand.
The case analysis should answer the following questions:
1. What should be the marketing strategy for the company?
a. Define the target segment
b. Positioning with respect to competitors
2. Define the consumer value proposition for the product.
3. Give suggestions for the following:
a. Pricing Strategy
b. Product Information
c. Format ( packaging)
4. Come up with a brand name and tag line for the product and a brand story.
5. What will be the communication strategy? Identify the channels of communication,
communication message, story board (optional).
Note: You can refer to secondary sources if needed for the case analysis
EXHIBITS
Exhibit 1
This exhibits shows the market share of the brands over the years from 2011 to 2014
Brand
Company name (GBO)
2011
2012
2013
2014
Bisleri (Parle Bisleri Ltd)
Parle Bisleri Ltd
36.10
33.70
33.90
34.90
Aquafina (PepsiCo Inc)
PepsiCo Inc
15.00
15.10
15.20
15.30
Kinley (Coca-Cola Co, The)
Coca-Cola Co, The
11.30
13.10
13.30
13.70
Oxyrich (Manikchand Group)
Manikchand Group
6.70
6.00
5.90
6.50
Kingfisher (UB Group)
UB Group
3.20
4.50
4.60
4.30
Bailley (Parle Agro Pvt Ltd)
Parle Agro Pvt Ltd
1.50
1.40
1.40
1.50
Mother Dairy (National Dairy Development Board)
National Dairy Development Board
0.40
0.40
0.40
0.30
Himalayan (Tata Global Beverages Ltd)
Tata Global Beverages Ltd
0.10
0.10
0.10
0.10
Catch (Dharmapal Satyapal Ltd)
Dharmapal Satyapal Ltd
0.10
0.10
0.10
0.10

Exhibit 2

Exhibit 3
https://www.youtube.com/watch?v=RvGOTeJsZb8