BISLERI(MARKETING STRATEGY OF MINERAL WATER

INDUSTRIES- SPECIAL EMPHASIS ON BISLERI)

MARKETING STRATEGY OF MINERAL WATER INDUSTRIES- SPECIAL EMPHASIS ON BISLERI

INTRODUCTION

Water is the most important liquid in the world. Without water, there would be no life, at least not the way
we know it. In today's living condition, the need for Pure Drinking Water is becoming the issue for the
common Man.
Eighty percent of the human metabolism consists of water. This is the reason why 90% of human diseases
are water borne. There are 3 types of water impurities, which are root cause of water borne diseases.
1. Microbiological-Bacteria / virus.
2. Dissolved impurities - chemical.
3. Imbalance of Mineral Content.
There are rapid changes that are taking place in our environment since long and the air and the water
pollution is on an increase. The main source of drinking water is river and downstream which also have not
been able to escape the pollution. When a consumer became aware of the problems caused by water
pollution the market saw an advent of ceramic water filters, which filters the dust and suspended particles
but dissolved impurities and microbiological impurities are not cleared out. The mineral balance is also not
maintained.
1980's witnessed more changes by a tap attachment wherein Iodine resin is used to filter the water. It
deactivates microbiological impurities to an extent but has side effects due to iodine and it does not take
care of dissolved impurities mineral balance.
Late 1980's witnessed Ultra Violent based purifier, which filters dust and deactivates bacteria to a great
extent. It maintains the odor and color of water but does not clear out the dissolved impurities and mineral
particles. Thus came advent of mineral water.
Historically, the need for purified water within Indian homes had been kept down to a minimum. Essentially,
there were three types of water that was used for different purposes. The first type was used for rinsing.
The second type, which was used for cooking, was cleaner and kept covered. The third type was the cleanest
drinking water and was very often boiled before use.
Since an average family needed a small quantity, not more than five or six liters a day, boiled and filtered
water had been a convenient solution for some time .The fallouts were obvious. It was very difficult to
convince the people that purification system was worth the price. There was no visible way to demonstrate

the benefit. The otherwise somnolent market began to change once companies like Eureka Forbes targeted
the office segment, while the mineral water players went after travelers. Ion Exchange was the only
company, which had any measure of success in entering homes with Zero-B. But clean drinking water
returned on the national agenda a little later.
Around 1989, drinking water became an issue again.
Around early 1990s,Time did a story on India as a key emerging market and that was the trigger for all the
players eyeing this market.

WATER, WATER EVERYWHERE

Water - the Beverage your Body Needs Most

When we were kids in school, we learned that each molecule of water is made up of two hydrogen atoms
and one oxygen atom. We also learned that it was great fun to fill up our squirt guns with water, at least
until the principal caught us. What we really didn't learn, however, was how much water we needed in order
to be healthy human beings.

West Europeans, south Asians and Japanese live in the most densely populated regions of the globe and
worry constantly about the quality of their drinking water drawn from rivers and lakes. Most is polluted and
unfit for human consumption. In North America, people never worried about water quality and safety until
early 1970s and restaurants always provided iced water free. Some still do. Then came Perrier, the French
mineral water emphasizing how restaurateurs could increase their revenues by replacing iced water service
with bottled water. Restaurateurs never miss an opportunity to increase their profits, and soon studies
started to surface claiming that serving iced water was costly and no one benefited. Many restaurants
started serving automatically bottled water, and charged outrageous amounts i.e $ 3.50 for 300 ml. These
days, a 750 ml bottle goes for $ 10.- in some restaurants, plus applicable taxes and tip!

Meanwhile, the word savvy bottled water marketers started circulating the myth that drinking bottled
mineral water is safer, never mentioning what their studies were comparing.

It is said that the inhabitants of seven cities between Switzerland and the Netherlands consume the water of

the Rhine River. In these parts people drink beer, wine, bottled water or fruit juices and shun tap water.
North Americans have recently begun to drink bottled water, but already the distinction between spring
water, mineral water, and filtered tap water is blurred beyond redemption. Spring water must come from a
natural springs with proven purity of contaminants; mineral water must contain 2000 parts per million in
minerals; and filtered tap water means just that. Europeans always preferred mineral water or eau de
source (spring water) since their rivers were polluted a long time ago. Now considerable efforts are made to
clean all major European Rivers. The Rhine River, the Thames, the Loire are clean enough to allow several
species of fish to thrive.

As always, large companies with considerable cash reserves dominate the market. Groupe Danone, a French
conglomerate, markets Evian, Volvic and Crystal Springs; Nestle, a Swiss food multinational with
headquarters in Montreux markets Perrier, Nestle Pure Life and San Pellegrino. Not to be outdone soft drink
giant Coca-Cola joined the cause with filtered tap water and positioned their brand as pure, safe, life-style
water. Coca Cola markets Dasani and Pepsi Cola Aquafina. When it comes to mineral water, Voss (Norway);
Tynant (Ireland); Vitel, Cathledon, Volvic, (France); Appolinaris (Germany), Spa (Belgium); Gasteiner
(Austria); San Benedetto, San Pellegrino, Aqua di Nepi, Lete (Italy), Ramlosa (Sweden);Borsec (Romania)
stand out. They display distinct taste profiles that spring and filtered waters lack, but tend to be more
expensive. When it comes to consumption, Canadians consume approximately 30 litres per capita, Italians
158 litres, French 133, Dutch 119, Germans 101 and Americans 76. The low per capita consumption can be
attributed to the illusion that tap water is safe. In reality, only large cities control tap water quality regularly
and vigorously and treat it appropriately for safety. In small communities, scarce financial resources and
lacking expertise often make tap water safety questionable. Since the introduction of PET bottles
(polyethylene terephate) bottled water consumption increased by 16 percent in five years and continuing
growth of the market is forecast by the Canadian Bottled Water Association in Richmond Hill, Ontario. The
question for restaurant patrons remains whether to ask for bottled or mineral water, or demand ice water.

It all depends on the situation. You can ask politely for ice water, if that is what you prefer, or a glass of
wine, or beer. The cost is almost the same for all the three, or you can complain to management that prices
charged for bottled water are ridiculous as is the case with wine.

BISLERI - COMPANY PROFILE

Mineral Water under the name 'Bisleri' was first introduced in Mumbai in glass bottles in two varieties bubbly & still in 1965 by Bisleri Ltd., a company of Italian origin. This company was started by Signor Felice
Bisleri who first brought the idea of selling bottle water in India.

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. . Parle's taking charge of Bisleri did not make a dramatic difference to the brand's fortunes
immediately. While it did gain in terms of visibility and reach (piggybacking on Parle's existing distribution
network), efforts to expand the bottled water market were not exactly painstaking. Parle at that particular
time was interested in making soda water and not mineral water. There were just minor initiatives on part of
the company for making mineral water, as it was not considered to be a very profitable business at that time
as people still considered boiling water to be a safer and better than mineral water. Moreover they were not
ready to pay for a commodity like water, which was so abundantly available.
In 1972-73 Parle changed the packaging of its bottled water to plastic bottles and that significantly made a
difference in the sales. The buyers, then, were mainly the upper class - the trendy people.
In 1993, Coca-Cola bought Parles soft drink brands- Thumps-up, limca etc. While Coca-Cola actually bought
over Parle's beverages, it agreed to a settlement that allowed the multinational to bottle and distribute
Bisleri soda for a time frame of five years. The charge of Bisleri water, however, remained with Parle. The
upsurge in the sales of Bisleri started from this point as Parle sold off its stable of brands to Coca-Cola. This
was the time when it started concentrating on making Bisleri a success in the domestic mineral water
market. The reason why Parle chose to retain the Bisleri name was that Parle saw a fairly lucrative business
of mineral water in Bisleri's equity.
Since 1995 Mr. Ramesh J. Chauhan has started expanding Bisleri operations substantially and the turn over
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 we have 8 plants & 11 franchisees all over India. We have our presence
covering the entire span of India. In our future ventures we look to put up four more plants in 06-07. We
command a 60% market share of the organized market. Overwhelming popularity of 'Bisleri' & the fact that
we pioneered bottled water in India, has made us synonymous to Mineral water & a household name. When
you think of bottled water, you think Bisleri.

We at Bisleri value our customers & therefore have 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 our commitment to offer every Indian pure & clean drinking water. Bisleri Water is put through multiple
stages of purification, ozonised & finally packed for consumption. . Rigorous R&D & stringent quality controls
has made us a market leader in the bottled water segment. Strict hygiene conditions are maintained in all
plants.

In our endeavour to maintain strict quality controls each unit purchases performs & caps only from approved
vendors. We produce our own bottles in-house. We have recently procured the latest world class state of the
art machineries that puts us at par with International standards. This has not only helped us 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.

How Parle Bisleri began..

June 10, 2005

According to the Bureau of Indian 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:

Can I be honest? When we bought Bisleri mineral water from the Italian company, Felice Bisleri, in 1969 -the company had been unable to market bottled water and wanted to exit the market -- we too did not see
any potential for the product at that time.
As a soft drinks company, we had Thums Up, Gold Spot and Limca (cola, orange drink and lemonade) but no
soft drink company was complete without a soda. So we merely used the name and launched Bisleri soda
with two variants -- carbonated and non-carbonated mineral water.
But three decades ago, what could we say about a category that had no market? We didn't know our target
group. Then, since bottled water is colourless, tasteless and odourless, it was not an easy product to
advertise.
Thus, the earlier brand building efforts focused on Bisleri being healthy with adequate minerals. The Italian
name added a dash of class to it. The first print ad campaign captured the international essence and showed
a butler with a bow tie, holding two bottles of Bisleri.
The punchline was, "Bisleri is veri veri extraordinari" (the spelling of the punchline was designed to capture
the consumer's attention). The campaign was successful and we were being noticed as someone who
catered to the need for safe, healthy drinking water.
However, the real boost to mineral water came in the early-to-mid-1980s when we switched to PVC
packaging and later to PET bottles. The PET packaging did not just ensure better transparency -- we could
now show sparkling clear water to the consumers. It also meant better life for the water.
Meanwhile, Bisleri soda was doing well but we had to discontinue production as we sold our soft drink brands
to Coca-Cola in 1993. But my interest was in building brands and not in bottling soft drinks. That's when I
started to concentrate on developing the Bisleri water brand.
There was a clear opportunity of building a market for bottled water. The quality of water available in the
country was bad. It was similar to what Europe faced before World War II. The quality of water in Europe
was extremely poor, which created the bottled water industry there. In India, too, not only was water
scarce, whatever was available was of bad quality.
Initially, though bottled water was something only foreigners and non-resident Indians consumed, we still
had to increase the distribution, which meant the dealer margins reduced. And because of limited sales, the
dealer margin had to be kept high to compensate low sales. Now we had to push sales.
But to reach out to the masses, we had to make the category more affordable. The introduction of a
comfortable-to-carry 500-ml bottle for just Rs 5 in 1995 not only answered that need, but also meant doing
away with carrying the excess water or throwing it away if you were to buy a one-litre bottle.
The idea was a success and gave the company a growth of 400 per cent. We also introduced the 1.2 litre
bottle in 2000, which was aimed at those who share their water. This also gave us the advantage of higher

margins that a crate (12 bottles) generated.

With other brands joining the fray, things were hotting up -- the bottled-water market was estimated at Rs
300 crore (Rs 3 billion) and was growing at 50 per cent a year. Bisleri had captured 40 per cent of the
market.
We realised it was time to move to the next level -- the bulk segment. Several commercial establishments
had no access to piped water. We tapped into this segment by introducing the 12-litre container, followed by
the 20-litre can. The bulk segment also helped bring down the price per litre from Rs 10-12 a litre to about
Rs 3 a litre.
At present, the bulk segment constitutes 60 to 70 per cent of our sales and we intend to increase it to 80
per cent in the next two years. With water scarcity in several cities, even households are demanding bottled
water now.
The home pack was made more user-friendly by introducing pouring spouts and jars with dispensers. At the
same time, we were constantly looking for new ways to tap the market. We noticed that during wedding
receptions, the older guests (above 50 years of age) generally stayed away from ice cream, soft drinks and
so on.
Hence, we introduced free sampling of Bisleri at the tables where the elderly guests would sit. Soon
customers were ordering bottled water on special occasions. Currently, the consumption of bottled water is
far in excess of soft drinks on such occasions.
The other major challenge was distribution. I still have the mindset of a soft drink seller. Soft drink sales are
in glass bottles and the distribution model is built around picking up empty bottles and getting them back to
the factory. That's not the case with the retail bottled water packs (below 2 litre). But a product that's not
available where it's needed, is useless.
The number of outlets where Bisleri is available has increased from 50,000 in 1995 to 2,00,000 at present.
But that is not enough -- we need to keep looking for different avenues. Take stationery shops and chemists,
for instance. They don't keep soft drinks but sell Bisleri. That is the kind of exclusivity we look for to get
ahead of the distribution network that soft drink companies talk of.
The journey till now
1969: Buys Bisleri bottled water from an Italian company, Felice Bisleri. It was bottled in glass bottles then.
Early-1980s: Shifts to PVC bottles. Sales surge
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.

1998: Introduces a tamper-proof and tamper-evident seal.

2000: BIS cancels Bisleri's licence of a water bottling in Delhi 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 sKinley's marketshare at
35.1 per cent compared to Bisleri's 34.4 per cent.

MINERAL WATER INDUSTRY

CURRENT MARKET SCENARIO

A few years back, the mineral water market had been crawling at the rate of 3-4%, or even a lower figure.
Indians carried drinking water in earthen pitchers, plastic or PUF bottles. But increasing cases of typhoid and
other waterborne diseases began to be reported. In addition to this, liberalization happened and the mineral
water industry began to be stirred and shaken. The market started growing an astounding rate of over
100% per annum. The fact that there were very few players in the market meant that their business grew
by leaps and bounds.
The market today has grown to Rs11bn. The organized sector -- branded mineral water -- has only Rs5bn of
market share. The rest is accounted for by the unorganized sector, which is dominated by small regional
players. The market is still growing at a rate greater than 80% per annum.
In the branded segment, Parles Bisleri is the market leader with a share of more than 45%. Parle Agros
Bailley comes a close second with market share of 15%. Other major players in the market are Yes of
Kotharis, Ganga of T-Series, Himalayan, Hello, Nestls Pure Life, Pepsis Aquafina, Coca-Colas -Kinley
Prime, and Florida etc.
Sensing the opportunity that this segment holds, MNCs began to draw up plans to enter the market. Today
the market is proving to be yet another battlefield for an ongoing battle between the Desis and MNCs. Last
year the industry had around 170 brands. This figure is over 300 presently. The major foreign players are
Coca-Cola promoted Kinley, Pepsis Aquafina, Britannias Evian, Nestls Perrier, Herbert sons and Danone
International.

Indias largest packaged water company Bisleri International Pvt. Ltd is to enter value-added water business.
The company will launch flavoured packaged drinking water in the country by March next year.
We are conducting research and development with at least 12 fruit flavours, such as nimbu paani,
strawberry and orange, for flavoured water. We aim to launch it by March next year, said Ramesh Chauhan,
chairman, Bisleri.

According to Datamonitor Plc., a UK-based consumer research firm that tracks various sectors in India, the
flavoured water market was estimated to be around $50 million (Rs196 crore) in 2006 and is expected to
grow to $70 million by 2010.
With the move, Bisleri aims to strengthen its position in a space in which other leading beverage companies
have also evinced interest. Companies such as Coca-Cola India Inc., PepsiCo India Holdings Pvt. Ltd and
Tata Tea Ltd, also plan to enter the flavoured water business. So far, there is only one prominent player, DS
Foods, in the segment. Its brand, Catch, is priced at Rs30. The flavoured water market is still at a nascent
stage in India. Higher price, limited products and alternative home-made products are some of the barriers
for the growth of this segment, said Puneet Bansal, senior analyst with Datamonitor.
Bisleris focus on premium segment, however, is part of its strategy to tap higher-margin opportunities in the
packaged water business. Last year, it had launched a premium water brand Mountain Water, which
currently contributes 25-30% to its total sales. The company plans to launch this brand in Europe soon.
We are in talks with several distributors in Europe to launch our premium water there. The deal is expected
to go through by December this year, said Chauhan. The company also plans to tweak its packaging and
look to give it an international appeal and compete with biggies such as Nestle and Groupe Danone.
The moves, said Chauhan, are aimed at trebling Bisleris sales from around Rs300 crore now, to Rs1,000
crore by 2009. To push its sales, the company is also planning to double its distribution network from 800
distributors this year to around 1,500 in the next six months. Also, the company plans to double its capacity
of one million bottles a day through adding more contract packers and upgrading its bottling capacity.
Meanwhile, the company continues to rule the conventional bottled water segment. It said that for October,
it registered sale of 2.66 million cases across the country against 1.79 million cases sold in the same month
last year.
Chauhan also dismissed speculation that he may sell out his water business.
He said Bisleri was doing well and he had no plans to sell it out.
We might have sold our carbonated brands, including Thums-Up, Limca and Gold Spot, due to a lack of
choice. But, now I am in a position to build and sustain Bisleri and will not sell it at any cost,he added.

MARKETING STRATEGY

MARKETING STRATEGY
It is complete and an unbeatable plan designed specifically for attaining the marketing objective of a firm.
The marketing objective indicate what the firm want to achieve. The marketing strategy provides the design
for achieving them the linkage between marketing strategies and over all corporate success is indeed direct
and vital. Realizing the marketing objectives is the purpose of two generic categories .
1. Price based
2. Differentiation based

PRICE BASED MARKETING STRATEGY

a business that opts for the price route in its competitive battle will enjoy certain flexibilities in matter of its
product and use prices as main competitive level . it will price its product to suit the varying competitive
demands . it will be enjoying certain inherent cost advantages , which permits it to resort a price based fight
. the major forms where such cost advantage can occurs are economies of sale , absolute cost advantages ,.
Benefits of early entry a large market share build over a time . it provides freedom in the matter of pricing
but after producing a particular product and getting stuck in the face of the competition , one can not
successfully opt for a price led strategy .

THE DIFFERENTIATION BASED STRATEGY

marketing strategy based on differentiation works on the principle that any aspect of the offer and any
activity of the firm can be made distinctive compared with the competiting offers. Right from technology,
plant location to post sale and service a company can perceptibly differentiate and many buyer values.
Companies usually choose those functions , Which give them the greatest relative advantage.

Different firms adopts different strategy stances as their situational design differBroadly strategy stances can be classified under three headsOffensive Strategy-

Offensive Strategy also known as confrontation strategy , is a strategy of aggression. A firm that is not
presently the leader usually employs it, but it aspires to leadership position in the Industry.
Defensive Strategy-
The leader who has the compulsion to defend his position against the confrontation of powerful existing
competitors or to dislodge the leader from his topmost position usually employs it.
Niche Strategy-
A firm practicing the niche strategy neither confronts other nor defends itself. It cultivates a small market
segment for itself with unique products / services supported by a unique marketing mix.

FORMULATING THE MARKETING STRATEGYFormulating the marketing strategy consists of two main steps1- Selecting the target marketIt does not fully bring out the import of the inseparable linkage between the two. When the selection of the
target market is over an important part of the marketing strategy of the firm is already determined, defined
and expressed.
2-Assembling the marketing mixAssembling the marketing mix means assembling the four Ps of marketing in the right combination.
The firm has to find out how it can generate the best sales and profit. It plans different marketing mixes
with varying levels of expenditure on each element and tries to figure out the effectiveness of each
combination in terms of the possible sales and profit.
ADVERTISING CAMPAIGN:
While designing the advertisement campaign, it is necessary to keep in mind the opinion leaders. Youth are
the opinion leaders of the present time. And thus it becomes necessary to design the campaign keeping the
youth in mind. The opinion leaders would further trickle down the message to the less active members of
the society.
This is exactly what Bisleri is doing. Bisleri has started an advertisement campaign stressing the point of
purity and flaunting the patent right the company has over the breakaway seal. The company has tried to
put the message across louder, by using the ad campaign that catches the eye of everyone, specially the
youth.
CONTENT OF THE CAMPAIGN:
Bisleri that was looking for a differentiator decided to make the breakaway seal the symbol of purity. The
tamper-proof seal was developed, around which the communication was woven. The campaign stresses the
safety provided by the breakaway seal by illustrating the ease with which conventionally sealed bottles can

be refilled and recycled.

The objective with the campaign would have been to highlight the tamper-proof seal and create doubt in the
consumers mind of the purity of the other brands. That is, Bisleri is the only one that guarantees purity and
keeps you Safe.
To conclude: We find that new advertisement campaign of Bisleri is eye catching. This is what the company
should do. And also the company should make the message clearer to the customers that it has the patent
right over the breakaway seal. In the survey we found that the consumers are aware of the breakaway seal
but are not aware that the company has the patent right.

Apart from a high dose of investments on expanding bottling capacities and an ad budget thats risen sixfold over last year, if Bisleri wants to penetrate every possible segment of the market, it can do that by
introducing more pack sizes and establishing the brand strongly with trendy new packaging.
Apart from creating consumer pull with campaign, the company, to increase its sales would have to do the
sales push as well. For that it would have to give the retailers and other stockiest high trade margins and
incentives for keeping the product. This is very important in case of this product because consumers would
take up what is available to them at ease and whatever retailer is giving.

ADVERTISING CAMPAIGN OF BISLERI

Every brand needs a good advertising campaign to establish itself in the market. So it becomes very
imperative to look at various ad campaigns that Bisleri undertook to build itself as a brand. Bisleri started its
game plan with the punch line of Pure and Safe and used the same catch-line for advertising. But with the
advent of many new players, all claiming the purity, it became very imperative for Bisleri to differentiate its
product so as to stand out in the market. Bisleri found the answer in sealed cap bottles. It claimed 100%
purity. While the bottles of the other brands, it claimed, could be refilled with ordinary, or even germinated
water, Bisleris seal capped bottles ensured the consumer of purity of water and single-used ness of the
bottles. The ad showed a milk-man and a child showering their buffaloes and filling the so-called mineral
water bottles with the same water and packing them with the simple polythene seal and the consumer not
knowing about the purity of the water he is drinking. Next clip shows the Bisleri bottles being sealed with
plastic caps and ensuring the purity of water. The ad did work for Bisleri and it got its much needed product
differentiation.
In 2000, some giant brands like Pepsi and coca-cola entered the mineral water industry with a big bang.
Bisleri now had a big threat of maintaining its market cap. While Coca-cola introducing its brand Kinley as a

health care product, Pepsi projected Aquafina as something as pure as Your own body. Pepsi targeted the
young generation and introduced Aquafina as a fancy product to carry.
The ad campaign of Aquafina emphasized as 70% of your body is water and thus give your body the purest
water. The ad showed young vibrant models and created the atmosphere of youthfulness. Water, Pepsi
claimed, was no longer a simple beverage, but was something highly fashionable. They complimented it by
giving their bottles an attractive look. This soon caught the eye of the consumer. All these factors made
Pepsi the biggest upcoming competitor of Bisleri (whereas Kinley lagged behind the race, showing a doctor
advising a family to take Kinley for pure water not a very attractive ad campaign).
Bisleri, to counter-attack the new Feel-Young fever had to even bolder steps. They first changed their base
line from Pure and Safe to Play Safe. They tried a brand new ad campaign to catch the fancy of consumer.
The new ad showed a young romantic couple on a marooned island, when the girl seductively attracts the
guy and he follows her in trance. The moment he gets hold of her, she whispers something in his ears. The
next few shots show the guy looking for something in frenzycan not find it.rushes towards the chemists
shop.buys something (keeping the audience in suspenseor rather implicitly pointing for ). The girl
opens it and.POOF.takes out a bottle of Bisleri and quenches her thirst. Caption: Play Safe. This
campaign was to catch the attention of youth and a new Indian society which is supposed to be not-soprudish. Thus Bisleri has taken a very bold step. The T.V. ads have been complimented by print ads also.
The company has to focus on the marketing management of the product. In light of the challenge in front of
the company and its current strengths and position, we have incorporated the marketing mix to counter the
marketing strategies of the competitors by developing its own marketing.

AQUAFINA ADVERTISEMENTS AND BISLERI

A drop-dead gorgeous body flexes its muscles on the screen. This starkly arresting black and white image is
then splashed with water. A voice-over informs you that 70 per cent of your body is water. Why not give it
the purest. Aquafina Bottled water from Pepsi.

This kind of advertisement campaign used by the competitors is giving the company a tough time. The
competitor, Pepsi, is utilizing the brand image built by it and is again targeting the Generation X
maintaining the company image. Its an unusual ad for this category. Till now, most marketers have focused
on educating the consumer on how bottled water is a safer option, with the lead of course, taken by the
popular national brand Bisleri.

But Pepsi chose to junk this approach and it could well afford to. Bisleri, after all, had already done most of
the hard work needed to build the bottled water category. What Pepsi needed was to establish its brand in
this crowded, fragmented market. Our task was made easier because was made easier because Bisleri had
concentrated on educating the consumer, instead of building its own brand values," says Rohit Ohri, vice
president and client services director, Hindustan Thompson Associates Limited (HTA). We wanted the
imagery to posit~on Aquafina as a youthful, premium and fun brand," says Vibha Rishi, executive director,
Pepsi. The idea, she says, was not to objectify bodies so that one could drool over them. "Instead, we are
talking about your body and the need for each one to take care of his or her body." The ad copy, which
spoke of the water content in our bodies, was actually trying to establish how important water was to our
well- being and how we need to continuously replenish it.

While the thinking was clear that the imagery had to be built in and around purity, HTA did toy with a couple
of other ideas and situations. Initially, the idea was to focus more strongly on the fun aspect and create a
story line complete with a smart idea and a twist at the end. "But we gave it up because we felt that the
story might take the mind away from the purity aspect that was a must to highlight," says Ohri.

So HTA adopted a minimalist approach and created a film with little clutter and no props, which tried to
capture the emotion of "feeling good about yourself'. While the film and the imagery are completely the
work of HT A, the strategic thinking comes from the Mother Company in the US.

Aquafina, in fact, is the largest-selling bottled water brand in the US with a 12 per cent market share, and
India is the first country outside of the US where Aquafina is being bottled. Even in the US, the ad talks of
the percentage of water in our bodies, but the handling is a little more serious. For example, the film will
show an emotional moment where someone starts crying, and then you will hear the voice-over, 85 Per cent
of xour eye are wa4ep. "There is no internal law that forces us to follow the international positioning. But
seeing the quality of thinking that has gone into this, we decided to stay with this positioning, though the
statements here are quite different," explains Rishi.

Aquafina, like all offeFings that come from the Pepsi stable, also imbibes the core values of the mother
brand. It addresses the Pepsi-user base, largely the youth, and like Pepsi ,it is also being positioned as a hip
brand. But Aquafina is a lot that Pepsi is not. It is a little bit older, mature and affluent, and not as mass
based as Pepsi.

Pepsi's role in the communication is that it is the source of credibility for the product and, of course,
establishes the youthfulness of the brand. But Aquafina is a brand in its own right and with each piece of
communication, its personality will emerge," feels Ohri. But while Aquafina is being given a distinct identity,
it is also being targeted at the Pepsi consumer and is addressing their need for safe and reliable drinking
water. Will this not cannibalize Pepsi sales? "Water does eat into the cola market," agrees Rishi, "but we
can't build a business for Pepsi based on people's lack of access to safe drinking water.

How can any business be built on deprivation?" Both will have to co-exist and carve a market out for
themselves, And~ while Pepsi targets the 18-25 year olds, Aquafina also includes the 30-somethings
together with the college crowd. Like Pepsi, Aquafina too is looking to command a premium without being
unaffordable.

It is being positioned as a premium product, not via pricing, but in imagery and packaging. Priced at Rs. 10
in Delhi for a 750ml. bottle, it is priced marginally higher than the competition that gives you one liter for
Rs. 10. The swirl shaped PET bottle resembles the Pepsi family and is sturdier and more hip than most
others in the category that take their design cues, it seems, from the one liter refined oil bottles in the
market. The decision to break the norm and come up with a 750 ml pack size was more driven by the fact
that water is fundamentally consumed on the go and the 750 ml size is easy to carry around. "It is ideal for
an half-an-hour in the sun, one liter gets too bulky," says Rishi. Pepsi's future plans at the moment don't
include commg up with size variants. They have also ruled out the possibility of catering to the bulk market,
which actually constitutes 30 per cent of the total bottled water market that stands at 70 million liters
annually, and is growing anywhere between 30 and 50 per cent.

Pepsi, obviously, is looking for a big slice of this burgeoning market, but as Subroto Chattopadhyay,
executive vice president, marketing, Pepsi, says, "We have a building blocks approach, first we have to build
the brand, and then the volumes.

Bisleri is tackling the situation by building the brand on the purity plank. Akin to brand building in soft
drinks, an aggressive print-and-TV campaign is being backed by hoarding, point-of-sale material, and every
interface with the consumer is being used as an opportunity to reinforce the message. For instance, all the
vehicles used for supply have been painted in bright blue, bear the Bisleri logo and sport catchy baselines
like . "Play Safe".

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 Himachal nestled 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.

PACKAGING
AND
DISTRIBUTION

PACKAGING
Variety is spices of life. Today for any business organization to be successful it has to provide its customer
with the differentiated product that is a value buy for them. In order to cater to yhe changing needs of the
customer the business has to continuously come out with the variants of the products so that it can target
the maximum segments.
Today Aqua Minerals offers a variety of packaging options: 1 lit, 2 lit, 5 lit, 20 lit. The 5 liters bottles account

for 35 % of sales showing a growing health concern among the Indian society. 1 liter bottles account for
30% of the share .
The 2 liters bottle introduced to slowly and steadily replace the conventional 1 liter bottle. The 5 liters packs,
launched in Dec 1999 in Goa, now available everywhere.

DISTRIBUTION
Its obvious that availability holds the key to the market .For any product to be successful the distribution
system has to be really good. Large tracts of the country have not been explored by the national brands,
which explains the proliferation of smaller brands.
Bisleris strategy is to build a direct distribution system at an all India level that means serious investment In
company owned trucks and carts, this would make it the largest fleet owner in the country. Bisleri has
around 80,000 retail outlets in the country with about 12,000 each in the Delhi and Mumbai. It is intended
to be increased this no. to 10,00,000 in order to expand brands reach.
The company will invest approximately Rs.200 cr. to procure 2000 trucks and hire same no. of sales people .
the company plans to have its own distribution network in places where it has its own plant
DISTRIBUTION NETWORK:
The small-scale players built their sales by piggybacking on the generic category built up by Bisleri. Its a
battle that Bisleri can win by sheer distribution muscle. One of the reasons why Bisleri is running strong in
this industry is its strong distribution network built over the years since its inception. Further, Bisleri plans to
increase its distribution network over the southern and eastern region, where it is behind popular brands like
sTeam in Tamil Nadu and in Andhra Pradesh.

MARKETING MIX

MARKETING MIX
The set of controllable tactical tools- product, price, promotion, and place (4 Ps), that the firm blends to

produce the response it wants, in the target markets.

The 4Ps
PRODUCT
The main product of the company is the mineral water by the name of Bisleri Mineral water. Other than
mineral water the company has also the soda water under its brand name called the Bisleri Soda Water. The
concept of bottled mineral water was introduced in India, first by Bisleri, and that is the reason, it has
become a generic name for the mineral water. Bisleri has become a perfect synonym of the mineral water for
the Indian consumers.
The main challenge facing the company or any other player in this mineral water industry is that there is no
scope of invention and innovation in the product, which can be added as the additional benefits of the
product. It is just water after all. This is what the Indian customers think of the bottled water. If we are
talking about a product like television we can think that the innovations could provide extra benefits derived
from the product. For example other than its core usage the product can provide for Internet facilities using
conversion.

PLACE
Place stands for the company activities that make the product available to the target customers. To make
the product available to the target consumers a good distribution network has to be there to support the
good quality of the product. Here in the case of the mineral water industry the distribution network is the
important factor in being competitive and the catch lies in making water available to maximum number of
places in the country.

PRICES FOR FOLLOWING PACKAGING VARIANTS

(AN ECONOMIC FACTOR AFFECTING THE BUYERS BEHAVIOR)

Price is the sum of values that consumer exchange for the benefits of having or using the product or service.
Price is the only element in the marketing mix that produces revenue. All other elements represent costs.
In India, where the majority of the population comprise of the middle-income group and lower income
groups it is not hard to understand that pricing is one of the most important factor in the buying decisions.
Bisleri has met the expectations of the consumers in terms of pricing the product and also making the
product available in variations of litres, making Bisleri both convenient and affordable. The company is

following a very aggressive pricing. Its product is available at a very reasonable price.
1.2 Ltrs Rs. 10/2 Ltrs Rs. 20/5 Ltrs Rs. 40/20Ltrs Rs. 120/-

PROMOTION
Modern marketing calls for more than just developing a good product, pricing it attractively, and making it
available to the target customers, companies must also communicate with their customers, and what they
communicate should not be left to chance.
A Companys total marketing communications program- called its Promotion Mix consists of specific blend of
advertising, personal selling, sales promotion, and public relations tools that the company uses to pursue its
advertising and marketing objectives.

COMPETITION

IN
MARKET

COMPETITION
The mineral water market is set to explode and hit the Rs.2,000-crore mark in the next couple of years. This
is drawing the big guns attention. First Britannia launched Evian. And recently, soft drinks giant Pepsi
entered the fray with Aquafina. Now, Nestle too is reportedly planning a foray. Meanwhile, Parle Agros Bailey
has been growing steadily. Small local players too are breathing down Bisleris neck riding on better trade
margins and intensive distribution (in their respective areas of operation).
The competition facing Bisleri can be categorized into a few brand names like
Parle Bailey
Pepsi Aquafina
Coca Cola Kinley

With Parles Bailey being the main competitor and second in market share in the organized market, Bisleri
faces tremendous competition from the unorganized sector.

AQUAFINA
The advantage for Aquafina is that though there are over 300 labels of bottled water in the Indian market,
few can be called brands. It is necessary to remember that every product with a name is not a brand; even
Bisleri has become generic to this category.
It does not have any emotional values attached to it. So there was no difficulty for Pepsi in creating space in
such a market, which is completely different from the soft drinks market, where it will be very difficult for
any new player to find a slot. So the creative team at HTA virtually had an empty canvas to work on. And it
came up with a campaign that did have people talking. First, a series of teasers, followed by a film that
showed healthy bodies and youthful people and, of course, lots of water.

Although Aquafina is only available in a 750 ml pet bottle, the pricing, at Rs.10, is competitive. And it is
safe. In addition to the tamper proof seal, there is a reliable method of checking whether the bottle has
been refilled. The date of manufacturing has been written on the cap as well as on the bottle. Thus a person
who is refilling it would have to find a matching cap and bottle, the probability of which is very low.

COCA COLA- KINLEY

Coca-Cola joined the race by announcing the imminent launch of its own brand of water and, in the process,
putting to rest rumors of its so-called takeover of Bisleri. Kinley is targeting institutions.
Parle Agros- Bailley
Bailley the brand that is owned by Ramesh Chauhans brother Prakash Chauhan is very popular in the
southern part of India. Southern part of India accounts for 20% of the sale of the whole water market
industry. Bisleri would have a tough competition from Bailley since the company plans to spread its presence
in that part of the country. Another thing that makes the competition difficult for the company is the price at
which its competitor is offering the product. Like Bisleri it also gives the 1 lt. For Rs.10. The only strength
point of the company, which it can capitalize, is its generic name. And also the company would have to
enter that market with a strong distribution base. We know the fact that Bailley has grown at a rapid pace
using the route of franchising, which Bisleri has not adopted as yet. This is another point, which the
company would have to take care of to face the competition.

PRODUCT PROFILE
Its a compliment being generic to the category, but its not very good when consumers think any mineral
water brand is Bisleri.Bisleri, a product established in India by Ramesh Chauhan, Chairman of Parle Aqua
Minerals has become a generic brand. Bisleri was the first marketed bottled water in a totally virgin market.
The brand has become synonymous with mineral water; consumers accept any brand offered by the retailer
when they ask for Bisleri.
So far Ramesh Chauhans Bisleri enjoys the largest market share of 56% in the Rs1100 crores mineral water

markets and is growing at the rate of 180% per annum. Annual sales of Bisleri have touched Rs400 crores.
In seventies, 'Bisleri' was the only mineral water, which had national presence, and the sale was to the tune
of approximately one hundred thousand cases valued at about Rs.60 lacs.

MANUFACTURING
A quick look at Bisleri's manufacturing reach indicates that it is represented across the country North
accounts for 35% of sales for the industry, West accounts for 30%, South 20% and the East 15%.
In order to be available in untapped areas Bisleri has setup 16 plants located all over the country - threefourths of which are company owned. The balance is run by franchisees. Bisleri has 5 plants in the North, 5
in the West- two of which were setup in the last year at Ahmedabad and Surat, 4 in the South and 2 in the
East. The company has bottling units located in Chennai, Bangalore, Goa, Calcutta, Mumbai, Delhi, Jaipur,
Uttar Pradesh, Punjab, Indore and Nepal. The new plants are being set up in states like Kerala, Orissa, Bihar
and North Eastern States, which hitherto have been unexplored by the company.
It is also changing its production strategy and shifting to a 10-hr production schedule with sudden increase
in demand planned to be met by additional production.
Bisleri has planned to expand its operations by investing Rs.60 crores in the upgradation of facilities. The
120-bottles per minute (BPM) capacity of the 16 units across the country will be increased to 240 BPM.
Conscious of the environmental implications of its PET bottles, the company is to set up recycling plants at
Delhi and Chennai, each with an outlay of Rs.50m. These will process 500 kg of PET per hour. The processed
material will be an input for polyester yarn manufacturers. In centers other than Delhi and Chennai, the
company will set up crushing units to crush the used PET bottles.
The company's expansion plans will see its water bottling capacity go up from the present 400 million liters
to 500 million liters. Parle Bisleri Limited (PBL) is planning to invest Rs 200 crores to increase its bottling
capacity and double its turnover. The expansion will also increase the number of company's bottling plants
from 16 at present, to 25. The company will set up all the new plants as green field plants. It doesnt have
any intentions to acquire any existing plants.

PURE BOTTLED DRINKING-WATER

Is Dangerous

The Safety of Bottled Drinking-water

Because of the large number of possible hazards in drinking-water, the development of standards for
drinking-water requires significant resources and expertise, which many countries are unable to afford.
Fortunately, guidance is available at the international level.

The World Health Organization (WHO) publishes Guidelines for Drinking-water Quality which many countries
use as the basis to establish their own national standards.
International Standards for Bottled Drinkingwater
The intergovernmental body for the development of internationally recognized standards for food is the
Codex Alimentarius Commission (CAC). WHO, one of the co-sponsors of the CAC, has advocated the use of
the Guidelines for Drinking-water Quality as the basis for derivation of standards for all bottled waters.
CSE Report on pesticide residues in bottled water

The Centre for Science and Environment, a non-governmental organization based in New Delhi, has set up
the Pollution Monitoring Laboratory to monitor environmental pollution. Its main aim is to undertake
scientific studies to generate public awareness about food, water and air contamination.

The bottled water market share of major brands is Bisleri (51%), Bailley (17%), Yes (11%) followed by
Kinley (10%), Aquafina (4%).

Drinking water filled in hermetically sealed containers of various compositions, form, and capacities that is
suitable for direct consumption without further treatment

FACTS

Bottled drinking water samples of some top brands Bisleri (Parle Bisleri Pvt. Ltd.), Bailley (Parle Agro Pvt.
Ltd.), Aquafina (Pepsico India Holding Pvt. Ltd.), Kinley (Hindustan Coca Cola Beverage Pvt.
Ltd.) and of other less popular brands like Best, Royal Aqua, Seagull etc., which were being sold and
manufactured in Mumbai and nearby areas like Pune and Daman, were purchased randomly. All the samples
were purchased from retail outlets in the market and from railway station and were checked for proper seal,

date of manufacture and batch number.

Even the top brands, which claim to use treatment methods like purification filtration, activated carbon
filtration, demineralization and reverse osmosis were found to contain residues of pesticides. It might be due
to the reason that the manufacturers may be by-passing the raw water after partial treatment and remixing
it with the fully treated stream so as to cut down the cost of treatment. On the basis of the results different
brands can be rated in terms of total organ chlorine and organ phosphorus pesticides from least to most
contaminated as-

Aquafina Macblue
Bailley Kinley
Seagull Sheetal
Bisleri Brilliant
Bally Apurva

OBJECTIVE

OBJECTIVE

TO Study the marketing Strategies of Bisleri in current Scenario.

 To Study the brand positioning of Bisleri.

To assess the brand awareness of the Bisleri in the Mineral Water Segment.

To find out the preference level of respondents regarding Bisleri Brand of Bottle.

RESEARCH METHODOLOGY

Definition of Research:

The word research is derived from the Latin word meaning to know. It is a systematic and a replicable
process which identifies and defines problems, within specified boundaries. It employs well designed method
to collect the data and analyses the results. It disseminates the findings to contribute to generalize able
knowledge.
The five characteristics of research are:
systematic problem solving which identifies variables and tests relationships between them
logical, so procedures can be duplicated or understood by others
empirical, so decisions are based on data collected
reductive, so it investigates a small sample which can be generalized to a larger population
replicable, so others may test the findings by repeating it

Research Methodology:-

The research conducted by Exploratory Research this type of research is Qualitative and Quantitative.
Qualitative refers to the characters of the data or process by which the data are gathered.
The research process consists of a series of closely related activities. Why a research study has been
undertaken. Why a research study has been undertaken, how the research problem has been defined, in
what way and why the hypothesis has been formulated, what data has been collected and what particular
method has been adopted and a host of similar other question are usually answered when we talk of
research methodology concerning a research problem or study.

Sampling:-

The data was to be collected only from the Consumers and Retailers. A questionnaire was prepared and
interviewing with Retailers and Consumers.
A decision has to be taken concerning a sample unit before selecting the number of samples. It may be
geographical as well as individual.

Size of Sample:This refers the number of items (Outlets) to be selected from the finite universe to constitute a sample size.
The survey was conducted of 50 outlets in Aligarh.

RESEARCH DESIGN

MEANING OF RESEARCH DESIGN

The formidable problem that follows the task of defining the research problem is the preparation of the
design of the research project, popularly known as the research design. Decisions regarding what, where,
when, how much by what means concerning an inquiry or a research study constitute a research design. A
research design is the arrangement of conditions for collection and analysis of data in manner that aims to
combine relevance to the research purpose with economy in procedure. In fact, the research design is the
conceptual structure within which research is conducted; it constitutes the blueprint for the collection,
measurement and analysis of data. As such the design includes on outline of what the researcher will do
from writing the hypothesis and its operational implications to the final analysis of data. More explicitly, the
design decisions happen to be in respect of :

What is the study about ?

Why is the study being made ?
Where will the study be carried out ?
What type of data is required ?
Where can the required data be found ?

What periods of time will the study include ?

What will be the sample design ?
What techniques of data collection will be used ?
How will the data analysed ?
In what style will the report be prepared ?

TOOLS AND INSTRUMENTS USED FOR THE STUDY

It is necessary for a researcher to define conceptual structure which research would be conducted. The
function of research design is to provide for the collection of relevant evidence with minimal expenditure of
efforts, time and money.

The means of obtaining the information is through :

a) Primary data like questionnaire and mock interview.
b) Secondary data like magzines, news paper and net etc.

PROCEDURE OF DATA COLLECTION

Data compilation is an intermediate stage between data collection and analysis. Data compilation involves
classification and summarization in order to make data amenable to analysis.

In dealing with any problem, once the sample has been selected the data must be collected from the sample
population. There are several ways of collecting appropriate data which differ considerably in context of
money cost, time and other resources. They can be broadly classified in to two categories.

Two sources to collect data are namely:

1. Primary Source
2. Secondary Source

PRIMARY SOURCE OF COLLECTING DATA

The Primary Data that I collected were the first hand information which I received through personal
interviews with the consumers and through questionnaires. This data gave the most vital information for
making my analysis of the prevailing purchasing behavior of the consumers.

QUESTIONNAIRE TECHNIQUE

The method of collecting data mailing and personally distributing questionnaire to the respondents is the
most extensively employed technique in various economical surveys. This method is quit popular,
particularly in case of big inquiries. A typical questionnaire consists of a number of questions arranged and
printed in definite order on a form or a set of forms. The questionnaire is given to the respondents who are
expected to read and understand the questions and write the response in the given space meant for the
purpose in the questionnaire.
Mock interviews
Mock interviews are basically just to save the time of both the respondents and the researcher and along
with this, it is assumed as a best means for collecting data where respondents are not so literate to answer
to question tailored in the questionnaire.

SECONDARY SOURCE OF DATA COLLECTION

Secondary Data involved in my research were the information that I collected through the various broachers
and pamphlets of the company which were provided to me during the analysis.

RESEARCH DESIGN :
The research design which has been used in the project report is descriptive in nature.
SAMPLE DESIGN:
The sample design which has been use in this project report is simple random sampling.
SAMPLING UNIT :
A decision has to be taken concerning a sample unit before selecting the number of samples. It may be
geographical as well as individual. Here Aligarh region has been taken as a geographical unit and retailers as
an individual unit.
SIZE OF SAMPLE:
This refers the number of items (Outlets) to be selected from the finite universe to constitute a sample size.
The survey was conducted of 50.outlets.

RESULT
AND
DISCUSSION

FINDINGS

The following findings are obtained and are based on primary data:1. Which brand of bottle water do you sale more?

2. The brand customer prefer more:

3. Why do you prefer to sell this particular Brand?

3. On what basis customer prefer to purchase?

4. Do you get any customer complaints for Bisleri?

5. Are your suggestions considered by Bisleri?

6. On what basis you motivate a customer to purchase a particular Brand?

1. When a customer talk of mineral water which brand comes into his mind?

SWOT ANALYSIS
STRENGTHS
Old and famous brand name

 Better packaging

Effective distribution network

Famous as pure & safe among consumer

Good product mix

Frequent quality checking

Better management

Give regular follow up to distributor

Indian image

Better sales force

Sponsoring various cultural program

Good intcentives to dealer

WEAKNESS
one liter packs which accounted for 50% of the companys turnover has come down to 30 %. The two-liter
packs, which have practically disappeared from the shelves, have come down from 20 % to 5 %. The growth
has come from the 500 ml and the five-liter category, which account for 15 per cent and 36 per cent of
turnover respectively.
Earlier, Bisleri was selling at a premium of Rs.12 for the same size. But beginning last year, it has been

selling its one- liter bottles at Rs.15 each. Aqua Minerals attributes the Price slashing to retailer margins
being on the higher side earlier.
The competitive Rs.15 price tag has been working well for the brand.
In what could be a masterstroke, Aqua Minerals is testing out the possibility of mass marketing 20-litre
Bisleri bottles for an MRP of Rs.40. That works out to Rs.2 a liter. If the logistics, manufacturing and
distribution do fall in place, it could change the face of the purified water market for keeps.

OPPORTUNITIES
So far, bisleri has not used the franchising route very aggressively unlike Parle Agros Bailley which has
grown very fast using this route. He has around six franchisees in Mumbai, Delhi, Chennai, Bangalore, Goa
and Rajasthan. We shunned this route so far because in most areas where we had no presence, it was
imperative that we did it ourselves. Now for further expansion we can afford to use the franchisee route.

THREATS
Bisleri will be taking the packs back and refilling them. But the packs cannot be sterilized since the material
used is PET and cannot withstand high temperature. So how can he ensure purity?

Strategy to counter threats and others?

We subject the bottles to chlorine washes, hot water washes and ozone washes before we refill the bottles.
The company is betting on the home segment. The reason being that filters and water purifiers also need to
be cleaned periodically and still do not guarantee absolutely clean water. In order to service this segment,
the five liter packs are being pushed through the route of fat dealers (wholesale dealers) who are retailers
as well as stockiest and serve as supply points from where customers can pick up the required quota. In
future, consumers will be able to call the fat dealer and place orders for home delivery of the five-liter pack.
The company has so far appointed 180 such dealers. This is a high turnover, low-margin retailer who does
not keep a store but serves a similar purpose with other items such as rice or wheat.

CONCLUSION
Bisleri have developed 8 unique pack sizes to suit the need of every individual. It is also present in 250ml
cups, 250ml bottles, 500ml, 1L, 1.5L, 2L which are the non-returnable packs & 5L, 20L which are the
returnable packs.

The soft target

Selling bottled water requires constantly expanding the market. The company should also target the market
for soft drinks. All the soft drinks addresses three issues: fun, thirst and refreshment followed by status to
some degree. The thirst and the status value of the mineral water are well accepted. There is very little the
mineral water brands can do to add the fun element around the product. Again here, it becomes important
for the company to have a good distribution network. It should be understood that if the mineral water is
easily available everywhere then it can be said with confidence that it would be able to replace the soft
drinks as thirst quencher. If we try and look at the reasons that why consumers buy soft drinks as thirst
quenchers: we would find the answer as that either water is not available or if it is available then safety is
not assured. Therefore, backed by a good distribution network mineral water industry can grow at a rapid
rate.