Professional Documents
Culture Documents
Bisleri Minor Project
Bisleri Minor Project
Bisleri Minor Project
ON
Submitted By:
Rohan Srivastav
05021201713
BBA (G) 2nd Shift 6th Sem
ACKNOWLEDGEMENT
First of all I am deeply indebted to Department of Management,
Maharaja Surajmal Institute, Janakpuri , New Delhi for allowing me
to complete my research study on
To study the Indian packaged water industry with focus on
BISLERI
It gives me immense pleasure to express my heartfelt gratitude to
my respected guide Dr Vandana Deswal (Assistant Professor) for
providing me articulate guidance and ceaseless encouragement
throughout study. I shall be failing in my duty if I do not
acknowledge the contribution of my family for their constructive
cooperation.
ROHAN SRIVASTAV
ROLL NO. 05021201713
BBA (GEN) 6th SEM
CERTIFICATE
Project Guide:
Dr Vandana Deswal
CONTENTS
OBJECTIVES OF THE STUDY
RESEARCH METHODOLOGY
Sample Size
Analysis
INTRODUCTION
To the domestic packaged drinking water market
MARKET SHARE
COMPANY PROFILE OF BISLERI
Background
The Present
Future Plans
Technology Developments
Purification Process
Product & Packaging
CURRENT PLAYERS
SWOT ANALYSIS
RESEARCH METHODOLOGY:
Starting a research project needs a basic preparation regarding the
issues related to the topic selected. For this one needs to do some
deskwork. Deskwork includes:
1. Determining the basic objectives of the study undertaken.
2. Collection of secondary data related to the topic from Internet,
magazines & newspapers.
3. Study the market, which one wants to cover.
4. Analyze the objective on the basis of information collected by
secondary data.
5. All the above activities at the initial stage of the project must be
completed & then the main part follows.
Sample Size
Regions of Delhi & its NCR were covered for the study. I took 50
consumers and 10 retailers as my respondents. They were selected
by random sampling method because in this case systematic
sampling is not possible since one cannot say whether a person is
using mineral water or not.
Analysis
Then analysis of the questionnaire filled by the consumers & the
retailers is done on the percentage base analysis & theoretical base
analysis. On the bases of this analysis graphs were prepared showing
the relationship between two variables. The analysis formed the
bases of the inferences drawn and reaching the conclusion of the
study.
INTRODUCTION:
To the domestic packaged drinking water market
The concept of bottled mineral is quite a new one for Indian People.
Since we never consider these things as necessity and especially
when we are paying for natural resource like water which is
available freely.
The bottled water market has recently seen growth; the reason
behind this may be the growing health consciousness among Indians
or non-availability of pure drinking water. Most of the users are
daily travelers, patients or it is used in parties/seminars. Moreover
30% of the whole mineral water customers are travelers.
When governments spoke about providing drinking water to all,
little did one imagine that MNCs would package it and sell it to us.
The advent of the small bottles has increased consumption. Buying
water near the bus stop or at the railway station has become a
routine.
Indian water market has many companies selling water, on an whole
there are more than 300 big & small players in the market some of
the big players are Bisleri, Aquafina, Kinley, Purelife, Mcdowell
etc. these companies are dealing in same market, same price & also
same capacity. Bisleri is owned by Parle group, Aquafina is owned
by Pepsi, Kinley is owned by Coke, Nestle has Purelife. But some
small players also have sufficient market share in their local market,
like prime, silver drop, royal fresh are very popular in the congested
region.
Bisleri is most popular brand in North India. Bisleri is having big
contracts like with air Indian & some part of Indian railways.
10
Since the early 1990s, Indian attitude have changed and people are
flocking to the cities at a frenetic pace - one-third of Indian now live
in urban areas.
But in many parts of the country, quality of water is still a major
concern. Given the extreme climatic conditions in India, especially
the heat and dust, plus the fact people are now prone to dehydration
because they commute further for work and social activities, the
issues of safe drinking water is more prevalent than ever.
As the mercury soars, so do the sales of bottled water. The
advantage it has is unlike the Colas and other drinks dispensed from
vending machines, a bottle fits into a handbag and can be carried
conveniently.
The trend of using mineral water for drinking purpose started as a
means to take advantage of the therapeutic value of water. This trend
gained potential momentum during 1970s and ever since bottled
water was exported every year from mineral springs in France and
other European countries.
In western countries,the practice of bottled drinking water started
during 1950s. The first launch of bottled water in India was the
launch of Bisleri of Parle company during 1968-69 which was a
major flop as the Indian population was not prepared to accept
the concept of purchasing water. The market of bottled water
remained weak and inactive for as long as 20 years. The relaunch of
Bisleri in 1994, however, was a success due to the growing
awareness and high consciousness of health and hygiene among
people.
Today many medical stores in the city are doing very well with the
sale of branded bottled water. The brand name plays an impression
on the human mind. Bottled water is available in quantities of
330ml, 500ml, 1lt, 1.5lt, 2lts, 5lts, 10lts, 20lts and 50lts.
11
Industrial waste
14
However, the real boost to mineral water came in the early-to-mid1980s when they switched to PVC packaging and later to PET
bottles. The PET packaging did not just ensure better transparency -they could now show sparkling clear water to the consumers. It also
meant better life for the water.
Meanwhile, Bisleri soda was doing well but they had to discontinue
production as they sold their soft drink brands to Coca-Cola in 1993.
But Ramesh Chauhans interest was in building brands and not in
bottling soft drinks. That's when he 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, they 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 they had to push sales.
Hence, they 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. 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
2,50,000 at present. But that is not enough -- they need to keep looking for different
avenues. Take stationery shops and chemists, for instance. They don't keep soft drinks but
15
sell Bisleri. That is the kind of exclusivity we look for to get ahead of the distribution
network that soft drink companies talk of.
MARKET SHARE:
Currently, Bisleri continues to lead in the Rs 700-1,000 crore
organised, packaged water market with an estimated 40 per cent
market share, followed by Kinley at 28 per cent and Aquafina with
an 11 per cent share. In terms of volumes, the North and West
remain Bisleri's biggest performing markets, despite the brand's
sustained national-level presence. The market has been growing for
the last three years at an unimaginable rate of 80%. The market size
of bottled water is expected to surpass the size of soft drinks market
very soon in the near future.
Aquafina
11%
Others
21%
Others
Bislery
Kinley
Kinley
28%
Aquafina
Bislery
40%
16
:: The Present
It was around the year 1995, when Parle Exports took charge of the
brand operations and the business took off in the market. With
factories across India and a strong distribution network, Bisleri
established itself as a force to reckon with in the domestic packaged
drinking water market.
18
:: Future Plans
Bisleri was the first to market bottled water in a totally virgin market
and naturally people associate the brand with bottled water. Now
Bisleri is perhaps already ten steps ahead of its competitors and will
endeavour to widen its gap in the times to come.
Bisleri's brand positioning stresses on pure, clean and safe drinking
water.
Some of the future plans to maintain the top spot that Bisleri
commands in the Indian market are:
New pack sizes in bottles and cups
19
:: Technology Developments
To make sure that the product that reaches the consumer is always of
highest standard and also meets international standards, Bisleri has
always been involved in improving its product packaging. One such
recent development is the tamper proof break away seal. Bisleri
also recognises the need to produce environment friendly products
and is working on the PET project.
The break away seal:
Keeping in mind the consumer's need to recognise a genuine product
that cannot be tampered with, Bisleri developed the break away seal.
The unique cap has been patented and cannot be duplicated or
tampered with. This technology development in the product ensures
that the consumer will only get a highly safe product when they
consume Bisleri packaged drinking water.
Product packaging:
To ensure purity of the bottled water, the bottles that are used are
blown and filled at the factory itself, to avoid contamination.
WHY BISLERI?
Bisleri is totally safe & protects you from all water borne
diseases.
Bisleri is trusted by 50 lakhs households across the country.
Bisleri is the brand leader in bottled water category.
The water is purified through six stages of purification process that
includes reverse osmosis and Ozonation.
22
23
Bisleri
Spring Water - Still/Sparkling
PARTICULARS
TDS
Ph Factor
Calcium
Chlorides
Bicarbonate
Magnesium
Nitrate
Sulphates
Hardness
Mg/litre
160
7.2
13.6
22
58
7.8
2
19.3
66.1
24
:: Vision
A major, diversified, transitional, integrated consumer product
manufacturing company, with National Leadership and a strong
environment conscience, playing a national role in safe water
and Agro based drinks.
:: Mission
To provide the highest quality product, keeping in mind all
aspects including freshness, purity and safety, and making
it easily available to the consumer at a very affordable price.
To achieve international standards of excellence in all aspects
of energy and diversified business with focus on consumer
delight through value and services of product and cost
reduction.
To enhance capital and fixed assets of the group to withstand
challenges and tough market trends.
To attain leadership in developing, adopting and assimilating
state or art technology for competitive advantage.
26
CURRENT PLAYERS:
The mineral water industry is in a churn. The market is proving to
be yet another battlefield for an ongoing battle between the desis
and the MNCs. So far, MNCs have been winning. Only time will
tell what the final outcome will be but I strongly feel that here too,
like in all other markets, MNCs are going to win. Though the fate
Indian companies will suffer at the hands of these MNCs makes
me sad, the choices the consumers will have makes me happy.
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
27
the market, but not without testing the waters first. They carried
out the appropriate feasibility studies. However, among the first to
challenge Bisleri's near monopoly was Pepsi's AquaFina followed
by stiff competition from Parles Bisleri and Coca-Cola Indias
Kinley.
The first entrant in the bulk water category was Bisleri, while
Coke, through Kinley, entered the segmen 4 years ago. Over the
past five years or so, Bisleri has become a major player in the bulk
water segment in the water-starved southern states. The 20-litre
bulk water packs are targeted at the institutional and the home
segment. Pepsi is aiming to make its brand available throughout
the country soon. The company has also ruled out entering the bulk
water segment in India. Meanwhile, the action is all in Coca-Colas
bulk water business. The 20-litre bulk water packs are targeted at
the institutional and the home segment
SWOT ANALYSIS:
BISLERI
Bisleri announced the re-launch of its 20-litre home pack with a
more consumer-friendly format in thread fitting and valve cap,
against the conventional snap-on fittings. The existing 20-litre
29
Bisleri packs are now being withdrawn and the rollout of the new
jars, priced between Rs 40-60, is on.
Bisleris focus on the bulk water market has grown in the past few
years, mainly owing to the stiff competition posed by innumerable
brands in the packaged bottled water market. Not only are there big
multinational players like Coke with their huge distribution
networks, regional players exist side by side, enjoying local clout.
Bisleri continues to lead in the Rs 700-1,000 crore organised,
packaged water market with an estimated 40 per cent market share,
followed by Kinley at 28 per cent and Aquafina with an 11 per cent
share. In terms of volumes, the North and West remain Bisleri's
biggest performing markets, despite the brand's sustained nationallevel presence the fact remains that the new kids on the block are
nibbling away at Bisleri's stranglehold over the bottled water
segment. Only three years ago, the bottled water market was
estimated at about Rs 300 crore, of which Bisleri commanded a
dominant 80 per cent share.
To ensure Bisleri packaged drinking water is held safe free from
contaminations, 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
Bisleri up to its final packing. To ensure high quality of packing
30
materials, components like caps and bottles are manufactured inhouse from resins of quality suppliers.
Good Manufacturing Practices are stringently followed at all times.
Processing is religiously monitored at every stage. Testing source
water, processing parameters, microbial quality, packaging
material integrity and finally, shelf life studies, forms an integral
part of quality and safety assurance plan.
Strengths:
Core business of company.
First mover in this business since 1969.
Good brand awareness and brand positioning.
Available in different packs like cups, 500 ml, 1 lit, 1.2 lit, 2 lit,
5 lit and 20 lit.
Has become generic name in the mineral water market.
31
Weakness:
Lack of brand loyalty as MNCs are entering the market like
Nestles Purelife, Pepsis Aquafina.
Lack of Global Awareness in brand.
Lack of proper advertising to create brand awareness.
Market coverage is not fully utilized.
Institutional sales are not penetrated properly.
Lack of technological up gradation.
32
Opportunity:
Indian bottled water industry is still at growth stage.
Influence of tourists and expatriates.
Bisleri as a daughter company of Parle has a strong presence in
India.
Unreliable municipal water quality.
People are becoming health conscious.
Threats:
Numbers of players like Kinley and other local players are
present in the market have already captured the market.
Tough competition from MNC's like Coke & Pepsi.
Fluctuation in sales due to seasonality.
33
KINLEY
Kinley Watera product of the Coca-Cola Company-is the
established market leader in the drinking water segement. A
product offering of the Worlds No. 1 beverage company, Kinley
Water is brought to You with the time-tested expertise of the CocaCola. Backing Kinley Water, is the promise of delivering Trust in
every Drop. Kinley Waters 25 litre bubble top containers made
of Lexan- a polycarbonate polymer (plastic) that is made specially
for the purpose. Unlike other brands which use recycled plastic,
Kinley bubble tops are made from what is known as Virgin
Plastic.
In addition to this, Kinley offers Kinley water dispensers. These
water dispensers come in four basic models. The water dispensers
are ergonomically designed to suit both domestic as well
36
commercial requirements.
Compacta
Elegance
Advantages of Kinley:
Good brand positioning.
Available in different packs like 500 ml, 1 ltr, 2 ltr, 5 ltr and
20 ltr.
Easy availability of product in all over India after Bisleri with
solid infrastructure facility.
Benefit as a product of Coca-Cola.
Focusing on institutional sales to create brand awareness
aggressively.
Use of technological up gradation.
37
Disadvantage of Kinley:
Lack of proper service to customers.
Lack of strong infrastructure.
Non-availability of a variety of range like Bisleri.
Focus on distributors not on small retailers.
AQUAFINA
PepsiCo India launched the packaged water bottle brand Aquafina
about five years ago in a 750-ml pack, basically targeting the
youth. The brand now retails in conventional retail pack sizes of
500-ml and 1-litre bottle
Aquafinas market share in the retail segment is estimated at about
12 per cent and it remains to be seen how PepsiCo succeeds in
penetrating the bulk water market. Pepsi Foods, too, expects its
Aquafina brand to turn national by the year-end. "Bisleri is the
market leader and a good brand that has been built over the years.
But we are gradually consolidating our bottled water business,
even if our positioning is somewhat different," says Pepsi Food's
official spokesperson.
Advantages of Aquafina:
38
Disadvantages of Aquafina:
Compared to Bisleri and Kinley the service from Aquafina is
not satisfactory.
Lack of strong infrastructure.
Non-availability of a variety of range.
Market coverage is not proper.
Focus on wholesalers not on small retailers.
39
40
40%
35%
Name of Brand
Consumer preferences
60%
Kinley
20%
Aquafina
12%
Others
8%
20%
15%
10%
5%
0%
Always
41
Often
Sometimes
Never
Always
Often
Sometimes
Never
20%
27%
38%
15%
42
Mineral Water
Soft Drinks
Mineral water
Soft drink
55%
45%
0 to 2
3 to 5
6 to 10
43
10 & above
Brands
Respondents
02
40%
35
50%
6 10
10%
10 and above
BOTTLE
50%
40%
30%
20%
10%
0%
0.5 ltr
1 ltr
SIZE5 ltr
20 ltr
Consumer preferences
44
0.5 ltr
60%
1 ltr
20%
5 ltr
5%
20 ltr
15%
Total
100%
Yes
No
45
Respondents view
Yes
No
% of respondents
42%
58%
46
EFFECT OF ADVERTISING ON
54%
PURCHASE
52%
50%
48%
46%
44%
42%
Yes
Respondents
No
Yes
No
46%
54%
perception
% of respondents
80%
70%
60%
50%
40%
30%
20%
10%
0%
Yes
No
Yes
No
73%
27%
48
Non-advertised
Both
Advertised
Non-Advertised
Both
35%
5%
60%
49
0.5 Ltr
1 Ltr
5 Ltr
20 Ltr
Size of bottle
0.5 ltr
1 ltr
5 ltr
20 ltr
% of respondents
60%
20%
5%
15%
50
GROWTH
DURING
THE
LAST
FIVE
60%
50%
40%
30%
20%
10%
0%
Advertised
Nonadvertised
Both
Retailers view
Yes
No
% of retailer
67%
33%
51
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Excellent
Retailers
Good
Average
Poor
Excellent
Good
Average
Poor
42%
30%
15%
13%
prediction
% of retailers
52
For
observing
retailers,
20
retailers
were
53
15%-others
54
CONCLUSION
After analysis of the data & facts we have collected from consumer
& the retailers & matching them with the objectives one can say
that there is very good future for mineral water market. Soft
drink market might be some threat to the mineral water at
present but within few years the scenario is going to change.
Trend signifying increasing health consciousness amongst Indians
could also be observed.
Market has seen a tremendous growth from the early nineties &
now it is increasing by 70% to 90% every year so one can easily
say there is great potential in the mineral water market.
It could also be observed that the living standards of the People
improving & as they are becoming health conscious are ready
to pay for water now. On the question of survival of so many
companies government has made policies & restrictions from April
2001 which will force many manufactures to shut down their
factories. But due to potential in the market companies with quality
product will survive.
Finally from the data collected at both primary and secondary level
one can confidently say that Bisleri as packaged water brand is the
current market leader.
55
ANNEXURE
CONSUMER QUESTIONNAIRE
Name of the respondent______________
Address of the respondent____________
Contact no.________________________
QUESTIONS
Q 1.How often do you consume mineral water?
a) Always
b) Sometimes
c) Often
d) Never
b) Soft drink
b) 3-5
c) 6-10
d) 10 and above
56
b) 1ltr.
c) 5 ltr
d) 20 ltr
b)No
b) No
57
b) No
b) No
b) Kinley
c) Aquafina
d) other
58
RETAILERS QUESTIONNAIRE
Name of the respondent______________
Address of the respondent____________
Contact no.________________________
QUESTIONS
Q1. How many brands of mineral water do you sell (specify)?
a) 2-3
b) 3-5
c) More
Q2. What types of brands do you have?
a) Advertised
b) Non-Advertised
c) Both
Q3. Which brand is selling more?
a) Bisleri
b) Aquafina
c) Kinley
d) Others
b) 1 ltr
59
c) 5 ltr
d) 20 ltr
b) Aquafina
c) Kinley
d) Others
b) No
b) Good
d) Poor
60
BIBLIOGRAPHY
PRINT MEDIA --- Business World
A&M
Economic Times
Business India
VISUAL MEDIA.
Cable Network
Internet
Britannica Encyclopedia
61