Marketing of mineral water-Bisleri

The reasons for a stunted growth in the package drinking water brand
To kn ow ho w t he bra nd BISLERI sti ll ru le s th e b ot tl e
w a t e r market
T o k n o w t h e m a r k e t i n g s t r a t e g i e s a p p l i e d b y B I S L E R I ,
i t s manufacturing process its 4 Ps etc and what is its impact on the
consumers
To understand and realize the needs and wants of consumers and how to fulfill
them
F i n a l l y I c a r r i e d o u t a s u r v e y t o f i n d o u t w h i c h i s t h e
m o s t preferred brand by the people & the survey was carried on in south Mumbai
especially in areas like church gate and cloaca.
How is bottle water different from tap water?
Consistent quality and taste a r e t w o o f t h e p r i n c i p a l d i ffe r e n c e s
b e t w e e n bottled water and tap water. While bottled water originates
from protected sources - largely from underground aquifers and
springs - tap water comes mostly from rivers and lakes.
Marketing of mineral water-Bisleri Another factor to consider is the distance tap water
must travel and what it goes through before it reaches the tap. In compliance with
international regulations, bottled water is sealed and packaged in sanitary
containers. If a bottled water product is found to be substandard, it can be
recalled. This cant happen in case of tap water .A c c o r d i n g t o r e g u l a t i o n s
i n t h e U S , w h e n b o t t l e d w a t e r i s s o u r c e d f r o m a community water
system the product label must state so clearly. However, if the w a t e r i s s u b j e c t t o
d i s t i l l a t i o n , d e i o n i z a t i o n or r e v e r s e o s m o s i s , i t c a n b e
categorized that way, and does not have to state on its label that it is
from a community water system or from a municipal source. Pr o c e s s i n g m e t h o d s
s u c h a s r e v e r s e o s mo s i s r e mo v e m o s t c h e m i c a l a n d microbiological
contaminants
Marketing of minerals water-Bisleri
Competition
The bottled water industry has two other industries as its biggest competitors in
from of Water purifiers industry and the soft drinks industry. Though the
water purifier industry should be credited to have done the spadework, for
setting up the foundation of bottled water industry but still it acts as competitors especially
in the household and institutional consumption market. So the water purifier is a strong
competitor in household and institutional market the soft drinks market isa strong rather very
strong competitor in the retail consumption market. Bottled water became a product in
the West during the 1920s and developed r a p i d l y . H u g e m a r k e t s i z e ,

n u m e r o u s l o c a l b r a n d s a n d c o n t r o l l e d p r i c e mechanism are some

of the features of the market there. Consumers in the West are quality conscious and
display brand loyalty .Indian consumers lack on both the counts. In Asia,
Indonesia is the largest and the oldest market for bottled water. In
India, bottled water is still not perceived as a product for masses
though; the s c e n e i s c h a n g i n g s l o w l y t h a n k s t o low pricing and
aggressive marketing strategy adopted by new entrants. Some surveys
show that truck drivers onhighways form a major chunk of bottled
water drinkers. Penetration in rurala r e a s i s a n o t h e r s i g n i f i c a n t
f a c t o r t h a t i s l i k e l y t o p l a y a k e y r o l e i n t h e development of the
bottled water trade.In comparison to global standards Indias bottled water
segment is largelyunregulated. Safe water is rated with a different yardstick in different
countries.In India, the aspect has been overlooked for long. Indian
consumers tend to believe that any bottled water is safe water. This may not be the
case.

Marketing of mineral water-Bisleri

Types of Bottled Water
T h e r e a r e s e v e r a l d i ffe r e n t v a r i e t i e s o f b o t t l e d w a t e r. Th e
p r o d u c t m a y b e labeled as bottled water, drinking water or any of the following terms.
Artesian Well Water:
Bottled water from a well that taps a confined aquifer (a w a t e r b e a r i n g
u n d e r gr o u n d l a y e r o f r o c k o r s a n d ) i n w h i c h t h e w a t e r l e v e l
stands at some height above the top of the aquifer.
D r i n k i n g Wat e r :
Drinking water is another name for bottled water.
Accordingly drinking water is water that is sold for human
consumption insanitary containers and contains no added sweeteners
or chemical additives (other than flavors, extracts or essences). It must be calorie-free
and sugar- free, Flavors, extracts or essences may be added to drinking
water, but they must comprise less than one-percent- by weight of the final
product or the product will be considered a soft drink.
Mineral Water:
Bottled water containing not less than 250 parts per million t o t a l
d i s s o l v e d s o l i d s m a y b e l a b e l e d a s m i n e r a l w a t e r. M i n e r a l
w a t e r i s distinguished from other types of bottled water by its constant level
and relative proportions of mineral and trace elements at the point of emergence
from the source. No mineral can be added to this product.

Purified Water:
Water that has been produced by distillation, deionization, reverse
osmosis or other suitable process can be labeled as purified bottled
water. Other suitable product names for bottled water treated by one of
the above processes may include distilled water if it is produced by
distillation, de-ionized water if the water is produced by deionization, or reverse
osmosis water if the process used is reverse osmosis.

Marketing of mineral water-Bisleri

Sparkling Water:
Water that after treatment and possible replacement with c a r b o n
d i o x i d e c o n t a i n s t h e s a me a mo u n t o f c a r b o n d i o x i d e t h a t i t h a d
a t emergence from the source.
Spring Water:
Bottled water derived from an underground formation fromwhich water
flows naturally to the surface of the earth. Spring water must becollected only
at the spring or through a borehole tapping the underground formation
finding the spring.
Well Water:
Bottled water from a hole bored drilled or otherwise constructedin the ground,
which taps the water of an aquifer.
Growth in Bottle Water Industries:

It was in 1967 that BISLERI set up a bottling plant for manufacturing andmarketing its
mineral water, which failed badly.

In 1968-69 the brand BISLERI was sold to the Parle group by theItalian company,
Parle group launched BISLERI soda and mineral water, but again the concept
failed as the Indian customer was not ready to buy water in bottled form.
The market remained dormant for the next two decades (i.e. from 1970to
1990) the market throughout this period was formed mainly by
the premium segment like five- star hotels.
In the early 1990s was the onset of liberalization policy, and sell-off of major
soft drinks brands, BISLERI was compelled to test the waters again.
Today the demand of bottled water is increasing at a much higher ratethat of
carbonated soft drinks. The market size of bottled water too is

Marketing of mineral water-Bisleri expected to surpass the size of soft drinks

market in near future. HLL, which too has identified the bottled water as a
growth area of future, is presently looking or some suitable brand for
acquisition. Britannia too e v i n c e d s o me i n i t i a l i n t e r e s t i n t h e m a r k e t
b u t n o w s e e m s t o h a v e p o s t p o n e d i t s p l a n s . Th e e x i s t i n g
p l a y er s t o o ar e s e t t o e x p a n d t h e i r distribution network to have their
presence across the country.
The market is also expected to undergo a major consolidation phase. Asone of
the major factors that are important for success in the market isthe distribution
network, the players with deep pockets are expected tog o f o r a c q u i s i t i o n o f
e x i s t i n g s ma l l r e g i o n a l p l ay e r s t o s p r e a d t h e i r n e t w o r k a cr o s s
t h e c o u n t r y. Al r e a dy C o k e h a s t i e d u p w i t h Yes f o r manufacturing of
its brands in areas where it doesnt have presence.
Though Coke and Pepsi have both, well established distribution network a s
well as bottling & manufacturing plants, they seems
t o b e a t advantage but players like HLL and Nestle with strong financial
muscle can easily turn the tables in their favor through acquisition route.
Marketing of mineral water-Bisleri
Introduction of Bisleri
In 1967, Bisleri an Italian company, started by Signor Felice Bisleri, first brought the idea of
selling bottled water in India. It started a company calledBisleri India. In 1969, Ramesh
Chauhan, the Chairman of Parle Exports, boughtover the brand. In those days, Bisleri
packaged drinking water was available inglass bottles.Being a returnable package owing to
various other problems such as breakageand weight, in 1972-73, Bisleri was made available
in PVC (Poly VinylChloride) bottles. After this plastic packaging was introduced, things
started tochange, and sales increased rapidly.The upsurge in the sales of Bisleri started in
1993 as Ramesh Chauhan sold off the Parle stable of brands, including Thums Up, Limca
and Gold Spot.Recognising the potential of the packaged drinking water market, he then
wenton to concentrate on making Bisleri a top selling brand in India.Marketing andBrands
BlogBisleri a brand name synonymous to mineral water in India. It hasapproximately 60%
market share in packaged drinking water in country. Brandis owned by Parle Company,
which bought over Bisleri in 1969 from Italiancompany. Initially, Bisleri faced the problems
of acceptance from consumers. Itwas difficult to advertise for a company something as a
bottled water, which iscolourless, tasteless and odourless. In mid eighties company changed
its packaging to PET bottles which shows transparency and clear water toconsumers. This
gave mineral water market a boost.In India, water is scarce and quality is poor so initially the
consumers were onlyforeigners and NRIs. Therefore, to increase its customers base,
company cameup with comfortable and affordable price bottle which was a great success
andshowed 400% growth.India bottled water market is appox is worth Rs 1,000-1,200 crore
(Rs 10-12billion). Seeing this growth over the years, many new players have enteredthe

market. Amongst them Kinely from Coke, Aquafine from Pepsi, kingfisher and now
Himalayan from Tata are main players of industry. There are many upsand down in last
couple of years but brand recall of Bisleri is amazing whichhelped company. In order to
differentiate form other players company tries tocome up with different and new campaigns
on regular intervals.
Marketing of maineral water-BisleriIn case of food and water, whenever people are
suspicious of the quality of product they dont eat unhygienic food and instead of having
non purified water they prefer to stay thirsty. Bisleri itself seems to play on this need for
safety,coining the popular tag-line Play it safe. The advertising helped differentiatethe
product from its competitors who, more or less, communicated nothing.Bisleris seal was
also breakaway (hence irreplaceable), even though thismanufacturing process of sealing
seems to be slow and could clog up theassembly line.Somewhere along the now that space
was occupied by Aquafina and Kinley.The safe breakaway seal was replaced by a regular
seal, but the change wasntcommunicated and more variants (packaging) emerged. Some of
these variantswere sold simultaneously. They were manufactured in different parts of
Delhi,and one had the website www.bisleri.com printed on it, while the other
hadwww.bisleri.co.in printed.So, the mistake was a complete lack of communication on
Bisleris part. Nowthey have a new product out - a mineral water brand (as opposed to a
packageddrinking water brand), and they are advertising it. Still, there are three types
of Bisleri bottles in the market in Delhi right now. Now again Bisleri changed its packaging
and came up with a new bottle. It has been general feeling that Kinleys new packaging is
more acceptable by the people as it is easy to grip it. In a packaged water market, where the
product isnot so differentiated, the company has to constantly innovate new
brandingtechniques, distribution channels, advertising and in fact new
packagingtechniques.According to the Bureau of India [ Images ]n Standards there are
1,200 bottledwater 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 howRamesh Chauhan, chairman, Parle Bisleri
created a market out of pure water.Excerpts from a conversation with Prerna
Raturi:Western Express Highway in Mumbai has been the route to
success for twowell-known men. One was the make-believe super
biker cum thief Kabir.
Marketing of maineral water-BisleriJ o h n Ab r a h a m i n t h e B o l l y w o o d f l i c k
D h o o m ; a n d t h e o t h e r i s t h e cr a f t y Ramesh Chauhan, who has
masterminded the runaway success of the Rs.500 crore bottled water
brand, BISLERI in the country, from his 1st floor office. BISLERI was originally
an Italian Company created by Signor Felice BISLERIwho first brought the idea of
selling bottled water in India. BISLERI then wasintroduced in Mumbai in glass
bottles in two varieties bubbly & still in 1965.Parle bought over BISLERI
(India) Ltd. in 1969 & started bottling Mineral water in glass bottles under

the brand name BISLERI. Later Parle switchedover to PVC non-returnable bottles
& finally advanced to PET containers. Since1995 Mr. Ramesh. J. Chauhan has started
expanding BISLERI operations. In2003 BISLERI announced its venture to
Europe.For over 30 years, BISLERI has been the pioneer in the bottled water
industrywith its innovations and an eye for perfection. And ever since it was establishedin
1969, BISLERI has constantly searched for inspiration in nature.
Marketing of maineral water-Bisleri
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 surgeMid-1980s: Switches to
PET bottles, which meant more transparency and lifefor water.1993: Sells carbonated drink
brands like Thums Up, Gold Spot and Limca toCoca-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 toRs 2 a litre.1998: Introduces a tamperproof and tamper-evident seal.2000: BIS cancels Bisleri's licence of a water bottling in Delhi
[ Images ] sincesome of the bottles did not carry ISI label; the licence is restored one-and-ahalf months later.2002: Kinley overtakes Bisleri. The national retail stores audit by ORGMARGshow Kinley's marketshare at 35.1 per cent compared to Bisleri's 34.4 per cent.
Marketing of mineral water-Bisleri
EXPANSION
Chauhan may be short, stocky and nearing 70, but his enthusiasm and vibrancyover the
years has not diminished an iota. After all, despite the entry of a slewof MNCs (including
Coca- Cola with KINLEY and PepsiCo with AQUAFINAand their cutting edge marketing
gimmicks, Chauhan has not lost his first mover advantage in the segment. He has been able
to sustain and grow his marketshare in the over Rs.2000 crore Indian bottled water mart.
We have nocompetitor. Our biggest competition is our own incompetence, he
grins,describing how it is the unorganized sector, which is presently walking awaywith the
largest chunk of their potential consumers. BISLERI claims 66%market share of the
organized segment. If we were present where theunorganized players are selling, they
would not be there at all, grimacesChauhan.
Parle Bisleri Limited: Expansion plans
Parle Bisleri Limited is undertaking a major expansion to increase itsmanufacturing facility
as also to widen the distribution network. The total project cost is estimated around Rs 260
crore. Of this, Rs 60 crore will beutilised to expand the existing manufacturing facilities
wherein the bottlingcapacity would be doubled to 200 million cases per day. Around Rs 200
crorewill be spent on increasing its distribution network five-fold over the next twoyears. As
a result, the company will have 10-lakh retail outlets backed by a fleetover 5,000
vehicles.Parle Bisleri also plans to procure recycling plants from Japan, for its PET bottles,

and set up at least two such plants in Chennai and Delhi at a cost of Rsfive crore each by this
year-end. Crushed and compacted bottles from other parts of the country will be
transported to the two plants and a better part of thecompacted PET will go into
manufacturing polyester yarn.Though the company plans to come out with an IPO, two
years down the line,the present capital expenditure plan will be financed entirely through
internalaccruals.
Marketing of maineral water-BisleriU n d e r t h e l e a d e r s h i p a n d v i s i o n o f M r.
R a m e s h J . C h a u h a n , B I SL E R I h a s u n d e r g o n e s i g n i f i c a n t
e x p a n s i o n i n t h e i r o p e r a t i o n s . T h e c o m p a n y h a s witnessed
an exponential growth with their turnover multiplying more
thantwenty times in a short span of 10 years. The average growth rate
over this period has been around 40% with BISLERI enjoying more
than60%.
Marketing of mineral water-Bisleri
BISLERI TODAY
BISLERI values its customers & therefore has developed 8 unique pack sizes tosuit 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 arethe
returnable packs. Till date the Indian consumer has been offered
BISLERIwater, however in our effort to bring to you something
refreshingly new, wehave introduced BISLERI Natural Mountain Water water brought to you fromthe foothills of the mountains situated in Himachal
Pradesh. Hence our productr a n g e n o w c o m p r i s e s o f t w o v a r i a n t s :
BISLERI
with
added
minerals
&B
I
S
L
E
R
I
M
o
u
n
t
a
i
n
w
a
t
e
r
It is capturing its market
in India as well as other continents. BISLERI has beenno 1 and is capturing
Indian market by providing best quality over a period of long time. None of the
water products in line are able to compete with BISLERIand thus BISLERI stand unique in
the market.Bisleris commitment is to offer every Indian pure & clean
drinking water.BISLER water is put through multiple stages of purification, ozonised &
finally packed for consumption. . Rigorous R&D & stringent quality controls has
madeB I S L E R I
a
m a r k e t
l e a d e r
i n
t h e
b o t t l e d w a t e r s e g m e n t . BISLERIS endeavor to
maintain strict quality controls each unit purchases performs & caps
only from approved vendors. BISLERI produces their own bottles inhouse; & have recently procured the latest world class state of the artmachineries
that puts them at par with International standards. This has not onlyh e l p e d t h e m

improve packaging quality but has also reduced raw

m a t e r i a l wastage & doubled production capacity. You can be rest assured that
you are.
Marketing of maineral water-Bisleridrinking safe & pure water when you consume
BISLERI. BISLERI is free of impurities & 100% safe. Enjoy the Sweet taste of Purity !
Manufacturing Process
BISLERI manufacturers its own products and has its own manufacturing
unitwhich includes various machines, the whole manufacturing process is carried on by
B I S L E R I a t i t s p l a n t . Th e w h o l e m a n u f a c t u r i n g p r o c e s s i s
d i v i d e d i n t o d i ffe r e n t p ar t s a n d i t c o n s i s t s o f di ffe r e n t a c t i v i t i e s
l i k e w a t e r p u r i f i c a t i o n treatment, blowing of the bottles, filling of
the bottles, packing of the bottlesetc.The manufacturing process of BISLERI is
carried on in different parts:
Storing Of Water
T h e w a t e r i s t a k e n f r o m t h e b or i n g w e l l a n d t h e n i s s t o r e d i n
h u g e t a n k s , BISLERI has 6 tanks of 50,000 litres each, and water is
first taken from the boring well and stored in these tanks.
Marketing of maineral water-BisleriTanks in which water is Stored
6 STAGES OF WATER TREATMENT PLANT:
1 . O Z O N A T I O N 2 . F I LTE R ATI O N 3.CARBON
F I L T E R A TI O N 4 . R E S E RVE
OSMOSIS
SYSTEM 5 . M I C R O
F I L T E R A TI O N .
Marketing of maineral water-Bisleri6 . O Z O N E T R E A T M E N T
1)
OZONATION:
The process of ozonation ensures that the water remains free
f r o m bacteria, so that the water can have a longer life and the machine used for this
process of ozonation is called ozonator.
2)
FILTERATION:
The process of filteration removes suspended particles from the water bysand
filteration.
3 ) C A R B O N F I LTE R ATI O N :
The stage of carbon filteration removes bad odour and colour from water and
purifies it.
4 ) R EV E R S E O S M O S I S S Y S T E M :

T h i s s t a g e o f r e s e r v e o s mo s i s sy s t e m c o n t r o l s a l l t h e d i s s o l v e s
s o l i d particles and it converts hard water into soft water.
5 ) M I C R O F I LTE R ATI O N :
Under this stage of micro filteration additional safety measures are takedto
guarantee purity of water. In this stage addition of mineral magnesiumsulphate
and potassium bicarbonate is processed.
Marketing of maineral water-Bisleri
6 ) O ZO N E TR E ATM E N T:
The ozone treatment increases the shelf life of water. To ensure mineral water isheld safe
free from contamination, ultraviolet treatment and ozonisation processis carried out.
Ozone is unstable trivalent oxygen, a very powerful bactericidew i t h n o s i d e
e ffe c t , a s i t di s i n t e g r a t e s i n t o o x y g e n w i t h i n c o u p l e o f
h o u r s . Sterilization effect of ozonised water continues even after water is
packaged,thereby ensuring safety of Mineral Water up to its final packing. To ensure
highquality of packing materials, components like caps and bottles are manufacturedinhouse from resins of quality suppliers.Good Manufacturing Practices are stringently
followed at all times. Processingi s r e l i g i o u s l y m o n i t o r e d a t e v e r y
s t a g e . Tes t i n g s o u r c e w a t e r, p r o c e s s i n g parameters, microbial quality,
packaging material integrity and finally, shelf lifestudies, forms an integral part of quality
and safety assurance plan.

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Bisleri Project
Aarmugam Mugam
Bisleri Marketing Project
Ankit Sharma
STRATEGIC ANALYSIS OF BISLERI (PART 2)
sarangpethe
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