Summer Training Report

On
4P Analysis of Bisleri – Packaged Drinking water

Submitted for the

Partial fulfillment of the requirement for the award of
) Degree of

Master of Business Administration (MBA)

Submitted By
Divyansh Singh Baghel

Roll Number
20605012

MBA 3RD SEMESTER

Supervised by
DR. BOBBY BRAHME PANDEY
2021-22

Department of Management Studies

GURU GHASIDAS VISHWAVIDYALAYA, BILASPUR (C. G.) 495009
(A Central University established by the Central Universities Act, 2009)

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 Declaration by the Student

I, Divyansh Singh Baghel a student of MBA III semester in the year 2021-22 having Roll. No. 20605012,
hereby declare that, I have prepared the Summer Training Report on 4P Analysis of Bisleri – Packaged
Drinking Water. This report is an original work carried out by me and the report has not been submitted to
any other University for the award of any degree or diploma.

Date: …………… Divyansh Singh Baghel

Place: …………… MBA III Semester

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 Certificate by the Supervisor

This is to certify that Divyansh Singh Baghel, a student of MBA III semester in the year 2021-22having
Roll. No. 20605012, has prepared the Summer Training Report on 4P Analysis of Bisleri - Packaged
Drinking Water under my Supervision.
This report is an original work carried out by him/her and the report is fit for evaluation.

Date: ……………
Place: …………... DR. BOBBY BRAHME PANDEY

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 PREFACE

Theoretical knowledge is of no use, until and unless it is applied into some practical aspect. We must lay
stress on the proper implementation of what we have learned in class at real life incidents to obtain optimum
output.

Thus to apply all theoretical knowledge gained so far onto the practical field, The submission of this project
report is the part of the curriculum of MBA course.

This Project has provided me with the full fledged experience about the business arena of wholesome Indian
packaged water industry. It gave me complete training about practice of marketing strategies in the real life
industry and helped me gain the first hand experience of my future career in marketing.

This project shows the various steps and activities performed in order “To Study Marketing Strategies of
Bisleri"

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 ACKNOWLEDGEMENT

This making of any report calls for contribution and cooperation from many others besides the individual
alone. It is the result of meticulous effort put in by many minds that contribute to the final report submission
and this work too is not an exception.

Thus, one of the best parts of writing this report is the opportunity to thank those who have contributed
towards it.

First and foremost, I would like to take the opportunity to express my sincere gratitude to DR. BOBBY B.
PANDEY Mam for his valued insights, suggestions and continuous support, without which this project
would not have reached successful completion.

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 INDEX

TABLE OF CONTENT Page No.

CHAPTER 1: INTRODUCTION 7

1.1 THE PACKAGED DRINKING WATER INDUSTRY - AN 9

OVERVIEW
1.2 Market Share 9

1.3 Bottled Water Analysis 11

1.4 Current Players 12

1.5 COMPANY PROFILE OF BISLERI 16

Background 16

The Present 17

Future Plans 17

Technology Developments 18

Purification Process 18

Product And Packaging 19

Vision And Mission 20

Why Bisleri? 20

Where can we use Bisleri? 21

CHAPTER 2: REVEIEW LITERATURE 21

2.1 Objectives 22

2.2 Research Methodology 23

CHAPTER 3: ANALYSIS AND INTERPRTATION 27

3.1 Swot Analysis 27

3.2 4 P’s of Bisleri 32

3.3 Pest Analysis 35

CONCLUSION 50

BIBLIOGRAPHY 51

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 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
travellers, patients or it is used in parties/seminars. Moreover 30% of the whole mineral water customers are
travellers.

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.

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.

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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, l L,
1.5L, 2L, 5L, l0L, 20L and 50L.

For a particular brand to be certified as bottled water it requires approval on 4 levels namely the Central, the
state, the trade association, and individual company levels.

ILL EFFECTS OF DRINKING UNTREATED WATER

 Typhoid

 Bone deformation

 Joint pain

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 Hardening of arteries and muscles

 Gastro - stomach upsets

 Excess content of fluoride can lead to flourisis

 Arsenic Poisoning

COMMONLY FOUND WATER CONTAMINATION SOURCES

 Contaminated storage Tanks

 Cross contamination at sources

 Leaks in distribution network

 Improper functioning of Purifiers

 Domestic Waste

 Borewell or contaminated ground water

 Organic matters

 Industrial waste

THE PACKAGED DRINKING WATER INDUSTRY – AN

OVERVIEW

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. Inr 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.

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 Individual Market Shares:

BISLERI-40%, KINLEY-28%, AQUAFINA-11%, OTHERS-21%

Due to the demand for water, a large number of "mineral water manufacturers" have been spawned selling
little more than tap water to the unsuspecting consumer, the majority of whom are still very native about
mineral' water.

Pepsi Co's Aquafina brand, which debuted the bottled water business in September 1999, targets the youth
sector and concentrates on just one pack size, 750ml priced ten rupees.

Coca-Cola is the most recent entrant (May 2000) with its Kinley, brand and in a controversial and
unsuccessful marketing campaign, it obtained an endorsement from the Federation of Family Physicians'
Association of India (FFPAI), a lesser known body of doctors for its brand.

Estimates show that there are around 100 small regional players in the bottle water market and the number
have been growing at an unbelievable 70%-100% per year, year on year, for the past four years. This has
enticed a number of international brands in the market besides Coca-Cola and PepsiCo-Nestle (Pure Life),
Britannia, Lever, United Breweries and Shaw Wallace. Danone Pairs launched Evian some time back and
even imported hundreds of cases for VIP guests celebrating the Hindu festival, Kumbh Mela.

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The government has been forced to sit up, take notice and tighten regulations after comprehensive sample
tests were taken by consumer groups and found that a number of the smaller and more unscrupulous
"opportunistic" players were selling little more than tap water.

Until recently the government of had set standards only for mineral water and even the PFA (Prevention of
Food Adulteration Act) and BIS (Bureau of Indian Standards) were deficient when compared to international
markets.

Under the new regulations 48 specifications are to be met for water to become mineral water and for
packaged drinking water there are 43 specifications. But small players are bound to fall out of the market by
April 1, 2001 when the new regulations were supposed to be enforced.

THE PET RECYCLING PROJECT

Bisleri is extremely conscious of environmental issues, since PET bottles are not biodegradable and not easy
to dispose. The company is currently working on the PET recycling project, where they will collect bottles
from various places, crush and shred them. This shredded material will then be made into ropes, PET
containers for the non-food industry and other PET items like polyester fibre, flower vase, gift items etc.

BOTTLED WATER ANALYSIS

Bisleri Calcium 13.6

Chlorides 22
Spring Water - Still/Sparkling
Bicarbonate 58
Magnesium 7.8
PARTICULARS Mg/litre Nitrate 2
TDS 160 Sulphates 19.3
Ph Factor 7.2 Hardness 66.1

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 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 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 anuum. Calcium 13.6 Chlorides 22 Bicarbonate 58 Magnesium
7.8 Nitrate 2 Sulphates 19.3 Hardness 66.1

The fact that there were very few players in the market meant that their business grew by leaps and bounds.
Bisleri became a household name and is now generic for bottled water. The market today has grown to Rsl
Ibn. The organised 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, Bisleri is the market
leader as it 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 Aquaflna 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 boom in the market has also encouraged unscrupulous players to gain an entry.
In the name of mineral water, a number of regional players have even started selling plain tap water. Many
people have fallen sick after drinking this spurious mineral water.

The common man's faith in the product was shaken. However, not everyone was put off. Sensing the
opportunity that this segment holds, MNCs have begun to draw up plans to enter the market, but not without
testing the waters first. Ifhey 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 Parle's Bisleri

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and Coca-Cola India's 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.

Bisleri goes green naturally

20 October 2006

The brand that was till now marketed as packaged drinking water (cleaned through reverse osmosis) will
now be available in a natural avatar.Bisleri International will invest Rs lOO crore for the project which
constitutes a Rs40- crore investment in two plants in Uttaranchal and Himachal Pradesh in line expansion,
Bisleri International chairman Ramesh Chauhan said. The plants will come up next year. Chauhan said the
rest of the investment of about Rs60 crore would go into infrastructure development. The investment would
be funded through internal accruals.

Launching 'Bisleri Natural Mountain Water' he said the company was looking for four more locations from
where we look to source natural water. The likely locations would be in South and West India he said.
Bisleri has 23 plants across the country producing bottled water.

Bisleri Natural Mountain water will be available in aqua green packaging against the blue packaging of old
and will be available in six sizes. The company is also planning an aggressive marketing and advertising
campaign with a two-year budget of Rs60 crore.

Chauhan said the new packaging has been adopted in order to stand apart from the others and in Chauhan's
words, "As leader, we want to differentiate ourselves and hence have adopted this , aquagreen colour," he
said. Priced at a significant premium to packaged water Natural Mountain Water will be available for Rs20
per litre.
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The natural water segment, which accounts for about 5 per cent of the total bottled water segment, is
expected to grow by leaps and bounds as health awareness and disposable incomes rise. According to the
company the foray into spring water will be followed by an entry into the packaged ice segment (Bisleri Ice)
as well into flavoured, vitamin and sparkling water categories.

The company is said to be setting up R&D facilities for ice and studying various packaging options. Ramesh
Chauhan, chairman, Bisleri International expects to sell 10 million cases of Bisleri Mountain Water over the
next two years- a turnover of Rs200 crore. The bottled water industry is worth Rs 1,000 crore in India and is
growing at 40 per cent per annum. It is projected to reach Rs5,000 crore by 2010. The main players in the
spring water segment are Himalaya, Catch and Leh Berry. At present Himalaya leads the segment with a 50-
per cent market share.

Bisleri claims to have a 40-per cent market share of the organized packaged water market. The natural spring
water market is very small and accounts for 5 per cent of the entire segment. Bisleri is projecting a turnover
of Rs300 crore this financial year, as against Rs220 crore last year.

Chauhan says he is also preparing for an entry into the US market with his spring water and is talks with US
authorities for this. He would not export India-bottled Bisleri into US, but would set up a bottling operation
there as transportation costs are a huge obstacle in sourcing the product from India. "We are in the process of
getting the regulatory approvals for the venture," Chauhan said. He said Bisleri was at par with companies in
the developed world as far as meeting international standards were concerned.

KINLEY
Kinley Water-a product of the Coca-Cola Company-is the established market leader in the drinking water
segement. A product offering of the World's No. 1 beverage company, Kinley Water is brought to You with
the time-tested expertise of the Coca-Cola. Backing Kinley Water, is the promise of delivering Trust in
every Drop'. Kinley Water's 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.

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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 commercial requirements.

 Refrigerator Model with Hot and Cold facility

 Hot and Cold Model
 Compacta
 Elegance

Advantages of Kinley:

 Good brand positioning.

 Available in different packs like 500 ml, 1 Itr, 2 Itr, 5 Itr and 20 Itr.
 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.

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
Pepsi Co. 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 Aquafina's 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.

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Advantages of Aquafina:

 Strong distribution network.

 Good brand awareness and brand positioning.
 Available in different packs like 500 ml, 750 ml, 1 Itr.
 Easy availability of product in all over India.
 Benefits as a product of Pepsi.
 Focusing on institutional sales to create brand awareness.
 Use of technological up gradation.

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.

COMPANY PROFILE OF BISLERI

In 1967, Bisleri an Italian company, started by Signer Felice Bisleri, first brought the idea of selling bottled
water in India. It started a company called Bisleri India. In 1969, Ramesh Chauhan, the Chairman of Parle
Exports, bought over the brand. In those days, Bisleri packaged drinking water was available in glass bottles.

Being a returnable package owing to various other problems such as breakage and weight, in 1972-73,
Bisleri was made available in PVC (Poly Vinyl Chloride) bottles. After this plastic packaging was
introduced, things started to change, 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 went on to concentrate on making Bisleri a top selling brand in India.

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:: 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.

Earlier the packaged drinking water market consisted of five star hotels, tourists and foreigners. As a
marketing strategy, a conscious decision was taken by the company that only 40% of the sales should come
from these outlets and 60% from general market, i.e. paanwallas, street shops, general stores and even non-
tourists.

This brought about a sea change in the perception in the consumer's mind about consumption of Bisleri.
Earlier, drinking bottled water was considered to be more of a status symbol. That thinking has slowly
changed to the point where today, not drinking Bisleri is considered as being behind the times. Such has
been the presence and penetration of the Bisleri brand in the bottled water segment.

About few years ago, in 1998, a strategy was adopted to concentrate aggressively on the home market. The
habit of boiling water or using electronic gadgets was not adequate, since the source of water itself was
unreliable. The bulk packages like the 2, 5 and 20 litre bottles were introduced to meet this market need. The
price per litre went down as a result, making bottled water very economical for the consumer.

:: 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

 Increase the distribution network with an investment of over 200 crores
 Strengthen presence in traditionally weak areas by setting up 12 new bottling facilities at a cost of
Rs. 150 crores.

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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.

Purification Process

At BISLERI plants, water undergoes multi - stage purification process to ensure proper blend of minerals
and complete removal of microorganisms and toxic substances. So a habit of drinking PURE and SAFE
BISLERI will ensure a healthy life.

What advantages bisleri purification process has over purification done by other methods Traditional process
of boiling water for purification has its limitations. lt is time consuming. For boiling, water has to be heated
to 100 deg. Celsius. Also, to kill microbes water should be boiled continuously for a minimum of 20
minutes. Boiling may kill the microbes but can not remove other physical impurities and toxic substances.

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Many home appliances are available in market for water purification. These gadgets use either filtration
technique or Ultra Violet rays or a combination of the two techniques. These techniques do not guarantee
100 % purity of water.

Filtration removes only the visible suspended particles and not the minute , invisible particles , toxic
substances or microorganisms. The filters are cleaned rarely and all the muck accumulates inside leading to
more contamination. Ideally such filters need to be cleaned every day which is cumbersome. Ultra Violate
rays kill the microbes but cannot ensure removal of toxic substances and physical impurities. These
purification equipment are incomplete and need continuous monitoring and maintenance.

At BISLERI, through our multi - stage purification process we ensure removal of toxic substances as well as
physical and microbiological impurities. In our state-of-the-art processing plants we follow rigorous Good
Manufacturing Practices and strict Quality Assurance norms so each and every bottle of BISLERI is made
tasty, pure and safe for the consumer.

PROTECT YOUR HEALTH WITH BISLERI WHICH USES 6 STAGES OF

PURIFICATION

CHLORINATION : Kills micro organisms. Remove organic matter.

ARKAL FILTER : Removes suspended matter and turbidity.

REVERSE OSMOSIS : Removes organic material. Controls total dissolved solids in the water.

MICRON FILTRATION : Additional safety measures of filtration.

OZONATION : Ensures water remains bacteria free for longer shelf life.

Product & Packaging

Bisleri is available in a range of sizes. The Bisleri bottled water range comprises the conventional 500 ml,
one litre, 1.2 litre and two litre bottles; five litre and 20 litre jars for the home segment, and smaller packs
sizes of 250 ml cups and 330 ml bottles, though in very limited numbers for now.

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 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.

 To provide better quality of product and services through sustained market research and product
development.

 To foster a culture of participation and innovation for employee growth and contribution.

 To cultivate high standards of business ethics, and total quality management for a strong corporate
identity and brand equity with continuous and positive growth.

 To help enrich the quality of life of all the communities specially the neglected ones and preserve
ecological balance and heritage through a strong environment conscience.

:: 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.

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  The water is purified through six stages of purification process that includes reverse osmosis and
Ozonation.

Where Can We Use Bisleri ?

 Drinking
 Making tea, coffee, lassi, cold drinks, mixing with drinks
 Kneading the dough
 Cooking
 Mixing with baby foods
 Mixing with medicines

LITERATURE REVIEW

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.

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2002: Kinley overtakes Bisleri. The national retail stores audit by ORG-MARG show Kinley's marketshare
at 35.1 per cent compared to Bisleri's 34.4 per cent.

2003: Bisleri says it plans to venture out into Europe and America to sell bottled water 2004: water king, Mr
Ramesh Chauhan, set to take brand Bisleri across the globe.

2005: Bisleri has announced its plans to foray into the domestic fruit juice market and earmarked an
investment of Rs 100 crore for upgradation of its Chittor plant and setting up of a new facility.

2006: Bisleri Natural Mountain water will be available in aqua green packaging against the blue packaging
of old and will be available in six sizes.

2007: Parle Bisleri changed the look introduced a new variant (natural mountain water)and announced it’s
plan to launch the brand in US- a huge market for designer waters.

2008: Bisleri International has decided to register the mango drink brand — Maaza — in eastern European
countries, and launch the brand through a franchisee operation.

2009: company plans to concentrate on markets such as Jammu and Kashmir,Kerela,Southern part of Tamil
Nadu and Punjab,which are its Weaker links to steer a 40% annual growth in sales.

OBJECTIVE OF THE STUDY

 To learn about the domestic packaged drinking water market, its market distribution and Brand
Bisleri in detail.
 To find about consumers' and retailers' brand preference
 To identify the various threats of the mineral water market

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  To find the retailers view on the mineral water market
 To find the potential of Mineral water market in Panipat.

RESEARCH METHODOLOGY

Research Design

A research design is purely and simply the framework or plan for a study that guides the collection and
analysis of data. The Survey Research was used in this project, because Retailer’s and consumers feedback
was necessary for obtaining the data. 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.

Data sources

a) Primary data: These are those data which are collected afresh and for the first time, and thus happen
to be original in character. I will be using the structured questioners.

b) Secondary data: These are those which have already been collected by someone else and which have
already been passed through the statistical process. I will collect it from the sources like internet,
published data etc.

Population of the study

People from Panipat region will be included in the population.

Page | 23
Sample Size

I took 100 consumers and 35 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.

Sampling Technique

Random sampling technique will be used in this research project.

Research Instrument

For doing the survey research, structured questionnaire with both open-ended and closed-ended 27 | P a g
e questions was used.

Mode of Survey

The mode of survey was personal interview with the retailers and consumer’s during the filling up of the
questionnaires.

Data Processing

Daily data will be entered into MS-Excel sheets. After the exhaustion of the specified geographical area
this data will be analyzed using simple graphical and tabulation techniques.

Analytical Tools

After collection of data another work necessary for any data collector is to correctly analysis that data.
So statistical tools help us to correctly analysis the data. As I will using here the software named Ms
EXCEL for analysis of the data.

Page | 24
Hypothesis Testing

Chi-square test will be used when the set of observed frequencies obtained after experimentation have to
be supported by hypothesis or theory. The test is known as χ2 test of goodness of fit and is used to test if
the deviation between observation (experiment) and hypothesis may be attributed to chance (fluctuations
of sampling). χ2 also enables us to explain whether or not two attributes are associated or related to each
other.

STATISTICAL TOOLS TO BE USED

Chi –Square Test Procedure:

(1) Set up the null hypothesis that there is no significant difference between the observed and expected
value.

(2) We compute the value of CHI- square by using the formula.

CHI-square = Σ χ2=Σ (( Oi- Ei)2/Ei)

O- Observed value

E- Expected value Degree of freedoms=(R-1)(C-1)

Level of significance=5

And this is how Parle Bisleri began

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 29 | P a g e 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.

Page | 25
Bisleri mineral water was bought from the Italian company, Felice Bisleri, in 1969 — the company had
been unable to market bottled water and wanted to exit the market — Parle too did not see any potential
for the product at that time.

As a soft drinks company, Parle had Thums Up, Gold Spot and Lime a (cola, orange drink and
lemonade) but no soft drink company was complete without a soda. So they merely used the name and
launched Bisleri soda with two variants - carbonated and non-carbonated mineral water.

But three decades ago, what could they say about a category that had no market? They 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 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 Chauhan's 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

Page | 26
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 sell Bisleri. That is the kind of exclusivity we
look for to get ahead of the distribution network that soft drink companies talk of.

ANALYSIS AND INTERPRETATION

SWOT ANALYSIS OF BISLERI

Strengths in the SWOT Analysis of Bisleri :

1. Brand Recall: Bisleri is very popular around the country for its product. This has made it achieve a
very high brand recall among the minds of the customers. The product is so popular that it has become

Page | 27
synonymous with mineral water. This is a very big success for the brand as its values and ideologies
have clearly resonated with the customers. This has also earned the trust of the customers for the brand.

2. Quality Standard: They have always focused on quality of its product and have never compromised
on the same. They claimed their bottled water to be 100% safe to differentiate with its competitors. They
introduced the breakaway seal to make sure they deliver on their promise.

3. Innovation: They have always strived for innovations among their products. They were the ones that
moved from the glass bottles to PET bottles to ensure quality. The PET bottles are 100% recyclable
thereby taking care of their ecosystem. They introduced the breakaway seal to maintain the purity. They
also introduced the hexagonal bottles for better handling, balance and usage. They introduced the big
family packs for the usage at homes and offices.

4. Market Share: According to the Euromonitor report of 2016 Bisleri leads the country in market share
with 24.6%.

5. No Close Competitors: Apart from Aquafina and Kinley, Bisleri is at a very comfortable position in
market share in the country.

6. Point of purchase marketing: Bisleri is known to be very strong and aggressive where point of
purchase marketing is concerned. It brands the shops of its dealers and distributors very well across the
country. Furthermore, the colors used are such that they are noticeable even on highways when the cars
are going fast. As a result, the branding activity results in good turnover overall.

 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.
 Availability of Bisleri in all over India with solid infrastructure facility.
 Focus on customer orientation through low price strategy.

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 Product differentiation by introducing patented break way seal cap.
 Best service and proper response to dealers and customers.

Weaknesses in the SWOT Analysis of Bisleri :

1. Distribution Method: The Routeselling method used by Bisleri is more expensive than the common
method of appointing distributors in different towns. This increases the cost and many retailers refrain
from keeping the product as well. This directly attacks their distribution potential, revenue and market
share.

2. Reuse of Bottles by Locals: Lot of local people collect the Bisleri bottles and refill it using the local
unclean water and then mix it with the original batch. This reduces the brand image of Bisleri and may
prove harmful during consumption.

3. Faults in Production: Many times it comes under scrutiny in lapses of quality. This damages their
brand value and reputation. They also lost the license to produce at their Noida facility due to a similar
case.

4. Unmet market Potential: It is unable to meet the market potential of the south India as well as in
various pockets of India. Production is not as high as it should be because the consumption is very high.
Naturally, there are other limiting factors to production such as government norms as well. So if
production is increased, Bisleri can match the potential of the market.

 Lack of brand loyalty as MNC's are entering the market like Nestle's Purelife, Pepsi's 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.

Page | 29
Opportunity in the SWOT Analysis of Bisleri :

1. Expansion: It can expand in different locations across the global markets to increase the market
revenues and profits. Europe and the Middle East is a lucrative option for the same.

2. Expected Growth Rate: Packaged water grew at 23-25% compared to last year which is almost
double the growth rate of carbonated drinks. This shows there is still huge potential in the country.

3. Premium Segment: It can launch a premium bottled water for 5-star hotels and high-end customers.
It can diversify its target audience and cash in on this segment as well.

4. Matching demand and supply: A major problem for any retailer to shift to brands other then bisleri
is the regular supply and refill capacity of Bisleri. The more production Bisleri has, the more market it
will conquer and the more it will be able to match demand with supply. This will increase its revenues
tremendously.

 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 in the SWOT Analysis of Bisleri :

1. Competition : Indian markets is getting crowded in this product category. Giants like CocaCola,
Pepsi and Tata Global Beverages have launched packaged mineral water in the country. This can affect
the market share of the company and thereby cut its profits and revenues.

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2. New big Players eyeing the market : Apart from this there are several other giants that are eyeing the
lucrative mineral water industry of India. Nestle, Tata, HUL and DS group are all eyeing this market.
This would increase the competition to the next level.

3. Localised players : Because the barriers to entry are very low for packaged drinking water industry,
there are many competitors who have cropped up in various places. As they have a smaller operation
then Bisleri, they are able to give higher margins to retailers and capture the market in pockets. This is
affecting Bisleri where small pockets in urban areas are concerned.

4. RO and Filters : The increase in the sales of water filter and ROs in the country is also an issue to the
sales of Bisleri. People prefer their home water when travelling then to buy a bottled water from a
retailer. And as the rates of such filters are falling the threat is increasing.

5. Counterfeiting : Local and illegal manufacturer package their products similar to Bisleri and sell it
across local destinations harming the market share of Bisleri.

6. Changing Government Policies: For every drop of water packaged some needs to be given back to
the earth and create sustainability in the environment. Bisleri would need to change their production style
and suit the government norms. This would increase their cost of production and thereby make their
products costlier or drive their profits down.

 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.
 Local manufacturers who refill used bottle Hampers the image of the industry.
 Water filters and soft drink industry is a major threat to industry.
 Coke and Pepsi are already having strong distribution network in bottle water industry with their own
fleet of trucks & vans.

Page | 31
 Marketing mix of Bisleri – The 4 P’s of Bisleri

Bisleri is a public limited company founded by an Italian “Signor Felice”, in the year 1965 and deals in
bottled water. Later “Ramesh Chauhan” of Parle bought this company but he decided to continue with the
brand name of Bisleri so that its unique identity could continue.

It is one of the largest manufacturers in the market occupying nearly 36% of the share. Bisleri bottles are
easily available in the Indian Subcontinent, as the brand has made amazing inroads with thirteen franchisees
and eighteen manufacturing plants all over the country. The company has set up its headquarters in the city
Mumbai. Bisleri faces competition in the market from the following companies and their brands

 Coca Cola and its brand Kinley

 Pepsi and its brand Aquafina
 Parle’s Bailey

Product in the Marketing mix of Bisleri

Bisleri product was first available in glass bottles with its brand name Bisleri written on it. The company
later switched to PVC bottles that were non-returnable and now the bottles are available in pet containers
that can be taken away by the consumers.

Mineral water is the main item in the product portfolio of the brand and marketed under the name “Bisleri
Mineral water”. Besides this, the brand also produces soda water under the name “Bisleri Sodawater”. This
soda water is available in two different variants non-carbonated and carbonated. Bisleri Urza is a recent
addition and is a power drink.

As the concept of bottling mineral water was an introductory scheme of Bisleri in India, hence the brand has
become synonym for the Indian consumers of mineral water. The main challenge the brand faces is that
there is little scope for innovation in this product and hence it comes up with various other ideas to counter
it.

Page | 32
In order to meet the various demands of the consumers, the brand has introduced product variants so that it
can target the different sections of the society. Bisleri bottles are available in sizes of half a liter, one-liter,
five-liter, two-liter, one and half liter, two hundred and fifty milliliter and twenty liter.

Place in the Marketing mix of Bisleri

Bisleri has realized that availability is the key to success and for the success of this concept; the distribution
channel has to be up to the mark. The brand strategy has been to create a direct system of distribution at the
national level. Presently Bisleri has more than eighty thousand outlets that are used as retail shops in the
whole country and amongst this number, twelve thousand outlets are alone in the cities of Mumbai and
Delhi.

The company has invested heavily in procuring at least 2000 trucks for safe and convenient transportation of
products. The company has set up eighteen of its own manufacturing plants all over the country. It has
bottling plants in various cities like Delhi, Kolkata, Goa, Bangalore, Mumbai and Jaipur. It has decided to
hire its own sales people for proper handling and distributive facilities. This is so because the brand wants its
own network of distribution in places where it already has a manufacturing plant for cost cutting and
efficient management process.

Bisleri is one of the front-runners in the industry today because of its strong network consisting of absolute
distribution strength. In order to penetrate deeply in the southern region the company has decided to increase
its distribution channels over there.

Bisleri bottles are available in every nook and corner of India. From the small shops to the panwallas at
every corner, one can easily find a Bisleri bottle to quench his/her thirst. The bottles are available at malls, at
cinema halls at restaurants, at airports at railway stations and at every imaginable place. Hence, availability
is not a factor for this product and the credit goes to the highly efficient distribution network of this brand.

Price in the Marketing mix of Bisleri

In India, the majority of the people belong to the middle class section of the society and therefore the brand
has gone for a reasonable pricing policy. Water is available at every corner and to sell and market it, one has
to keep the pricing policy at a minimum range.
Page | 33
The brand realizes the basic idea is to generate as much volume of sales as possible as this will automatically
result in larger revenues. Until and unless the consumers can buy the product at a convenient place and that
to at affordable rates, it will not reach every part of the society.

In order to meet the consumer expectation Bisleri has kept pricing policies simple and clear. It has recently
increased its rates to a minimum raise under its competitive and reasonable pricing policy because all its
other competitors were also selling their products at that price range.

Promotion in the Marketing mix of Bisleri

A good product goes a long way in taking the company forward but without proper communication between
the consumers and the brand, even the product will not be able to save the company. Bisleri realizes this
concept clearly and hence has gone for persuasive activities to increase its visibility in the consumer market.
In one of the first promotional print ads, a butler was holding two Bisleri bottles with a punch line “Bisleri is
very very extraordinary”.

This helped in capturing the imagination of the public and paved the way towards success.The marketing
objectives and advertising policies of Bisleri includes personal selling, specific advertising in different
mediums, public relations and sales promotions. Bisleri has set up an aggressive media plan with the ads on
hoardings, billboards, vehicles like trams,trucks, and every other possible interface that a consumer can
connect with.

All its ads are on radio and shown on the television channels. Its slogan “Pure and Safe” has become very
popular amongst the consumers. In order to distinguish itself from other companies Bisleri decided on
“sealed cap bottles”. It proved a major coup for the brand as it claimed 100% purity because it was not
possible to refill the bottle without tampering with the seal.

All its campaigns at this point of time stretched on the purity point and about the patent for breakaway seal.
Later the brand changed its tag line to “Play Safe” and came out with some bold ads to attract the younger
generation. Bisleri has decided to opt for high standards of packaging to promote its products.

Page | 34
Point of purchase advertising is critical for a brand like Bisleri. Here too Bisleri gets top marks with its
innovative hoardings and POP material. All consumers need to know is that they are getting water at this
shop, and thats what the POP material clearly targets.

PEST ANALYSIS

Political Analysis

 Government failure to provide safe drinking water.

 Laws encouraging ground water exploration.
 Environmental regulations.

Economic Environment

 Developing Economy.
 Better infrastructure.

Social Environment

 Scarcity of water.
 Health conscious people.
 Population growth rate.

Technological Environment

 Economies of scale.

Page | 35
 CONSUMER RELATED

WHICH BRAND DO YOU PREFER WHILE BUYING MINERAL WATER?

NAME OF BRAND CONSUMER PREFERENCES

Bisleri- Most Preffered 60%

Kinley 20%

Aquafina 12%

Others 8%

According to the survey conducted in Delhi & its Ncr it was analyzed that 60% of the users go for
Bisleri Water and 20% for Kinley while there are still 8% of the respondents who are for other
packaged drinking water.

Page | 36
 NUMBER OF RESPONDENTS USING MINERAL WATER FREQUENTLY

Always Often Sometimes Never Very Often

28% 27% 34% 9% 2%

HYPOTHESIS TESTING

Step1: State Hypothesis.

Ho: Larger Proportion of people always use mineral water.

Ha: Larger Proportion of people go for an occasional use of mineral water.

Step2: state the rejection criterion.

DF=5-1=4

At alpha .05 and 4 degrees of freedom, the critical value from the chi square distribution table is 9.49.

Preference Observed Expected (O-E) (O-E)^2 (O-E)^2/E

Always 28 20 8 64 3.2
Often 27 20 7 49 2.45
Sometimes 34 20 14 196 9.8

Page | 37
 Never 9 20 -11 121 6.05

Very Often 2 20 -18 324 16.2

χ2=37.7

Interpretation:

As the Chi-square test statistics value 37.7 exceeds the critical value of 9.49 hence null hypothesis is rejected
and hence we reached at the result that our alternative hypothesis is accepted. Hence it can be concluded that
that 34% of the mineral water users go in for an occasional use while there are still 9% of the respondents
who never go for packaged water.

RESPONDENTS CHOICE AMONGST MINERAL WATER AND SOFT DRINKS

57% respondents agree to the fact with 10%, who strongly agree while 5% of the respondents disagree
to the fact while 4% strongly disagree, while 4% consumers were indifferent towards it.

HYPOTHESIS TESTING

Step1: State Hypothesis:

Ho: People prefer soft drink when thirsty.

Ha: People like to have mineral water in a thirst condition.

Step2: state the rejection criterion

Page | 38
DF=5-1=4

At alpha .05 and 4 degrees of freedom, the critical value from the chi square distribution table is 9.49.

PREFERENCE OBSERVED EXPECTED O-E (O-E)^2 (O-E)^2/E

Strongly agree 5 20 -7 49 2.45

Agree 57 20 23 529 26.45

Strongly disagree 4 20 -19 361 18.05

Disagree 20 20 20 400 20

indifferent 4 20 -17 289 14.45

X2=81.4

Interpretation: As the Chi-square test statistics value 81.4 exceeds the critical value of 9.49 hence null
hypothesis is rejected and hence we reached at the result that our alternative hypothesis is accepted.
Hence it can be concluded that that 57% of mineral water users go in for when they are thirsty.

BRAND AWARENESS OF MINERAL WATER AMONG RESPONDENTS

Brands Respondents
0-2 40%
3-5 50%
6-10 10%
10 and above 0
Page | 39
HYPOTHESIS TESTING

Step1: State Hypothesis:

Ho: People are aware of all the brands of mineral water.

Ha: People are not aware of all the brands of mineral water.

Step2: state the rejection criterion

DF=4-1=3

At alpha .05 and 3 degrees of freedom, the critical value from the chi square distribution table is 7.82.

PREFERENCE OBSERVED EXPECTED O-E (O-E)^2 (O-E)^2/E

0-2 40 25 15 225 9

3-5 50 25 25 625 25
6-10 10 25 -15 225 9
10 avd above 0 25 -25 625 25

χ2 =68

Interpretation:

As the Chi-square test statistics value 68 exceeds the critical value of 7.82 hence null hypothesis is rejected
and hence we reached at the result that our alternative hypothesis is accepted. Hence it can be concluded that
most of the people know only about the main brands which are owned by the big companies and are
advertised hugely. Mainly 3 -5 brands only comes to the minds of the customer in regards to mineral water.

Page | 40
 CUSTOMER PREFERENCES FOR BOTTLE

SIZE OF BOTTLES CONSUMER PREFERENCES

0.5 ltr 60%

1 ltr 20%

5 ltr 5%

20 ltr 15%

HYPOTHESIS TESTING

Step1: State Hypothesis:

Ho: 5 ltr and 10 ltr bottles of mineral water are the most preffered once, by the population .

Ha: 5 ltr and 10 ltr bottles of mineral water are not preffered by the population .

Step2: state the rejection criterion

DF=4-1=3

At alpha .05 and 3 degrees of freedom, the critical value from the chi square distribution table is 7.82.

PREFERENCE OBSERVED EXPECTED O-E (O-E)^2 (O-E)^2/E

0.5 ltr 60 25 35 1225 49

1 ltr 20 25 -5 25 1

Page | 41
 5 ltr 5 25 -20 400 16

20 ltr 15 25 -10 100 4

χ2 =70

Interpretation:

As the Chi-square test statistics value 70 exceeds the critical value of 7.82 hence null hypothesis is rejected
and hence we reached at the result that our alternative hypothesis is accepted. Hence it can be concluded that
that the 5 Ltr. and 20 Ltr. bottles are usually preferred only during special 46 | P a g e occasions such as
marriage and Birthday parties. Otherwise the 1 Itr and 500 ml bottles are the most preferred once.

CUSTOMERS PREFERENCES REGARDING PRICE WORTH OF MINERAL

WATER

Respondent’s view Yes No

% of Respondent’s 42% 58%

The observation shows that most of the people are not happy paying the price, the companies are
charging for the product. They feel that the price should be a little lower.

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 EFFECT OF ADVERTISING ON PURCHASE

46% agree to the fact with 10%, who strongly agree while 25% of the respondents disagree to the fact
while 14% strongly disagree, while 5% consumers were indifferent towards it.respondents

HYPOTHESIS TESTING

Step1: State Hypothesis:

Ho: Advertisement doesn’t affect purchase decision of Mineral Water.

Ha: Advertisement affects purchase decision of Mineral Water.

Step 2: Set the Rejection criteria: DF = 5-1 = 4

At alpha .05 and 4 degrees of freedom, the critical value from the chi square distribution table is 9.49

Step 3: Compute the Test Statistics: χ2 = Σ (O-E)^2/E

Preference Observed Expected (O-E) (O-E)^2 (O-E)^2/E

Strongly agree 10 20 -10 100 5

Agree 46 20 26 676 33.8

Strongly disagree 14 20 -6 36 1.8

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 Disagree 25 20 5 25 1.25

Indifferent 5 20 -15 225 11.25

2=53.1

Interpretation:

As the Chi-square test statistics 53.1 exceeds the critical value of 9.49 hence null hypothesis is rejected and
hence we reached at the result that our alternative hypothesis is accepted. Hence it can be concluded that
Advertisements affects purchase decision of Mineral Water.

GROWING HEALTH CONSCIOUSNESS AMONG INDIANS

Yes No
73% 27%

The observation shows that most of the population in Delhi & its NCR now a days is getting Health
Conscious. The reason being the knowledge of the fact that the normal water which we get is not
always very hygienic and may cause many diseases.

Page | 44
 RETAILER RELATED OBSERVATIONS AND FINDINGS TYPES OF BRANDS
RETAILERS KEEP

Advertised Non-Advertised Both

35% 5% 60%

According to survey, 35% of retailer go in for advertised products and non-advertised products do not
have any weight Around 60% retailer believe in the combination of both (advertised and non-
advertised version). The survey was based on retailers.

SIZE OF BOTTLE SELLING MORE

Page | 45
 Size of bottle 0.5 Itr 1 ltr 5 Itr 20 Itr

% of respondents 60% 20% 5% 15%

HYPOTHESIS TESTING

Step1: State Hypothesis:

Ho: Selling of 5 ltr & 20 ltr bottles occur more frequently.

Ha: Selling of 5 ltr & 20 ltr bottles occur less frequently.

Step 2: Set the Rejection criteria:

DF = 4-1 = 3

At alpha .05 and 3 degrees of freedom, the critical value from the chi square distribution table is 7.82

Step 3: Compute the Test Statistics: χ² = Σ (O-E)^2/E

Preference Observed Expected (O-E) (O-E)^2 (O-E)^2/E

0.5 ltr 60 25 35 1225 49

1 ltr 15 25 -10 100 4
5 ltr 10 25 -15 225 9
20 ltr 15 25 -10 100 4

2=66

Interpretation:

As the Chi-square test statistics 66 exceeds the critical value of 7.82 hence null hypothesis is rejected and
hence we reached at the result that our alternative hypothesis is accepted. Hence it can be concluded that
both 0.5 Ltr and 1 Ltr version are selling well but 5 Itr are selling very less as compared to others.

Page | 46
 GROWTH DURING THE LAST FIVE YEARS

ACCORDING TO RETAILERS

The growth rate has been very high as 38% of population has become health conscious,34% is due to
scarcity of drinking water and 28% is due to increased advertisements.

HYPOTHESIS TESTING

Step1: State Hypothesis:

Ho: Tremendous growth in mineral water segment is owing to increased health consciousness and
scarcity of portable drinking water amongst the population.

Ha: Tremendous growth in mineral water segment is not due to increased health consciousness and
scarcity of portable drinking water amongst the population.

Step2: state the rejection criterion

DF=3-1=2

At alpha .05 and 2 degrees of freedom, the critical value from the chi square distribution table is 9.49.

Preference Observed Expected (O-E) (O-E)^2 (O-E)^2/E

Health Consciousness 38 33.3 4.7 22.09 .66

Advertisement 28 33.3 -5.3 28.09 .84

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 Scarcity of portable drinking water 34 33.3 0.7 0.49 .01

2 =1.51

Interpretation:

As the Chi-square test statistics value 1.51 does not exceeds the critical value of 5.99 hence alternate
hypothesis is rejected and hence we reached at the result that our null hypothesis is accepted. Hence it can be
concluded that Last five year seen a tremendous growth in the mineral water segment. The growth rate has
been very high, owing to increased health consciousness amongst the population, arising from scarcity of
potable drinking water.

FUTURE PROSPECTS OF MINERAL WATER MARKET

Retailer's prediction Excellent Good Average Poor

% of retailers 42% 30% 15% 13%

Saturation for mineral water market is expected with in the next 5 years after which the market will
stabilize from today's point of view the market looks quite disruptive because of heavy competition.

FOR OBSERVING RETAILERS, 165 RETAILERS WERE IDENTIFIED IN SOME OF MAJOR

AREAS IN THE CITY.
Page | 48
FOLLOWING INFERENCES WERE DRAWN....

 Initially we enquired about the numbers of brands that the retailers sell and most of them specified
not more than 3 - 4 . This indicates that the retailers prefer only the main brands.

 Most of the retailers usually keep highly advertised brands.

 Here two basic question as to which brands are selling more and which one is being supplied more
were combined. The answer was obvious and i.e., the one which is sold more is supplied more and it
is 'Bisleri' (in most cases).

 The retailers' answers as to which size of bottle is selling more were inclined towards the 1 Itr. and
500 ml bottles with certain exceptions.

 It was a mixed reaction of the retailers when asked about the highest margin paid to them by a
company out of 100

 40% - Bisleri
 28% - Kinley
 11% - Aquafina
 21%-others

 Regarding the growth and future prospect of the mineral water market nearly all of the retailers were
optimistic and ranked it as a very rapidly growing excellent market.

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 CONCLUSION

o 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.

o 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.

o 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.

o 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.

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 BIBLIOGRAPHY

MAGAZINES –

 Business World (Issue 04-10 Dec, 2007)

 A & M (Issue Jan 2008)
 Business India (Issue 11-17 Dec, 2007)

OTHERS –

 Internet
 en.wikipedia.org/wiki/Bisleri
 www.finewaters.com/Bottled_Water/India/Bisleri.asp
 www.bisleri.com/

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