STRATEGIC ANALYSIS OF BISLERI

INTRODUCTION

The global bottled water industry consist the sale of flavored and unflavored water. In India there is sale of only still unflavored water. The industry in Asia-pacific region is growing at rate of 13.2% generating annual revenues of $15 billion in 2009. In India the bottled water sector is the fastest growing sector and the total market size is around Rs 2000 crores. There are more than 500 brands present in the industry and the market is mainly controlled by organized sector. The health consciousness among the people, supply improper are the water various supplies and unpredictable municipal water

factors which have caused the growth of the sector. The strong growth rate and lower entry barriers have attracted many players. The major players in the market includes Parle Bisleri, Kinley, Aquafina, Oxyrich and Bailley. With the growing competition the established players are undergoing a makeover. The major players have introduced new bottle shapes, labels and communication campaign. The off-trade channel which consist of distribution of bulk bottled water is growing on the grounds of unreliable supply of water in many cities during summer . The unorganized players have major presence in the off trade business. The flavored water segment is a niche category and has presence in North India and major cities in India. As the consumer base increases the growth rate for bottled water is expected to increase. The market operates on lower margins, the unit prices are expected to increase on account of high costs in packaging and transportation. The major players after the rebranding exercise are now concentrating on expansion of their manufacturing and distribution capacities. The major players are trying to establish themselves in bulk water business through brand equity whereas the unorganized players are resisting them through differentiation.

BACKGROUND OF COMPANY
Bisleri was emanates from Italy and the brand name is derived from its founders name Mr. Felice Bisleri, an Italian entrepreneur. In the year 1967, Bisleri established its plant in Mumbai to market actual mineral water which was not successful. In 1969, the company wanted to quit from the business and then it was bought by Chauhan with an intention to convert it in to a soda brand. But today it has captured a huge per cent of share in Indian market and making its mark in the international market. I n 1969, bottled water of Bisleri was bought from Italian company and then later it was bottled in glass bottles and then in 1980 it shifted to PVC bottles. In the mid-1980s it switched to PET bottles which are meant for more life and clearness for mineral water. In 1995, it launched 500 ml bottle and in 2000 it introduced container of 20 litres to reduce the pr ice. In 1998, it introduces a tamper-evident and temperproof seal. In 2009 it introduced Bisleri is first introduced its mineral water in Mumbai in the year 1965, in a glass bottle in two varieties namely, bubbly and still. Signor Felice Bisleri the main man behind the idea of selling bottled water in India. Starting the year 1995, Mr. Ramesh J. Chauhan began expanding the brand of Bisleri in terms of its operations significantly, since then the turnover of Bisleri shot up remarkably to about 20 times in 10 years and the average growth rate of the brand was 40% during this phase. In the present scenario Bisleri has about 8 plants and 11 franchisees all across the country. company dominates a 60% The market share of the organized market. The devastating

popularity of the brand Bisleri and the fact that they initiated bottle water in India has made them synonymous to Mineral water in the country.

Because of its rigorous R&D and strict quality control procedures it follows. They maintain severe hygiene conditions in all its plants. The water packaged for consumption is put through multiple stages of purification, then it is ozonized and then only the water is packaged for the final consumption.

PORTERS FIVE FORCES ANALYSIS

The vision, five forces model is of Parle Bisler iin industry analysis. This will helps an Porter is mission and values specially used is given below, organization to make a strategy. The bottled packaged water industry is a part of VISION beverage industry which again comes under fast moving consumer goods. According to be the dominant the in the bottled water water is expected Our vision is to American agencyplayer worlds brandedpackedbusiness where theto reach player is less than The cause behind second $65.9bn by 2012. 20% of our business. this is population rising, consumer buying pattern, life style trends and growing level of health consciousness. MISSION We are in the business to serve the customer. He is the most important person. He is the only one who pays. He deserves the best quality and presentation at a worth of the price. We must have world class quality, at the lowest production & distribution cost. This will make us an unbeatable leader, and will have satisfied loyal customers. VALUES Integrity, Leadership, Teamwork, Co-operation, Quality, Passion, Openness and Transparency.

Threat of entry: As the number of Bottled packaged water consumption is increasing in all over the world, the opportunity for other players in increasing rapidly. In the bottled packaged industry the entry barrier is low. The entry barrier is low due to local low production cost, less amount of capital, easy to access government and legal law, local production law, less legal and government barrier and low switching cost. The existing brand in beverage industry is paying attention and moving product is very less or equal lent to nil. According to product differentiation the threats of product is very less or equal lent to nil. According to product differentiation the threats of entrants is high. But the overall threat of new entrants is medium. According to industry life cycle the bottled packed industry is at mature state and the most of the market is covered by the Bisleri, Aquafina, kinley and Ozone. So the pressure for new entrants to capture the market is very high. Bargaining power of suppliers: The bargaining power of supplier is low, as the suppliers include municipal water system, bottles and plastic cap, label printer filtration and deionization equipment, plastic grains and etc. Sometimes the bargaining power of supplier s is depends on geographical location and the technology adopted by the organization. The recyclable bottle used by the company needs advanced technology or some dependant, like other packaging industry as the packaging cost is high. But the large availability of suppliers leads to less bargaining power. The bargaining power of supplier may include the inventory stock of bottles. Overall bargaining power of supplier is less.

Bargaining power of buyer: As the bottled packed water industry comes in oligopoly industry. The no of producer is less thus and product. The availability of product also affects the bar gaining power of buyer s. Availability of substitute is also affects the bargaining power. As the competition is not much high, there ar e mainly five to ten producer like Bisleri, Aquafina, Kinley, Oxyrich and Pure life so the customers do not have any advantage moving from one brand to other brand. The product differentiation is almost zero, so the bargaining power of customer is low.

Substitute product: The availability of substitute is coffee, soft drink, juice and tea. The substitute of product affects the price and market. The availability of substitute provides the option to customer and customer can switch from one product to other. The beverage industry is always appreciated by every country. The availability of various health drinks, juice, carbonic and no carbonic drinks and availability of taste changed the consumer preferences. Consumer is using various health drinks, carbonic and non carbonic drinks to quench the thirst.

Rivalry: The degree of rivalry and the competition affects the pr ice, quality, profit and revenue in an industry. As the market is almost on saturation state, and the industry refers the oligopoly competition so there is a high competition to increase the market share. The market is dominated by the very few players like bisleri(%), aquafina( %), kinley(%) and oxyrich, and they are trying to increase their market share by product introduction, price, packaging and volume of water. As there is no much difference among the product by different competitor, the rivalry is only in terms of service and of marketing strategy. The intensity of rivalry is low as there is limited player and the product is not price sensitive. rate so the competition is less Conclusion: On the basis of porter analysis we can draw that the market is safe for beverage industry. According to producer perspective there is a huge opportunity and the control over market cannot be influenced by one competitor or one supplier . The dependency of industry over supplier is less also the rivalry is low among competitor. According to Indian beverage association the market will grow by in 2012 , the market shows the high growth

SWOT ANALYSIS OF BISLERI

Strength
Extensive range of products BISLERI is a providing a wide range of products to pull all types of customers. E.g. twelve litres and twenty litres of bottle are for organizations purpose and 500 ml and one litre is suitable for individual purpose. Strong brand image BISLERI has been a generic name for mineral water and that is the reason maximum people purchase BISLERI water only. Around seventy lakhs people have put their trust in BI SLERI. For example- when consumers go to purchase the mineral water then they ask for BISLERI even though other brands are available in the shop. High qualit y standard BISLERI multi has been maintaining which its quality standard for and last few

decades. Each bottle of BISLERI goes through a prcised process of stage purification consists of ozonisation micron filtration. It holds six phases of distillation procedure which guarantee the quality, safety and purity of water which is suitable for drinking purposes. It is examined very accurately at ever y stage of manufacture which adds one more unit to its strength. Marketing Bisler y has a strong and effective strategy for marketing of its products. It is using print and electronic media for its marketing and hoardings at the point of sale to supports their TV advertisements. For example vehicles are painted in light green with logo of BISLERI easy punch line as dr ink and drive

Increasing popularity The popularity of BISLERI is growing at rapid pace. It has become the first preference of people when they go to purchase the mineral water . BISLERI is enjoying a growth of 50% per year. Its small pack is increasing its popularity for individual purpose and its bulk pack is creating huge demand which is conducive to captivating the market. The bulk segment of BISLERI is generating 60-70% of total revenue and company is looking forward to augment it to 80%. Distribut ion channels BISLERI has around eighty thousands outlets in India. It distributes products directly to retailers through its large fleet of truck by using a system known as route selling in which truck driver is trained as a ser vice man. This helps in maintaining the freshness of water and shape of bottles. The safety seal In order to deliver the quality product to the customer every bottle of BI SLERI is sealed with a unique cap which is patented and cannot be replicated. This is a technical strength of the company which guarantees that customer will get product of standard quality not duplicated.

Weaknesses
Reusable bottles According to some relevant market research it is found that bottles are reused and refilled with consumers and for unhealthy water at railway the brand stations. The tampering of seal and reuse of bottles is a matter of concern for company also. It defame image of the company. For example- some local sellers fill BISLERI bottles with impure and unhealthy water and they sell it to uneducated customers as BISLERI water which affects their health and brand image of the company.

Errors in production Some faults have been found in the production process of Bisleri

products. In some purity tests pesticides were found in water. In the year 2002, tests were conducted by authorities they found 2 cm insect in Bisleri bottle. That has reduced its sales and brought down the reputation of the company. Some factories lost their license due to faults in production.

Government pressure FDA has stopped the production of BISLERI due to insects and pests were found in BISLERI bottles. Later, Government gave the permission to resume their production but consumer s were not satisfied and moved towards other brands. It is tested by various authorities constantly. Unable to fulfill the demand of the customer In some parts of south India big BISLERI bottles are in great demand but the company is not able to fulfill the demand of consumer s for individual purpose. It is reducing the demand for BISLERI and that is why people are bound to purchase other brands of mineral water.

Opportunity
Field growing at rapid pace Water seems to be the best beverage for India in the upcoming time period. In last several years,it has been indicated that drinking water market has shown high level of activity with several new competitors. The worth of the bottled market is expected to be increased from Rs.1000 crore to Rs.5000 utilization of distribution chain Effective crore by 2010. It is becoming a generic name for mineral water and if company can use the distribution channel in order to provide the product to place where consumer require it most then company can gain more market the product all across the world. success in this field. This company can establish good relations with dealers and other distributors to

Expansion in Europe

Bisleri has introduced its product in European market which has brought

lots of opportunities for the other brands like EVIAN, ATCO, BRILLIAN competition. There are somecompany in the bottled water market. It will recover the loss of brand looking company launch when insect was water, DS FOODS are alsoimage; theforward to has facedtheir products. Water found manufact uringIt will be a strong response to critics and it will filter in companies Hindustanthe market. lever is also looking forward to launch its product in the It is facing competitionof lead consumer in Bisleri. It will improve the quality and enhance the trust from water filter manufacturing companies like product and this will the to a tough competition. Eureka forbes. They are marketing their product in the market which has provide international brand image. reduced the sales volume of bottled water. Unauthorized manufacturers Introduction of premium pack In rural areas BISLERI is facing a tough competition from unauthorized The company has changed its color from blue to green and by doing this manufacturers. The local manufacturers sell their products at a low price company has offered a new product to the customer s and they will enjoy a than branded products. fresh product. New Government policy Previously, government was not charging any tax on extracting the water from the ground. According to new policy, government will impose Increasing production tax on extracting the ground water and this increase the cost of production. The company is focusing on the market and looking forward to This will lead to high price of products which every consumer cannot afford.

increase the cost can be compensated by cutting down enhance The high production production by establishing new more plants. It willthe the capacity this will affect the quality of the market expenses butof production of the company. product.

Threats
Entry of big players The market growth is showing that the demand for the miner al

water is increasing. Therefore, big players are focusing on the market;

players like Pepsi, Coke, Britannia and nestle are curious to increase their Coke, BISLERI can be dissolved. Entry of new players New players are entering the market in order to capture some shares. Some of the players like Tata-Tea and Godrej are looking forward to launch their product and this will heat the
CONCLUSION With this SWOT analysis we have derived the conclusion that: 1. The base of BISLERI water is very strong in the Indian market. Its managing director is one of the biggest achiever in the packed water bottled market.

stakes in the market. Due to the tough competition between Pepsi and

2. It is found that its weakness lies in the production. The company was in trouble because of its production related techniques. 3. The company has a lot of opportunity which can be exploited in the future which will give the company a profit, proper utilization of opportunities will be a key to survive in the market. 4. But with more and more competitors entering the market, there are also various threat to company. One wrong step can lead to a white-wash of company from the market in the future.

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