BISLERI

Group 6:
Lalit Singh Rao
Maanasa Mallela
Manas Mendiratta
Mehul Gahrana

Mission
Bisleri continues to innovate constantly,
urged by the goals of the Aqua Green
Revolution to provide every Indian easy
access to purified drinking water and to
support
initiatives
that
rejuvenate
the Earths natural sources of pristine drinking
water.

Vision

Bisleri began the Aqua Green Revolution

with an ambitious dream in mind; that of an
India in which every person, irrespective of
geographical
barriers
or economic limitations, has uninterrupted
access to scientifically purified and fortified
drinking water

PESTEL analysis of Bottled Water Industry

Political
Favourable Stable government and policies to support
industrial growth
Against High Tax rates
Economical
Favourable Rapid urbanization, increasing per capita
income,
growth of tourism, high CAGR of the industry
Against Low per capita consumption, shelf life
Socio-cultural
Favourable urbanization, high spending, health awareness
Technological
Favourable Improved purification and packaging techniques
Environmental
Favourable PET bottles and recycling techniques
Against low water levels, plastic waste
Legal
Against strict purity laws to follow

Conclusion from PESTEL analysis

There is a lot of untapped potential in the
bottled water industry despite of the
adversaries present due to improved standards
of living, technological advancement and
increased awareness in people towards health
issues related to drinking water.

Porters Diamond Analysis

Firm strategy - structure and rivalry
Facing strict competition from organised big brands as well as
unorganised local players.
Demand conditions
Increasing demand with growth around 22% CAGR
Factor conditions
Technological advances and resource availability makes it a strong
condition
Related and support industries
Unorganised sector and low switching costs.

Conclusion
Although support industry is still growing but due to
increased demand and favourable factor conditions
the industry is likely to grow at a faster rate.

PORTERS FIVE FORCES ANALYSIS

Bargaining power of Buyer
(High)
Buyers switching costs
(Low)
No pecuniary cost;
Placebo effect
Buyers Price Sensitivity
(High)
Demands competitive
prices, Ready to switch
among the
cluster
Threat
of New
Entrants
(Moderate)
Capital Costs and industry
(Moderate)
Moderate levels shall attract New
entrants

Economies of scale and

distribution (Low)
Existing players have achieved low
cost production and distribution
capabilities

Brand Loyalty and

Government regulations (Low)

Rivalry among
Existing Firms
(HIGH)
Concentration
(High)
Many firms - Perfect
Competition
Cost Conditions (High)
Price fluctuates between
different players and offerings
Product Differentiation
(Low)
Bottle Shape, Labels
Mainly concentrated on PURITY

Threat of
Substitutes (High)
Substitute Availability
(High)
Easy availability of
substitutes
Perfect Switching Cost
(Low)
High cost of purifiers for
households and corporates
Perfect
Replaceability
Bargaining
Power of
(Low)
Suppliers (Low)
Cannot be
perfectly
Selected
suppliers
for
replaced
by Imperfect(Low)
superior
intermediates
Continuously
increasing no. of
Substitutes
suppliers. Significantly dependent on
industry

Forward integration
threats(Low)
Suppliers cannot integrate forward to
threaten industry

Workers/Contract employees
(Low)

Based on the Porters Five Forces Analysis, the

following conclusion can be derived :
- The Entry barrier in the industry is high in the
form of
Moderate Capex
- To sustain the business is not easy. Taxes are high
(15%) and
Distribution system needs to be strong to be
successful.
- Competition is cut-throat in the industry. Perfect
competition
exists and there is no loyalty towards a specific
brand
- Perfect Substitution is unlikely in the short term.
There are
ample Imperfect substitutes though
- There is no exit barrier.

Key Success Factors for Bottled Water Industry

Distribution

Strong distribution network

Exploring new channels
Customer perception

Key Success
Factors
Packaging

Price

Shapes and size

Technological advancement
Labeling

Low cost of production

Economies of scale
First mover advantage

Strategy

Rural market penetration

Concentrating on volumes
Improve the visibility of Vedica and changing its target segment
Differentiation on packaging, price and distribution

Value chain
Raw
Materials

Treatment

Bottling

Distribution

Marketing
and sales

Marketing and
sales
Raw Material
Water
Plastic grain
Packaging
material

Distribution
Treatment
Water
Testing

Bottling
Capping
Testing
Recycling

Route
mapping
3 level
distribution
channel

Key
strengthBranding
and
segmentatio
n
Catchy
advertiseme
nts

Strategy Space Matrix

Space Matrix

Internal Strategic Position

Values -6 to -1

Competitive Advantage

Values +1 to +6

-1 Product Quality

X Axis

External Strategic Position

Industry Attractiveness
(Porters 5 Forces)

-1 Market Share

3Barriers to Entry
Growth Potential Bargaining power of Buyer 3
Threat of Substitutes 1
3 Bargaining Power of Suppliers 6

-1 Brand & Image

5Aceess to Financing

-3 Product Life Cycle

6Tech: Know how

Total X Axis Score

Values +6 to +1

Financial Strength

2.75
Values -6 to -1

Environmental Stability
-6Price of Competing goods

Y Axis

(Unlisted Company)
1000cr Revenue by 2015
Therefore looking at secondary
reports and market share
commanded we can make conclusion

-2Inflation Rates
-2Technology Changes
-5Competitive pressure
-6Demand Variability

Total Y Axis Score

1.8

Space Matrix