Water king -Ramesh Chauhan

as Social Entrepreneur.

Presented By
Amit Yadav (01)
Dipshikha Singh (15)(2008-2010)
Harshit Bhatt (08)
Urvish Prajapati (29)
Ramesh
Chauhan
• Founder – Signor Felice
Bisleri
Italian entrepreneur
 Vision
Our vision is to be the dominant player in the branded water
business where the second player is less than 20% of our business.

Values
Integrity, Leadership, Teamwork, Cooperation, Quality, Passion,
Openness & Transparency.
 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.
 •Glass bottles
1965 ●
Bisleri came to•2Mumbai
variations
Bubbly
Still

1967 ●
First plant in Mumbai

1969 ●
Sold to Parle exports

• Shifted to PVC bottles

1980
Mid-1980 ●
It switched to PET bottles

1995 ●
It launched 500 ml bottle

●
It introduced container of 20 liters to
2000 reduce the price.
 Branded mineral water
P 8 unique pack sizes
Non Returnable packs
R 250ml cups
O 250ml bottles
500ml
D 1L
U 1.2L
1.5L
C Returnable packs
T 5L
20L
Indian Water Industry
The bottled water industry is estimated at about Rs
3,000 crore and is growing at 30% by 2010.(The economic
times epaper)

Healthconscious people, improper water supply and the

unpredictable municipal water supply,Water pollution.

Major players in the market includes Parle Bisleri,

Kinley, Aquafina, Oxy rich and Bailley.
PESTLE Analysis of Industry
Political
 political
parties protesting against the pricing of mineral water.
 Government has imposed price ceiling on bottled water

Economical
 Increase in per capita income.
 No licensing policy adopted in this sector
 Availability of cheap labor.

Social
Earlierconsidered as a status symbol.
Only source of pure drinking water.
Considered to be safe as compared to ordinary tap water.
Increase in health consciousness of people.
Cont…
Technological
 Distillation,
reverse osmosis, activated carbon filter.
 Bottles made of PET. helps in recycling and reducing
environmental pollution.

Legal
 Governed by BIS standard.

Environmental
 Use of Plastic for bottled water increases environmental
pollution.
 Increase in consumption of bottled water causes depletion of
valuable fossil fuels.
Swot analysis of Bisleri
Strength Weaknesses
Extensive range of products
Strong brand image Unable to fulfill
High quality standard demand(distribution channel)
Packaging Reusable bottles
Safety seal
Maximum market share (60%)

 
Opportunities

Growing
Threats
industry
Increasing water pollution
 
Easy entry
Increasing population
Families- tap water
Health consciousness of customer is
increasing . Single SBU(one product category)
Introduction of premium pack Water purifier technology
Entry in PET waste industry New government policies
Improve distribution channel
 Value chain analysis

 Source: Wikipedia.com
 Strategic Directions
Ansoff matrix

 Source: Wikipedia.com
Ansoff matrix Analysis of Bisleri
More focusing on Market Penetration.
By providing Bottles in Various Packages.
Targeting Bulk water segment

 Product development by launching product

like Fruit juice and Mountain premium water.

 Market development strategy by expanding

25 plants by 2012.(The Economic Times Epaper)
Bowman’s strategic clock

 Source: Wikipedia.com
Year 1969 to 2000
In 1969, Parle acquired Bisleri with an aim to
increase its product portfolio.

Parle introduced Bisleri soda.

Company used No-frills strategy

 Product was initially packed in glass bottles
 Initially the perceived value of the product was low as well as
the price was low.

In 1980, the company changed the packaging from

glass bottles to PVC , to PET.
Cont….
Removed soda water and focused to packaged
drinking water.

The initial consumers of packaged water were

foreigners.

There were no competitors in the market.

So Bisleri adopted low price strategy.

The company achieved low price by reducing its

operational costs.
Year 2001 to 2010
In August 2000, Coca Cola saw potential in
bottled water industry - introducing its brand
Kinley.
The market saw entry of big players like
Pepsi - Aquafina
Nestle - Pure Life
Tata’s – Himalaya
Manikchand – Oxyrich
• Differentiation in the form of packaging, price
and distribution.
Cont….
Targeting new channels like chemists and
stationery shops.

Usedits own fleet of about 2000 trucks to

manage the distribution network.

Differentiated
in the terms of packaging by
making available the products in different shapes
and size.

Used tamper proof seal to assure good quality.

Cont….
Patented the tamper proof seal technology .

The present strategy

Targeting the bulk water segment,
strengthen distribution,
innovate on packaging and product line extension.

 Presently uses Hybrid strategy wherein it

has differentiated its offering from its
competitive and at the same time making it
available at cost lower than its competitors.
 Porter’s 5 Forces model
SUBSTITUTES

BARGAIN
INDUSTRY NEW
POWER OF
RIVALS ENTRANTS
SUPPLIER

BARGAIN
POWER OF
CUSTOMER
 Threat of Entry
 law entry barrier
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.

 Various new local brands (unorganized players)

Suggestions
Bisleri
have to increased distribution network.
Economies of Scale- production capacity.
Bargaining Power of Suppliers

Bargaining Power of Suppliers is low

 Large availability of suppliers

 Packaging
 Cap of bottles
 Labeling material

• The municipal water system

Bargaining power of Buyer(Customers)
Low bargaining power
Oligopoly industry.
Few big competitors,
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.

Brand Loyalty of customer is very low
Substitute products
Soft drinks

Water purifiers

Tap water

The most economical drink -limbu pani

Rivalry:
 There is a high competition to increase the market share.

 Few Big players like , Aquafina, kinley, and Oxyrich.

 There is no much difference among the product by

different competitor,

 The rivalry is only in terms of service and of marketing

strategy.
Bisleri boss Ramesh Chauhan
plots new rags-to-riches story

Article on 3rd September 2010

In
Economic Times
By
Kala Vijayraghavan
Mumbai
Mr. Chauhan’s review meeting with
the Rag Pickers
He links up Rag Pickers to Reliance and sets
up ecosystem to recycle PET waste.

He initiated this partnership to tackle an

environmental hazard.

Over 3 lakh tonnes of PET containers are used

and discarded every year.
 What is PET?

Known as Polyethylene Terephthalate.

Non – biodegradable plastic.

Used to package drinking water, carbonated

drinks and Juices.
Cont….

No market for PET scrape in India.

Commissioned collection centers, purchases about 5000 kg

every month.

Processed it and sold to Reliance industries.

After Mr. Chauhan’s intervention entire Pet recycling

Ecosystem now collects about 1200 tonnes of PET waste
from Mumbai’s streets every day.

700 tonnes from rest of Maharashtra.

 Business Transaction
Focus is to make it viable venture for Rag
Pickers.

After the success of Pilot Project, he

 Charged 1500 distributers and 2300
sales staff for establish such ecosystem.
 Identify users for the scrape.
 Market Share
Organized bottled water market is estimated
to Rs.3000 crore- growing at 30% annually.

Bisleri has 60% market share.

Total unorganized market is 10,000 crore.

(Source: The Economic Times Epaper)

 Use of PET Waste For
Carpets

Car parts

Fabrics

Fiberfil for products like pillows and jackets.

Roads where Recycled plastics is mixed with

asphalt.
 Building relationship with
Rage- pickers
Mr. Joyce Fernandes senior Bisleri executive.

With employees explaining Everything to rag pickers.

Asked Rag pickers for help to clean up the

environment.

Gingerly made contact with few rag pickers in Dharavi.

It is not easy to build partnership with rag pickers.

 Enter in new Market
Once built iconic brand like Goldspot, Thumps
Up, Limca, Maaza( Sold to Coca-Cola in 1993).

Roped into Indian education. RHYTHM his

research center.

He studied 56 rag pickers and 38 scrap dealers

(bhangarwallas).

He found for PET scrap had no buyers.

 Cont….
He decided to create market for PET waste.

For PET recycle process he went in Horai in

Japan.

He study and found plant which crushed bottles

and chopped it to flakes.

Consumer of that flakes is reliance which is used

it for make pillows and fiber cables.
 Pricing For PET Waste
Around 1 million Rag pickers are in Country.

Rag pickers were offered Rs. 8-10 per Kg. later it was
increased to Rs.17 per kg.

Each rag pickers could sale 5-10 kg per day and earning
Rs.60 to 150.

Scrape dealers buy PET from Rag pickers and sell it to

Bisleri at Rs.15-18 per kg.

Bislari would process it and sell to Reliance At Rs 30 per Kg.

 Political Help
Vijay Merchant a senior member of ICPE.

Closed friend and Tennis Partner.

He help Bisleri to set up collection center in

holiday spots and Pilgrimage for the PET waste.

Also provide hand crushers to Rag pickers which

will help them to flatten empty PET bottles and
easy to store it.
 Main idea
 He is exploring the possibility of using this
community(Rag pickers) to improve Bisleri
Distribution reach.

 Deliver Bisleri products to Kiosks and smaller shops

that are hard to access with trucks.

 This could be solve their problem of beating the traffic.

 If this plan work out, it could turn out to be rags-to-

riches story.
 Corporate social responsibility as Business Strategy

Promoting Thought Leadership... Corporate

social responsibility as business strategy.

CSR as Reactive strategy.

CSR as Image building exercise.
CSR for improved operating efficiency
CSR as Source of competitive advantage
Summary of Strategies of Bisleri
The company has adopted market penetration
strategy.

Had initially a varied product portfolio.

Expansion and Product development strategy

products like the Mountain premium water and enter the
fruit juice segment.

Strengthen its distribution network by CSR.

Dual distribution plan- entering newer markets

including towns and rural areas
Cont….
Focusing on bulk water consumption is untapped by
the organized players

Extension of product length and product line

extension.

Core competencies of Bisleri include its Brand name

and Packaging.

Hybrid strategy- Differentiated product at lower price

Forward integration by PET recycling

Bibliography
The Economic Times Epaper
The Business Standard Epaper
www.bisleri.com
www.rediff.com
www.labnol.org
www.financialexpress.com
www.wikipedia.com
Thank You