105742341 bisleri minor project

7/30/2019 105742341 Bisleri Minor Project

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ACKNOWLEDGEMEN

T

First of all I am deeply indebted to Department of

Management,

Maharaja Agrasen Institute of Management And Studiesto

complete my research study on

To study the Indian packaged water industry with focus

onBISLERI

It gives me immense pleasure to expres my heartfelt gratitude to

myrespected guide Mrs. Ekta Dargan (Asistant Profesor) for providing

mearticulate guidance and ceaseles encouragement throughout study.

Ihall be failing in my duty if I do not acknowledge the contribution

ofmy family for their constructive

cooperation.

RAJAT SHAKYA

ROLL NO. 01561101711

BBA (GEN) 2nd SHIFT 3rd SEM

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CERTIFICAT

E

This is to certify that the research work entitled To study theIndianpackaged water industry with focus on BISLERIha been

undertaken by Mr. Rajat shakya under my supervision in the

partialfulfillment of requirement of the graduate course (BBA). The

researchwork is candidates original work & this project report has not

beensubmitted to any other university for any course.

This is also certified that Mr. Rajat Shakya is the student of BBA

2nd year in Maharaja Agrasen Institute of Management and Studies, Rohini

(Affiliated toGGSIPU University).

Project Guide:

Ms. Supriya

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CONTENT

S

OBJECTIVES OF THE STUDY

RESEARCH

METHODOLOGY

INTRODUCTIO

N

To the domestic packaged drinking water market

MARKET SHARE

COMPANY PROFILE OF BISLERI

The Present

Future Plans

Technology Developments

Purification Process

Product & Packaging

BOTTLED WATER

ANALYSIS

WHY BISLERI?

EXCERPTS

And this is how Parle Bisleri began

THE JOURNEY TILL NOW

VISION AND

MISSION

4

Background

CURRENT

PLAYERS


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CONCLUSION

BIBLIOGRAPHY

5

SWOT

ANALYSIS


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OBJECTIVE OF THE

STUDY:

To learn about the domestic packaged drinking water market,

itsmarket distribution and Brand Bisleri in

detail.

To see whether there is a threat to the mineral water market

fromwater purifiers and soft drinks.

To find the retailers view on the mineral water market and

toases the future prospect of the market.

To find the potential of Mineral water market in Delhi & its

NCR.

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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 necesity and especially

whenwe are paying for natural resource like water which is available

freely.

The bottled water market has recently seen growth; the reason

behindthis may be the growing health consciousnes among Indians or

non-availability of pure drinking water. Most of the users are daily

travelers, patients or it is used in parties/seminars. Moreover 30% of

the whole mineral water customers are travelers.

When governments spoke about providing drinking water to all,

littledid one imagine that MNCs would package it and sell it to us. The

advent of the small bottles has increased consumption. Buying

waternear the bus stop or at the railway station has become a

routine.Indian water market has many companies selling water, on an

wholethere are more than 300 big & small players in the market some of

theig 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

congestedregion.

Bisleri is most popular brand in North India. Bileri i having

bigcontracts like with air Indian & some part of Indianrailways.

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advertising, catchy taglines.... In such a scenario, The Strategist

takesa look at how it all started -- with Bisleri -- and how

RameshChauhan, chairman, Parle Bileri created a market out of pure

water.

Bisleri mineral water was bought from the Italian company,FeliceBisleri, in 1969 -- the company had been unable to market

bottledwater 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

Limca(cola, orange drink and lemonade) but no soft drink company

wascomplete without a soda. So they merely used the name and

launchedBisleri soda with two variants -- carbonated and non-

carbonatedmineralwater.But three decades ago, what could they ay about a category that

had no market? They didn't know our target group. Then,

sincebottled water is colourles, tasteles and odourles, it was not an easy

product to advertise.

Thus, the earlier brand building efforts focused on Bisleri

beinghealthy with adequate minerals. The Italian name added a dash

ofclas to it. The first print ad campaign captured the

internationalesence and showed a butler with a bow tie, holding two bottles

ofBisleri.

The punchline was, "Bisleri is veri veri extraordinari" (the

pelling of the punchline was designed to capture the

consumer'sattention). The campaign was succesful and we were being

noticedas 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 --

theycould now show sparkling clear water to the consumers. It also

meantbetter life for the

water.

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Meanwhile, Bisleri soda was doing well but they had to

discontinueproduction as they sold their soft drink brands to Coca-Cola in 1993.

But Ramesh Chauhans interest was in building brands and not

inbottling soft drinks. That's when he started to concentrate

ondeveloping the Bisleri waterbrand.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

inEurope was extremely poor, which created the bottled water

industrythere. In India, too, not only was water scarce, whatever was

availablewas of bad quality.

Initially, though bottled water was something onlyforeignersand non-resident Indians consumed, they till had to increae

thedistribution, which meant the dealer margins reduced. And because

oflimited sales, the dealer margin had to be kept high to

compensatelow sales. Now they had to push sales.

Hence, they introduced free sampling of Bisleri at the tables

wherethe elderly guests would sit. Soon customers were ordering

bottledwater on special occasions. Currently, the consumption of bottled

water is far in exces of soft drinks on suchoccasions.

The other major challenge was distribution. Soft drink sales are

inglas bottles and the distribution model is built around picking

upempty bottles and getting them back to the factory. That's not the

casewith the retail bottled water packs (below 2 litre). But a product that's

not available where it's needed, is

useles.The number of outlets where Bisleri is available has increased from 50,000 in 1995 to2,50,000 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 butell Bisleri. That is the kind of exclusivity we look for to get ahead of the distribution

network that soft drink companies talk of.

MARKET

SHARE:

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Currently,s Bisleri continues to lead in the Rs 700-1,000

croreorganised, packaged water market with an estimated 40 per

centmarket share, followed by Kinley at 28 per cent and Aquafina with

an11 per cent share. In terms of volumes, the North and West

remainBisleri's biggest performing markets, despite the brand'ssustainednational-level presence. The market has been growing for the

lastthree years at an unimaginable rate of 80%. The market size of

bottledwater is expected to surpas the size of soft drinks market very soon

in the near

future.

Individual Market

Shares:BISLERI-40%, KINLEY-28%, AQUAFINA-11%, OTHERS-

21%

Some of the specifications as per the latest notification(which were effective from April

01).The location of packaging should be close to the source or place of

origin of water.

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Only water obtained directly from natural or drilled

undergroundources can be sold as mineral water.

For water to be called mineral water it should also not be subject to

any chemical treatments.

For water to be categorized as packaged bottle water, it can be

ourced from any

places.The water has to be treated and disinfected in accordance with

pecifications for it to be categorized as packaged bottle water.

Till December 2000 only six players have applied for license for

packaged drinking water and no company has applied for license

inmineral water category. But around 16 applications in

packagedwater category and 6 applications in the mineral water category

aretill in the pipeline.

The new regulations also prohibit any claims relating to

beneficialproperties of the product and the immediate casualty will be

Coca-Cola with its FFPAI endorsement. Furthermore in a bit to

providetandards for both drinking water and mineral water and to

regulatethe quality and price of bottled water, BIS approval was mademandatory from the end of

1999.However the BIS does not lay down any guidelines or practices

forprocesing water and there is no specific industrial licensing

policyfor the bottled-water sector. So in effect anyone can set up a plant

without establishing the source of the water and the

technologyused to purify it.

Till recently India was not a potential consumer for packagedwaterhence the prospects are now huge. But with regulations

somewhatconfusing and contradictory it is likely to be a while before

themanufacturers are able to realize their full market potential in

acountry, which is fast becoming one of the principal global markets

inbottle water.

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COMPANY PROFILE OF BISLERI:

:: Background

In 1967, Bisleri an Italian company, started by Signor Felice

Bisleri,first brought the idea of selling bottled water in India. It started

acompany called Bisleri India. In 1969, Ramesh Chauhan,

theChairman of Parle Exports, bought over the brand. In those

days,Bisleri packaged drinking water was available in glas

bottles.

Being a returnable package owing to various other problems such

asbreakage and weight, in 1972-73, Bisleri was made available in

PVC(Poly Vinyl Chloride) bottles. After this plastic packaging

wasintroduced, 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

packageddrinking water market, he then went on to concentrate on

makingBisleri a top selling brand in India.

:: The Present

It was around the year 1995, when Parle Exports took charge of

thebrand operations and the

busine

took off in the market. With

factories acro India and a strong distribution network,

Bisleriestablished itself as a force to reckon with in the domestic packageddrinking water market.

Earlier the packaged drinking water market consisted of five

starhotels, tourists and foreigners. As a marketing strategy, a

consciousdecision was taken by the company that only 40% of the sales should

come from these outlets and 60% from general market.

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:: Technology

Developments

To make sure that the product that reaches the consumer is always ofhighest standard and also meets international standards, Bisleri

hasalways been involved in improving its product packaging. One

suchrecent development is the tamper proof break away seal. Bisleri

also recognises the need to produce environment friendly

productsand is working on the PET project.

The break awayseal:Keeping in mind the consumer's need to recognise a genuine

productthat 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

ensuresthat the consumer will only get a highly safe product when

theyconsume 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.

The PET Recycling

Project:Bisleri is extremely conscious of environmental isues, sincePETbottles are not biodegradable and not easy to dispose. The company is

currently working on the PET recycling project, where they

willcollect bottles from various places, crush and shred them. This

hredded material will then be made into ropes , PET containers

forthe non-food industry and other PET items like polyester fibre,

flowervase, gift items etc.

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WHY BISLERI?

Bisleri is totally safe & protects you from all water borne

diseases.

Bisleri is trusted by 50 lakhs households acros the country.

Bisleri is the brand leader in bottled water category.

The water is purified through six stages of purification process thatincludes reverse osmosis and Ozonation.

Why Bisleri is pure?

At BISLERI plants , water undergoes multi stage

purificationproces to ensure proper blend of minerals and complete removal of

microorganisms and toxic substances. So a habit of drinking

PUREand SAFE BISLERI will ensure a healthy

life

WHAT ADVANTAGES BISLERI PURIFICATION

PROCESS HAS OVER PURIFICATION DONE BY

OTHE

R

METHOD

S

?

Traditional sproce sofs sboiling swater sfors spurification shas sits

limitations.It is time consuming. For boiling , water has to be

heatedto 100 deg.Celsius. Also , to kill microbes water should be boiled

continuously for a minimum of 20 minutes. Boiling may kill

themicrobes but can not remove other physical impurities and

toxicubstances.

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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

acombination of the two techniques. These techniques do not

guarantee100 % purity ofwater.

Filtration removes only the visible suspended particles and not the

minute , invisible particles , toxic substances or microorganisms.

Thefilters are cleaned rarely and all the muck accumulates inside leading

to more contamination. Ideally such filters need to be cleaned

everyday which is cumbersome. Ultra Violate rays kill the microbes

butcannot ensure removal of toxic substances and physical

impurities.These purification equipment are incomplete and need

continuousmonitoring and

maintenance.

At BISLERI , through our multi stage purification proces

weensure removal of toxic substances as well as physical and

microbiological impurities. In our state-of-the-art procesing

plantswe follow rigorous Good Manufacturing Practices and strict

QualityAsurance norms so each and every bottle of BISLERI is madetasty,pure and safe for the

consumer.

PROTECT YOUR HEALTH WITHPROTECT YOUR HEALTH WITH BISLERI WHICH USESBISLERI WHICH USES 66

STAGESTAGE

SS OF PURIFIOF PURIFICATIONCATION

CHLORINATION: Kill micro organim. Remove organic

matter.

ARKAL FILTER : Remove upended matter and

turbidity.

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PARTICULAR

S

Mg/litr

eTDS 160

Ph

Factor

7.2

Calcium 13.6

Chloride

22

Bicarbonat

e

58

Magnesiu

m

7.8

Nitrate 2

Sulphat

e

19.3

Hardn

e

66.1

W

H

ERE CAN WE USE BISLERI ?

Drinking

Making tea, coffee, lasi, cold drinks, mixing with

drinks

Kneading the dough

Cooking

Mixing with baby foods

Mixing with

medicine

.

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CURRENT PLAYERS:

The mineral water industry is in a churn. The market is proving

tobe yet another battlefield for an ongoing battle between the

desisand the MNCs. So far, MNCs have been winning. Only time

willtell 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

fateIndian companies will suffer at the hands of these MNCs makes

mead, the choices the consumers will have makes mehappy.

A few years back, the mineral water market had been crawling at

therate of 3-4%, or even a lower figure. Indians carried drinking

waterin earthen pitchers, plastic or PUF bottles. But increasing cases of

typhoid and other waterborne diseases began to be reported.

Inaddition to this, liberalization happened and the mineral

waterindustry began to be stirred and shaken. The market started

growingan astounding rate of over 100% per anuum. The fact that there

werevery few players in the market meant that their busines grew

byleaps and bounds. Bisleri became a household name and is now

generic for bottled water. The market today has grown to

Rs11bn.The organised sector -- branded mineral water -- has only Rs5bnofmarket 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

brandedegment, Bisleri is the market leader as it continues to lead in the

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egment. Only three years ago, the bottled water market

wasestimated at about Rs 300 crore, of which Bisleri commanded

adominant 80 per cent

share.To ensure Bisleri packaged drinking water is held safe free

fromcontaminations, ultraviolet treatment and ozonisation

proce

is

carried out. Ozone is unstable trivalent oxygen, a very

powerfulbactericide with no side effect, as it disintegrates into oxygen

withincouple of hours Sterilization effect of ozonised water continues

evenafter water is packaged, thereby ensuring safety of Bisleri up to its

final packing. To ensure high quality of packing

materials,components like caps and bottles are manufactured in-house

fromresins of quality suppliers.

Good Manufacturing Practices are stringently followed at all

times.Procesing is religiously monitored at every stage. Testing source

water, procesing parameters, microbial quality, packaging

materialintegrity and finally, shelf life studies, forms an integral part

ofquality and safety asurance

plan.

Strengths:

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Core busines of

company.

First mover in this busines since

1969.

Good brand awarenes 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 pricestrategy.

Product differentiation by introducing patented break way

seal

cap.

Best service and proper response to dealers and customers.

Weakness:

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Lack of brand loyalty as MNCs are entering the market like

Nestles Purelife, Pepsis

Aquafina.

Lack of Global Awarenes in brand.

Lack of proper advertising to create brand

awarenes.

Market coverage is not fully

utilized.

Institutional sales are not penetrated properly.

Lack of technological up gradation.

Opportunity:

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.

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People are becoming health

conscious.

Threats:

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.

Bisleri goes green naturally20 October

2006

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New Delhi: The Rameh Chauhan-promoted Bileri

International,which pioneered the packaged drinking water busines in

India,catering to consumers' need to have hygienic drinking water

whileon the move or even at home, is literally changing its colours

andgoing for a makeover.

The brand that was till now marketed as packaged drinking

water(cleaned through reverse osmosis) will now be available in

anaturalavatar

.

Bisleri International will invest Rs100 crore for the project

whichconstitutes a Rs40- crore investment in two plants in

Uttaranchaland Himachal Pradesh in line expansion, Bisleri

Internationalchairman Ramesh Chauhan said. The plants will come up next

year.Chauhan said the rest of the investment of about Rs60 crore

wouldgo into infrastructure development. The investment would be

fundedthrough internal accruals.

Launching 'Bisleri Natural Mountain Water' he said the

companywas looking for four more locations from where we look to

sourcenatural water. The likely locations would be in South and West

Indiahe said. Bisleri has 23 plants acros the country producing bottledwater.

Bisleri Natural Mountain water will be available in aqua

greenpackaging against the blue packaging of old and will be available

inix sizes. The company is also planning an aggresive marketing

andadvertising campaign with a two-year budget of Rs60

crore.Chauhan said the new packaging has been adopted in order to

standapart from the others and in Chauhan's words, "As leader, we

wantto differentiate ourselves and hence have adopted this aquagreen

colour," he said. Priced at a significant premium to packaged

waterNatural Mountain Water will be available for Rs20 per litre.

The natural water segment, which accounts for about 5 per cent

ofthe total bottled water segment, is expected to grow by leaps

andbounds as health awarenes and disposable incomes rise. According

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to the company the foray into spring water will be followed by

anentry into the packaged ice segment (Bisleri Ice) as well

intoflavoured, vitamin and sparkling water categories. The company

isaid to be setting up R&D facilities for ice and studying various

packagings soptions.s sRameshs sChauhan,s schairman,ssBisleriInternational expects to sell 10 million cases of Bisleri

MountainWater over the next two years- a turnover of Rs200 crore. The

bottled water industry is worth Rs1,000 crore in India and

isgrowing at 40 per cent per annum. It is projected to reach

Rs5,000crore by 2010. The main players in the spring water segment

areHimalaya, Catch and Leh Berry. At present Himalaya leads

theegment with a 50-per cent market

share.Bisleri claims to have a 40-per cent market share of the

organizedpackaged water market. The natural spring water market is

verymall and accounts for 5 per cent of the entire segment. Bisleri

isprojecting a turnover of Rs300 crore this financial year, as

againstRs220 crore last year.

Chauhan says he is also preparing for an entry into the US

marketwith his spring water and is talks with US authorities for this.

Hewould not export India-bottled Bisleri into US, but would set upabottling operation there as transportation costs are a huge obstacle

inourcing the product from India. "We are in the proces of

gettingthe 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

sKinley Watera product of the Coca-Cola Company-is the

established market leader in the drinking water segement. A

productoffering of the Worlds No. 1 beverage company, Kinley Water

is

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brought to You with the time-tested expertise of the Coca-

Cola.Backing Kinley Water, is the promise of delivering Trust in

everyDrop. Kinley Waters 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,

Kinleybubble tops are made from what is known as Virgin

Plastic.In addition to this, Kinley offers Kinley water dispensers.

Thesewater 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

Eleganc

e

Advantages of Kinley:

Good brand positioning.

Available in different packs like 500 ml, 1 ltr, 2 ltr, 5 ltr

and 20 ltr.

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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 awarenes

aggresively.

Use of technological upgradation.

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

PepsiCo India launched the packaged water bottle brand

Aquafinaabout five years ago in a 750-ml pack, basically targeting the youth.

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The brand now retails in conventional retail pack sizes of 500-

mland 1-litre

bottleAquafinas market share in the retail segment is estimated at

about12 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

themarket leader and a good brand that has been built over the years.

But we are gradually consolidating our bottled water busines,

evenif our positioning is somewhat different," says Pepsi Food'sofficialpokesperson.

Advantages of

Aquafina:

Strong distribution network.

Good brand awarenes and brand

positioning.

Available in different packs like 500 ml, 750 ml, 1

ltr.

Easy availability of product in all over India.

Benefits as a product of Pepsi.

Focusing on institutional sales to create brand awarenes.

Use of technological up gradation.

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Disadvantages of Aquafina:

Compared to Bisleri and Kinley the service from Aquafina is

notatisfactory.

Lack of strong infrastructure.

Non-availability of a variety of range.

Market coverage is not proper.

Focus on wholesalers not on small retailers.

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105742341 bisleri minor project

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