bislery an analysis

Amity Business School

Advance Sales ManagementProject

on


• Packaged drinking water ensures safe, clean, potable water for human consumption.

• Bottled water represents the fastest growing segment of the global beverage market with a market share of around 38%.

• World bottled water market is expected to reach $65.9bn by 2012, stimulated by rising population.

• The market is expected to grow rapidly in the coming years due to

growing consumer concerns about fitness, water quality and health.

Introduction

Amity Business SchoolGrowth Reasons

– Higher Disposable Income

Affordable Price

Increased On The Importance of Hygiene

Go Behaviour

Increased Avalability


Parle's Bisleri

Coca Cola Kinley

PepsiCo Aqua Fina

Manikchand Oxyrich

Parle Agro Bailley

Rail Neer

Himalaya

Major Players In Packaged Water Industry


• A Italian origin company by Signor Felice who first bought the idea of selling bottle water in india.

• Mineral water under the name Bisleri was first introduced in Mumbai in glass bottles in two varieties – bubbly & still in 1965.

• Parle bought over Bisleri in India In 1969.

• Currently 54 bottling plants , 9 plants are company owned & rest are franchisee or contract packers.

Introduction to Bisleri


• Company put through multiple stages of purification, ozonised & finally packed for consumption.

• Company commitment to offer every Indian pure & clean drinking water from office desk to home kitchen

• The company is growing at rate of 36% & is targeting a growth rate of 40% by 2012.

Amity Business School• Bisleri Today

The consumer today enjoys the sweet and pure taste of Bisleri mineral water. However in an effort to offer something special to its loyal consumers it has recently introduced Bisleri Natural Mountain Water - water brought to you from the foothills of the mountains situated in Himachal Pradesh. This newly launched offering has widened its product range to two variants: Bisleri with added minerals and Bisleri Mountain Water.

Bisleri’s Vision

Its vision is to be the dominant player in the branded water business where the second player is less than 20% of its business.

Mission Statement

“To provide the highest quality product, keeping in mind all aspect including freshness purity and safety and making it easy available to the consumer at very affordable price.”

Amity Business School Product Variations


• Print-and-TV campaign– PLAY SAFE– The Sweet taste of Purity– Bisleri The Mountain Water– Bisleri bottle falling from mountain

• Safety feature - tamper proof seals.

• Weakness of conventionally sealed bottles -"breakaway" seal

• Shelf space at retail stores.

Promotion


• The branding and segmentation of Bisleri is very strong as it cover household to big hotels.

• Geographic City Size: Mostly Major Cities & Sub Metros Climate:Hot & Humid

• Psychographic Lifestyle:Travel Freak Personality:Health Conscious

• Demographic Family Size: Mostly Individual & also Families Corporate

Segmentation


• To target the customer Bisleri launched different product line with different prices and different size of bottles.

• Price of the Bottle is such that can be affordable to the all segments

• Company planning to target more towards lower segment with the introduction of small pet glasses.

Targeting

Amity Business SchoolDifferent target segments

Bisleri

Retail

Bulk


SEGMENT COMPANY BRAND PACKS PRICE (Rs)

Popular

Parle Bisleri

Bisleri

250 ml 3

500 ml 5

1 litre 10

Bulk

Parle Bisleri Bisleri 5 litres 25

Parle Bisleri Bisleri 20 litres 60

Market Segments

Amity Business SchoolPositioning

• Bislere position their product on the purity platform

• Launch an ad campaign Pure And Safe

• Sept 2000 shift in positioning from Pure and safe to Play safe

• People consume mineral water not for mineral but for safety said by chauhan


• Where is the Product in the Customer’s Mind

Bisleri

Aquafina

Kinley

Brain Cells

Oxyrich

Himalaya

Brilliant

Best

Mineral Water BISLERI

Positioning

Amity Business SchoolSWOT Analysis

STRENGHTSNearly 60% share in market..Well established distribution channel.Initiaters advantage.Brand recognisation.Only company in 1.5ltr segment.Best quality product accepted.Number Of Variants- Bisleri is available in a large number of variants which makes it consumer friendly as per their requirement.

WEAKNESSESHighly priced products.High costs of production.Distributers reluctant to change.Awareness-The customer are not aware of the 7 stage purifying process of Bisleri and the added minerals which are available.

OPPORTUNITIESGrowing Indian packaged drinking water market.Expected to cross 1100 crore mark.Scarcity-The metropolitans and big cities have a scarcity of pure drinking water which Bisleri can cater.Increase in production.

THREATSNearly 200 brands in this sector.Many new players entering market.Competitors ability to invest. Eg-Pepsi and coke.Price sensitive customer-People focus more on low price.Increasing Duplicity-The duplicity in the market is rising inspiteof steps taken by the management.


Porter's 5 Forces


• Bargaining Power of Suppliers Increase in the cost of Raw Material (cap cost , labeling cost, bottle cost,

carton cost) Suppliers supply raw material to local players As plastic bottle banned another substitute will be glass bottle

• Threat of Substitutes Substitute are Fruit Juices, Health Drinks ,Soft Drinks Juices like Real , Slice Mangola , Priya gold Treat, Coca Cola


• Intensity of Rivalry Firms Local brands are major contributing 80% of market share Around 200 registered brands in India

• Bargaining Power of Buyers Local brands are available in the market in the cheap price Buyers have choice from wide variety of suppliers Demand is more in the market but branded suppliers is less compare to

local suppliers

• Barriers to Entry / New Product New entrants in the market like Amul “Narmada Neer” Market is growing which attracts new entrants

Amity Business SchoolCompetitors Analysis

• The company has maintained its position over the years and still remains a market leader with a market share of 38.5% whereas Kinley has a market share of 21% only and Aquafina covers only 14%

• Kinley has a cost price of manufacturing a bottle up to Rs 12.25 and it sells the bottles for Rs. 14/15 which gives it a profit margin of Rs 1.75/2.75. Whereas, Bisleri has a profit margin of Rs 2 as its cost price is Rs 10 and the selling price is Rs 12. Aquafina on the other hand earns a profit margin of Rs 2 with cost price as Rs 8 and selling price as Rs 10.

• Bisleri has total 55 plants, while competitors Kinley having 16 plants and Aquafina with 11 plants.

Amity Business SchoolMarket Potential

• Market potential of Bisleri : The number of customers purchasing the product. Amount purchased. Frequency of purchase.

Market Potential = (how many * how much * how often)

• Though there are large number of manufacturers yet there exists a wide gap between demand and supply.

• A number of units can be set up in North Eastern Region to meet the local demand in institutions, hotels, restaurants, offices, tourist

• and household.


Market Sizing Strategies

• Bisleri uses competitor price strategy to get the market. As Bisleri has the first mover advantage and the market is full of competition so they decide to increase the advertising expenses for ad campaign.

• The present strategy of Bisleri involves targeting the bulk water segment, pricing competitively, strengthen distribution, innovate on packaging and product line extension.


• Bottom Up Approach Knowing customers profile. How much & how often they purchase Bisleri? How many potential customers do you have in the market based on

your customer profiles? How can you reach them?

• Cluster Analysis Bisleri identifies key segments in the population that are more likely

to purchase their products than the average consumers. Knowing in which clusters people reside provides a reasonable means of understanding and predicting how they will behave

Understanding which clusters are more likely than others to purchase allows better targeting

Amity Business SchoolSales Force Management • The distributor employs their own salesmen. The salesmen

are divided among the territories defined by the distributor. • The distributor has 5 routes. Out of the 5 routes, one is the

main route and the other four are sub routes. The salesmen are divided amongst these routes. This helps in avoiding horizontal conflict and leads to better focus and evaluation of sales performance of the salesmen.

• The company sales person makes a visit once every month. Rest of the month every communication regarding stock replenishment, etc. takes place over phone. The person of the company whom the distributors communicate with is the Sales Executive.

• At times the company deploys its own men to do the distribution job for the Distributor also

Amity Business SchoolRecruitment

• The distributor has set certain criteria for the selection of salesmeni. The candidate must be at least a high school

pass.

ii. The candidate must have knowledge of local language.

iii. Candidates with prior relevant work experience are preferred.

iv. The candidate if from the territory itself is preferred.


Incentives for the salesmen

• A basic salary of around Rs 2500 to Rs 3500 is given irrespective of the performance of the salesman.

• No incentives are given to the salesmen for distributing Bisleri as no such support is received from the company.

• No targets are also fixed for the salesmen as company does not give them any target. The entire distribution runs on the general demand of the market i.e. on the market pull only.

Amity Business SchoolDistribution Levels

• Bisleri has a very strong distribution network, which makes it reach out to almost all the region in the country, company has about 350000 outlets across the country.

• The Bisleri uses three level of distribution channel as it consists of wholesalers, dealers and retail shops.

• Bisleri has 52 bottling plants across India and works on its dual-distribution strategy to gain competitive advantage.

• On a national level, there are 2,000 trucks on call for Bisleri, while the number of trucks averages 300 and 250 in the Mumbai and Delhi market alone.


• Everyday, nearly 5,000 delivery vans drive out of these 52 strategically located Bisleri bottling plants carrying over 1 million units of pure, sweet drinking water to replenish the stocks of 2,500 distributors and nearly 600,000 retail outlets

• Through distributors it also goes to the institutional buyers or orders over internet.

• The company has used its own fleet of about 2000 trucks to manage the distribution network.

Amity Business SchoolDiversity in channel

Amity Business SchoolDistribution ChhanelMANUFACTURING PLANTMANUFACTURING PLANT

COMPANY WAREHOUSECOMPANY WAREHOUSE INSTITUTIONAL BUYERS/ORDERS OVER

INTERNET

INSTITUTIONAL BUYERS/ORDERS OVER

INTERNET

TRUCKSTRUCKS

DISTRIBUTORSDISTRIBUTORS INSTITUTIONAL BUYERS/SEASONAL PARTY

ORDERS

INSTITUTIONAL BUYERS/SEASONAL PARTY

ORDERS

ROU

TE SELLIN

GRO

UTE

SELLING

RETAILERSRETAILERS

CUSTOMERSCUSTOMERS

Amity Business SchoolPrice Margins for the products

• Based on the primary data from the distributor; following are the margins which the distributor gets from the

company for various capacities:Capacity (Liters) Cost Price (Rs)/Crate Selling Price (Rs)/Crate Margin (Rs) Schemes to Retailers

½ Liter (24pc per crate) 158 168 10 3 bottles of 500ml are

given free to retailers

1 (12pc per crate) 114 124 10 3 and sometimes 4

bottles of 1l are given

free to retailers

2 (9pc per crate) 148 158 6 2 bottles of 2 l are given

free

20 54 58 4 Two MRP, Rs 60 & Rs 70,

for both Retailer pays

the same.

Amity Business SchoolCore Competency

• The brand of Bisleri itself is the core competency for Bisleri.

• The seal of Bisleri bottles help the consumers clear their doubts on the purity of water.

• Bisleri has a very strong distribution network, which makes it reach out to almost all the region in the country.


TRADE PROMOTION TOOLS• Price –off (off- invoice)

A straight discount off the list price on each case purchased during a stated time period.

• Sales contests

It aims at inducing the sales force or dealers to increases their sales results over stated period with prizes going to those who succeed.

• Specialty advertising

This type of advertising consist of useful, low-cost items bearing the company’s name or brand name with their contact number this items are ball- pens , calendars, memo pads, which are used by dealers and sales people very often.


SURVEY


When you talk of packaged drinking water, what brands

come to your mind?

35%

20%

25%

15% 5% Bisleri

Aquafina

Kingfisher

Kinley

Others


Which brand of packaged drinking water are most asked/wanted by customers ?

1)Bisleri 2)Aquafina 3)Kingfisher 4)Kinley 5)Others

10.50%

50%

10%

25%

4.50%Aquafina

Bisleri

Kingfisher

Kinley

others

Amity Business School How much is your monthly sale of various brands?

60%

10%

8%

20%

2.00%

Bisleri

Aquafina

Kingfisher

Kinley

Others


Are you satisfied with the current margin that Bisleri offers you?

a)Yes b)No

yes

no

Amity Business School• When you talk of mineral water, what brands come to your mind?

35%

20%

25%

15% 5% Bisleri

Aquafina

Kingfisher

Kinley

Others

bislery an analysis

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