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Agenda

Research Methodology

Background

Products

Distribution System

Hygiene & Quality Commitment

Pure and Safe -> Play Safe

Channel Objectives

Diversity in Channel Strategies

Margins Suitability of Bisleri in India

Competition

Recommendations


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Research methodology

Collection of Secondary data & analysis

News articles

Website of Bisleri

Case study on Bisleri, Going Green


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Products

Bisleri Mountain Water

Bisleri Mineral Water

Developed 8 unique pack sizes to suit theneed of every individual

Non-returnable packs

250ml cups, 250ml bottles, 500ml, 1L, 1.5L, 2L

Returnable packs

5L, 20L


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Distribution System

Integrity of the product across all channels

Proper care in Storage and Transportation units

to avoid chemical contamination

Ensure complete control over quality in the

entire Distribution network owned by Bisleri

High Emphasis on easy accessibility Use of Hybrid marketing systems to suffice

diverse consumer profiles


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Distribution System(Contd..)

Built a well networked distribution system to

ensure accessibility

Competitors had a very strong distribution

network giving Bisleri tough competition

Number of intermediaries were used to

minimize fault points in the network

Bottled water is transported from the factory ->

bottling plant -> distributor -> retail outlets


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Hygiene & Quality Commitment

Put through multiple stages of purification

Ozonised and finally packed for consumption

Rigorous R&D & stringent quality controls Maintain strict quality controls

Purchases caps only from approved vendors

Produce their own bottles in-house


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Channel Objectives

To ensure high quality and integrity of the product at

various levels of distribution network

To ensure high accessibility and reach for the product

by introducing various options in pack sizes as perconsumer needs

Use of minimum hierarchy in distribution network to

reduce errors and faulty points

To increase its reach and availability by use of

horizontally diverse distribution network and hybrid

marketing systems


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Diversity in Channel Strategies

Diversity in channels

ManufacturerDistributorRetailer

Franchisee

Direct selling to end customeroffice/home

delivery


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Retail Channel

Maximize reach and availability in a cost efficient

manner while ensuring quality

Made packaged water as a commodity

Bisleri a generic name for Bottled water in market

More product options to choose from and low costs

increased brand loyalty

Attractive Packaging with competitive pricing helpedincrease sales


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BisleriDistribution Channel

ManufacturingPlants (35)

DistributionCenters

(120)

Retail Outlets

(3.5 lacs)Retail Outlets

DistributionCenters

Retail Outlets Retail Outlets


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Direct Home/Office Channel

Delivery of packs of water to home & office at minimum cost and

optimum quality and service levels

Homes/offices/Stores/Restaurants Regular need for safe and pure

drinking water

Ensuring service guarantee and high quality

Channel gave enough scope for Differentiation and value addition

than competitors

20 ltrs. SKU responsible for 70% of the sales

Fleet of small vans Reduced intermediaries leading to better margins

Cash-on-Delivery reduces average receivables


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BisleriDelivery System

How Bisleri does route selling?

Large fleet of trucks

Trained truck drivers who can service

Benefits

Reduces overheads of sales representatives

Better control and information flow

Efficient operations

Disadvantage

Higher investment


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Franchisee

For regions where Bisleri doesnt own a

manufacturing plant

Franchisee owns the distribution network

Quality norms set by Bisleri

Ensures pan-India availability with less

resources

Minimizes taxes and lead time


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Margins


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For a 1-litre Bisleri Bottle

In case of larger SKUs of sizes 5 lts. and 20 lts., the packaging costs are

even lower

Larger SKUs are also recycled reducing the cost

State PCB Charges @ Rs. 0.14 for1000 lts. of ground water

1-litre bottled water requires 2-3

lts. groundwater

Raw material cost = 0.02-0.04

paise

Purification Cost Rs. 0.25 per ltr. (max)

Cost of pre-form from Reliance Rs. 1.00 per bottle

Total cost of packaging (including

cost of bottle, cap, carton, etc.)

Rs. 2.50Rs. 3.75


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Overheads and Margins

Overheads: Labor costs

Establishment costs (cost of equipments, assets etc.)

Marketing and sales expenses

The overheads vary regionally

In the packaged water industry, major costs are in thepackaging and marketing while the raw material(water) is an insignificant expense

Margins: GM range in the order of 20-35% in packaged drinking

water depending on the location, SKU, overheads, etc.


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Supporting the Channel Structure

In packaged drinking water industry, reliability and depth ofdistribution is the key to success.

Stock-outs need to avoided

Bisleri leverages its past experience of highly successful

product distribution of Gold Spot and Thums-up to support itsdistribution system with:

Robust processes

Backup processes

Balanced scorecard

Company wide efficient SCM


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Investment in Logistics - 2002 to 2007

Parle Bisleri invested Rs 400 crore for expanding itsfacilities including its bottling capacity and distributionnetwork.

The company expanded its bottling capacity from thecurrent 50 million cases to 200 million cases a day.

An additional Rs 200 crore was invested in Bisleri's

distribution network spanning 2,500 towns and citiesin India.


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Bisleri, Aquafina, & Kinley

Bisleri Aquafina Kinley

No of Bottling Plants 35 12 15

No of Retail Outlets 3,50,000 5,00,000 9,00,000

Market Share 51% 11% 22%


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Prices of Packaged Water in India

SEGMENT COMPANY BRAND PACKS PRICE (Rs)

Popular

Parle Bisleri Bisleri

250 ml 3

500 ml 5

1.2 litres 12

Parle Agro Bailley

330 ml 3.5

500 ml 5

Pepsi Aquafina

750 ml 10

1 litre 11

Coca Cola Kinley 1 litre 10

Bulk

Parle Bisleri Bisleri 5 litres 25

Parle Bisleri Bisleri 20 litres 60

Premium

Nestle Perrier

330 ml 55

750 ml 90

Danone Evian 1 litre 85


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Suitability of Bisleri in INDIA

Hygienic drinking water availability is scarce in India

Tourism industry is a huge potential market

Large number of local/regional players suggests that

there is a huge market for packaged drinking water

With its brand name & extensive distribution Bisleri

has the potential to further increase its market share

by capturing some of the local players sales In the 5 & 20 lts. segment there are no other branded

national level players other than Bisleri


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Suitability of Bisleri in INDIA


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Future Plans

Introduction of vending Machines

Automated machines in offices, shopping malls,

airports and other high traffic points

High price of bottled water at airports and cinema

halls discourages sales

There are also places where bottled water is not

available Vending Machines will take care of both the

problems


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Future Plans

Introduction of flavored Water

Launch of 12 fruit flavors

Position it as a premium segment Product

Huge opportunity

Aimed at trebling Bislerissales from around

Rs300 crore now, to Rs1,000 crore by 2009

To double its distribution network from 800

distributors to around 1,500 in next 6 months


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Logistics growth

2001

25 bottling plants

2000 vehicles

1,20,000 retailers

Plan for 2008-09

Doubling bottling Capacity

5000 vehicles

10,00,000 retailers


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Recommendations


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Recommendations

Targeting Office Segment for 20 liter Bottled

water

B2B Sales Force at distribution centre

Promotional Schemes For bulk deal

Promotion of 200 ml bottle/cup

Target parties, marriages, functions

Easy to carry in pockets or ladies purse


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Recommendations

Introduction of Fresh lime juice

Target regions close to Bottling plants such as Delhi,

Hyderabad, Chennai

200/250 ml bottles/cups

Promote it as healthy substitute for cold drinks

Price range Rs 4-5

Extensive Advertising and POS display


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References

http://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.html

http://www.icmrindia.org/free%20resources/casestudies/reinventing-bisleri2.htm

http://www.livemint.com/2007/11/06011457/Bisleri-plans-to-tap-flavoured.html

http://www.hinduonnet.com/fline/fl2307/stories/20060421006702300.htm

www.bisleri.com http://economictimes.indiatimes.com/articleshow/msid-2234344,flstry-1.cms

http://www.financialexpress.com/news/Parle-Bisleri-firms-up-summer-

strategy/195494/

http://www.hinduonnet.com/businessline/2001/03/10/stories/021018g1.htms

www.rediff.com/money/2005/jun/10spec.htm

http://en.wikipedia.org/wiki/Bisleri

http://www.projectsmonitor.com/detailnews.asp?newsid=2015
http://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.bisleri.com/http://www.bisleri.com/http://www.bisleri.com/http://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.hinduonnet.com/businessline/2001/03/10/stories/021018g1.htmshttp://www.rediff.com/money/2005/jun/10spec.htmhttp://en.wikipedia.org/wiki/Bislerihttp://www.projectsmonitor.com/detailnews.asp?newsid=2015http://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.projectsmonitor.com/detailnews.asp?newsid=2015http://en.wikipedia.org/wiki/Bislerihttp://www.rediff.com/money/2005/jun/10spec.htmhttp://www.hinduonnet.com/businessline/2001/03/10/stories/021018g1.htmshttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.bisleri.com/http://www.bisleri.com/http://www.bisleri.com/http://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.htmlhttp://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.html


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THANK YOU!!

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