A

PROJECT REPORT
on
TO STUDY MARKETING STRATEGIES OF
BISLERI

Submitted in the partial fulfillment for the award of

Masters Degree in Business Administration
Submitted To

Submitted By

Declaration
I hereby declare that the project report titled:
TO STUDY THE MARKETING STRATEGIES OF BISLERI

ACKNOWLEDGEMENT
This making of any report calls for contribution and cooperation from many others besides the
individual alone. It is the result of meticulous effort put in by many minds that contribute to the
final report submission and this work too is not an exception.
Thus, one of the best parts of writing this report is the opportunity to thank those who have
contributed towards it.
First and foremost, I would like to take the opportunity to express my sincere gratitude to Ms.
Yuvika Mam for his valued insights, suggestions and continuous support, without which this
project would not have reached successful completion.
I would like to thank all the respondents who took time out of their busy schedule to fill out the
questionnaires and have interaction with me. All the above, made considerable contribution to
which these few lines can hardly do justice to their patience and generous support.
Last but not the least,1 would like to thank my friends.

Bijender
10/MBA/07

PREFACE
Theoretical knowledge is of no use, until and unless it is applied into some practical aspect. We
must lay stress on the proper implementation of what we have learned in class at real life
incidents to obtain optimum output.
Thus to apply all theoretical knowledge gained so far onto the practical field, The submission of
this project report is the part of the curriculum of MBA course.
This Winter Project has provided me with the full fledged experience about the business arena of
wholesome Indian packaged water industry. It gave me complete training about practice of
marketing strategies in the real life industry and helped me gain the first hand experience of my
future career in marketing.
This project shows the various steps and activities performed in order To Study Marketing
Strategies of Bisleri"

EXECUTIVE SUMMARY
The objective of the project To Study The Marketing Strategies of Bisleri
This project consists consumer and retailer survey. In retailer and Consumer survey, 35 retailers
and 100 consumers were personally interviewed. The market covered was Panchkula The data
was collected through questionnaire.
After doing the study some conclusions and recommendation are as follows:
Conclusion
Analysis shows that there is very good future for mineral water market. Soft drink market might
be some threat to the mineral water at present but within few years the scenario is going to
change. But the future of mineral water is bright with some prerequisites which is been
mentioned.
I have also given a few recommendations and suggestions based on my live experience during
the completion of this project which is been mentioned.
Lastly, I have attached the copy of Questionnaire prepared. by me for the better analysis and
understanding of the nature of my Project.
I hope, Ill be successful in sharing all the knowledge and experience gained during the
completion of this project with anyone who reads this report.

TABLE OF CONTENT
CHAPTER 1: INTRODUCTION
1.1 THE PACKAGED DRINKING WATER INDUSTRY - AN OVERVIEW
1.2

Market Share

1.3

Bottled Water Analysis

1.4

Current Players

1.5 COMPANY PROFILE OF BISLERI

Background
The Present
Future Plans
Technology Developments
Purification Process
Product And Packaging
Vision And Mission
Why Bisleri?
The Journey Till Now
CHAPTER 2: REVEIEW LITERATURE
2.1

Objectives

2.2

Data analysis

CHAPTER 3: ANALYSIS AND INTERPRTATION

3.1

Swot & Pest Analysis

CHAPTER 4: RECOMMENDATION
ANNEXURE
Bibliography
Consumer Questionnaire
Retailer Questionnaire

Page
No.

INTRO
ATER INDUSTRY AN OVERVIEW
MARKET SHARE
Currently, Bisleri continues to lead in the Rs 700-1,000 crore organised, packaged water market
with an estimated 40 per cent market share, followed by Kinley at 28 per cent and Aquafina with
an 11 per cent share. Inr terms of volumes, the North and West remain Bisleri's biggest
performing markets, despite the brand's sustained national-level presence. The market has been
growing for the last three years at an unimaginable rate of 80%. The market size of bottled water
is expected to surpass the size of soft drinks market very soon in the near future.

Individual Market Shares:

BISLERI-40%, KINLEY-28%, AQUAFINA-11%, OTHERS-21%

Due to the demand for water, a large number of "mineral water manufacturers" have been spawned
selling little more than tap water to the unsuspecting consumer, the majority of whom are still very
native about mineral' water.
Pepsi Co's Aquafina brand, which debuted the bottled water business in September 1999, targets the
youth sector and concentrates on just one pack size, 750ml priced ten rupees.
Coca-Cola is the most recent entrant (May 2000) with its Kinley, brand and in a controversial and
unsuccessful marketing campaign, it obtained an endorsement from the Federation of Family
Physicians' Association of India (FFPAI), a lesser known body of doctors for its brand.
Estimates show that there are around 100 small regional players in the bottle water market and the
number have been growing at an unbelievable 70%-100% per year, year on year, for the past four
years. This has enticed a number of international brands in the market besides Coca-Cola and
PepsiCo-Nestle (Pure Life), Britannia, Lever, United Breweries and Shaw Wallace. Danone Pairs
launched Evian some time back and even imported hundreds of cases for VIP guests celebrating the
Hindu festival, Kumbh Mela.
The government has been forced to sit up, take notice and tighten regulations after comprehensive
sample tests were taken by consumer groups and found that a number of the smaller and more
unscrupulous "opportunistic" players were selling little more than tap water.
Until recently the government of had set standards only for mineral water and even the PFA
(Prevention of Food Adulteration Act) and BIS (Bureau of Indian Standards) were deficient when
compared to international markets.
Under the new regulations 48 specifications are to be met for water to become mineral water and for
packaged drinking water there are 43 specifications. But small players are bound to fall out of the
market by April 1, 2001 when the new regulations were supposed to be enforced.

THE PET RECYCLING PROJECT

Bisleri is extremely conscious of environmental issues, since PET bottles are not biodegradable
and not easy to dispose. The company is currently working on the PET recycling project, where
they will collect bottles from various places, crush and shred them. This shredded material will
then be made into ropes, PET containers for the non-food industry and other PET items like
polyester fibre, flower vase, gift items etc.

BOTTLED WATER ANALYSIS

Calcium

13.6

Chlorides

22

Bicarbonate

58

Magnesium

7.8

Nitrate

Sulphates

19.3

Hardness

66.1

Bisleri
Spring Water Still/Sparkling
PARTICULARS

Mg/litre

TDS

160

Ph Factor

7.2

CURRENT PLAYERS
The mineral water industry is in a churn. The market is proving to be yet another battlefield
for an ongoing battle between the desis and the MNCs. So far, MNCs have been winning.
Only time will tell 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 fate Indian companies will suffer at the
hands of these MNCs makes me sad, the choices the consumers will have makes me happy. A

few years back, the mineral water market had been crawling at the rate of 3-4%, or even a
lower figure. Indians carried drinking water in earthen pitchers, plastic or PUF bottles.

But increasing cases of typhoid and other waterborne diseases began to be reported. In
addition to this, liberalization happened and the mineral water industry began to be stirred
and shaken. The market started growing an astounding rate of over 100% per anuum.
The fact that there were very few players in the market meant that their business grew by
leaps and bounds. Bisleri became a household name and is now generic for bottled water. The
market today has grown to Rsl Ibn. The organised sector branded mineral water has
only Rs5bn of market 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 branded
segment, Bisleri is the market leader as it continues to lead in the Rs 700-1,000 crore
organised, packaged water
market with an estimated 40 per cent market share, followed by Kinley at 28 per cent and
Aquaflna with an 11 per cent share. In terms of volumes, the North and West remain Bisleri's
biggest performing markets, despite the brand's sustained national-level presence The boom
in the market has also encouraged unscrupulous players to gain an entry. In the name of
mineral water, a number of regional players have even started selling plain tap water. Many
people have fallen sick after drinking this spurious mineral water.
The common man's faith in the product was shaken. However, not everyone was put off.
Sensing the opportunity that this segment holds, MNCs have begun to draw up plans to enter
the market, but not without testing the waters first. Ifhey carried out the appropriate
feasibility studies. However, among the first to challenge Bisleri's near monopoly was Pepsi's
AquaFina followed by stiff competition from Parle's Bisleri and Coca-Cola India's Kinley.

The first entrant in the bulk water category was Bisleri, while Coke, through Kinley, entered
the segmen 4 years ago.
Over the past five years or so, Bisleri has become a major player in the bulk water segment
in the water-starved southern states. The 20-litre bulk water packs are targeted at the
institutional and the home segment. Pepsi is aiming to make its brand available throughout
the country soon. The company has also ruled out entering the bulk water segment in India.
Meanwhile, the action is all in Coca-Colas bulk water business. The 20-litre bulk water packs
are targeted at the institutional and the home segment.

Bisleri goes green naturally

20 October 2006
The brand that was till now marketed as packaged drinking water (cleaned through reverse
osmosis) will now be available in a natural avatar.Bisleri International will invest Rs lOO crore
for the project which constitutes a Rs40- crore investment in two plants in Uttaranchal and
Himachal Pradesh in line expansion, Bisleri International chairman Ramesh Chauhan said. The
plants will come up next year. Chauhan said the rest of the investment of about Rs60 crore would
go into infrastructure development. The investment would be funded through internal accruals.
Launching 'Bisleri Natural Mountain Water' he said the company was looking for four more
locations from where we look to source natural water. The likely locations would be in South and
West India he said. Bisleri has 23 plants across the country producing bottled water.
Bisleri Natural Mountain water will be available in aqua green packaging against the blue
packaging of old and will be available in six sizes. The company is also planning an aggressive
marketing and advertising campaign with a two-year budget of Rs60 crore.
Chauhan said the new packaging has been adopted in order to stand apart from the others and in
Chauhan's words, "As leader, we want to differentiate ourselves and hence have adopted this ,
aquagreen colour," he said. Priced at a significant premium to packaged water Natural Mountain
Water will be available for Rs20 per litre.

The natural water segment, which accounts for about 5 per cent of the total bottled water
segment, is expected to grow by leaps and bounds as health awareness and disposable incomes
rise. According to the company the foray into spring water will be followed by an entry into the
packaged ice segment (Bisleri Ice) as well into flavoured, vitamin and sparkling water
categories. The company is said to be setting up R&D facilities for ice and studying various
packaging options. Ramesh Chauhan, chairman, Bisleri International expects to sell 10 million
cases of Bisleri Mountain Water over the next two years- a turnover of Rs200 crore.
The bottled water industry is worth Rs 1,000 crore in India and is growing at 40 per cent per
annum. It is projected to reach Rs5,000 crore by 2010. The main players in the spring water
segment are Himalaya, Catch and Leh Berry. At present Himalaya leads the segment with a 50per cent market share.
Bisleri claims to have a 40-per cent market share of the organized packaged water market. The
natural spring water market is very small and accounts for 5 per cent of the entire segment.
Bisleri is projecting a turnover of Rs300 crore this financial year, as against Rs220 crore last
year.
Chauhan says he is also preparing for an entry into the US market with his spring water and is
talks with US authorities for this. He would not export India-bottled Bisleri into US, but would
set up a bottling operation there as transportation costs are a huge obstacle in sourcing the
product from India. "We are in the process of getting the 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
Kinley Water-a product of the Coca-Cola Company-is the established market leader in the
drinking water segement. A product offering of the World's No. 1 beverage company, Kinley
Water is brought to You with the time-tested expertise of the Coca-Cola. Backing Kinley Water,
is the promise of delivering Trust in every Drop'. Kinley Water's 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, Kinley bubble tops are made from what is known as
Virgin Plastic.
In addition to this, Kinley offers Kinley water dispensers. These water 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
Elegance

Advantages of Kinley:
Good brand positioning.
Available in different packs like 500 ml, 1 Itr, 2 Itr, 5 Itr and 20 Itr.
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 awareness aggressively.
Use of technological up gradation. 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
Pepsi Co. India launched the packaged water bottle brand Aquafina about five years ago in a
750-ml pack, basically targeting the youth. The brand now retails in conventional retail pack
sizes of 500-ml and 1-litre bottle Aquafina's market share in the retail segment is estimated at
about 12 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
the market leader and a good brand that has been built over the years. But we are gradually
consolidating our bottled water business, even if our positioning is somewhat different," says
Pepsi Food's official spokesperson.

Advantages of Aquafina:
Strong distribution network.
Good brand awareness and brand positioning.
Available in different packs like 500 ml, 750 ml, 1 Itr.
Easy availability of product in all over India.
Benefits as a product of Pepsi.
Focusing on institutional sales to create brand awareness.
Use of technological up gradation.

Disadvantages of Aquafina:
Compared to Bisleri and Kinley the service from Aquafina is not satisfactory.
Lack of strong infrastructure.
Non-availability of a variety of range.
Market coverage is not proper.
Focus on wholesalers not on small retailers.

COMPANY PROFILE OF BISLERI

In 1967, Bisleri an Italian company, started by Signer Felice Bisleri, first brought the idea of
selling bottled water in India. It started a company called Bisleri India. In 1969, Ramesh
Chauhan, the Chairman of Parle Exports, bought over the brand. In those days, Bisleri packaged
drinking water was available in glass bottles.
Being a returnable package owing to various other problems such as breakage and weight, in
1972-73, Bisleri was made available in PVC (Poly Vinyl Chloride) bottles. After this plastic
packaging was introduced, 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 packaged
drinking water market, he then went on to concentrate on making Bisleri a top selling brand in
India.

:: The Present
It was around the year 1995, when Parle Exports took charge of the brand operations and the
business took off in the market. With factories across India and a strong distribution network,
Bisleri established itself as a force to reckon with in the domestic packaged drinking water
market.
Earlier the packaged drinking water market consisted of five star hotels, tourists and foreigners.
As a marketing strategy, a conscious decision was taken by the company that only 40% of the

sales should come from these outlets and 60% from general market, i.e. paanwallas, street shops,
general stores and even non-tourists.
This brought about a sea change in the perception in the consumer's mind about consumption of
Bisleri. Earlier, drinking bottled water was considered to be more of a status symbol. That
thinking has slowly changed to the point where today, not drinking Bisleri is considered as being
behind the times. Such has been the presence and penetration of the Bisleri brand in the bottled
water segment.
About few years ago, in 1998, a strategy was adopted to concentrate aggressively on the home
market. The habit of boiling water or using electronic gadgets was not adequate, since the source
of water itself was unreliable. The bulk packages like the 2, 5 and 20 litre bottles were
introduced to meet this market need. The price per litre went down as a result, making bottled
water very economical for the consumer.

:: Future Plans
Bisleri was the first to market bottled water in a totally virgin market and naturally people
associate the brand with bottled water. Now Bisleri is perhaps already ten steps ahead of its
competitors and will endeavour to widen its gap in the times to come.
Bisleri's brand positioning stresses on pure, clean and safe drinking water.
Some of the future plans to maintain the top spot that Bisleri commands in the Indian market are:

New pack sizes in bottles and cups

Increase the distribution network with an investment of over 200 crores
Strengthen presence in traditionally weak areas by setting up 12 new bottling facilities at
a cost of Rs. 150 crores.

Technology Developments

To make sure that the product that reaches the consumer is always of highest standard and also
meets international standards, Bisleri has always been involved in improving its product
packaging. One such recent development is the tamper proof break away seal. Bisleri also
recognises the need to produce environment friendly products and is working on the PET
project.

The break away seal

Keeping in mind the consumer's need to recognise a genuine product that 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 ensures that the
consumer will only get a highly safe product when they consume 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.

Purification Process
At BISLERI plants, water undergoes multi - stage purification process to ensure proper blend of
minerals and complete removal of microorganisms and toxic substances. So a habit of drinking
PURE and SAFE BISLERI will ensure a healthy life
What advantages bisleri purification process has over purification done by other methods
Traditional process of boiling water for purification has its limitations. lt is time consuming. For
boiling, water has to be heated to 100 deg. Celsius. Also, to kill microbes water should be boiled
continuously for a minimum of 20 minutes. Boiling may kill the microbes but can not remove
other physical impurities and toxic substances.

Many home appliances are available in market for water purification. These gadgets use either
filtration technique or Ultra Violet rays or a combination of the two techniques. These
techniques do not guarantee 100 % purity of water.

Filtration removes only the visible suspended particles and not the minute , invisible particles ,
toxic substances or microorganisms. The filters are cleaned rarely and all the muck
accumulates inside leading to more contamination. Ideally such filters need to be cleaned
every day which is cumbersome. Ultra Violate rays kill the microbes but cannot ensure
removal of toxic substances and physical impurities.
These purification equipment are incomplete and need continuous monitoring and
maintenance.
At BISLERI, through our multi - stage purification process we ensure removal of toxic
substances as well as physical and microbiological impurities. In our state-of-the-art
processing plants we follow rigorous Good Manufacturing Practices and strict Quality
Assurance norms so each and every bottle of BISLERI is made tasty, pure and safe for the
consumer.
PROTECT YOUR HEALTH WITH BISLERI WHICH USES
6 STAGES OF PURIFICATION

CHLORINATION: Kills micro organisms. Remove organic matter.

ARKAL FILTER: Removes suspended matter and turbidity.
REVERSE OSMOSIS: Removes organic material. Controls total dissolved solids in the
water.
MICRON FILTRATION: Additional safety measures of filtration.
OZONATION: Ensures water remains bacteria free for longer shelf life.

Product & Packaging

Bisleri is available in a range of sizes.

/I

The Bisleri bottled water range comprises the conventional 500 ml, one litre, 1.2 litre and
two litre bottles; five litre and 20 litre jars for the home segment, and smaller packs sizes of
250 ml cups and 330 ml bottles, though in very limited numbers for now.

Vision
A major, diversified, transitional, integrated consumer product manufacturing company, with
National Leadership and a strong environment conscience, playing a national role in safe
water and Agro based drinks.

Mission
To provide the highest quality product, keeping in mind all aspects including
freshness, purity and safety, and making it easily available to the consumer at a very
affordable price.
To achieve international standards of excellence in all aspects of energy and
diversified business with focus on consumer delight through value and services of
product and cost reduction.
To enhance capital and fixed assets of the group to withstand challenges and tough
market trends.

To attain leadership in developing, adopting and assimilating state or art technology

for competitive advantage.

To provide better quality of product and services through sustained market research
and product development.
To foster a culture of participation and innovation for employee growth and
contribution.

 To cultivate high standards of business ethics, and total quality management for a
strong corporate identity and brand equity with continuous and positive growth.
To help enrich the quality of life of all the communities specially the neglected ones
and preserve ecological balance and heritage through a strong environment
conscience.

:: Why Bisleri?
Bisleri is totally safe & protects you from all water borne diseases.
Bisleri is trusted by 50 lakhs households across the country.
Bisleri is the brand leader in bottled water category.

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

Where Can We Use Bisleri ?

Drinking
Making tea, coffee, lassi, cold drinks, mixing with drinks
Kneading the dough
Cooking
Mixing with baby foods
Mixing with medicines

LITERATURE REVIEW
1969: Buys Bisleri bottled water from an Italian company, Felice Bisleri. It was bottled in glass
bottles then.
Early-1980s: Shifts to PVC bottles. Sales surge
Mid-1980s: Switches to PET bottles, which meant more transparency and life for water.
1993: Sells carbonated drink brands like Thums Up, Gold Spot and Limca_to Coca-Cola for Rs.
400 crore.
1995: Bisleri launches a 500 ml bottle and sales shoot up by 400 per cent.
2000: Introduces the 20-litre container to bring prices down from Rs 10 a litre to Rs 2 a litre.
1998: Introduces a tamper-proof and tamper-evident seal.
2000: BIS cancels Bisleri's licence of a water bottling in Delhi since some of the bottles did not
carry ISI label; the licence is restored one-and-a-half months later.
2002: Kinley overtakes Bisleri. The national retail stores audit by ORG-MARG show Kinley's
marketshare at 35.1 per cent compared to Bisleri's 34.4 per cent.
2003: Bisleri says it plans to venture out into Europe and America to sell bottled water
2004: water king, Mr Ramesh Chauhan, set to take brand Bisleri across the globe.
2005: Bisleri has announced its plans to foray into the domestic fruit juice market and earmarked
an investment of Rs 100 crore for upgradation of its Chittor plant and setting up of a new facility.
2006:Bisleri Natural Mountain water will be available in aqua green packaging against the blue
packaging of old and will be available in six sizes.
2007:Parle Bisleri changed the look introduced a new variant (natural mountain water)and
announced its plan to launch the brand in US- a huge market for designer waters.
2008:Bisleri International has decided to register the mango drink brand Maaza in eastern
European countries, and launch the brand through a franchisee operation.
2009: company plans to concentrate on markets such as Jammu and Kashmir,Kerela,Southern
part of Tamil Nadu and Punjab,which are its Weaker links to steer
a 40% annual growth in sales.

OBJECTIVE OF THE STUDY

To learn about the domestic packaged drinking water market, its market distribution and
Brand Bisleri in detail.
To find about consumers' and retailers' brand preference
To identify the various threats of the mineral water market
To find the retailers view on the mineral water market
To find the potential of Mineral water market in Panipat.

RESEARCH METHODOLOGY
Research Design
A research design is purely and simply the framework or plan for a study that guides the
collection and analysis of data. The Survey Research was used in this project, because Retailers
and consumers feedback was necessary for obtaining the data. Starting a research project needs a
basic preparation regarding the issues related to the topic selected. For this one needs to do some
deskwork. Deskwork includes:
1. Determining the basic objectives of the study undertaken.
2. Collection of secondary data related to the topic from Internet, magazines & newspapers.
3. Study the market, which one wants to cover.
4. Analyze the objective on the basis of information collected by secondary data.
5. All the above activities at the initial stage of the project must be completed & then the main
part follows.

Data sources
a) Primary data: These are those data which are collected afresh and for the first time, and thus
happen to be original in character. I will be using the structured questioners.
b) Secondary data: These are those which have already been collected by someone else and

which have already been passed through the statistical process. I will collect it from the sources
like internet, published data etc.

Population of the study

People from Panipat region will be included in the population.

Sample Size:
I took 100 consumers and 35 retailers as my respondents. They were selected by random
sampling method because in this case systematic sampling is not possible since one cannot say
whether a person is using mineral water or not.
.

Sampling Technique
Random sampling technique will be used in this research project.

Research Instrument
For doing the survey research, structured questionnaire with both open-ended and closed-ended
questions was used.

Mode of Survey
The mode of survey was personal interview with the retailers and consumers during the filling
up of the questionnaires.

Preparing the Questionnaire

 As per the requirement of our project & to achieve the objective both consumer of mineral
water & retailers of mineral water were studied apart from studying about the domestic
packaged drinking water market, Brand Bisleri in detail.
For that close end questionnaire for the consumer & mix of open end & close end for retailer
were prepared.

Data Processing
Daily data will be entered into MS-Excel sheets. After the exhaustion of the specified
geographical area this data will be analyzed using simple graphical and tabulation techniques.

Analytical Tools
After collection of data another work necessary for any data collector is to correctly analysis that
data. So statistical tools helps us to correctly analysis the data .As I will using here the software
named Ms EXCEL for analysis of the data. I will use following statistical tools:

Hypothesis Testing
Chi-square test will be used when the set of observed frequencies obtained after experimentation
have to be supported by hypothesis or theory. The test is known as 2 test of goodness of fit and
is used to test if the deviation between observation (experiment) and hypothesis may be
attributed to chance (fluctuations of sampling).2 also enables us to explain whether or not two
attributes are associated or related to each other.

To test the goodness of fit: It helps to test goodness of fit by using null and alternate hypothesis.

STATISTICAL TOOLS TO BE USED

1. Chi Square Test
Procedure:
(1) Set up the null hypothesis that there is no significant difference between the observed and
expected value.
(2) We compute the value of CHI- square by using the formula
CHI-square = 2= (( Oi- Ei)2/Ei)
O- Observed value
E- Expected value
Degree of freedoms=(R-1)(C-1)
Level of significance=5

And this is how Parle Bisleri began

According to the Bureau of Indian Standards there are 1,200 bottled water factories all over India
(of which 600 are in one state Tamil Nadu). Over 100 brands are vying for the Rs 1,000-crore
(Rs 10 billion) bottled water market and are hard selling their products in every way possible
better margins to dealers, aggressive advertising, catchy taglines.... In such a scenario, The
Strategist takes a look at how it all started with Bisleri and how Ramesh Chauhan,
chairman, Parle Bisleri created a market out of pure water.

Bisleri mineral water was bought from the Italian company, Felice Bisleri, in 1969 the
company had been unable to market bottled water 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 Lime a (cola, orange drink and
lemonade) but no soft drink company was complete without a soda. So they merely used the
name and launched Bisleri soda with two variants - carbonated and non-carbonated mineral
water.
But three decades ago, what could they say about a category that had no market? They
didn't know our target group. Then, since bottled water is colourless, tasteless and odourless, it
was not an easy product to advertise.
Thus, the earlier brand building efforts focused on Bisleri being healthy with adequate minerals.
The Italian name added a dash of class to it. The first print ad campaign captured the
international essence and showed a butler with a bow tie, holding two bottles of Bisleri.

The punchline was, "Bisleri is veri veri extraordinari" (the spelling of the punchline was
designed to capture the consumer's attention). The campaign was successful and we were being
noticed as 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 they could now show sparkling clear water to the consumers. It also meant better
life for the water.

Meanwhile, Bisleri soda was doing well but they had to discontinue production as they sold their
soft drink brands to Coca-Cola in 1993. But Ramesh Chauhan's interest was in building brands
and not in bottling soft drinks. That's when he started to concentrate on developing the Bisleri
water brand.
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 in Europe was extremely poor, which created the bottled water industry there. In
India, too, not only was water scarce, whatever was available was of bad quality.
Initially, though bottled water was something only foreigners and non-resident Indians
consumed, they still had to increase the distribution, which meant the dealer margins reduced.
And because of limited sales, the dealer margin had to be kept high to compensate low sales.
Now they had to push sales.
Hence, they introduced free sampling of Bisleri at the tables where the elderly guests would sit.
Soon customers were ordering bottled water on special occasions. Currently, the consumption of
bottled water is far in excess of soft drinks on such occasions.
The other major challenge was distribution. Soft drink sales are in glass bottles and the
distribution model is built around picking up empty bottles and getting them back to the factory.
That's not the case with the retail bottled water packs (below 2 litre). But a product that's not
available where it's needed is useless.
The number of outlets where Bisleri is available has increased from 50,000 in 1995 to 2,50,000
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 but sell Bisleri. That is
the kind of exclusivity we look for to get ahead of the distribution network that soft drink
companies talk of.

ANALYSIS AND INTERPRETATION

SWOT ANALYSIS OF BISLERI

Strengths
Core business of company.
First mover in this business since 1969.
Good brand awareness 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 price strategy.
Product differentiation by introducing patented break way seal cap.
Best service and proper response to dealers and customers.

Weakness
Lack of brand loyalty as MNC's are entering the market like Nestle's Purelife, Pepsi's
Aquafina.
Lack of Global Awareness in brand.
Lack of proper advertising to create brand awareness.
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.

 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.

PEST ANALYSIS
Political Analysis
Government failure to provide safe drinking water.
Laws encouraging ground water exploration.
Environmental regulations.

Economic Environment

Developing Economy.

Better infrastructure:

Social Environment

Scarcity of water.

Health conscious people.

Population growth rate.

Technological Environment

Economies of scale.

CONSUMER RELATED
WHICH BRAND DO YOU PREFER WHILE BUYING MINERAL WATER?

NAME OF BRAND
Bisleri- Most Preffered
Kinley
Aquafina
Others

CONSUMER PREFERENCES
60%
20%
12%
8%

According to the survey conducted in Delhi & its Ncr it was analyzed that 60% of the users go
for Bisleri Water and 20% for Kinley while there are still 8% of the respondents who are for
other packaged drinking water.

NUMBER OF RESPONDENTS USING

MINERAL WATER FREQUENTLY

Always

Often

Sometimes

28%

27%

34%

Never

Very Often

9%

2%

HYPOTHESIS TESTING
Step1: State Hypothesis:
Ho: Larger Proportion of people always use mineral water.
Ha: Larger Proportion of people go for an occasional use of mineral water.
Step2: state the rejection criterion
DF=5-1=4
At alpha .05 and 4 degrees of freedom, the critical value from the chi square distribution table is
9.49.

Preference

Observed

Expected

(O-E)

(O-E)^2

(O-E)^2/E

Always

28

20

64

3.2

Often

27

20

Sometimes

34

20

14

49
196

2.45
9.8

Never

20

-11

121

6.05

Very Often

20

-18

324

16.2

2=37.7
Interpretation:
As the Chi-square test statistics value 37.7 exceeds the critical value of 9.49 hence null
hypothesis is rejected and hence we reached at the result that our alternative hypothesis is
accepted. Hence it can be concluded that that 34% of the mineral water users go in for an
occasional use while there are still 9% of the respondents who never go for packaged water.

RESPONDENTS CHOICE AMONGST MINERAL WATER AND SOFT

DRINKS

57% respondents agree to the fact with 10%, who strongly agree while 5% of the
respondents disagree to the fact while 4% strongly disagree, while 4% consumers were
indifferent towards it.
HYPOTHESIS TESTING
Step1: State Hypothesis:
Ho: People prefer soft drink when thirsty.
Ha: People like to have mineral water in a thirst condition.

Step2: state the rejection criterion

DF=5-1=4
At alpha .05 and 4 degrees of freedom, the critical value from the chi square distribution table is
9.49.

PREFERENCE OBSERVED EXPECTED O-E

(O-E)^2 (O-E)^2/E

Strongly agree

20

-7

49

2.45

Agree

57

20

23

529

26.45

Strongly
disagree

20

-19

361

18.05

Disagree

20

20

20

400

20

indifferent

20

-17

289

14.45

X2=81.4
Interpretation:
As the Chi-square test statistics value 81.4 exceeds the critical value of 9.49 hence null hypothesis
is rejected and hence we reached at the result that our alternative hypothesis is accepted. Hence it
can be concluded that that 57% of mineral water users go in for when they are thirsty.

BRAND AWARENESS OF MINERAL WATER AMONG RESPONDENTS

Brands

Respondents

0-2

40%

3-5

50%

6-10

10%

10 and above

HYPOTHESIS TESTING
Step1: State Hypothesis:
Ho: People are aware of all the brands of mineral water.
Ha: People are not aware of all the brands of mineral water.

ll
Step2: state the rejection criterion
DF=4-1=3

At alpha .05 and 3 degrees of freedom, the critical value from the chi square distribution table is
7.82.

0-2

40

25

15

225

3-5

50

25

25

625

25

6-10

10

25

-15

225

10 avd above

25

-25

625

25

2 =68
Interpretation:
As the Chi-square test statistics value 68 exceeds the critical value of 7.82 hence null hypothesis
is rejected and hence we reached at the result that our alternative hypothesis is accepted. Hence it
can be concluded that most of the people know only about the main brands which are owned by
the big companies and are advertised hugely. Mainly 3 -5 brands only comes to the minds of the
customer in regards to mineral water.

CUSTOMER PREFERENCES FOR BOTTLE

SIZE OF BOTTLES

CONSUMER PREFERENCES

0.5 ltr

60%

1 ltr

20%

5 ltr

5%

20 ltr

15%

HYPOTHESIS TESTING
Step1: State Hypothesis:
Ho: 5 ltr and 10 ltr bottles of mineral water are the most preffered once, by the population .
Ha: 5 ltr and 10 ltr bottles of mineral water are not preffered by the population .

Step2: state the rejection criterion

DF=4-1=3
At alpha .05 and 3 degrees of freedom, the critical value from the chi square distribution table is
7.82.
PREFERENCE OBSERVED EXPECTED O-E

(O-E)^2 (O-E)^2/E

0.5 ltr

60

25

35

1225

49

1 ltr

20

25

-5

25

5 ltr

25

-20

400

16

20 ltr

15

25

-10

100

2 =70
Interpretation:
As the Chi-square test statistics value 70 exceeds the critical value of 7.82 hence null hypothesis
is rejected and hence we reached at the result that our alternative hypothesis is accepted. Hence it
can be concluded that that the 5 Ltr. and 20 Ltr. bottles are usually preferred only during special
occasions such as marriage and Birthday parties. Otherwise the 1 Itr and 500 ml bottles are the
most preferred once.

CUSTOMERS PREFERENCES REGARDING

PRICE WORTH OF MINERAL WATER

Respondents view
% of Respondents

Yes
42%

No
58%

The observation shows that most of the people are not happy paying the price, the
companies are charging for the product. They feel that the price should be a little lower.

EFFECT OF ADVERTISING ON PURCHASE

46% agree to the fact with 10%, who strongly agree while 25% of the
respondents disagree to the fact while 14% strongly disagree, while 5%
consumers were indifferent towards it.respondents
HYPOTHESIS TESTING
Step1: State Hypothesis:
Ho: Advertisement doesnt affect purchase decision of Mineral Water.
Ha: Advertisement affects purchase decision of Mineral Water.
Step 2: Set the Rejection criteria:
DF = 5-1 = 4
At alpha .05 and 4 degrees of freedom, the critical value from the chi square distribution
table is 9.49

Step 3: Compute the Test Statistics: 2 = (O-E)^2/E

Preference Observed

Expected

(O-E)

(O-E)^2

(O-E)^2/E

Strongly

10

20

-10

100

Agree

46

20

26

676

33.8

Strongly

14

20

-6

36

1.8

Disagree

25

20

25

1.25

Indifferent

20

-15

225

11.25

agree

disagree

2=53.1

Interpretation:
As the Chi-square test statistics 53.1 exceeds the critical value of 9.49 hence null hypothesis is
rejected and hence we reached at the result that our alternative hypothesis is accepted. Hence it
can be concluded that Advertisements affects purchase decision of Mineral Water.

GROWING HEALTH CONSCIOUSNESS

AMONG INDIANS

Yes
73%

No
27%

The observation shows that most of the population in Delhi & its NCR now a days is getting
Health Conscious. The reason being the knowledge of the fact that the normal water which
we get is not always very hygienic and may cause many diseases.

RETAILER RELATED OBSERVATIONS AND FINDINGS

TYPES OF BRANDS RETAILERS KEEP

Advertised
35%

Non-Advertised
5%

Both
60%

According to survey, 35% of retailer go in for advertised products and non-advertised

products do not have any weight Around 60% retailer believe in the combination of both
(advertised and non-advertised version). The survey was based on retailers.

SIZE OF BOTTLE SELLING MORE

Size of bottle

0.5 Itr

% of respondents

60%

1 ltr

20%

5 Itr

20 Itr

5%

15%

HYPOTHESIS TESTING
Step1: State Hypothesis:
Ho: Selling of 5 ltr & 20 ltr bottles occur more frequently.
Ha: Selling of 5 ltr & 20 ltr bottles occur less frequently.
Step 2: Set the Rejection criteria:
DF = 4-1 = 3
At alpha .05 and 3 degrees of freedom, the critical value from the chi square distribution
table is 7.82

Step 3: Compute the Test Statistics: = (O-E)^2/E

Preference Observed

Expected

(O-E)

(O-E)^2

(O-E)^2/E

0.5 ltr

60

25

35

1225

49

1 ltr

15

25

-10

100

5 ltr

10

25

-15

225

20 ltr

15

25

-10

100

4
2=66

Interpretation
As the Chi-square test statistics 66 exceeds the critical value of 7.82 hence null hypothesis is rejected
and hence we reached at the result that our alternative hypothesis is accepted. Hence it can be
concluded that both 0.5 Ltr and 1 Ltr version are selling well but 5 Itr are selling very less as
compared to others.

GROWTH DURING THE LAST FIVE YEARS

ACCORDING TO RETAILERS

The growth rate has been very high as 38% of population has become health
conscious,34% is due to scarcity of drinking water and 28% is due to increased
advertisements

HYPOTHESIS TESTING
Step1: State Hypothesis:

Ho: Tremendous growth in mineral water segment is owing to increased health consciousness
and scarcity of portable drinking water amongst the population.
Ha: Tremendous growth in mineral water segment is not due to increased health consciousness
and scarcity of portable drinking water amongst the population.
Step2: state the rejection criterion
DF=3-1=2
At alpha .05 and 2 degrees of freedom, the critical value from the chi square distribution table is
9.49.
Preference

Observed

Expected

(O-E)

(O-E)^2

(O-E)^2/E

Health

38

33.3

4.7

22.09

.66

Advertisement

28

33.3

-5.3

28.09

.84

Scarcity of

34

33.3

0.7

0.49

.01

Consciousness

portable
drinking water
2 =1.51

Interpretation:
As the Chi-square test statistics value 1.51 does not exceeds the critical value of 5.99 hence
alternate hypothesis is rejected and hence we reached at the result that our null hypothesis is
accepted. Hence it can be concluded that Last five year seen a tremendous growth in the mineral
water segment. The growth rate has been very high, owing to increased health consciousness
amongst the population, arising from scarcity of potable drinking water.

FUTURE PROSPECTS OF MINERAL WATER

MARKET

Retailer's prediction

Excellent

Good

Average

Poor

% of retailers

42%

30%

15%

13%

Saturation for mineral water market is expected with in the next 5 years after which the
market will stabilize from today's point of view the market looks quite disruptive because
of heavy competition.

FOR OBSERVING RETAILERS, 165 RETAILERS WERE IDENTIFIED IN SOME OF

MAJOR AREAS IN THE CITY.
FOLLOWING INFERENCES WERE DRAWN....

"',
1

 Initially we enquired about the numbers of brands that the retailers sell and most of them
specified not more than 3 - 4 . This indicates that the retailers prefer only the main
brands.
Most of the retailers usually keep highly advertised brands.
Here two basic question as to which brands are selling more and which one is being
supplied more were combined. The answer was obvious and i.e., the one which is sold
more is supplied more and it is 'Bisleri' (in most cases).
The retailers' answers as to which size of bottle is selling more were inclined towards the
1 Itr. and 500 ml bottles with certain exceptions.
It was a mixed reaction of the retailers when asked about the highest margin paid to them
by a company out of 100
40% - Bisleri
28% - Kinley
11% - Aquafina
21%-others
Regarding the growth and future prospect of the mineral water market nearly all of the
retailers were optimistic and ranked it as a very rapidly growing excellent market.

RECOMMENDATION AND SUGGESTION

Campaign, stalls to beat local brands & create awareness.

 Retailers need to concentrate on 5 and 20 litr bottle which can be possible only if properly
advertised & home delivery of jars are done to the end customers.
The market is too congested and confused in the Delhi & its Ncr region, so the company
should properly promote & strengthen the distribution channel to survive the competition.
Can enter into premium segment market.
They can tie up with large commercial complex,hotels & airlines industries as they are the
emerging sector.
They can target the youth segment.
Launching trendy packs to attract more and more customers.

CONCLUSION

After analysis of the data & facts we have collected from consumer & the retailers &
matching them with the objectives one can say that there is very good future for
mineral water market. Soft drink market might be some threat to the mineral water

at present but within few years the scenario is going to change. Trend signifying
increasing health consciousness amongst Indians could also be observed.
Market has seen a tremendous growth from the early nineties & now it is increasing by
70% to 90% every year so one can easily say there is great potential in the mineral water
market.3
It could also be observed that the living standards of the People improving & as they are
becoming health conscious are ready to pay for water now. On the question of survival of
so many companies government has made policies & restrictions from April 2001 which
will force many manufactures to shut down their factories. But due to potential in the
market companies with quality product will survive.
Finally from the data collected at both primary and secondary level one can confidently
say that Bisleri as packaged water brand is the current market leader.

ANNEXURE

BIBLIOGRAPHY

MAGAZINES
Business World (Issue 04-10 Dec, 2007)
A & M (Issue Jan 2008)
Business India (Issue 11-17 Dec, 2007)

BOOKS
Philip Kotler, Marketing Management (9th edition) S H.W. Boyd, R. Westfall and S.F.
Stasch, Marketing Research- Text and Cases (7th Edition)
Richard Tedlow, New and Improved: The Story of Mass Marketing in America
C.R. Kothari, Research Methodology (2nd Edition)
Britannica Encyclopedia

OTHERS
Cable Network
Internet

en.wikipedia.org/wiki/Bisleri
www.finewaters.com/Bottled_Water/India/Bisleri.asp
www.bisleri.com/

CONSUMER QUESTIONNAIRE
Name of the respondent

__________________________

Address of the respondent __________________________

Contact no. ________________________________________

QUESTIONS
Q l. How often do you consume mineral water?
a) Always

b) Sometimes

c) Often

d) Never

Q 2. When felling thirsty you opt for?

a) Mineral water

b) Soft drink

Q 3. How many brands of mineral water are you aware of?

a) 0-2

b) 3-5

c)6-10

d) 10 and above

Q 4. Under what circumstances you opt for mineral water?

a)
b)
c)
d)
e)

While traveling
During parties, meeting, seminars
When drinking water is not available
During illness
Others

Q 5. Which size of bottle do you prefer?

a) 500 ml

b) 1 ltr.

c) 5 Itr

d) 20 Itr

Q6. Do you think mineral water is much more hygienic than normal water?
a) Yes

b)No

Q7. Do you think the price the companies are charging, is worth the product?
a) Yes

b) No

Q8. Does advertising of this product has any effect on your purchase?
a) Yes

b)No

Q9. Do you think Indians are getting more health conscious day by day?
a) Yes

b) No

Q10. Which brand do you prefer while buying mineral water?

a) Bisleri

b) Kinley

c) Aquafina

d) other

RETAILER'S QUESTIONNAIRE

Name of the respondent ___________________________

Address of the respondent _________________________
Contact no. ______________________________________

QUESTIONS
Q l. How many brands of mineral water do you sell (specify)?
a) 2-3
b)3-5
c) More
Q2. What types of brands do you have?
a) Advertised
b) Non-Advertised
c) Both
Q3. Which brand is selling more?
a) Bisleri
b) Aquafina
c) Kinley

d) Others

Q4. Which size of bottle is selling more?

a) 500 ml
b) 1 Itr
c)51tr

d) 20 Itr

Q5. On which brand do you get more margins?

a) Bisleri

b) Aquafma

c) Kinley

d) Others

Q 6. Do you feel there is growth in the mineral water market in the last 5 years?
a) Yes

b)No

Q 7. What is the future prospect of this market?

a) Excellent

b) Good

c) Unlike

d) Poor