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Bisleri

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INDUSTRY OVERVIEW

Bottled water market has emerged as one of the most rapidly growing and competitive
markets worldwide. The global Bottled Water Industry is a multibillion dollar
industry. It has been a remarkable growth trajectory for the sector. India is among the
top ten countries in terms of bottled water consumption. Today Bottled Water is one of
the India’s fastest growing industrial sectors.
Trends in the Industry
 Mushrooming Bulk Segment
 New Entrants
 Flavored Water
 Rising Investments & JV’s

On the back of rising health awareness among citizens and inability of the Indian
government to provide safe drinking water, bottled water industry has flourished
during the past decade. Evolving perception of bottled water has made its
consumption a bare necessity especially in the water scarce areas of the nation. And
these factors will bring the next wave of growth in the sector.

Along with these, rising disposable income, growing organized retail, rising
awareness among the consumer segment and growing focus on product extension and
quality will further stimulate the gains for the industry. Rising urban drift in the
country will also be a wheel of growth for the industry. We have estimated the
industry to grow at a CAGR of 18% till 2017 and would be soaring to new heights.
Indian Bottled Water Industry currently pegged at USD 1454 million in 2011 will
jump to reach USD 3925 million by 2016. Today the bottled water industry stands at
Rs 8,000 Crore and is projected to grow by 25% by 2016

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Top Brands of Mineral Water in India:

 Bisleri: It becomes the synonym of mineral water in India. This is market


leader and most trusted brand in this category. It enjoys the highest
commitment and loyalty in market.
 Himalayan (Product of Tata Global Beverages ): Himalayan – redefining the
mineral water category in India .Himalayan is endowed with the wellness of
vital organic minerals. The water is untouched and unprocessed, with a unique
taste acquired over 20 years of percolation, as it makes its way to the
underground aquifer located in the Shivalik range of the Himalayas. The
appeal of the brand lies in its high quality natural water and premium imagery.
 Kinley (Product of Coca Cola): Kinley water understands the importance and
value of this life giving force. Kinley water thus promises water that is as pure
as it is meant to be.
 Aquafina (Product of Pepsico India)Aquafina goes through a five step state-of-
the-art purification process to give consumers pure water and perfect taste.
Bottled across India in 19 plants, Aquafina is available across more than half a
million outlets. Catering to diverse consumer needs and occasions, it is
available in various pack sizes like 300ml, 500ml, 1 ltr and 2 ltr bottles and in
bulk water jars of 25 ltrs.
 Bailey’s (Product of Parle-Agro): It is the first water brand to be issued an ISI
certification. The first to launch special four-sided 200ml bottles catering to
premium airlines like Jet Airways and British Airways. Considering the fact
that the water segment is growing at a staggering rate of 40%, the future is
clearly Bailley. Bailley is available in 200ml, 300ml, 500ml, 1 ltr. & 2 ltr. PET
and 5 ltr., 20 ltr., & 25 ltr. jars
 Tata Water Plus (A Product of Tata Global Beverages )Tata Water Plus - the
only water of its kind in India – is redefining the water category. It is
nutritionally rich and goes beyond quenching thirst to promoting everyday
good health. It looks and tastes like normal water but with the added goodness
of nutrients that are bio-available. This means that these nutritional inputs are
in a form that can be easily absorbed by the body.

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COMPANY PROFILE

Bisleri is a brand of bottled water in India. Bisleri has 36% market share in packaged
drinking water in India. It is available in 8 pack sizes: 250ml cups, 250ml bottles,
500ml, 1 litre, 1.5 litre, 2 litre, 5 litre, and 20 litre. Its operations run throughout the
subcontinent of India and is one of the leading bottled water supplying companies in
India. As of 23 October 2012, Bisleri has 18 plants, 13 franchisees & 58 contract
packers all over India. The composition of Bisleri Water in milligrams per litre (mg/l):

 80-120ppm TDS
 6.5-7.5-ph factor
 75ppm-Calcium
 200ppm-Chlorides
 30ppm-Magnesium

Bisleri was originally an Italian company created by Signor Felice Bisleri, who first
brought the idea of selling bottled water in India. Bisleri originated in Italy in a place
called Nocera Umbra from a spring called Angelica. In 1965, it was introduced in
Mumbai in glass bottles in two varietes - bubbly & still. In 1969, it was bought over
by Parle.[1] Later Parle switched over to PVC non-returnable bottles & finally
advanced to PET containers.

The original Parle company was split into three separate companies owned by the
different factions of the original Chauhan family:

 Parle Bisleri, led by ketan kale


 Parle Products, led by Vijay, Sharad and Anup Chauhan (owner of the brands
Parle-G, Melody, Mango Bite, Poppins, Monaco and KrackJack)
 Parle Agro, led by Prakash Chauhan and hi, Alisha and Nadia (owner of the
brands such as Frooti and Appy)

In 1995 Ramesh J. Chauhan started expanding Bisleri operations. In 2003 Bisleri


announced its venture to Europe. All shares are held by Mr Ramesh J Chauhan and his
family. The brand name Bisleri is so popular in India that it is used as generic name
for bottled water.

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GENESIS

The name that epitomizes mineral water today was first introduced in Mumbai in the
early 60's. In 1965 Signor Felice Bisleri an Italian by origin, came up with the idea of
selling bottled water in India. His company Bisleri Ltd. offered mineral water in two
Variants- bubbly and still. In 1969 Parle bought over Bisleri (India) Ltd. and started
bottling Mineral water in glass bottles under the brand name 'Bisleri'. In due course
Parle switched over to PVC non-returnable bottles and finally advanced to PET
containers.

EXPANSION

Under the leadership and vision of Mr. Ramesh J. Chauhan, Bisleri has undergone
significant expansion in their operations. The company has witnessed an exponential
growth with their turnover multiplying more than twenty times in a short span of 10
years. The average growth rate over this period has been around 40% with Bisleri
enjoying more than 60% of the market share in the organized mineral water segment.
Currently Bisleri has 11 franchisees and 8 plants across India, with plans of setting up
4 new plants on the anvil. The overwhelming popularity of 'Bisleri' and the fact that it
was the pioneer of the bottled water industry in India has made it synonymous to
Mineral water and a household name. So naturally 'When you think of bottled water,
you think Bisleri'. Rigorous Research and Development and stringent quality controls
have made it market leaders in the bottled water segment. Bisleri has always been
committed to offering every Indian pure and clean drinking water. Hence Bisleri water
is put through multiple stages of purification, ozonisation and is hygienically packed
for final consumption. To maintain strict quality controls in every unit, Bisleri not
only purchase caps from approved vendors, but also manufacture own bottles, in-
house. To be at par with International standards, they have recently procured the latest

4
state-of-the-art machinery which has not only helped them improve packaging quality
but has also reduced raw material wastage and doubled production capacity. One can
rest assured that they are drinking safe and pure water when they consume Bisleri.
Bisleri is free of impurities and is 100% safe. Enjoy the sweet taste of Purity!

BISLERI TODAY

The Indian consumer today enjoys the sweet and pure taste of Bisleri mineral water.
However in an effort to offer something special to there loyal consumers they have
recently introduced Bisleri Natural Mountain Water - water brought to consumers
from the foothills of the mountains situated in Himachal Pradesh. This newly
launched offering has widened Bisleri’s product range to two variants: Bisleri with
added minerals and Bisleri Mountain Water. Bisleri’s registered office is in Mumbai.

VISION

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

MISSION

We are in the business to serve the customer. He is the most important person. He is
the only one who pays. He deserves the best quality and presentation at a worth of the
price. We must have world class quality, at the lowest production & distribution cost.
This will make us an unbeatable leader, and will have satisfied loyal customers.

VALUES

Integrity, Leadership, Teamwork, Co-operation, Quality, Passion, Openness &


Transparency.

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PROMOTIONAL CAMPAIGNS

CAMPAIGN 1

A couple on a beach sit by a


... boyfriend seductively, The girl suddenly gets up
small
who also and starts to run playfully,
bonfire. The girl looks at
looks at her with desire. but trips and falls.
her...

As he moves forward to kiss ...their bags and in the car.


The man runs after her and
her, she whispers something Not finding what he is
falls down beside her
in his ears, which has him looking for, the boyfriend
panting with desire.
frantically searching... dashes...

...to the nearest chemist As the chemist goes to get


The chemist hands over a
where he what he wants, his wife
big carton to the man.
asks for what he wants. looks at him coyly.

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The boyfriend opens the
The chemist's wife waves at He opens it to reveal several
carton the moment he is
him as he walks away. 500 ml Bisleri water bottle.
back with his girl.

...with mounting desire. The


The girl glugs down the
two then share a night of
cool, pure water playfully as
passion. VO: "Play safe.
her boyfriend watches her...
Bisleri."

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CAMPAIGN 2

...he is surrounded by a Their chief approaches


A man out on a safari zeroes
group of cannibals. He astride a horse, and he is
in on his prey and takes aim.
panics and drops his taken captive at her
Just then...
weapon. command.

The tribeswomen hoot


The arrow reaches home but The chief draws close and
unanimously as their chief
no blood spurts out as yanks it out. Water spurts
points a shaft his way and
expected. out from his jacket.
shoots from her bow.

She approaches him warily ...at his feet, respectfully. As


Their 'captive' now enjoys a
and tastes the strange liquid she goes down on her knees
full meal and the women are
gushing out. Taking off her and surrenders to him, the
too eager to please him.
crown, she places it... other cannibals follow suit.

8
He opens his jacket and ...water leaks from the hole ...and hit the bottle. As the
extracts a bottle of Bisleri that was made in it, when man grins smugly at the
resting inside. As he puts it the arrow pierced through camera, the super reads,
to his lips... his jacket... 'Bisleri. Play safe.'

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BISLERI’S DISTRIBUTION CHART:

It’s obvious that availability holds the key to the market. For any product to be
successful the distribution system has to be really good. Distribution is the key. The
consumer will pick up whatever is conveniently available and is pushed by the
retailer. Just about anybody can invest money into a bottling plant or other facilities.
The really dirty work is distribution. Making fresh water available within a particular
period of time is crucial for its success.

His strategy is to build a direct distribution system at an all-India level. According to


him, distribution in the Indian context requires experience. Bisleri’s retail distribution
muscle is indeed great. With 16 bottling plants to churn out the product, Bisleri has
around 80,000 outlets in the country with about 12,000 each in the metros of New
Delhi and Mumbai. Mr. Chauhan intends to increase that to 10 lakh outlets and use
around 2,000 trucks to criss-cross the nation, up from the current 1000.

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With little belief in the distributor system, the company leverages its large fleet of
trucks to supply bottled water directly to retailers through a system called ‘route
selling’ where the driver of the truck is trained to be a service person. A critical
component, this system, according to him, ensures that the water supplied is fresh and
bottles are in good shape. Though route selling is more expensive than the more
commonly followed method of appointing distributors in different towns, he says, it is
more effective.

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Distribution will ultimately drive brand success, at least for national level brands.
Also, currently local/regional brands seem to be moving off the shelves. With Bisleri
becoming a generic name for bottled drinking water, if it can manage the distribution
of the product to make it available where the consumer needs it the most, it may well
succeed in his gamble with water.

12
Bottled water is sold in a variety of packages: pouches and glasses, 330 ml bottles,
500 ml bottles, one-litre bottles and even 20- to 50-litre bulk water packs. The formal
bottled water business in India can be divided broadly into three segments in terms of
cost: premium natural mineral water, natural mineral water and packaged drinking
water.

Attracted by the huge potential that India's vast middle class offers, multinational
players such as Coca-Cola and PepsiCo have been trying for the past decade to
capture the Indian bottled water market.

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DISTRIBUTION SYSTEM

Bisleri’s esteemed clientele include large institutions and prestigious outlets, a


few of which have been listed as per the annexure:

 President house

 PM house

 Jet airways

 Air India

 Ashok hotel

 Maurya Sheraton

 Hotel metropolitan

 Hotel Radisson

 NSCI club

 Officers club

 ICICI Lombard

 ICICI prudential

 Oriental bank of commerce

 Punjab national bank

 UTI

 Corporation bank

 Russian embassy

 Times of India

 World health organization

 Ministry of health and family welfare

 Reliance industries limited

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Bisleri’s major segmentation variables for consumer markets.

Size of the bottle Price per bottle Target consumers

250 ml cups Rs. 3 Marriages, parties, Indian airlines

travellers.

500 ml Rs. 8 Teenagers , college students and

Roadside consumers.

1 litre Rs. 12 General consumers and travellers.

1.5 litres Rs. 15 Consumers demanding a little more

water at just a little more price.

2 litres Rs. 20 Small offices, shopkeepers,

Households.

5 litres Rs. 30 Households, institutes, offices,

Retail, shops, showrooms.

20 litres Rs. 60 Households, institutes, offices,

Schools and colleges.

List of key management personnel

 Director Mr. Kadeer Khan

 Deputy General Manager Mr. Rohit Gupta

 Franchise Manger Mr. Jalees Akmal

 Sales Manager Mr. Puneet Sharma

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 Direct distribution: In direct distribution, the bottling unit or the bottler
partner has direct control over the activities of sales, delivery, and
merchandising and local account management at the store level.

 Indirect distribution: In indirect distribution, an organization which is not


part of the Coca-Cola system has control on one or more of the distribution
elements (Sales, delivery, merchandising and local account management)

 Merchandising: Merchandising means communication with the consumer at


the point of purchase to convey product benefit, value and Quality. Sales
people and delivery personnel both have this responsibility. In certain
locations special teams who go into business locations to specifically
merchandise our products.

Sales Force Management

The distributor appoints their own salesmen for the distribution of goods to the
retailers. Its salesmen also do door to door supply. The distributors have fixed
different routes and every salesmen is assigned to one particular route to avoid any
conflict. For the Distributor interviewed he had 5 different routes. Out of the 5 routes
he had one route was the major route whereas the rest 4 were subsidiary routes.
Targets are fixed basis the routes. The target for the main route is 1000 crates per
month whereas for the rest 4 routes the target fixed is 500 crates per month. The sales
people are given lumpsum incentives basis the target either at the end of the month or
as bonus during any point of year. The salary for each sales person varies within the
range of Rs 2000 to Rs 2500. The entire strategy of evaluating a sales person is
decided by the Distributor. The company sales person visits once a month for record
checking. The Distributor reports to the Sales Executive looking after the area.

16
Selection Criteria for Salesmen:

The distributor has set certain criteria for the selection of salesmen. These criteria
become even more important as the attrition level has to be taken care of and the
importance of salesmen in bringing more business.

1) The candidate must be at least a higher secondary pass.

2) The candidate must have knowledge of local language.

3) Candidates with prior relevant work experience are preferred.

4) The candidate if from the territory is preferred.

Incentives for the salesmen:

A basic salary of around Rs 2000 to Rs 2500 is given irrespective of the performance


of the salesman. Incentives are given in total as a lumpsum either at the end of the
month or as bonus at any point of year. Thus the incentive for the sales people is
Fixed Salary plus Bonus.

Price 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 Cost Price Selling Price Margin (Rs) Schemes to


(Liters) (Rs)/Crate (Rs)/Crate Retailers

½ Liter (24pc 170 180 10 2 bottles of


per crate) 500ml are
given free to
retailers

1 (12pc per 114 124 10 2bottles of 1L


crate) are given free
to retailers

2 (9pc per 148 158 6 1 bottle of 2L


crate) is given free

20 54 58 4 Retailers
prefer local

17
brands for
this pack size

Special discounts and schemes are given during festivals like Durga Puja and seasons
like the marriage season just to boost up the sales volume. The rest schemes round the
year remains almost constant with only minimal changes.

Flow of Cash and Credit

The distributor gets a credit period of 10 days from the company. The distributor gives
a credit period of 7 to 10 days to the retailers depending upon the personal
relationship with the retailers. For the various schemes that the distributor gives to the
retailers like the free samples depends on the Credit Note given to them by the
company. The Credit Note is the limit of amount to which a distributor can give a
retailer free sample. This Credit Note is settled in the claims.

Critical Analysis

One of the major things plaguing the brand Kinley is its different pricing for the same
pack size. For example for the 1 liter pack size there are two prices existing in the
market, Rs 12 and Rs 15. This difference in price is because of the fact that the
different portion of the state gets their product from different plants. The area in the
state which receives products from the plant located at a larger distance has the prices
of their product marked as Rs 15. This difference in price with respect to its
competitor is affecting the market share of the brand.

The general distribution channel of Bisleri looks like this:

MANUFACTUR
ING PLANT

COMPANY INSTITUTIONAL
INSTITUTIONAL
WAREHOUSE BUYERS/ORDERS
BUYERS/ORDERS
OVER
OVER INTERNET
INTERNET
TRUCKS INSTITUTIONAL
INSTITUTIONAL
DISTRIBUTORS
BUYERS/SEASON
BUYERS/SEASON
R AL
AL PARTY
PARTY
R
O RETAILERS ORDERS
ORDERS
O
U
U
T
T
E CUSTOMERS
E
COMPETITION
SS
EE
LL
LL
II 18
NN
GG
To effectively devise and implement the best possible brand positioning strategies,
companies must pay keen attention to their competitors. Markets have become too
competitive to just focus on the consumer alone?

Competitive Forces

Michael Porter has identified five forces that determine the intrinsic long run
attractiveness of a market or market segment: industry competitors, potential entrants,
substitutes, buyers, and suppliers. His model is shown below:

Supplie Industry Buyers


rs competit
ors

Substit
utes

1. Threat of intense segment rivalry- A segment is unattractive if it already


contains numerous, strong, or aggressive competitors.

2. Threat of new entrants- A segment’s attractiveness varies with the height of


its entry and exit barriers. The most attractive segment is one in which entry
barriers are high and exit barriers are low.

3. Threat of substitute products- A segment is unattractive when there are


actual or potential substitutes for the product. Substitutes place a limit on
prices and on profit.

4. Threat of buyer’s growing bargaining power- A segment is unattractive if


buyers possess strong or growing bargaining power.

5. Threat of suppliers growing bargaining power- A segment is unattractive if


the company’s suppliers are able to raise prices or reduce quantity supplied.

DIRECT COMPETITORS

19
WATER WARS

Old cola-rivals Coke and Pepsi are discovering there is more money in water than
coloured water. Things are warming up in the Rs 1,000 crore bottled-drinking-water
market and competitors, including Parle's Ramesh Chauhan, face the threat of a
whitewash.

Two parts hydrogen, one part oxygen may well be the newest get-rich-quick recipe in
marketing circles. There's no questioning the existence of a market for water: the
typical human needs between a litre and two a day; India's 1 billion plus populace
needs between 1 billion and 2 billion litres a day; even if the number crunching is
restricted to the country's 100-odd million consuming classes, the result is a
staggering 100-200 million litres a day, or 36.5-73 billion litres a year. In money
terms, at Rs 10 a litre, the potential market could be worth between Rs 36,500 and Rs
73,000 crore. A glass of water would be in order now.

The bottled water industry is set to explode. This is drawing the big guns attention.
First Britannia launched Evian, then soft drinks giant Pepsi and coke entered with
their respective brands aquafina and Kinley. Small local players too are breathing
down Bisleri’s neck riding on better trade margin and intensive distribution [in their
respective areas of distribution]

The competition facing Bisleri can be categorized into a few brand names like:

 Aquafina

 Kinley

 Kingfisher

 Hello

 Prime

 Shudh

Parle Bisleri plans foray into fruit juice biz

PARLE Bisleri Pvt. Ltd has firmed up plans for a diversification into the fruit juice
business.

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The company has already set up a fruit juice concentrate plant in Chittor, Andhra
Pradesh. Plans are afoot to identify a site for the company's proposed second fruit
juice plant that is likely to be located in the Northern or Eastern part of India.

Stating this at a press conference on Tuesday, the Chairman and Managing Director of
Parle Bisleri Pvt Ltd, Mr. Ramesh Chauhan, said an investment of Rs 100 crore would
be made in the company's fruit juice projects in the next three years. This amount will
be raised through internal accruals and institutional loans. The products — mango and
guava juice to begin with — will be marketed under the Alfa umbrella brand. Mr.
Chauhan said fruit juices have emerged as a preferred drink after water. Thus, it is a
logical business progression for the packaged water manufacturing company to
graduate to the fruit juice segment, he added.

According to him, Bisleri has chalked out aggressive growth plans for its operations
in Eastern India. The company plans to stabilize its market in the region through a
revamped marketing strategy and a focus on improved and innovative packaging. The
idea is to grow by 100 per cent in the next one year and by 250 per cent in the next
three years. As part of its plans to augment its presence in Eastern India, Bisleri has
appointed Orient Beverages Ltd as its sole franchisee in West Bengal, Orissa and
Jharkhand. Expansion plans for Sikkim are being firmed up. The company also plans
to scout for business opportunities in neighbouring countries such as Nepal and
Bhutan in the future.

21
OBJECTIVE OF STUDY

The main objectives of the study could be stated as below:

1. To identify the sales strategy of Bisleri vis-à-vis competitors in Delhi & NCR
region.
2. To study the sales management structure of Bisleri.
3. To analyse the retailers perception in regards to Bisleri’s sales management.

PROBLEM DEFINITION

 To understand the basis of what services does a retailer makes his choice in
buying a packaged drinking water.

 To understand various problems associated with distribution of product.

22
RESEARCH METHODOLOGY

My research is descriptive research as it includes a questionnaire survey and it is a


fact finding enquiry through retailer’s scheme card. And I am focusing on retailers
viewpoint towards packaged drinking water and problems associated

My Project is descriptive research due to the following factor:

 It describes the characteristics of retailers in Delhi city.

 It is carried out to estimate the approximate percentage of units in a specified


population exhibiting certain behavior.

 It helps in determining the perception of product characteristics.

 It helps in making certain predictions related to packaged drinking water.

SAMPLE DESIGN

Regardless of the method or the design of the research that is used to obtain the
primary data, the decision for this very research activity in the field of FMCG and
about surveying the entire population of retailers or only a representative portion of
the population of the market had to be made.

SAMPLE UNIT

As the project was being done for the Delhi branch of the Bisleri the sample unit
taken was retailers of Delhi city.

SAMPLE SIZE

The sample size selected was 50 respondents. This was due to the time and resource
constraint faced by the researcher during the project.

SAMPLE SELECTION

Respondents were selected on the bases of assigned markets by the company; all
retailers in those markets were covered. Criteria for selection were-

 All retailers selling packaged drinking water.

 Retailers who were not into packaged drinking water but can be a future
prospect for a company.

23
DATA COLLECTION TOOLS

PRIMARY DATA

Primary data was collected through questionnaire method and also through retailers’
scheme card. The Questionnaire and Retailers card are attached to the annexure of this
report. It contained 12 questions and covered the necessary areas needed to complete
the research.

SECONDARY DATA

Secondary Data was collected from sources at the office, magazines’, newspapers and
websites.

VARIABLES INVOLVED

 Type of retailers.

 Features of product offered.

 Retailer’s perception on packaged drinking water.

 Retailer’s expectations from company.

Limitations and challenges while under going the research

 First, it was not a consumer’s survey but retailer’s survey; it was really hard to
find a free sitting shopkeeper in peek hours of a day when survey was carried
out.

 Biggest limitation of this report is that in all the markets covered there were 4
distributers and they all have there own way of working. That is the reason
there were totally opposite response from some markets to the others with
different distributers.

24
COMPARITIVE ANALYSIS

Different Brands of Packaged Drinking water on the Selling Matrix

Bisleri has placed itself on the 4th quadrant of the selling matrix with credence
attribute where it is entirely now pull driven. Kinley at present is in the 2 nd quadrant
and is moving from the search attribute to the experience attribute.

Margins earned by the retailers

Name of the brands Cost Price Selling price Profit margin

Kinley Rs 12.25 Rs 14/15 Rs 1.75/2.75

Aquafina Rs 10.50 Rs 12 Rs 1.50

Bisleri Rs 10 Rs 12 Rs 2

25
COMPARISON OF MARKETING AND SELLING ACTIVITIES

KINLEY BISLERI

MARKETING With aggressive promotional Mass media advertisement,


campaign, point of purchase hoardings, etc. are used for
promotion and encasing on the promotional campaign. Change in
brand value of other power packaging to reposition its brand.
brands of CCI, Kinley is creating Already having credence attribute
a PULL in the market and positioned itself as ‘safe’ in
the minds of consumers. Has
become a generic brand for
mineral water and creating PULL
entirely.

SELLING Trade schemes, retailers’ No much selling effort. Only


incentive, distributor incentives minimal retailers’ scheme. No
are meant for PUSH of the credit for distributor. Hence
product in the market. almost no PUSH. Markets
entirely PULL driven.

GAP Entire strategy is a combination Entirely PULL driven market


of PUSH and PULL. Hence no with no or minimal PUSH.
such gap exists between Though Bisleri has turned out to
marketing and selling activities. be generic name for mineral
Therefore the market share of water but without any PUSH it
Kinley has been increasing over might lose its market share to
the years. The only consideration brands like Kinley or Aquafina.
is the different price for same So Selling activities must be
product as discussed earlier taken more seriously.
which is killing the market share
of it.

26
How many scheme cards were collected back of 265 distributed to shopkeepers?

MARKET A

Cards collected Total

N 51

Y 66

Grand Total 117

 Off 117 cards distributed in Market A, 66 that is 56% of cards were collected
back.

 This suggests that people in this area do care about such schemes and just don’t
throw away the cards considering them useless.

27
MARKET B

Card collected back. Total

N 74

Y 84

Grand Total 158

 There were very similar results in Market 2 as well, here also major number of
cards that is 53% were collected back indicating the importance of schemes to the
people.

 Reason behind not getting cards back were lost cards, misplaced cards and some
retailers even threw the cards away.

28
Q.1 What is your shop type?

MARKET A

Type of shop Frequency of shop type

Juice, Cold drinks & Food Stores 42

General / Kirana Store 44

Pan shop 16

Dairy and Medical Store 15

Total 117

29
MARKET B

Type of shop Frequency of shop type

Juice, Cold drinks & Food Stores 72

General /Kirana Store 61

Pan shop 8

Dairy and Medical Store 17

Total 158

 Maximim number of shops in both region are juice,colddrink and food shops and
General/Kirana stores.

 But dairy/Medical and pan shops in both regions have there importance as almost
each shops of these kind sell packaged drinking water.

30
Q.2 Do you sell mineral water at your shop?

MARKET A

Do you sell mineral water? Total

N 15

Y 102

Grand Total 117

 In Market A, 87% of the shops covered were selling some or the other kind of
mineral water.

 There were just 15 retailers off 117 who were not selling mineral water in Market
A.

31
MARKET B

Do you sell mineral water Total

N 38

Y 120

Grand Total 158

 There were 38% of the shops covered in Market B which were not selling mineral
water.

 This suggests that there are good number of shops which are availaible to Bisleri
to be exploited in near future.

32
Q.3 Which mineral water do you sell at your shop?

MARKET A

Brands Percentage Frequency of various brands being sold at retail outlets

Bisleri 70 84

Bailley 7.5 9

Aquafina 9.17 11

Kinley 5 6

Kingfisher 1.6 2

Fosters .84 1

Others 5.84 7

Total 100 120

33
MARKET B

Brands Percentage Frequency of various brands being sold at retail outlets


Bisleri 43.66 62
Bailley 13.38 19
Aquafina 15.5 22
Kinley 11.26 16
Kingfisher 7.04 10
Fosters 2.11 3
Others 7.04 10
Total 100 142

 Off the total number of shops selling mineral water from question no.2 there were
17 shops in market A which were selling 2 brands of water and similarly 19 shops
in market B selling more then 1 brand of water, this chart is inclusive of that data.

 If we compare both the markets, In Market A Bisleri is doing excellent with 70%
share in the market, but in Market B it just have 43% of share, which is way
below there standards.

 There are no close competitors but Bailley and Aquafina eating up certain sales.

34
Q.4 What kind of customer usually visit your shop for packaged drinking water?

MARKET A

KINDS OF CUSTOMERS VISITED Frequency

Daily walk-in 107

Regular Customer 19

Party & Marriage orders 8

Total 134

35
MARKET B

KINDS OF CUSTOMERS VISITED Total

Daily walk-in 130

Regular Customer 8

Party & Marriage orders 3

Total 141

 By this question researcher is trying to find out that what are the kinds of
customers, visiting retailers, for packaged drinking water.

 Its very clear that maximum number of customers’ are daily walk in.

 But another fact lies behind this question is that retailers involved in regular
deliveries and orders are selling way more then those selling to daily walk ins.

 There is one shop in Market A (Jaina Ice-cream parlour) which is involved in


orders, sells above 300 cartons every month. And in this scheme month it sold 402
cartons which included around 300 5ltr pet jars.

Q.5 What attracts you the most in choice of mineral water?

MARKET A
36
WHAT ATTRACTS YOU THE MOST IN CHOICE OF MINERAL Frequency
WATER

No Response 8

Quality 24

Margins 48

Schemes 30

Services 7

37
MARKET B

WHAT ATTRACTS YOU THE MOST IN CHOICE OF MINERAL Frequency


WATER

No Response 21

Quality 38

Margins 65

Schemes 26

Services 8

Total 158

 By studying this question we can understand that what actually attracts retailers in
selection of packaged drinking water.

 As found in both the markets valid matching figure of 41% in favor of margins.

 In Market A schemes take second place but in Market B its quality because all
those who are buying Bisleri in market B is because of its quality; other
companies are providing them more margins then Bisleri.

38
 Services with 6% and 8% does not affect the retailers much, it just comes as a
consolation to them.

 There were 30 non respondents in total in these markets to this question.

 Response to this question brings about the fact that retailers are most attracted
towards margins when it comes to choice of a product.

Q.6 Do you have fridge provided by any company?

MARKET A

Fridge provided by any company Total

N 83

Y 34

Grand Total 117

 This question has its place in questionnaire because customers having fridge
provided by any company usually are forced not to buy Bisleri as companies like
Coke and Pepsi doesn’t allow any other product to be kept inside there
refrigerator.

 In Market A just 29% retailers have fridge provided by any other company that’s
why Bisleri sales are not affected here due to this reason.

39
MARKET B

Fridge provided by any company Total

N 109

Y 49

Grand Total 158

 In Market B results are almost same but as sales in this region are less then Market
A therefore retailers with Fridge are dominant selling other brand.

 These retailers satisfy demand of this region hence Bisleri sales are highly
affected.

40
Q.7 Does Bisleri distributor visit your shop?

MARKET A

Bisleri distributor visits your shop? Total

N 30

Y 87

Grand Total 117

 In Market A 74% of the shops covered are visited by Bisleri distributer.

 If we compare it with question number 3 that off these 74% retailers almost all
buy Bisleri only leaving 4% behind.

 This suggests that distributors are well up to there task in this region.

41
MARKET B

Bisleri Distributor visits your shop? Total

N 90

Y 68

Grand Total 158

 Major portion of shops in Market B are not visited by Bisleri distributer.

 Only 68 off 158 shops are visited by Bisleri supplier in this region.

 This suggests that system applied by distributers in this region is not successful.

 If shops are not visited on regular bases they tend to switch to easily available
brand and brand which has better supply system.

 This is problem which is being exploded by other companies in this region like
Bailley.

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Q.8 How often Bisleri Distributer visits your shop?

MARKET A

HOW OFTEN HE VISITS? Frequency Percentage

Almost Every Day 30 25.64

Twice or Thrice a Week 27 23.08

Once a Week 28 23.93

Never 9 7.69

I Don't Buy Bisleri 23 19.67

Total 117 100

43
MARKET B

HOW OFTEN HE VISITS? Frequency Percentage

Almost Every Day 4 2.53

Twice or Thrice a Week 27 17.08

Once a Week 43 27.22

Never 49 31.01

I Don't Buy Bisleri 35 22.15

Total 158 100

 In this question difference between respondents to “Never” and “I don’t buy


Bisleri” is that Never respondents prefer to buy Bisleri but nobody visits them and
later don’t buy Bisler at all.

 In Market A 25% shops are daily visited by dealer on the other hand just 2% in
Market B.

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 There are just less then 8% shops in Market A which are not visited but in Market
B 31% shops are never visited by dealer and that is taken as a complain against
supplier.

 Major portion of respondents in Market A have given positive response as tilt of


answers is towards first, second and third option, on the other hand responses are
more towards answer three, four and five.

 In Market B there are more then 53% of shops not visited at all by the distributer.

Q.9 What is your monthly consumption of Bisleri?(no. of cartons)

MARKET A

YOUR MONTHLY CONSUMPTION OF BISLERI? Frequency Percentage


0-25 54 65.06
25-50 14 16.87
50-100 5 6.02

45
100-150 8 9.63
150 & above 2 .41
Total 83 100
MARKET B

YOUR MONTHLY CONSUMPTION OF BISLERI? Frequency Percentage


0-25 42 68.85
25-50 18 29.50
50-100 1 1.65
100-150 0 0
150 & above 0 0
Total 61 100

 It can be clearly seen from both the markets that maximum shops selling mineral
water cannot sell more then 0- 25 cartons in month.

 Biggest customers who fall in category of above 150 cartons have capacity of
selling 150 to 450 cartons, hence they themselves cover up for companies other
60%-70% customers.

 In Market B company doesn’t have any above 100 cartons customers.

Q.10 Are you satisfied with the services provided by Bisleri distributer?

46
MARKET A

Are you satisfied? Total

No Response 25

N 21

Y 71

Grand Total 117

 61% of shopkeepers in Market A were satisfied with the services provided by


the distributer.

 There were 25 non respondents to this question.

 There were just 18% non satisfied shopkeepers.

 Reason behind non satisfied customers were----

 Not providing bills on time.

 There was a case of supply of special railway water of less MRP at normal
rates.

 There were few replacement problems with these respondants.

47
MARKET B

Are you satisfied with supplier? Total

No response 65

N 54

Y 39

Grand Total 158

 There were more number of shopkeepers in Market B were unsatisfied with 34%.

 Major reason stated by these people was no supplies or irregular supplies.

Q.11 How often does he provide you a bill on your purchase?

MARKET A

48
HOW OFTEN DOES HE PROVIDE YOU A BILL? Frequency Percentage

Always 35 42.16

Sometimes 22 26.51

Never 11 13.25

I never ask for a bill 15 18.07

Total 83 100

49
MARKET B

HOW OFTEN DOES HE PROVIDE YOU A BILL? Frequency Percentage

Always 19 31.15

Sometimes 24 39.35

Never 9 14.75

I never ask for a bill 9 14.75

Total 61 100

 Only 42 percent and 31 percent shopkeepers in both the markets were getting bills
on regular bases.

 Around 14% retailers in both the markets were never getting bills by distributor.

 There was also negative sign on part of retailers; 18% in Market A and 14%
retailers in Market B never cared to take bills from distributers.

 This states that shopkeepers to avoid taxes and extra charges don’t take bills.

 Also these people were supplied on differentiated rates.

Q.12 Would you like to place any order

50
 250ml

 500ml

 1ltr

 1.5ltr

 2ltr

 5ltr jar

 20ltr jar

 There were total of 34 retailers who responded to this question and placed
there orders.

 In total there were orders of around 150 cartons in whole.

 This response were majorly from those people who wanted to reach there
targets to avail the scheme provided by company.

 In Market B major respondents were those people where supply was very
irregular.

 These supplies were made by directly placing order to the distributer by


researcher.

SUMMARY OF GIFTS DISTRIBUTED

SR.NO GIFTS MARKET A MARKET B

1. WALLCLOCK 9 2

2. TRAVELBAG 5 1

3. ICE-BOX 6 0

4. TROLLY-BAG 0 0

5. MOBILE HANDSET 3 0

CUSTOMER SURVEY

1: Do you prefer packaged drinking water?

51
Ans : Packaged: 73 corporate

Non – Packaged: 27 corporate

Fig. 7

The above bar chart, according to the analysis depicts that there is high demand of
packaged drinking water in the corporate sector.73% of the corporate are preferring
packaged drinking water while 27% of them are preferring non-packaged drinking
water like: aqua guard, own R.O. system, municipality water.

Hence corporate world is opting packaged water rather then non – packaged one.
Packaged water market has a good scope in corporate world.

52
2: Which brand of packaged drinking water you are currently consuming?

Ans: Bisleri: 14 Paras: 0

Aquafina: 2 Hello:
11

Kinley: 4 Prime: 8

Kingfisher: 4 Aqua guard/R.O.: 27

Others [Glacier, Shudh, Mckinsey, Ganga etc.]: 30

Fig. 8

The above figure shows the share of Bisleri water in corporate sector i.e. only 14%
and other branded water like aquafina, kingfisher, Kinley holds only 2 – 4 % share.
Basically corporate market has been ruled by local players like hello, prime and other
brands which hold 50% of the sector. And rest by aqua guard and own purified
systems. Hence local brands are more preferable then branded one like BISLERI.

53
3: How long your organization has been associated with this brand?

Ans:

b/w 0-3 months b/w 4-6 months b/w 7-12 months above 12 months

13 22 24 14

Fig. 9

The above diagram shows that how loyal an organization is towards one particular
brand. Maximum corporate i.e. 24% stick to one brand for 7 to 12 months, then 22 %
for 4 to 6 months only 14 % are associated for more then a year. So this brings out the
uncertain behavior of the corporate sector towards one brand. Corporate sector is
demanding more innovations and more price discounts schemes etc. The one who is
providing all that they immediately shifts to that advantageous brand. Hence,
corporate are more demanding and less loyal towards the brand.

54
4: Do you feel that packaged drinking water has a seasonality effect?

Ans: Yes: 60

No: 13

Not available: 27

Fig. 9

Above pie chart shows that 60% of the corporate feel that water has seasonality effect
which means that during summer season water is demanded more then in winters.
While 30% don’t feel like this. Hence Bisleri should try to create its awareness more
among consumers through advertisements, publicity, banners in summer season which
will help it to increase its sales.

55
5: Which factor can change your brand preference?

Ans:

RO/AQUAGUARD Q PX PX+Q S

27 3 11 34 1

S+Q PX+S Q+PX+S Q+PX+P S+P+Q Q+PX+S+P

5 9 4 3 1 2

Where:

Q = Quality S = Service

PX = Price P = Packaging

Fig. 10

According to the above study price and quality combination is the most preferable one
among the corporate sector i.e. 34% corporate are opting it. Then 11% of the
corporate prefer price as the most important factor.9% of the corporate opt for price
and service combo. Hence through this it is concluded that price is one of the most

56
important factor which can change the brand preference of the corporate sector. This
is the only reason why organizations are opting more local brands like hello, prime,
shudh etc. as they are offering their product at less price like Rs. 25 – 40 for one 20
litre jar well branded packaged water are at Rs. 50- 60 for 20 litre jar. Quality is also
the one of the factor but organizations are not ready to compromise over the price,
they want quality but at the minimum price. So BISLERI should concentrate over
their cost minimization factor.

6: How do you rate Bisleri with other players in the market?

Ans:

VERY GOOD GOOD STANDARD BAD

5 57 11 0

Fig. 11

According to the above diagram Bisleri’s position in corporate market is almost


satisfactory as 78 % rate Bisleri performance as good and 7% as very good. While
15% think Bisleri as standard brand in front of other bottled water players. Nobody
rate Bisleri as poor brand. Hence through this we can conclude Bisleri’s performance
as up to the mark but the only problem is Bisleri price which is Rs. 60 per 20 litres
which is the main obstacle due to which organizations are opting other local packaged
water brands.
57
7: Are you satisfied with Bisleri’s awareness programmes, sales campaigns,
advertising, and publicity?

Ans:
YES NO N.A.

8 65 27

Fig.12

The above survey shows the satisfaction among organizations regarding the Bisleri’s
sales promotion methods. And the results are like this 65% of them are not at all
satisfied with Bisleri campaigns, advertising, and publicity. according to them Bisleri
should more focus on its promotional activities like advertising, awareness among
people, also put their banners, should provide more consumers benefit schemes.

58
8: How long are the organizations associated with the brand they are using?

Ans:

Fig. 13

The above pie-chart depicts that how long are the organizations associated with the
brand they were using. Most of the organizations lie between the category of 4-8
months that’s because there are different promotional schemes that keep on coming &
entice the organizations to switch over to other brand. Brand loyal clients are in very
less ratio i.e. the ones who are using the brand for more than one year.

59
9: Which factors can lead to shift in Brand Preference?

Ans:

Fig. 14

The above pie- chart depicts different factors that the organizations think can lead to
shift in their brand preference. As it is clearly seen that major percentage is of the
organizations who think price to be the top priority. Price was very important for them
they thought that till none of their employees fall sick they are fine with the quality.
Then comes quality, the organizations who think “health is wealth” come under this
category. For these organizations their employees’ health is of major concern. Then,
comes the combination of quality and price. Another factor that was also in good
percentage was the combination of service & price. Service was also considered as an
important factor for brand switching.

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SWOT ANALYSIS OF BISLERI

STRENGHTS WEAKNESSES

 Nearly 60% share in market..  Highly priced products.

 Well established distribution  High costs of production.


channel.  Distributers reluctant to change.
 Initiaters advantage.

 Brand recognisation.

 Only company in 1.5ltr segment.

 Best quality product accepted.

OPPORTUNITIES THREATS

 Growing Indian packaged drinking  Nearly 200 brands in this sector.


water market.  Many new players entering
 Expected to cross 1000 crore mark. market.

 Competitors ability to invest.


Eg-Pepsi and coke.

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FINDINGS

 Retailers in Delhi believe that water is just water and it does not make difference
from whom they buy it from.

 Retailers in Delhi mostly believe in what are the margins provided to them by the
companies.

 Most positive aspect of Bisleri in market is that people believe that Bisleri is a
best quality packaged water in market.

 Apart from all the issues overall Bisleri still holds it position as a Market leader.

 Bisleri is a highest priced product in the market, and market customers are daily
walk inns; hence they are not ready to always pay more then 12 rupees for a 1ltr
bottle which sells most.

 Companies like Aquafina and Kinley are providing free product to the
shopkeepers with purchase of there cola’s, which is bringing down the sales in
many areas.

 Pepsi and Coke provide free refrigerators to retailers in which they are not letting
them keep any other companies product, this in turn is breaking sales of Bisleri
cause usually a customer asks for cold water.

 Distributers in Delhi are very reluctant to change.

 Distributers just don’t visit any other shops except those which regularly buy from
them in other words they just don’t move away from there set routes.

 As Delhi is very old city hence there are lots of shops in small streets which are
not covered by distributers, as they usually just move along main roads.

 There were lots of complains in Market B of suppliers, many of retailers


responded that Bisleri people doesn’t visit at all.

 Retailers in Delhi are in habit of not asking for bills and suppliers too don’t
provide bills on regular bases on there own.

62
CONCLUSIONS

Bisleri provides seamless packaged drinking water services and still holds biggest
share in market and it needs to keep improving upon its services to keep that share
intact because its competitors are very strong and have ability of huge investments.
Bisleri is pioneer of the industry.

Some of the Points that can be concluded are:

 Bisleri is a high priced product in the market, and market customers are daily
walk inns; hence they are not ready to always pay more then 12 rupees for a
1ltr bottle which sells most.

 Bisleri Has a very wide and the largest distribution network in the industry.

 Bisleri is the market leader in the sector, enjoying almost 50% market share.

I think from my point of view it would be better for Bisleri if it will try to increase
the share of cake by increasing the size of the overall cake, not by decreasing the
others players share of the cake. It means it should try to increase its customer
base not by converting the other companies existing customer, it should try to
convert the non customer of packaged drinking water to Bisleri customer.

63
RECOMMENDATIONS

 First of all Delhi is not a small city, company just have 3 sales man, Bisleri needs
to make at least a team of 5 salesman to cover whole Delhi to keep a good check
on secondary sales of company.

 Bisleri needs to regularly come up with certain attractive schemes so that it can
compete with its giant competitors like Pepsi and Coke.

 Distributer in Market A are doing excellent job but story is not same in Market B
so company needs to educate there distributers by making them learn about the
working of other distributers.

 Bisleri must appraise there suppliers on there good work which will in turn
motivate suppliers who are not doing well to work hard.

 Every month a team of people must visit every shop in problem markets at least
ones to remind them of there importance to company.

 Bisleri must give there good and regular customer’s complimentary gifts to
always keep them faithful towards company.

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