bisleri vs other mineral water.doc

7/26/2019 BISLERI VS OTHER MINERAL WATER.doc

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A

SUMMER TRAINING REPORT

ON

A STUDY ON THE EFFECTIVENESS OF THE

DISTRIBUTION CHANNEL

OF BISLERI

SUBMITTED TOWARDS THE PARTIAL FULFILLMENTOF MASTER OF BUSINESS ADMINISTRATION

(SUBMITTED TO MTU, NOIDA)

ACADEMIC SESSION:

2011 2013

SUBMITTED TO : SUBMITTED BY:

Ms. INDU GOyaL NIKHIL KUMAR

[Faculty o Ma!a"#$#!t% MBA III S#$

Roll No.&&&'('))(*

KISHAN INSTITUTE OF INFORMATIONTECHNOLOGY, MEERUT

(Affiliated to M. T. U, Noida)

0


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A+KNO,LEDGEMENT

To start with I would first of all thank God Almighty for the successful completion of my

Research report in -BISLERI /S OTHER MINERAL ,ATER0

I feel privileged to have completed my Research report in -BISLERI /S OTHER

MINERAL ,ATER0.They possess excellent aility to simplify complicated situations in

a sutle and rational manner! I thank them deeply for guiding me the way to sail through

this" once looking insurmountale work!

I am also highly thankful toMs. INDU GOEL , Faculty of Managements , KITE M##1ut.

who had given me some important tips" continued guidance and support! #ithout them it

was very difficult to make the report!

I am also highly thankful to D1. 222222.3H.O.D45 a!6Ms. INDU GOEL , Faculty

of Managements , KITE M##1ut! $or their significant help and who soend time from their

usy schedule to help me in my Research report!

I am indeted to all those who have een helpful throughout the process of writing this

Report ut as the clich% goes" I am solely responsile for any remaining errors of fact or

&udgment!

'ast ut not least" it is a pleasure to express my heartfelt thanks to all those who

rememered and wished every success in my endeavor!

NIKHIL KUMAR

MBA III S#$

Roll No. &&&'('))(*

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STUDENT DE+LARATION

I" NIKHIL KUMAR )T*+,-T .$ MBA7 III S#$ declare that the pro&ect entitled A

STUDY ON THE EFFE+TIENESS OF THE DISTRIBUTION +HANNEL OF

BISLER submitted to Mahamaya Technical University in partial fulfillment

of the requirement for the award of the degree of master of business

administration is a record of original project work done by me during my

period of study in Meerut International Institute of Technology under the

able guidance of Prof. I!U "#$%.

NIKHIL KUMAR

MBA III S#$

Roll No. &&&'('))(*

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PREFACE

The systematic study of materials and sources in order to estalish facts and research" new

conclusions oth in academic institutions and outside is the need of the hour! In marketing

industry work directed towards innovation in an improvement of the products and processes

are undertaken and accomplished year after year! The need therefore is for those concerned

with research to pay due attention to designing and adhering to the appropriate

methodology" throughout for improving uality!

This report entitles -BISLERI /S OTHER MINERAL ,ATER0 is aimed at evaluating

the consumer preference availaility of products competitor1s activity" consumption pattern

channel ehavior!

In this report we determine that rand awareness and rand preference of the different

segment and to analy2e the various segment preference for the packaging medium" ottle

si2e and price of packaged drinking water!

This report analy2e the ma&or competitors in this product " their respective product

attriutes and rand positioning and market strategies!

NIKHIL KUMAR

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+ONTENT

45A6T,R 6AG, -.!

,xecutive )ummary (73

I!t1o6uct8o! 879

.&ective of the )tudy :

4ompany 6rofile ;73ineral #ater Industry 7 4urrent >arket )cenario

o Inspection of =isleri

o 6roduct 6rofile

o >anufacturing

o 6ackaging and +istriution

o Advertising 4ampaign of =isleri

>arketing >ix 807:/

34?s 4onsumer

4onsumer 4oncerns and 6erceptions

4ompetition @ 4ompetitor

Research >ethodology :37:arketing Research

o Research .&ective

o +eveloping the Research 6lan

+ata Analysis ;07;8

)#.T Analysis ;97;;

$indings ;7;

)uggestion ;


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o Buestionnaire

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E9E+UTIE SUMMARY

#ater which is are important element in the world and plays the very vital world in our

ody" the importance of it cannot e underlined! .ur ody consist of 0C of water hence it

plays very vital role in our ody! 5ence pure water is a important pre reuisite for us!

=isleri is a name which highlights the purity of water! =isleri is engaged in producing

>ineral #ater for the safety of the people! >ostly people suffer from water ond diseases

hence people should go for mineral waters! =isleri is a name of repute in producing pure

water! >ore than 80C of the customers of mineral water uses =isleri!

The origins of =isleri lie in Italy" and the rand owes its name to founder $elice =isleri" an

Italian entrepreneur! In (


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,ssentially" there were three types of water that was used for different purposes! The first

type was used for rinsing! The second type" which was used for cooking" was cleaner and

kept covered! The third type was the cleanest E drinking water E and was very often oiled

efore use!

)ince an average family needed a small uantity" not more than five or six liters a day"

oiled and filtered water had een a convenient solution for some time! The fallouts were

ovious! It was very difficult to convince the people that purification system was worth the

price!A uick look at =isleri?s manufacturing reach indicates that it is represented across the

country E -orth accounts for 39C of sales for the industry" #est accounts for 30C" )outh

/0C and the ,ast (9C!

In order to e availale in untapped areas =isleri has setup (: plants located all over the

country E three7fourths of which are company owned! The alance is run y franchisees!

=isleri has 9 plants in the -orth" 9 in the #est7two of which were wet up in the last year at

Ahemdaad and )urat" 8 in the )outh and / in the ,ast! The company has ottling units

located in 4hennai" =angalore" Goa" 4alcutta" >umai" +elhi" Faipur" *ttar 6radesh"

6un&a" Indore and -epal! The new plants are eing set up in states like erala" .rissa"

=ihar and -orth ,astern )tates" which hitherto have een unexplored y the company!

=isleri has planned to expand its operations y investing Rs! :0 crore in the up gradation of

facilities! =isleri started its game plan with the punch line of ?6ure and

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)afe? and used the same catch7line for advertising! =ut with the advent of many new

players" all claiming the purity" it ecame very imperative for =isleri to differentiate its

product so as to stand out in the market! Advertisement to uild the rand image that will

provide the reuired ground to estalish the authenticity to the product!6op H6oint of

6urchase displaying the cost of water at Rs. per liter" as the perception of the people is

that mineral water cost Rs. &)per 't!

+isplay of hot and cold dispensers and ottles at places like hotels" clus and airports where

upper class group visits" as they are the potential customers! 6lace like departmental stores"

petrol pumps and super a2aars can also e considered!

The company should organi2e camps at various part of the city also road show to ring

aout the difference etween mineral water and filterJpurified water and to tell the people

how mineral water is more hygienic than filtered waterJpurified water! In the randed

segment" 6arley?s =isleri is the market leader with a share of more than 89C!

5ence use =isleri and plays safe is the token of life!

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INTRODU+TION

#ater is the most important liuid in the world! #ithout water" there would e no life" as

least not the way we know it! In today?s living condition" the need for pure +rinking #ater

is ecoming the issue for the common >an!

,ighty percent of the human metaolism consists of water! This is the reason why


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'ate (


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OBE+TIE OF THE STUDY

The o&ective of the study was to find out the consumer preference" availaility of the

products" competitor1s activity consumption pattern channel ehavior of various )*s and

the market share of =isleri and its competitors! The ma&or emphasis was given onM

To know the clear picture of market position of mineral water industry in India!

To analysis the share of =isleri in market!

To find out the ma&or competitor of =isleri!

To analy2e the )ale of 4ompany

To analy2e the sale of the competitor!

To give suitale suggestion and recommendations y which =isleri can increase market

share!

To assist marketers in making their advertisement more effective oth in electronic and

print media!

To find out the efficiency in which the advertisement udget is used for optimum"

utili2ation of funds availale to the company!

To determine and advertising pattern for the year that would increase the awareness

aout the company!

To make a detailed study of packaged drinking water in terms of its exitings market

si2e" future market potential" ma&or geographical markets and important segments !

To analyse the ma&or competitors in this prtoduct" their respective product attriutes"

rand positioning and market strategies!

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+OMPANY PROFILE

A 6arley =isleri is Italy origin 4ompany 6arley was estalished in (r! Fayantilal 4hauhan took 6arley to the international

arena y introducing fruit &uice ased drinks in (a2eL! 6arley

ecame a multinational with franchise operations in +uai" uwait" )ultanate of .man"

)audi Araia @ =angladesh with distriution and marketing in the *)A" the *" 4anada"

,urope" the #est Indies" etc! =ehind the success of >a2e lies the aility of 6arley to fully

understand the processing process of fruit puree and fruit7&uice concentrate

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RAMESH . +HAUHANS BIGGESTGAMBLE,ITH,ATER

& FEBRUARY))&

The est everage for India in the new millennium seems to e water!

In recent years" the ottled drinking water market has een witnessing high7deciel levels

of activity" with a host of new entrants swelling the clutter! #ith over /00 players &ostling to

e the thirst uenching favorite of the Indian consumer" the usiness is growing at a rate of

over 90 per cent annually! The country?s ottled water usiness is estimated to e around

Rs! ("(00 crore" of which the randed market accounts for Rs! ;00 crore and aout ;00

million liters in volume!

In India" the core proposition of ottled drinking water lies in hygiene" as the uality of tap

water is ad and is rapidly deteriorating! This is in stark contrast with the #est where

Nmineral water1 indicates the attendant minerals present in the water! >ineral water in

#estern countries is otained from natural springs and is" generally" named after those

springs! >ost of the ottled water passed off as mineral water in India" however" is filtered"

oiled or purified y other means such as reverse osmosis! A etter description of ottled

drinking water sold in India therefore" would e Npurified ottled water!1

The growth of the category indicates the need for this Nmineral water1 and the fact that

heavyweights are eyeing the segment points to the potential that is seen in this market!

4oke" 6epsi" =ritannia" -estle" 4utwater 77 are keen on raising their stakes in the Rs! ;00

corer" ;00 million7liter market! The entry of +an one1s rand" ,vian" the high7


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6riced mineral water from the $rench Alps shows the perceived potential India presents in

this product category! 4learly targeted at the premium segment of consumers" the

rand is eing distriuted in the country y =ritannia Industries! 4urrently" ,vian has more

of an institutional presence Hfive star hotels than on the retail shelves" with a (7litre ottle

eing priced a hefty Rs 0!

PARLES FO+US

>r! Ramesh 4hauhan" chairman" 6arley =isleri" the pioneer of ottled water as a product in

India" says his focus is now entirely on his =isleri rand" which reportedly en&oys a :07:9

per cent share of the ottled7water market! $rom Rs! 800 crore turnover" at present" he plans

to increase it to Hhold your reathOO Rs ("000 crore y year /00/!

According to him" the drinking water market at the moment presents a huge potential"

valued etween Rs ;00700 crore and growing at the rate of nearly 9070 per cent per

annum! 5e asserts that =isleri itself is growing at more than a (90 per cent growth rate!


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>r! 4hauhan has aggressive plans for =isleri with investments up to Rs /00 crore in the

product during the next two years! $uelling this growth would e the new 97litre water

&ar" priced at Rs /9" targeted at the household segment and the 900 ml pack priced at Rs 9!

5e has (: plants located all over the country of which over a do2en are owned y him and

the alance is run y franchisees! >r! 4hauhan plans to have his own distriution network

in places where his plants are located while franchisees would manage the distriution in

their respective areas of operation!

Interestingly enough according to >r! 4hauhan the origins of =isleri lie in Italy" and the

rand owes its name to its founder" >r! $elice =isleri" an Italian entrepreneur! In (


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did not uite work! =y (


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LIn another three years? time" water will overtake soft drinks in terms of volume sales" and

then 4oke and 6epsi will e no match!?? he asserts! 5is confidence proaly stems from the

fact that the soft drinks market is currently not doing too well with oth 4oke and 6epsi

having reported flat sales for two years in a row! =oth players are currently engaged trying

various measures like the recently introduced small packs of /00 ml" to increase sales! The

ottled drinks market in India is estimated at Rs 9"(00 crore" with soft drinks accounting for

nearly Rs 8"000 crore while fruit &uices and other drinks make up the rest!

5e clarifies his stance y saying that" LIn all the ma&or markets" water outsells soft drinks in

terms of" what 4oca74ola now terms as" share of the consumer1s throat! $or instance" in the

>iddle ,ast" water dominates over soft drinks! Also ottled drinking water has graduated

from eing an elitist product a couple of years ago to eing an

Article of common use now! Also simple economics dictates that a 900 ml of safe drinking

water costing Rs 9 is a etter uy than a 300 ml of soft drink costing Rs (0!L

+ifferentiation

A clear differentiation is happening among the medley of water rands in terms of oth

pricing and positioning! #hile =isleri is touting itself as ??pure and safe"?? rands like =ailey"

Pes" and hello are trying to ride the mineral water wave! And ,vian" launched y $rench

transnational +an one sells itself as ??water from the $rench Alps?? competing with premium

soft drinks! The fact however remains that almost all players in this

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4ategory are positioning themselves on the purity and hygiene platforms since the very

raison d?Qtre of ottled drinking water is the ad uality of tap water in the country! In

This scenario how will >r! 4hauhan differentiate =isleri from the others and" more

importantly" for how long

>r! 4hauhan has een trying to differentiate =isleri y its reakaway seal as an assurance

of purity! As he says almost ;: per cent of consumption of ottled drinking water happens

in transit! >arket research conducted y =isleri revealed that the other overriding concern

for this set of uyers is the tampering of the seal and the reuse of ottles! >any have

witnessed used ottles eing refilled at railway stations! )o when a consumer uys mineral

water" he would like to e assured that the water has not een tampered with!

At the same time =isleri is promoted y an aggressive print7and7TD acked y hoardings

and point7of7sale material! ,very interface with the consumer is eing used as an

opportunity to reinforce the message! $or instance" all vehicles used for supply have een

painted in right lue" ear the =isleri logo and sport catchy aselines like Ndrink and

drive1! Apart from creating consumer pull with an advertising campaign" >r!

4hauhan is oosting the retail push as well! )ays a local marketer of a rand" strong in the

institutional segment" toying with the idea of going retail" L+istriution is the key! The

consumer will pick up whatever is conveniently availale and is pushed y the retailer!

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>r! 4hauhan says that from his vast experience of marketing Gold )pot and Thumps *p" he

learnt that distriution plays a crucial role in the successful marketing of ottled drinks! 5e

says" LFust aout anyody can invest money into a ottling plant or other

$acilities! The really dirty work is distriution! >aking fresh water availale within a

particular period of time is crucial for its success!L

5is strategy is to uild a direct distriution system at an all7India level! According to him"

distriution in the Indian context reuires experience! =isleri1s retail distriution muscle is

indeed great! #ith (: ottling plants to churn out the product" =isleri has around 0"000

outlets in the country with aout (/"000 each in the metros of -ew +elhi and >umai! >r!

4hauhan intends to increase that to (0 lakh outlets and use around /"000 trucks to crises7

cross the nation" up from the current (000!

#ith little elief in the distriutor system" the company leverages its large fleet of trucks to

supply ottled water directly to retailers through a system called Nroute selling1 where the

driver of the truck is trained to e a service person! A critical component" this system"

according to him" ensures that the water supplied is fresh and ottles are in good shape!

Though route selling is more expensive than the more commonly followed method of

appointing distriutors in different towns" he says" it is more effective!

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It is ovious that reach holds the key to the market! #ith (: plants at (8 locations across the

country Haccept the east" he is planning doule capacities at all of them to /00 million

cases a day! $or this he plans to invest at least Rs :0 crore to upgrade facilities! =y the year

/00/" he hopes to increase =isleri1s reach five7fold to almost /"900 towns and cities and

will pump Rs /00 crore into the =isleri rand! These measures" he hopes" will give =isleri a

market share of more than 9 per cent y the year /00/!

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At the same time he is pursuing a multi7pack and multi7price strategy! Today =isleri offers

; packaging optionsS a /907ml cup and ottles in 900 ml" (7litre" /7litre" 97litre" (/7litre and

/07litre packs! The (7litre ottle accounts for nearly 90 per cent of the sales" with the /7litre

ottle taking up /0 per cent of the sales! The remaining si2es share the

alance! -ot only does he plan to make the asic pack7si2es availale all over the country"

he has also decided to create greater variety in packaging! #ith innovation in packaging

eing a key" the company has introduced a new category" the (/7litre pack in water7scarce

city of 4heney and this has proved tremendously popular!

>r! 4hauhan is also pursuing a price strategy and is confident that with the growth in

volumes he will e ale to ring down the prices! 5e feels that =isleri is priced to enefit

volume purchase! $or instance while the (7litre ottle is priced at Rs (0" the /7litre ottle is

priced at Rs (9 HRs ;!90 per litre" the 97litre pack at Rs /0 H Rs 8 per litre and the /07litre

pack at ;0 HRs 3!90 per liter!

#hile on the one hand he feels that the 900ml and the /90ml packs are the growth area of

the future" he is also targeting the household segment with the large pack si2es! 5ouseholds"

he says" in certain parts of the country spend a huge amount of money on fuel in order to

purify water! $or instance" in the water7scarce south" people spend large sums of money to

uy water and still more to purify it! #ith the runaway hit of its new (/7litre product in

some cities of the south" the company is finding it difficult to meet the demands of these

markets!

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>r! 4hauhan attriutes the sudden spurt in the growth of the ottled water industry" to

growing awareness levels caused y increased promotional activities y the industry

players! This is proaly the first time that mineral water is eing pushed so aggressively

on the television! 5e feels that =isleri itself is responsile in a large way for the growing

popularity of the product! And he may well e right! The =isleri rand does have

tremendous recall in the consumer mindscape and" in some places" is used as a generic

name for ottled water!

According to him 6arley and other mineral water rands have een the eneficiaries of the

ad uality of municipal tap water and rising consumer awareness due to increasing

stridency of water filter companies! 5e elieves that his ma&or competitors are not other

mineral water rands ut the innumerale randed water filters" which have flooded the

market! This perhaps explains his recent rush with ,ureka $ores" which took 6arley

=isleri to court over what it alleged were offensive advertisements y the company showing

the ,ureka $ores water filter" Aua guard" in poor light!

>r! 4hatham1s expectations from the mineral water market may e too high as ;0 per cent

of the mineral water consumed in this country is y travelers and even here soft drinks are

strong competitors! In the household segment" he will have to compete against the

traditional methods of purifying water" the water filters like the Aua Guard from ,ureka

$ores" which he claims are partly responsile for success of mineral water rands!

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.n the other hand perhaps he is right! +istriution will ultimately drive rand success" at

least for national level rands! Also" currently localJregional rands seem to e moving off

the shelves! #ith =isleri ecoming a generic name for ottled drinking water" if he can

manage the distriution of the product to make it availale where the consumer needs it the

most" he may well succeed in his gamle with waterO

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Dist!"ti#$ S%&'"t%ss: U#%i%&

T'%s&!*, 1+ A'$'st, 2011

3 Derdicts

This post declares the result of uestion asked on+istracting )eductress" where the readers

were supposed to guess the product featured in the advert! If you are new reader and have

not read the earlier post" reuest you to see the picture elow and go ack to read the

comments!

#e had guesses ranging from condom" eauty cream" hair oil" '4+ TD to car atteries to

$oor wear to Tamifu talets! I personally liked them all" ut the most radical guess were

N>T-'1 and N Gloal #arming1! )uper imagination O H I am surely going to play this

game once again for the humour uotient! Till such time this post was eing drafted"

unfortunately none of the guesses were close enough! 5owever" going y most of the

commentor1s opinion" it is clear that 6,TA can easily use this advert for their next

campaign" it goes well with it1s current imageO

The product is from a very well known company =isleri and it is E SODAO

I have given a hint y giving Alchohol as a choice and none picked it up! If you carefully

look at the cropped image a portion of the ottle is shown with the fi22 ules! =ut I agree

this wasn?t easy to guess!U

All the trucks that carries out freshly packed =isleri ottled from it1s Dille 6arle factory"

autting #estern ,xpress highway" have this advertisement on them! ,very morning" when

I see couple of the trucks on the way" there1s a &ump in my adrenalin! I actually have driven

close to take the pictures presented elow" in seuential manner O All the pictures are taken

using my -okia ,;(" while I was managing the wheel amidst heavy traffic!

St#= O!#: S=ott8!" t?# s#6uct1#ss at a 68sta!c#

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St#= TCo: +?a!"8!" la!#s to 618


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+UMMINS INDIA TO BUILD NE, FA+ILITY

4ummins India 'td is planning to set up an additional manufacturing facility in 6une

district to manufacture low horsepower engines and generator sets of (9kD7(80kD! These

products will e used as ack7up power! The exact location of the proposed facility has not

een decided! )ays Anent Talaulicar" 4hairman" L=ased on strong domestic and export

demand" the company is continuing to invest in new products and increased capacity!L The

company is planning to spend around Rs (9 crore on the new facility in terms of land"

uilding" plant and machinery etc!

)ince (r! Ramesh 4hauhan" chairman of unlisted =isleri" who analysts estimate

controls aout half of India1s urgeoning ottled drinking water market" told in an interview

he expected a deal in a year or two!

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The :(7year7old mechanical engineer from the >assachusetts Institute of Technology said

he was willing to sell 8< per cent of the company to ensure the firm had strong leadership

after him! #e have the technical know how" the distriution" the randname and the

money" >r! 4hauhan said! I1m looking at this for the future" they will run the company W

that1s the asic idea!

=ottled drinking water in India" a country of one illion people" is a fast growing market

that is now worth some Rs (0 illion HX/00 million a year! Analysts expect India to

ecome a key market for +an one and -estle" and the uyer of a stake in =isleri" India1s

est known water rand" would have a huge advantage over other players!

+an one" producer of ,vian mineral water" said in >arch it is focusing on India" 4hina and

Indonesia for its ottled water usiness! -estle" which produces 6errier water" rolled out its

6ure 'ife ottled water" geared towards developing countries with unreliale municipal

water supplies" in (


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the water usiness anywhere in the world" he said! =isleri1s ottled water has een a

success in a country where clean drinking water is a ma&or health issue and water7orne

infections are common! >r! 4hauhan said his iggest reakthrough had een the launch of

a small half7litre ottle" priced at Rs 9 in (arch /00/!>r 4hauhan said the company" which has een investing heavily for

some years" could report a net profit this year! It1s a losing proposition still as we1re in a

very ig growth phase! This year we should e ale to make money" profit at the net level"

he said!

Pa1l#y B8sl#18 L8$8t#6: E=a!s8o! =la!s

6arley =isleri 'imited is undertaking a ma&or expansion to increase its manufacturing

facility as also to widen the distriution network! The total pro&ect cost is estimated around

Rs /:0 crore! .f this" Rs :0 crore will e utilised to expand the existing manufacturing

facilities wherein the ottling capacity would e douled to /00 million cases per day!

Around Rs /00 crore will e spent on increasing its distriution network five7fold over the

next two years! As a result" the company will have (07lakh retail outlets acked y a fleet

over 9"000 vehicles!

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6arley =isleri also plans to procure recycling plants from Fapan" for its 6,T ottles" and set

up at least two such plants in 4heney and +elhi at a cost of Rs five crore each y this year7

end! 4rushed and compacted ottles from other parts of the country will e transported to

the two plants and a etter part of the compacted 6,T will go into manufacturing polyester

yarn! Though the company plans to come out with an I6." two years down the line" the

present capital expenditure plan will e financed entirely through internal accruals!

Genie is out of the ottle! Indeed" the ottled water industry is one of the most thriving

sectors in India! The market is growing at a whopping rate of aout 99 per cent annually

and is expected to cross Rs! (0007crore mark within the next couple of years!

Almost all ma&or national and international rands have taken a plunge! 6arley?s =isleri that

virtually monopolised the ottled water market is now vying with -estle" 4oca 4ola"

6epsi4o" >anichean" *= and =ritannia! According to a national7level study" there are close

to /00 ottled water rands in India! -early 0 per cent of these are local rands!





virtually monopoli2ed the ottled water market is now vying with -estle" 4oca 4ola"

6epsi4o" >anichean" *= and =ritannia! According to a national7level study" there

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are close to /00 ottled water rands in India! -early 0 per cent of these are local rands!





virtually monopoli2ed the ottled water market is now vying with -estle" 4oca 4ola"

6epsi4o" >anichean" *= and =ritannia! According to a national7level study" there are close

to /00 ottled water rands in India! -early 0 per cent of these are local rands!

MINERAL ,ATER INDUSTRY > +URRENT MARKET S+ENARIO

A few years ack" the mineral water market had een crawling at the rate of 378C" or even

a lower figure! Indians carried drinking water in earthen pitchers" plastic or 6*$ ottles!

=ut increasing cases of typhoid and other waterorne diseases egan to e reported! In

addition to this" lierali2ation happened and the mineral water industry egan to e stirred

and shaken! The market started growing an astounding rate of over (00C per annum! The

fact that there were very few players in the market meant that their usiness grew y leaps

and ounds!

The market today has grown to Rs(( an! The organi2ed sectorWranded mineral water E

has only Rs 9n of market share! The rest is accounted for y the unorgani2ed sector" which

is dominated y small regional players! The market is still growing Eat a rate greater than

0C per annum!

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In the randed segment" 6arley?s =isleri is the market leader with a share of more than 89C!

6arle Agra1s =ailey comes a close second with market share of (9C! .ther ma&or players in

the market are Pes of itharas" Gaga of T7)eries" 5imalayan" 5ello" -estl%1s 6ure 'ife"

6epsi?s Auarian" 4oca74ola?s E insley 6rime" and $lorida etc!

)ensing the opportunity that this segment holds" >-4s egan to draw up plans to enter the

market! Today the market is proving to e yet another attlefield for an ongoing attle

etween the +esk1s and >ac1s! 'ast year the industry had around (;0 rands! This figure is

over 300 presently! The ma&or foreign players are 4oca74ola promoted kindly" 6epsi?s

Auarian" =ritannia?s ,vian" -estl%1s 6errier" 5erert sons and +an one International!

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IN+EPTION OF BISLERI

T?# o18"8!s o B8sl#18 l8# 8! Italy5 and the rand owes its name to founder $elice =isleri" an

Italian entrepreneur! In (


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In (


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PRODU+T PROFILE

Its a co$=l8$#!t ;#8!" "#!#18c to t?# cat#"o1y5 ;ut 8ts !ot


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MANUFA+TURING

A uick look at =isleri?s manufacturing reach indicates that it is represented across the

country E -orth accounts for 39C of sales for the industry" #est accounts for 30C" )outh

/0C and the ,ast (9C!

In order to e availale in untapped areas =isleri has setup (: plants located all over the

country E three7fourths of which are company owned! The alance is run y franchisees!

=isleri has 9 plants in the -orth" 9 in the #est E two of which were setup in the last year at

5eadand and )urat" 8 in the )outh and / in the ,ast!

The company has ottling units located in 4hennai" =angalore" Goa" 4alcutta" >umai"

+elhi" Faipur" *ttar 6radesh" 6un&a" Indore and -epal! The new plants are eing set up in

states like erala" .rissa" =ihar and -orth ,astern )tates" #hich hitherto have een

unexplored y the company!

It is also changing its production strategy and shifting to a (07hr production schedule with

sudden increase in demand planned to e met y additional production!

=isleri has planned to expand its operations y investing Rs! :0 crore in the up gradation of

facilities! The (/07ottles per minute H=6> capacity of the (: units across the country will

e increased to /80 =6>! 4onscious of the environmental implications of its 6,T ottles"

the company is to set up recycling plants at +elhi and 4hennai" each with an outlay of Rs!

90m! These well process 900 g of 6,T per hour! The processed

30


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>aterial will e an input for polyester yarn manufacturers! In centers other than +elhi and

4hennai" the company will setup crushing units to crush the used 6,T ottles!

The company?s expansion plans will see its water ottling capacity go up from the present

800 million liters to 900 million liters! 6arle =isleri 'imited H6=' is planning to invest Rs

/00 crore to increase its ottling capacity and doule its turnover! The expansion will also

increase the numer of company?s ottling plants from (: at present" to /9! The company

will set up all the new plants as green field plants! It doesn?t have any intentions to acuire

any existing plants!

3(


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BISLERI TAKES A SHOT AT SODA AGAIN

Diveat )usan 6into J >umai $e (arketing for the product is expected to start a little later" as the

company is working on getting its distriution in place!

#hile 4hauhan declined to comment on investments" the move comes at a time when

almost all key everage makers have extended their packaged water rands to categories

such as soda! Ramesh 4hauhan1s rother" 6rakash" who runs the rival 6arle Agro" maker ofmango drink $rooti" extended the =ailey name" used for his packaged water usiness" to

soda last year!

4oca74ola and 6epsi4o also have portfolios of soda rands" including inley )oda and

)chweppes Hoth from 4oca74ola and 'ehar )oda and +uke1s Hoth from 6epsi4o!

inley is the rand name of 4oke1s packaged water" while +uke1s" once popular in

>umai" was relaunched only last year y 6epsi4o in an attempt to capture markets with

regional rands! )chweppes" in contrast" is an international 4oke rand" known for its soda

3/
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39/99

portfolio" while 'ehar" though used y 6epsi4o for its food rands Hsuch as 'ehar Iron

4husti" which is a snack" is also at times used for everage products!

,xecutives at 4oca74ola and 6epsi4o said they were watching =isleri1s moves in the soda

market! =ut =isleri also has competition from eer makers such as ingfisher and )A=

>iller" who have soda rands as part of their surrogate advertising initiatives for their

mainline products! 4hauhan admits the competition is fierce" given the plethora of rands"

oth from estalished and regional players!

#hile the market for soda in 6,T ottles is a little over Rs (00 crore in si2e" smaller than

the returnale glass ottle segment" pegged at close to Rs 00 crore" it is growing at a faster

clip" owing to the sheer convenience of storage and usage!

4hauhan said special emphasis had een given to the packaging of =isleri )oda to drive

sales at retail points! =ut experts say the success of the rand will also depend on its

acceptance in the hotel" restaurant and cafe segment" where 6epsi4o and 4oca74ola are

strong!

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DIS+LAIMER

Access to and use of this site is su&ected to the discretion of =isleri and all applicale

laws! Pou may rowse this site for personal entertainment" information" education and

communication ut please read the terms @ conditions efore doing so! This )ite contains

many valuale trademarks" names" titles" logos" images" designs" copyrights and other

proprietary materials owned" registered and used y =isleri! =y accessing and rowsing the

)ite" you signify your acceptance of these Terms and 4onditions without limitation or

ualification!

1. Pou should assume that all materials" designs" texts and images Hcollectively" the?>aterials? contained in the )ite are either the copyrighted properties of =isleri

International 6vt! 'td!" unless otherwise noted or are the copyrighted property of third

parties! =isleri neither warrants nor represents that your use of >aterials displayed on the

)ite will not infringe the rights of third party not owned y or affiliated to =isleri!

2. Pou may download one single hard copy of >aterials displayed on the )ite for non7

commercial" personal use only" provided however" you do not delete or change the

copyright" trademark and other proprietary notices contained on the >aterials! Pou may notdistriute" modify" transmit or revise any of the content in any form without prior

permission from =isleri!

3. *nauthorised use of the >aterials is strictly prohiited and is a violation of the

rights of =isleri" including without limitation under copyright laws" trademark laws" the

laws of privacy and pulicity!

4. #hile =isleri International 6vt! 'td! uses reasonale efforts to include accurate and

up7to7date information on the )ite" =isleri makes no warranties or representations as to the

accuracy" correctness" reliaility or otherwise with respect to such information and assumes

no liaility or responsiility for any omission or error Hincluding without limitation

typographical errors" virus and technical errors in the content of the )ite! Though due care

has een taken to make the dataase completely reliale and error7free" =isleri claims

exemption from any liaility arising out of any such error in the dataase!

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5. In no event shall =isleri andJor its affiliates e liale for any direct" indirect"

punitive"incidental" special" conseuential damage or any damage whatsoever"

including without limitation damages for loss of use" data or profits" arising out of

or in any way connected with the use or performance of the =isleri wesite!

6. Information on the )ite is su&ected to change without notice! *se of and

rowsing the )ite is done at user?s own risk! -either =isleri nor any other party

involved in creating" producing or delivering the )ite shall e liale for any direct"

incidental" conseuential" indirect or punitive damage arising out of your access to

or use of or rowsing the )ite or downloading of any material" data" text" image"

video or audio from the )ite" including without limitation" damage to or viruses that

may infect your computer euipment or other property as a result thereof! #ithout

limiting the foregoing" everything on the )ite is provided to you ?A) I)? #IT5.*T

#ARRA-TP .$ A-P I-+" ,IT5,R ,Z6R,)),+ .R I>6'I,+"

I-4'*+I-G" =*T -.T 'I>IT,+ T. T5, I>6'I,+ #ARRA-TI,) .$

>,R45A-TA=I'ITP" $IT-,)) $.R A 6ARTI4*'AR 6*R6.), .R -.-7

I-$RI-G,>,-T! 6lease note that some &urisdictions may not allow the exclusion

of implied warranties" so some of the aove exclusions may not apply to you! 4heck

your local laws for any restriction or limitation regarding the exclusion of implied

warranties!

7. The Trademarks displayed on the )ite are registered andJor pending

registration in the name of =isleri or are used under license y its affiliates in the

areas where =isleri markets its products earing these trademarks! -othing

contained on the )ite should e construed as granting y implication" estoppels or

otherwise" any license or right to use any Trademark displayed on the )ite or any

license or right to use any other trademark owned y any other third party! In the

event that you misuse any Trademark in violation of these Terms and 4onditions"

=isleri will aggressively enforce its intellectual property rights to the fullest extent

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of the law" including the seeking of criminal prosecution! The use or misuse of these

trademarks or any other content on this site is strictly prohiited!

8. The copyright of the >aterials on this wesite elongs to =isleri and may e

copied and used only for personal and non7commercial purposes Hexcept as

previously authorised in writing y =isleri!

9. In the event that =isleri" from time to time" allows for discussions" chats"postings" transmissions" ulletin oard and the like on the )ite" =isleri is under no

oligation to monitor or review such transmitted information and assumes no

responsiility or liaility arising from the content of any such location nor for any

error" defamation" liel" slander" omission" falsehood" oscenity" pornography"

profanity" danger or inaccuracy of any such information! Pou are prohiited from

posting or transmitting any unlawful" threatening" lielous" defamatory" oscene"

scandalous" inflammatory" pornographic or profane material or any material that

could constitute or encourage conduct that would e considered a criminal offense"

give rise to civil liaility or otherwise violate any law! =isleri will fully cooperate

with any law enforcement authority or court order reuesting or directing =isleri to

disclose the identity of anyone posting any such information or material

3:


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PA+KAGING

Dariety is spice of life! Today for any usiness organi2ation to e successful it has to

provide its customers with the differentiated product that is a value uy for them! In order

to cater to the changing needs of the customers the usiness has to continuously come out

with the variants of the product so that it can target the maximum segments!

Today" Aua >inerals offers a variety of packaging optionsM (!/ liter" / liter" 9 liter" and /0

liter! The 97litre ottles account for 39 per cent of sales showing a growing health concern

among the Indian society! I liter ottles account for 30 percent of the share" whereas the 900

ml ottles taking up (9 per cent! The remaining si2es share the rest of the contriution!

The / liters ottles were introduced to slowly and steadily replace the conventional (7litre

ottles! This would give them an advantage over others! The 9007ml category was re7

focused as a trendy product" targeted at the teenage crowd and for the roadside consumers!

Aua >inerals is currently a supplier to Indian Airlines with (/97ml cups! The five7liter

packs" launched in +ecemer (


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FolloC8!" 8s a u8c o


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T?# olloC8!" =8# c?a1t cl#a1ly s?oCs t?# sal#s C8s# 68st18;ut8o! o t?#


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DISTRIBUTION

It?s ovious that availaility holds the key to the market! $or any product to e successful

the distriution system has to e really good! 'arge tracts of the country have not een

explored y the national rands" which explain the proliferation of smaller rands! =isleri?s

strategy is to uild a direct distriution system at an all India level! That means serious

investments in company7owned trucks and carts! 6arle hopes to doule its existing fleet of

(000 trucks! This would make it the largest fleet owner in the country! 4urrently" =isleri has

around 0000 retail outlets in the country with aout (/000 each in the >etros of +elhi and

>umai! It is intended to increase this numer to (0 lack outlets in order to expand rand?s

reach!

In order to service the home segment" the 9 litre packs are eing pushed through the route

of L$at +ealersL Hwholesale dealers who are retailers as well as stockist and serve as

supply points from where customer can pick the reuired uota! The customer can call the

fat dealer and place order for home delivery of the 97litre pack! (0 of these dealers are

already functional" and more are in the process of eing appointed! L The idea is to make

=isleri all pervasiveL! The company will invest approximately Rs! /00 crores to procure

/"000 trucks and hire the same numer of sales people y end7/00 to extend the penetration

of the rand!

The company plans to have its own distriution network in places where it has its own

plants! $ranchisees would manage the distriution in their respective areas of operation!

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AN IDEAL +ONSUMER FEELING

In order to ensure that the advertisements reach the target consumers in a most effective

way and egets right response from" it has to e ensuring that such advertisements are

presented in the right way! The following steps on the part of consumer may ensure that the

advertisements are on the right track!

Getting attracted towards the advertisements!

'istening and oserving the contents of the advertisements in full!

4ontinuous watching of the same over a period!

4omparing the advertisements of similar products!

'earning more aout the product" the producer and the advertiser!

>aking a trail purchase as follow up activity!

*sing the product as per the instructions!

Assessing the level of utility of the product individually!

Assessing the level of utility derived with other similar consumers!

4omparing the level of utility of the product with similar products!

+ecision7making regarding the continuous use of the product" and to recommend to

others" positively or negatively!

If not satisfied with the product discrepancy regarding the uality and the

characteristics of the product are to e taken to the knowledge of the producer and

the advertiser!

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ESSENTIALS OF EFFE+TIE ADERTISING

The measure of any advertisement is its effectiveness in reaching out to the consumersS

there are a few agreed principles" which govern the effectiveness of an advertisement! )ome

of the principles" which are the ingredients of an effective advertisement" have een dealt

here!

I$=o1ta!c# o cla8$:

The most important factor determining the effectiveness of an advertisement is the

importance of claim made in it! >any advertisements make important claims! =ut these

claims should e important for the consumer too! If a uyer gives importance for uality"

there is no point in speaking aout cheap price" similarly if cheap price is important the

advertisement should highlight only that! -owadays advertisement agencies concentrate on

*)6" i!e!" uniue selling proposition! ,ach advertisement must make a strong factual claim

to pull the consumer into the store to uy!

B#l8#


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mistake to depend entirely on uniueness! It should e followed y proper claims" and

elievaility! Typically advertisements whose ma&or o&ective is to gain rand recognition

and acceptance rather than gaining conviction or uying action rely on uniueness!

R#=#t8t8o!:

Repetition is one of the key concept of advertising! It is etter to have a long series of small

advertisement than one extremely long advertisement! Repetition is a asic principle of

memory! -aturally" the more times an advertisement is run" the more likely it is that any

person has seen one of the most advertisements recently! Repetition and regency are usually

closely related! In fact" an advertisement is etter read upon repeating" certainly repetition

lowers advertisement cost!

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SITUATION FAOURING ADERTISEMENT

It is imperative that the situation must e ripe for an advertisement to ear the fruits of

optimum return or reward! The advertiser must constantly assess the situation to choose the

right environment and ideal time for an advertisement to e launched! The conditions

favoring an advertisement are as followsM

#hen there is a favorale primary demand of particular product!

#hen there is a distinctive product differentiation from other competitive rands!

Availaility of favourale hidden ualities in the advertised products not found in

competitive products!

#hen mass market is penetrated!

6ossiility of powerful emotional uying motive is seen in the advertised product!

$avourale managerial personnel personal and company policies!

-on7,xaggeration of facts in product advertisement!

,ffective or systematic pro&ect work conducted for a particular product to e

advertised!

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A6


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Atmosphere of youth fullness! #ater" 6epsi claimed" was no longer a simple everage" ut

was something highly fashionale! They complimented it y giving their ottles an

attractive look! This soon caught the eye of the consumer! All these factors made 6epsi the

iggest upcoming competitor of =isleri H#hereas inley lagged ehind the race" showing a

doctor advising a family to take inley for pure water not a very attractive ad campaign!

=isleri" to counter7attack the new ?$eel7Poung? fever had to even older steps! They first

changed their ase line from ?6ure and )afe? to ?6lay )afe?! They tried a rand new ad

campaign to catch the fancy of consumer! The new ad showed a young romantic couple on

a marooned island" when the girl seductively attracts the guy and he follows her in trance!

The moment he gets hold of her" she whispers something in his ears! The next few shots

show the guy looking for something in fren2yV can not find itV! rushes towards the

chemist?s stopV! uys ?something? Heeping the audience in suspenseV!! or rather

implicitly pointing for ?VV?! The girl opens it andV!! 6..$V!! Takes out a ottle of

=isleri and uenches her thirst! +a=t8o!: Play Sa#. This campaign was to catch the

attention of youth and a new Indian )ociety which is supposed to e ?not7so7prudish?! Thus

=isleri has taken a very old step! The T!D! ads have een complimented y print ads also!

The company has to focus on the marketing management of the product! In light of the

challenge in front of the company and its current strengths and position" we have

incorporated the marketing mix to counter the marketing strategies of the competitors y

developing its own marketing!

8:


53/99

OTHER +OMPETITORS

The mineral water market is to set to explode and hit the Rs! /000 4r! mark in the next

couple of year! This draws the ig guns attentions! $irst =ritannia launched ,vian! And then

6epsi entered the fray with Auafina! Then -estle with pure life ut now with 6errier" pure

thrust meanwhile" 6arle Agro1s =ailey has een growing steadily! )mall local players are

reathing down =isleries neck riding on etter trade margins and intensive distriution Hin

their respective areas of operation! =isleri faces thought competition from these in

organi2e sectors

4oca74ola inley

6epsi Auafina

-estle

6arle Agro1s =ailey

8;


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MARKETING MI9

The set of controllale tactical tools E product" price" promotion" and place H8 6s and

company" competitors" consumers H3 4s7 that the firm lends to produce the response it

wants" in the target markets!

T?# (Ps

P1o6uct

The main product of the company is the mineral water y the name of =isleri >ineral

water! .ther than mineral water the company has also the soda water under its rand name

called the =isleri )oda #ater! The concept of ottled mineral water! =isleri has ecome a

perfect synonym of the mineral water for the Indian consumers!

The main challenge facing the company or any other player in this mineral water industry is

that there is no scope of invention and innovation in the product" which can e added as the

additional enefits of the product!

It is &ust water after all! This is what the Indian customers think of the ottled water! If we

are talking aout a product like television we can think that the innovations could provide

extra enefits derived form the product! $or example other than its core usage the product

can provide for Internet facilities using conversion!

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ARIANTS OF THE PRODU+T:

The company is offering wide variants of the product! These include the different uantities

availale of the product! )tarting from the Fumo pack H( lt! Far to the 900 ml! ottles! In

etween" it also has ( lt!" /lt! and 9 lt! packs!

In terms of another variant the company has also come up with small glasses of 300ml! that

are priced at Rs!3! per glass! The company has introduced these glasses for the social

occasions like marriages and get together! This again is very competitive in the price field

and also the customer is getting a convenient product with the enefit of purity at such a

low price! -ow the customers would not have to drink impure water served in unhygienic

glasses

Paca"8!"

The packaging of the product is an important factor in the marketing of the product! The

packaging of the product was asolutely accepted y the customers till now! =ut it has een

a long time the company has changed the packaging of (ltr! >ineral water ottle!

.ne of the competitors of the company" 6epsi" has mineral water y the name of ?Auafina?!

The packaging of the Auafina is creating the need for the company to change its packaging

and make it look more sturdy! The rand Auafina has een targeted towards the youth and

that is why they have made the ottle look more ?8=. =isleri would have to give a new look

to its product to stopping Auafina from snatching its market share!

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To +o!clu6#:

'ooking at the facts given aove the company according to us should" pay attention on the

packaging of the product so that it is ale to attract more customers!

)econd" the company should go for B1a!6 Et#!s8o!! The company should take the

enefit of the rand name it has created over a long period of time! It can introduce new

products in the category of everages!

Plac#

6lace stands for the company activities that make the product availale to the target

customers! To make the product availale to the target consumers a good distriution

network has to e there to support the good uality of the product! 5ere in the case of the

mineral water industry the distriution network is the important factor in eing

competitive and the catch lies in making water availale to maximum numer of places in

the country!

DISTRIBUTION NET,ORK:

The small7scale players uilt their sales y piggy acking on the generic category uilt up

y =isleri! It?s a attle that =isleri can win y sheer distriution muscle! .ne of the reasons

why =isleri is running strong in this industry is its strong distriution network uilt over the

years since its inception! $urther" =isleri plans to increase its distriution network over the

southern and eastern region" where it is ehind popular rands like Team in Tamil -adu and

in Andhra 6radesh!

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To +o!clu6#:

It is very important for the companies to understand that winners would e those who will

endure a strong regional presence! Therefore the company?s should take some immediate

actions to make presence in the whole country and more important is every hook and corner

of the states where they are present today!

P18c#

HA- ,4.-.>I4 $A4T.R A$$,4TI-G T5, =*P,R?) =,5ADI.R

6rice is the sum of values that consumer exchange for the enefits of having or using the

product or service! 6rice is the only element in the marketing mix that produces revenue!

All other elements represent costs!

In India" where the ma&ority of the population comprise of the middle7income group and

lower income groups it is not hard to understand that pricing is one of the most important

factor in the uying decisions!

=isleri has met the expectations of the consumers in terms of pricing the product and also

making the product availale in variations of litres" making =isleri oth convenient and

affordale!

The company is following a very aggressive pricing! Its product is availale at a very

reasonale price! 4ompany charges Re! ( for every (00 ml! This strategy y the company is

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very effective in the Indian context where the consumers are highly price conscious! The

company has come up with another variant of the product! It is (!/ It! =ottle that is priced at

Rs! (/ eeping the price fixed at Re! ( per (00 ml! the company has an edge over its

competitor Auafina recently launched y 6epsi that has priced its product at Rs! (0 for ;90

ml!

To +o!clu6#:

#e can conclude from the facts that the pricing strategy of the company is very competitive

and therefore the company is giving value to the customers for money!

P1o$ot8o!

>odern marketing calls for more than &ust developing a good product" pricing it

attractively" and making it availale to the target customers" companies must also

communicate with their customers" and what they communicate should not e left to

chance!

A 4ompany?s total marketing communications program7called its 6rogram E called its

6romotion >ix consists of specific lend of advertising" personal selling" sales promotion"

and pulic relations tools that the company uses to pursue its advertising and marketing

o&ectives!

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ADERTISING +AMPAIGN:

#hile designing the advertisement campaign" it is necessary to keep in mind the opinion

leaders! Pouth are the opinion leaders of the present time! And thus it ecomes necessary to

design the campaign keeping the youth in mind! The opinion leaders would further trickle

down the message to the less active memers of the society!

This is exactly what =isleri is doing! =isleri has started an advertisement campaign

stressing the point of purity and flaunting the right the company has over the reakaway

seal!

The company has tried to put the message across louder" y using the ad campaign that

catches the eye of everyone" specially the youth! .therwise" we find no reason of making

an advertisement of mineral water look like an advertisement of condoms!

MESSAGE +ONTENT OF THE +AMPAIGN:

=isleri that was looming for a differentiator decided to make the reakaway seal the symol

of purity! The tamper7proof seal was developed" around which the communication was

woven!

Apart from creating consumer pull with campaign" the company" to increase its sales would

have to do the sales push as well! $or that it would have to give the retailers and

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other stockiest high trade margins and incentives for keeping the product! This is very

important in case of this product ecause consumers would take up what is availale to

them at ease and whatever retailer is giving! =isleri has introduced attractive schemes to

push the 9 ltr! =ottles and margins are as high as Rs ! +etractors feel that" in the long run"

retailers will not push this! They say it?s a kind of dart oard game! Pou have to throw again

and again till you hit ull?s eye!

4ampaign stresses the safety provided y the reakaway seal y illustrating the ease with

which conventionally sealed ottles can e refilled and recycled!

The o&ective with the campaign would have een to highlight the tamper7proof seal and

create dout in the consumer?s mind of the purity of the other rands! That is" =isleri is the

only one that guarantees purity and keeps you safe

To +o!clu6#:

#e find that new advertisement campaign of =isleri is eye catching! This is what the

company should do! And also the company should make the message clearer to the

customers that it has the patent right over the reakaway seal! In the survey we found that

the consumers are aware of the reakaway seal ut are not aware that the company has the

patent right!

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Apart from a high dose of investments on expanding ottling capacities and an ad udget

that?s risen six7fold over last year" if =isleri wants to penetrate every possile segment of

the market" it can do that y introducing more pack si2es and estalishing the rand

strongly with trendy new packaging!

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@+s

+ONSUMER

The central uestion the company has to understand isM 5ow does consumer respond to

various marketing stimuli the company might use The company that really understands

how customers will respond to different product features" prices and advertising appeals has

a great advantage over its competitors! The uestion can e further roken down toM #ho

uys #hen do they uy #here do they uy #hy did they uy

,?o ;uysJ

In the survey conducted y us" we found that the middle income and the upper income

groups are the users of the ottled water! The lower income group is still dependent on the

water from wells and hand pumps! In the middle7income group also" people uy ottled

water while traveling!

Among the various income groups" there comprise the students" the office going executive"

tourists and the retired people!

)o the company should go in for strategies to target customer segments ased on appeal"

prices" convenient packaging and other characteristics conforming to the customer segment

the company is targeting!

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,?#! 6o t?#y ;uyJ

In the survey we found that the middle7income group uys mineral water while traveling!

At home or at the or at the work place they mainly use water filters that are installed! .r"

they use large pack of ottled water filters that are installed! .r" they use large pack of

ottled water like the &umo pack H( lt! y =isleri! The upper income group uses mineral

water only! )o" they constitute a large part of the total market!

,?#1# 6o t?#y ;uyJ

According to the survey conducted y us" the ottled water users uy the water from retail

outlets and also through tie7ups with dealers! 'arge consumers of ottled water like 5otels"

institutions" corporate order their water reuirements through dealers!

The small time ut freuent consumer uys ottled water from retail outlets!

,?y 6o t?#y ;uyJ

$or ovious reasons" soaring mercury levels are directly proportional to consumption of

purified ottled water! The asic reason consumers ask for ottled water is the safety! #ith

the growing health ha2ards in the country and as the people are ecoming more health

conscious they are ecoming more health conscious they switching over to ottled water!

This is the reason that the industry is growing at fast pace! The other reason after this is"

that the ottled water is convenient to carry! They can throw the ottles after use unlike

when they carry water from home!

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+ONSUMER +ON+ERNS AND PER+EPTIONS

The thinking here is that with consumer perceptions aout mineral water changing" the

rand =isleri has to R#8!


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Tast# o t?# $8!#1al Cat#1:

>any consumers want the mineral water to taste more like L#aterL! The consumer research

done y us revealed that consumers preferred =isleri ecause of its natural taste!

+OMPANY

-orth accounts for 39 percent of sales for the industry" west accounts for 30" south /0" and

the east" (9 per cent! =isleri has five plants in the north" three in the west" four in the south

and one in the east!

In order to e availale in untapped areas" 4hauhan is planning to set up manufacturing

units in =ihar and .rissa where =isleri has no presence as of now! 4urrently" =isleri has (8

manufacturing units E two of which were set up in the past one E year at Ahmedaad and

)urat!

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+OMPETITION

The mineral water market is set to set to explode and hit the Rs!/"000 crore mark in the

next couple of years! This is drawing the ig guns attention! $irst =ritannia launched ,vian!

And recently" soft drinks giant 6epsi entered the fray with Auafina! -ow" -estle too is

reportedly planning foray! >eanwhile" 6arle Agro?s =ailey has een growing steadily! )mall

local players too are reathing down =isleri?s neck riding on etter trade margins and

intensive distriution Hin their respective areas of operation!

The competition facing =isleri can e categori2ed into few rand names like

Pa1l# Ba8l#y

P#=s8 Aua8!a

+oca +ola K8!#ly

#ith 6arle?s =ailey eing the main competitor and second in market share in the organi2ed

market" =isleri faces tremendous competition from the unorgani2ed sector!

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AUAFINA

The advantage for Auafina is that though there are over 300 laels of ottled water in the

Indian market" few can e called rands! It is necessary to rememer that every product

with a name is not a randS even =isleri has ecome generic to this category!

It does note have any emotional values attached to it! )o there was no difficulty for 6epsi in

creating space in such a market" which is completely different from the soft drinks market"

where it will e very difficult for any new player to find a slot! )o the creative team at 5TA

virtually had and empty canvas to work on! And it came up with a campaign that did have

people talking! $irst" a series of teasers" followed y a film that showed healthy odies and

youthful people and" of course" lots of water!

Although Auafina is only availale in ;90 ml pet ottle" the pricing" at Rs!(0" is

competitive! And it is safe! In addition to the tamper proof seal" there is a reliale method of

checking whether the ottle has een refilled! The date of manufacturing has een written

on the cap as well as on the ottle! Thus a person who is refilling it would have to find a

matching cap and ottle" the proaility of which is very low!

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+O+A +OLA KINELY

4oca E 4ola &oined the race y announcing the imminent launch of its own rand of water

and" in the process" putting to rest rumors of its so called takeover of =isleri! inley is

targeting institutions! inley water was launched in August /000in one litre ottles for Rs!

(0 ut not een rolled out rationally! The water is prodrced at 4oca7cola1s three green field

manufacturing plants at =idadi near =anglore" +asna in *tter 6radesh And Goa! The

company plans to either add more water ottling operations or go for contract ottlig as it

goes national!

In )eptemer " 44I made an announcement that literally graed the headlines! 44I

announced that inley had overtaken the near7generic =isleri rand in terms of market

share! Buoting .RG7>ARGJA4 -ielsen data " 44I claimed that for the period Fuly 3("

/00/" inley1s market shar had een recorded at 39!( percent" against that of =isleri 38!8

percent! the peak summer months saw 44I rolling out inley in /00 ml cups! The cups"

priced at Rs! 3 each " were first rolled out in pockets of Gu&rat ! with this initiative in place"

the companuy is hoping to generate market share from the institutional segment such as

restaurants and hotels" caterersn " and transport channels such as uses and trains! 44I sad

it was douling the plants" franchisee operations and contract packers! Twa of 44I1s key

ottling partners" namely the Gandharis and Goenkas" Invested Rs! (0 4rore for a new

ottling wate plant in 6un&a for inley! Its consumers are also uality conscious and rand

loyal!

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PARLE AGROS BAILLEY

=ailey the rand that is owned y Ramesh 4hauhan?s rother 6rakash 4hauhan is very

popular in the southern part of India! )outhern part of India accounts for /0C of the sale of

the whole water market industry! =isleri would have a tough competition from =ailey since

the company plans to spread its presence in that part of country! Another thing that makes

the competition difficult for the company is the price at which it?s competitor is offering the

product! 'ike =isleri it also gives the ( lt for Rs!(0! The only strength point of the company"

which it can capitali2e" is its generic name! And also the company would have to enter that

market with a strong distriution ase! #e know the fact that fact that =ailey has grown at a

rapid pace using the route of franchising" which =isleri has not adopted! This is another

point" which the company would have to take care of to face the competiotion!

#e know the fact that =ailley has grown at a rapid pace using the route of franchising"

which =isleri has not adopted as yet! This is another point" which the company would have

to take care of to face the competition!

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+ON+LUSION

In every consumers mind =isleri is still the first preference! And rands like Auafina"

inley which are trying hard to capture the west +elhi market! =y the virtue of the price

strategy" distriution network and rand positioning! These rands are slowly capturing the

west +elhi! In over all if we see the #est +elhi Accord during the customer isleri is est

clean and pure rand and isleri give the more satisfaction ut kinley second largest popular

orn kinley is increasing in west +elhi market kinley is giving or any kind of facility all

example for dissert" more advisement!

To conclude the information which we got through the various sources! It is uite evident

that efficient promotion" physical distriution and proper communication can increase the

total sale of the company in a ig wat and an inefficient coordination etween all these

spoil the efforts made y sales force ! it is also very clear tha proper and systematic use of

limited resources can do wonder for the company!

As we have seen from the market survey that packaged drinking water industry is rery huge

and growing rapidly! The water market is going to reach Rs! /000 4r! Till the end of >arch

/00;! thus we can imagine how ig the water market is and imagine the growth in this

industry! This market is having large share of unorgani2ed sector! In water industry

production cost is very low! =ut the distriution cost of operations and make sure aout the

availaility of water!

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To increase the customers company should go upon this strategy ut only when it has

production capailities to give regular supply to their customers! As in this usiness most of

the customers give preference to delivering service and availaility on time!

=y the institutional Hhotel survey"dealers survey and the consukmers survey we got many

conclusions and found out the market share of the rands involved in this industry!

According to it [=isleri[ is the market leader having te market share of 88 C " inley its

nearererest competitor having its market share of 3( C" Auafina (9 C and other rands

are covering (0 C of their market share ! thus company should emphnasis more on its

advertisements" retailers and wholesalers margin! 4ompany should also have a keen

uality control system ecausren their reak7 away has een accepted y the pulic and if

sometimes the complaint comes then it will affect the sales of isleri!

Good distriution system! Auafina is also 3rd player in west +elhi a market share

kingfisher also present in west +elhi!

90 C =I)',RI

30C I-',P

(9C AB*A$I-A

9C I-G$I)5,R

=I)',RII)-,,+,+D,RP>*45

T.$I-+T5,-,#>AR,T)A-+-,#*),R)!

)6,4IA''PI-T5,#I-,)5.6)S )5,R,T5,R,I)

)5.RTAG,I-4.-)*>6TI.-!

45ART)5.#I-GT5,.D,RA''>AR,T)5AR,I-#,)T

+,'5I>AR,T)5AR,AT>I-,RA'#AT,R

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,?8c? co$=a!y coul6 a6o=t5 a1# as olloCs:7

&. T?# sot ta1"#t

)elling ottled water reuires constantly expanding the market! The company should also

target the market for soft drinks! All the soft drinks addresses three issuesM fun" thirst and

refreshment followed y status to some degree! The thirst and the status value of the

mineral water are well accepted!

There is very little the mineral water rand can do to add the fun element around the

product! Again here" it ecomes important for the company to have a good distriution

network! It should e understood that if the mineral water is easily availale everywhere

then it can e said with confidence that it would e ale to replace the soft drinks as thirst

uencher! If we try and look at the reasons that why consumers uy soft drinks as thirst

uenchersM we would find the answer as that either water is not availale or if it is availale

then safety is not assured! Therefore" acked y a good distriution network mineral water

industry can grow at rapid rate!

. G#tt8!" 8! s?a=#

The improvement the company needs is in terms of packaging! As we have already

discussed that the youth are the opinion leaders" therefore it ecomes very important for any

consumer product to make a mark in that generation" if it really wants to grow! The

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4ompany for that would have to come with packaging that is sturdier and portrays it self as

a hip rand!

@. D8st18;ut8o! !#tCo1

The need for improving the distriution network is not only when the company wants to

target the soft drinks market! If it wants to enter every part of the country and would face

competition from competition from competitors like =ailley it ecomes a prereuisite for

the company to have a strong distriution network! If we take the example of =ailley" we

find that this company has grown rapidly in the past and is still on that trend! .ne of the

important reasons for this rapid growth is franchising!

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FA+TORS AFFE+TING BUYING BEHAIOUR

Soc8al acto1s

Fa$8ly

,lders in the family would ask their family memers to consume mineral water to avoid the

health ha2ards! )o" purity of water is very important for them! Therefore" it is reuired that

the company takes care of purity with high attention!

Again" =isleri y its effective advertising campaign of the patented reakaway seal has tried

to ring aout a feeling of trust in the minds of the health conscious consumers!

There are certain other factors also" on which the uying of the customer depends! These

are the social factors constituting of the reference groups" asp rational groups and the

dissociali2e groups! )o it ecomes very important for the company to carefully choose the

target customer so that it can position itself according to that group!4onsumer survey and

results ottled water consumption

The customer survey was conducted at 4onnaught place" 'e >eridian" Restaurants and

4olleges!

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To study each of the ma&or customers segment vi2! institutions such as hotels"

restaurants etc!" retail outlets and final consumers!

To study the market share of packaged drinking water inS

Retail market"

Institutions H5otels"

4onsumers!

To determine the rand awareness and rand preference of the different segment and to

analyse the various segment preference for the packaging medium" ottle si2e and price

of packaged drinking water!

In my analysis" the customer is divided into four categoriesM

Ha General J provision store!

H ,atery shop Hsweet shop and restaurants!

H iosk shop Hpan J idi!

Hc .ther shop H=akery" dairy" net caf%" medical shop" etc!

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RESEAR+H METHODOLOGY

T?# $#t?o6olo"y o t?8s =a1t8cula1 =1o#ct ca! ;# u!6#1stoo6 8! t?#

olloC8!" st#=sM

$ormulation of o&ective statement!

$easiility analysis!

$arication of research process!

Research design!

+ata collection!

)creening of the collected data!

Taulation of the data!

)tatistical treatment!

.servation!

Graphical presentation and analysis!

'imitations!

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MEANIN OF RESEARCH

Research is an art of scientific investigation! The advanced learners dictionary

of current ,nglish lays down the meaning of research as - a ca1#ul 8!


78/99

explain why we are using them so that study results are capale of eing evaluated

logically!

Any research is ased on some facts" which aim to ring aout some fundamental insights

in the field" which have never een earlier presented in the same form! #e tend

To carry out the process enuiry with a careful and critical examination" diligent

investigation of the su&ect matter! the collection of the su&ect matter information from the

various sources helps us to generate a generali2ed conclusion! There has to e a

sophisticated framework within which such studies are carried out" the framework is known

as methodology!

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R#s#a1c? 6#s8"!:

The research design is the complete guidelines towards the execution of the research! in this

we have to determine the answers to some asic uestions! in this research study processes

after finding o&ectives" the research prolem @ design chalked out and next step is data

collection!

Ty=# o 1#s#a1c?:

P1#l8$8!a1y I!


80/99

Sa$=l8!" u!8t:

R#s=o!6#!tsM

)ervice man H(/0

=usiness man H90

Sa$=l8!" 6#s8"!:

)imple Ra!6o$ sa$=l8!"has een taken!

Data +oll#ct8o!

! The second stage of marketing research for calls for developing the most efficient plan for

gathering the needed information! +esigning a research plan calls for decisions on the +ata

sources" Research approaches" Research instruments" )ampling plan" and 4ontact methods!

M#t?o6s o 6ata coll#ct8o!:

T?#1# a1# tCo $#t?o6 o 6ata coll#ct8o! as:

P18$a1y 6ata coll#ct8o!:

The method used for the data collection would e

Buestionnaire

)chedule

Interview

!

S#co!6a1y 6ata coll#ct8o!:

Industrial profiles" maga2ines" &ournals" company records" newspapers and other

6rint media and electronic media like internet!

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Aove methods will e applied in comination so as to get maximum and accurate

output as far as possile aout the universe in the study discussed aove!

DATA SOUR+ES:

The research plan can call for gathering secondary data" primary data or

oth!

Ha P18$a1y 6ata7 it consist of original information gathered for the specific

purpose!

H S#co!6a1y 6ata7 it consist of information that already exists somewhere"

having een collected for another purpose!

I use oth the data in my pro&ect work such as secondary data for the information

gathered through the net" ooks and &ournals" and primary data through the market survey

which is possile y face to face interview of the customers J retailers!

IMORTANCE

&7 R#s#a1c? a==1oac?#s:

I used the survey method in

bisleri vs other mineral water.doc

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