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INDEX
SECTION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 CHAPTER NAME INTRODUCTION EXECUTIVE SUMMARY INDUSTRY PROFILE COMPANY PROFILE PRODUCT PROFILE PROJECT SCOPE PROJECT OBJECTIVE RESEARCH METHODOLOGY DATA ANALYSIS SWOT ANALYSIS OBSERVATION AND FINDING SUGGESTION LIMITATION CONCLUSION BIBLIOGRAPHY ANNEXURE EPILOGUE 45 46-48 49 PAGE NO 1 2-3 4-13 14-16 17-22 23 24 26 27-38 39-40 41 42-43 44
INTRODUCTION
Management training has gained rapid and tremendous importance over the past few years. Management was previously considered as in born art or talent, but in todays fast developing world, this has been modified. I undertook sixty days(starting from 2nd June to 1st August.) marketing training in Bisleri International Pvt. Ltd. as an essential and obligation part of master program in marketing management , curriculum Institute of Business Management & Research. Bisleri International Pvt. Ltd., a name that in itself spells out a saga of valued managerial tradition, work culture and professional cannon, can make any one by every reason to be proud of being its part in one way or the other. The summer training was quite interesting, inspiring, satisfying, learning and academically awarding. I deem it as a matter of great fortune to get industrial training at Bisleri International Pvt. Ltd.
EXECUTIVE SUMMARY:
This report aims to highlight at all the major finding of the survey done on Market Potential of Bulk water pack of packaged drinking water brand BISLERI; from Bisleri international Pvt Ltd. So that any person interested can get whole idea of the topic with reference to the company. All attempts have been made to make the report simple, precise and flexible. It covers up all the major activities and analysis done in the survey. The report begins with a briefing of the Global Bottled water Industry, the meaning; market; demand structure; growth and controversies surrounding the bottled water industry worldwide. The project also gives a glimpse of the company history, profile and business areas including markets, and also categorized and overview Bisleri international Pvt Ltd. TOPIC: The assignment which was assigned to me by the company was to DETERMINTION OF MARKET POTENTIAL OF PACKAGED WATER BRAND BISLERIS BULK (20 LITER) PACK
OBJECTIVE AND SCOPE OF PROJECT: The ultimate purpose of this project is to analyses the potential of the bulk pack and to provide data about the current market share and existence of BISLERI. We aim to provide recommendation which will help the company increase its market share and tap new markets. We also analyze the strategy of the leading competitor on comparing the service offerings and warranty offering.
RESEARCH METHODOLOGY: The Company divides or segments its market into two major categories for their bulk packages, which are residential buyers, and corporate buyers.
CORPORATE AREA: The areas were given to us PCMC and Nigdi for survey. I did survey in all of the above mentioned areas. To gives as overview of the importance of the above mentioned area for corporate survey comprises of Bhosari where numerous of industry are scattered. RESIDENTIAL AREA: The residential survey region was also carefully selected. The basis of selection was the real estate property value and the lease value per sq ft. The area selected was a prime real estate spot of high value which comprised of residents of higher middle classes and high income classes. I visited approximately 100 residences for survey of residential buyer in the above mentioned areas. I visited approximately 100 companies for corporate buyer market survey in the above mentioned areas.
FINDINGS: The result of the study research pointed out certain key findings which are mentioned as following.
RESIDENTIAL MARKET:
Residential market for bulk package is dominated by BISLERI with a market share of 43%. Residential market customers are unaware about Brand positioning requires a rethinking and USP is not properly communicated.
TAT must be improved
CORPORATE MARKET:
COOLSPRING has got the largest sales volume. Other brands with substantial presence are GOODWILL, MCDOWELLS. BISLERI has got the largest customer base. COOLSPRING has adopted the mktg. strategy of variable and local prices. COOLSPRING is a local brand and enjoy personal and local contact. Unlike BISLERI provides free accessories to the client.
CONCLUSION: In totality BISLERI has developed and is developing a niche market for itself in corporate as well as in residential market. However, aggressive marketing and price war by other leading brands may threaten the market share of BISLERI. Therefore, it is advisable for BISLERI to stay low and retain its market share in corporate sector. Numerous efforts can be taken for residential market sector. Some of them are pointed out under research findings and recommendation topics.
In developing counties, demand is driven by factors including the lack of potable groundwater in many areas, the lack of reliable or safe municipal water in many urban areas, chemical and organic pollution of ground and well water, and convenience relative to boiling or otherwise treating accessible but potentially contaminated water.
Advertising also contributes to water sales in developing countries. Through bottles water may provide an alternative to unsafe drinking water. .It does so for those able to afford it; many of the worlds poorest people cannot afford bottled water (** UN World Water Development Report 2006). In 2004, the US bottled water industry surpassed 608 Billion gallon of water for that year, an increase of 806% over the previous year (**Beverage Marketing Corporation.2005)
Markets:
The United States is the largest market for bottled water, at 26 billion liters in 2004. On average, this is one 8-ounce glass per person per day . Italy has highest average consumption per person, at two 8-ounce per person per day.
The annual global consumption of bottled water in 2004is 154 billion liters, up 57 percent from the 98 billion liters consumed five years earlier. Through the materials used are generally recyclable, 90% of bottles are not recycled.
The Pacific institute calculates that the process of making the plastic for the water bottles consumed in U.S. uses approximately 20 million barrels of oil per year (Harper Magazine, July 2007). Overall , the average enrage cost to make plastic, fill the bottle, transport it to market and then deal with the waste would be like filling up a quarter of every bottle with oil. (Peter Gleick, an expert on water policy and director at the Pacific Institute in Oakland, California. (Seattle P.I It also takes water to make a bottle , if a container hold 1 liter it requires 5 liters of water in its manufacturing process ( this includes power plant cooling water). The total amount of water use to produced and deliver one bottle of imported water has been calculated to be 6.74. Once you have created the bottle and filled it with water, the next environmental impact is the large amount of fossil fuel used to deliver the water from its source to end user by means of ground transportation. Some bottled water is transported long distances by ship in addition to the distances it travels by truck or rail. It takes a fair amount of oil to move a plastic bottle from where it is made, to where it is filled, then to the store, and finally consumers hand. 250g (0.00025 tons) of GHGs are released for each imported water bottle. The local effects of tapping the water sources are also of concern. Because of the high demand companies like Perriers Zephyrhills are requesting to increase their pumping from a spring on a privet ranch in central Florida by 600 percent in the next 10 year. The request was denied by a judge ruling that pumping could imported water bottle. On a local level, water bottlers may adversely affect ground water levels. If they bottle more water than is naturally replenished. Rivers are delicate ecosystems. Tapping spring and aquifers even on a small scale can alter the movement of sediment in nearby streams, which can in turn disrupt the food supply for fish and other wildlife. Its a very complicated system, and we dont have a very good predictive understanding of how the properties of river channel will be affected [by large scale pumping],warns Kurt Cuffed, assistant professor of geology at the University of California at Berkeley. Saltwater intrusion is another problem with tapping aquifers in coastal areas. In healthy ecosystems along coastal areas there is a natural flow of groundwater that pushes freshwater out
against the saltwater, creating a kind of sea wall. When the groundwater is being over used and the flow falters as results the saltwater will begin to creep underground, ruining drinking water, wetlands, and crops. Saltwater intrusion is already a problem in parts of coastal California, Florida, and New York as a result of the demands including water for bottlingbeing made on local water supplies.
(B)Economic impact:
The economic impact of bottled water consumption is especially relevant in developing counties. Where tap water is often of poor quality and where, even if the quality of tap water may be acceptable. It is often difficult to obtain reliable data on the quality of tap water. Therefore those who can afford it do not want to take a risk and switch to bottles water, usually of the type sold in large bottles of 5 gallons. Bottled water use is especially high in counties such as Mexico and Brazil (see above). While the poorest cant afford bottled water and richest face little economic constraints in buying bottled water, the cost of bottled water is a significant burden for middle-class households in many developing counties . For example, sales of bottled water in Mxico are estimated at 32 billion Pesos (US$ 3bn) in 2005, or about US$ 135 per household, which is about twice the level of the average tap water bill. If these funds were available to water utilities they would have the financial means to improve significantly the quality of tap water. The Wall Street Journal, after seeing the incredible demand for bottled water, is considering it the next best thing to oil and gold. In 2004, Andrea Petersen wrote in the Wall Street Journal that for the first time, Americans are expected to buy more bottled water than beer or coffee. Sales of bottled water reached $7.7 billion in 2002, up 12% from 2001, according to Beverage Marketing Corp; a New York based consulting company. Bottled water is a big business and with the current trend, everyone trying
to get a piece, the individual states and counties are beginning to voice their objections. Many states have voted the big companies not over pump on their soil. In Ontario, Canada, a fee has been aimed at commercial and industrial water users to contribute to the cost of managing the water supply. The fee has been dubbed a cost recovery regulatory charge. Those charges are explicitly stated as not a tax but as a fee to create a more sustainable system. Polaris Institute Another concern is the privatization of water. The United Church of Christ, United Church of Canada, National Council of churches, National Coalition of American Nuns and Presbyterians for Restoring Creating are among some of the religious organizations that have raised questions about whether or not this is ethical. They regard the industrial porches and repackaging at a much higher resale price of a basic resource as an unethical trend.
doctors. However, most people continue to cook with common tap water and this is through to potentially provide sufficient fluoride to maintain normal prophylaxis in many instances. Any other mineral in tap water such as calcium and magnesium are present in such minuscule amounts that their absence is compensated for many thousand of times over by other dietary sources. On the other hand, some people wish to avoid exposure to fluoride, particularly, systemic ingestion of fluoride in drinking water, and may choose such bottled water for this feature. Bottled water is typically printed with expiration dates, even if the water itself is pure, a plastic container may leak chemicals such as phthalates or Biphenyl A into the bottled water. Storage in cool and dark places helps reduce leaching of these chemical. Industry association claim bottled water can be used indefinitely if stored properly. If the original water bottled is not pure, especially if it contained biological contaminants, and then water quality will continue to degrade regardless of the storage container or conditions.
India is the largest bottled water consumer in the world in 2002, the industry had an estimated turnover of Rs.10 billion (Rs.1, 000 crores). Today it is one of Indias fastest growing industrial sectors. Between 1999 and 2004, the Indian bottled water market grew at a compound annual growth rate (CAGR) of 25 per cent- the highest in the world.
With over a thousand bottled water producers, the Indian bottled water industry is big by even international standards. There are more than 200 brands, nearly 80 per cent of which are local. Most of the small-scale producers sell non-brands and serve small markets. In fact, making bottled-water is today a cottage industry in the country. Leave alone the metros, where a bottledwater manufacturer can be found even in a one-room shop, in every medium and small city and even some prosperous rural areas there are bottled water manufacturers.
Despite the large number of small producers, this industry is dominated by the big playersParle BISLERI, Coca-Cola, PepsiCo, Parle Agro, Mohan Meakins, SKN Breweries and so on. Parle was the first major Indian company to enter the bottled water in the country when it introduced BISLERI in India 30 years ago. The rise of the Indian bottled water industry began with the economic liberalization process in 1991. The market was virtually stagnant until 1991, when the demand for bottled water was less than two million cases a year. However, since 1991-1992 it has not looked back, and the demand in 2004-05 was a staggering 82 million cases.
Bottled water is sold in a variety of packages: pouches and glasses, 250 ml bottles, 500 ml bottled, 1 liter bottled, 2 liter bottled, 5 liter bottled and even 20 liter bulk water packs. The formal bottled water business in India can be divided broadly into there segment in terms of cost: premium naturally mineral water, natural mineral Water and packaged drinking water. Premium natural mineral water includes brands such as Evian, San Pellegrino and Perrier, which are imported and priced between Rs.80 and Rs. 110 a liter. Natural mineral water, with brands such as Himalayan and Catch, is the biggest segment and includes brands such as Parle BISLERI. Coca-Colas KINLY, PepsiCos Aquafina. They are priced in the range of Rs. 10-12 a liter. Attracted by the huge potential that Indias 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. Today they have captured a significant portion of it. However, Parle BISLERI continues to hold 40 per cent of the market and Aquafina approximately 10 per cent. The rest, including smaller players, have 20-25 per cent of the market share.
Consumption of bottled water in India linked to the level of prosperity in the different regions. The western region accounts for 40 per cent of the market and the eastern region just 10. However the bottling plants are concentrated in the southern region- of the approximately 1,200 bottling water plants in India, 600 in Tamil Nadu. This is a major problem because southern India, especially Tamil Nadu, is water starved.
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:
Our 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.
Our 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.
Our values:
Integrity, Quality,
ADVERTISEMENT:
Works out the plan for local advertising ascertain the purpose of advertising, the objective and result expected. Get the art work approved by the corporate office before releasing any advertisement in local channels dailies or magazines. Support the advertising by ensuring prominent display and good availability of the product. Display could be of two type: paid & unpaid form.
SALES EXECUTIVE
PILOT SALESMAN
DISTRIBUTOR SALESMAN.
Perhaps no body will try to waste a single drop of water if it is bought after paying US$0.22 for a liter. Through the motive behind buying packaged water is to enjoy safe and pure drinking water.
Step 1:- MULTIPLE BARRIER TRETMENT: Source of the water id disinfected from microorganisms and metal Treatment by Chlorination. The water is first sent to a Raw Water Tank, where it is chlorinated-to remove bacteria. After this step, it is dosed with mild chemicals in a coagulation tank, to remove finer particulate matter. It is then piped into a specially tiled Clear Water Tank. This done, a Pressure Sand Filter removes the larger particulate matter. And then, two sophisticated Carbon Filters dissolves any existing chlorine and Organic matter.
Step 2:- REVERSE OSMOSIS PROCESS (RO): Molecular filtration is done by one of the methods of Either reverse osmosis or coagulation. The Reverse Osmosis process remove dissolved salts from water. This is done through pre-filters, a high pressure pump, imported membranes, high pressure housings and advanced instrumentation.
The water now ultra-pure. Our Mineral Injection System then injects a specific amount of quality mineral salts into it.
Step 4: FINE FILTERATION STAGE: Here, Micron Filters are used to achieve filtration levels as precise as 0.22 microns. Step 5: OZONATION PROCESS: The Ozonation process-uses Ozone-to keep the water bacteria-free till the bottles are capped & sealed.
Step 6: FILLING PROCESS: Bottles are fed by an air conveyor from the blowing unit directly into the in-feed of the RFC. Our RFC equipment is neck run and it boasts of a monoblock unit, which means that every bottle is held by the neck automatically while being inverted, rinsed and sprayed with ozonated water at 2 bar pressure. After draining, the bottles are re-inverted and transferred to the filler. At the filler
these bottles are straightened up and gradually lifted to the filling valves which open only when a bottle is placed under them. Filling is then done systematically through gravity.
Step 7: DATE CODING PROCESS: BISLLERI bottle is Date-coded with the exact time of manufacture and other details with an automatic date code machine. So that it can be immediately traced back, in the unlikely event of a complaint.
BISLERIs seven steps to Perfection are only a beginning. Also of interest is the fact that our plant is kept absolutely clean with the sophisticated Cleaning in place procedure. You should know that our Quality Assurance Department performs 42 tests on a batch before releasing it to the market. Now, you know why BISLERI delivers on its promise of The Sweet Taste of Purity.
PRODUCT PROFILE:
A product is anything which can be offered in the market to satisfy a want or a need. A product will be successful if it delivers value and satisfaction to the targeted buyer.
Bisleri have developed 8 unique pack sizes to suit the need of every individual. Which are present in 250ml cups, 250ml bottles, 500ml, 1L, 1.5L, 2L which are the non-returnable packs & 5L, 20L which are the returnable packs.
Bisleri with added Minerals:Bisleri Mineral Water contains minerals such as magnesium sulphate and potassium bicarbonate which are essential minerals for healthy living. They not only maintain the pH balance of the body but also help in keeping you fit and energetic at all times.
250 ml cup & 250 ml bottle. 500 ml bottle. 1 ltr. bottle. 2 ltr bottle. 5 ltr jar. 20 ltr jar.
Its produced in state of the art plants under strict quality norms. The source of water is underground natural springs, which are at least 50m (150ft) below the surface so that the water is well protected from contaminations. The source water is protected and checked daily to ensure consistency. Every bottle is put through a rigorous ozonization finally minerals are added. The total mineral content is 100 ppm. Aquafina have a very low mineral convent of around 20ppm. which is far below the level required by the human body.
Comparison of total mineral contends of bisleri mg/ltr (ppm) as compared to the other premium brand:
Therefore all bottles are made in-house to ensure sterility of the container that is filled in automatic plants under very hygienic condition.
20 LITRE
5 LITRE
2 LITRE
1.5 LITRE
1 LITRE
500 ml
250 ml
In short the project in BISLERI INTERNATIONAL PVT. LTD. was made use profitability. I learn a lot from this project work.
OBJECTIVE OF PROJECT:
The researches are always conducting for a reason and have some objective. And therefore every research has some objective to fulfill. Objective of my research is to find out:-
Determination of market potential and position of BISLERIs BULK (20- ltr.) water pack in Corporate Market & residential market.
RESEARCH METHODOLOGY:
The study was exclusively based on knowing about the customers who drinks mineral water and to know the brand of which preferred by the customers and also to know awareness about the bulk (20 ltr) bottle of bisleri among the population of Nigdi, Akurdi and PCMC area of Pune. The study is limited to areas only.
Population
A population is defined as the totality of the entire possible customer who drinks mineral water. Such a specified group of people are called as population. Here the universe is the entire population of Nigdi, Akurdi and PCMC area of Pune.
Sampling Method
For this study the Convenient Sampling Method was adopted. The samples were taken randomly basis from the population. Therefore the research is exclusively based on methodology only.
Sampling Design
The Samples were actually taken convenient basis from different parts of the population. And so population was divided into following major areas: NIGDI PRADHIKARAN AKURDI BHOSARI CHINCHWAD And PIMPRI
From all given FIVE areas we selected 20 customers from residential area and 20 organizations which consume mineral water.
Therefore in total, I got 100 samples from residential area and 100 corporate samples for the data collection. The area chosen for corporate was on the basis of recommendation, prior knowledge and observation.
DATA COLLECTION
Data
Primary Data
Secondary data
Primary Data Primary data are obtain by a study specially design to fulfill the data needs of the problem at hands. Such data is original in character and are generated in large number of survey conducted by( me) individual research body. .
Secondary Data Data which are not originally collected but rather obtain from published or unpublished sources are known as secondary data. The choice between primary and secondary data on the following factors: Degree of accuracy required Nature and scope of required The collection agency i.e. whether an individual institution or government body Availability of financial resources Availability of time
Questionnaire
Questionnaire I prepared a questionnaire for corporate market survey & residential market survey. The questionnaire takes approximately 10 minutes to complete. It covered the following categories. Name of the company & address with contact details of contact person. Type of water used by the company. No of Employees/ No. of Family Members. Brand of water being purchased & used. Price of Jar of the competitor. Monthly usage of water. Type of Dispenser used ownership of Dispenser and cost involved if leased. Level of satisfaction with the existing brands, terms of payment. Whether interested in shifting to BISLERI.
The secondary data was collected from the bisleri sales manual and from websites.
ANALYSIS OF DATA:
As can be seen in the questionnaire we circulated, open ended questions mixed with multiple choice questions eliciting answers were put to our respondents. The data collected is again a mix of qualitative and quantitative data as other questions regarding the satisfaction level, brand awareness, brand positioning were asked and are taken into consideration. Simple statistical and mathematical analytical tools are used for analysis of data graphical representation of data has been done to picturesque the analysis. The analysis is further segmented for ease of presentation and is accompanied with respective concurrent graphs to provide a distinct view of the following. Analysis of usage preference of water in corporate and residential market. Analysis of market presence of brand(s). Analysis of sales Volume of Market leader in the given regions and comparison to BISLERI. Pricing policy and strategy of the market leader.
The analysis is done on basis of information collected from corporate and residential market survey conducted with the data statistics and observation and judgmental analysis of researcher. Judgmental analysis used to analysis non quantifiable data i.e. qualitative in nature.
Observation table
Source of water Filtered water Municipal water Boiled water Packaged water Total No. of respondent 53 10 7 30 100 %age of respondent 53% 10% 7% 30% 100%
60
50
10
Interpretation
As shown in the graph; the highest percentage of residential, surveyed are using water which has been purified with any electronic of other purification or filtration system. Therefore the majority of population surveyed is filtered water user at 53%. These respondents are happy with the performance and mentally satisfied with the quality of water that is produced by their respective purifier, and showed no interest in switching to any packaged drinking water.
The 2nd category of respondent are using the municipal water; are also high in percentage 10%. these respondents do not use any kind of filtration or purification system and are anyway satisfied with the quality of municipal drinking water. The 3rd category is of respondent using boiled water and these respondent are 7% of the total respondent The 4th and last category is of respondent who are consuming packaged drinking water of one or other brand for their daily drinking purposes. The percentage respondent in this category is 30%. The no. of respondent in this category is 2nd highest.
Further analysis of data showed that the following brands are present locally and are being used by residential customers. These are:
NO. OF USERS 14 7 2 2 0 5
The above tabulated data is better represented understood in percentage form and with the help of a graph.
The graph shown above describes that the BISLERI has got the strongest position in the market with a whooping 46% shares which is followed by OXYRICH which has a market share of 23% which is exactly half of the share of 23% which is exactly half of the share of BISLERI.
Another greater share of pie is held by various small miscellaneous brands. ZEE has a7% market share in the residential market.
(ii) Who got the biggest share of pie? (the market leader)
The packaged water brand of BISLERI is the market leader with a market share of 46% which is just double to the next close competitor OXYRICH at 23% and approx. 6 times more than the share of KINLEY. There are other local brands too which account for 7% and 17% of the market. These are promoted by the local grocery stores.
(iii)
REASONS:
Brand name and positioning: BISLERI is the most trusted brand and has become a generic name for packaged water in India for a very long time in fact they are the pioneers of packaged drinking water in India. BISLERI also enjoys greater market share because of its established channel of distribution. The company has around 35 manufacturing centre and about 120 distribution centers touching over 3.5 lacs retail outlet around the country. BISLERIs network is well into the villages and the paanwalas from one of its biggest chunk of distributors.
substantial advertisement and brand awareness. Easy accessibility of other brand at local grocery store.
Quick fast and better service provided by local grocery stores in terms of TAT
and Credit facility. Sales promotion of other brands by the storekeepers. Premium pricing policy of Bisleri @ Rs. 65 compared to other brands of Rs. 50-60. People can not differentiate (psychologically) in different brands.
Lack of knowledge about where to approach for bisleri bulk water pack.
Graphical representation:
Conversion towards Bisleri
80% 70% 60% 50% 40% 30% 20% 10% 0% yes no
80%
20%
REASONS:
rather than price quoted. And if they are getting at the same rate a branded product they are going to sift towards Bisleri.
When the respondents were questioned about the drinking water source that are currently using.
No of respondent 85 5 10 100
Interpretation
As shown in the graph; the highest percentage of corporate respondents surveyed, are using some packed drinking water. Therefore the majority of population surveyed is bottled water user. Most of the respondents are happy and satisfied with the quality of water and service of provider that they are using; however most of them did show interest in considering brand BISLERI and to start of the preliminary talks and negotiations before entering in a contract.
The 2nd category of respondents uses the municipal water; these are nominal in no. & percentage (5%). These respondents do not use any kind of filtration or purification system and
are anyway satisfied with the quality of municipal drinking water; again these companies are small companies with few employees. And the last category of respondent uses filtered water which is lower to 10% only.
BULK PACKAGED DRINKING WATER PRICINGS OF DIFFERENT BRANDS: Further analysis of data showed that the following brands are present locally and are being used by corporate customers and are sold at different prices. Companies are following multiple pricings policy for corporate consumers. The price difference of prices may be affected by certain variables working in the background. Some of these are:
VARIABLES DETERMINING THE PRICE PER JAR: Qyt. Demanded. Expected repeat order. Payment terms Continuity of repeat orders. Expected increase in qyt. Demanded. Agrees TAT of supply
Provision of accessories (dispensers) on complementary basis or lease.
Observation table
Following brands are found in use by the corporate respondents during the survey: BRAND NAME BISLERI ZEE MAX KINLEY COOLSPRING MC DONELLS GOODWILL OZORICH OTHERS (BALLEY, RAJHANSH) PRICE PER JAR Rs. 65 Rs. 45-65 Rs. 55-65 Rs. 55-65 Rs. 30-57 Rs. 35-55 Rs. 50-60 Rs. 45-55 Rs. 50-60
Let us see it in from of a line graph to understand the variation of price in a better way
70 60 50 PRICE 40 30 20 10 0 Bisleri Max Coolspring Goodwill BRAND Others Max Price (Rs) Min Price(Rs)
Interpretation
As shown in the graph above, competitive brands have adopted multiple pricing policy with corporate client and vast variation in prices i.e. maximum & minimum, are there to be seen. As per the analysis it is clear that COOLSPRING is the biggest negotiator with prices and has almost started price warfare in the bottled market industry. COOLSPRING is selling the bulk pack of 20 liter at rates as low as Rs.28.50 per jar and as high as at Rs.57 per jar which is still lower than the general price level of Rs.65 of BISLERI. The analysis for BISLERI stands that it has adopted a rigid pricing policy and selling at Rs.65. it has kept out of the price warfare and is selling on combination of the following; brand name, product quality, USP and more customers purchase it in smaller quantities. Customers having low level of daily usage of around 2-5 bottles. KINLEY has also shown a bit of flexibility with price. The maximum, Price quoted by KINLEY is Rs.65 and the lowest is Rs. 55 per jar. The difference is of Rs.10. For rest of the brands like GOODWILL, MAX, MCDOWELLS and OTHERS; the difference in Minimum and maximum price is around Rs. 10-15 only.
Free Accessories like dispensers. Logistic service has better wings and TAT. Advantage of being a local brand and has numerous local connection.
When the respondent were asked about the product preference most of them preferred to the coolspring because of it low price which shows the carporate users are much concern towards price rather than brand & quality.
Observation table:
Brand of water Bisleri Max Kinley Oxyrich Goodwill Coolspring Mcdowells Others Total No of respondent 18 9 15 4 5 16 5 13 85 %age of respondent 21% 11% 17% 5% 6% 19% 6% 15% 100
Graphical representation
Bisleri Max
6%
15% 11%
Others
21%
Interpretation
As shown in the graphical representation BISLERI has a scored a whooping 21%, and hence is used by maximum no. of corporate clients. To follow is COOLSPRING with 18%, KINLEY with16% and then there is a cluster of other small market players which collectively account for 15%. These brands include ZEE, RAJHANSH, BALAJI, SAVY, AZNET, EURO& SPARK. Max is another player which is being used by 11% of the respondents. There are other 2 brands with significant presence of 7% each named McDowells & Goodwill. However, the market presence or the greater percentage no. of clientele dose not ensures market leadership or bigger share of pie in the business. It is determined by the volume of business done by each brands.
The same has been the case here; BISLERI though scored a greater no. of clientele in the survey than any other brands but still is not the market leader.
Observation table
Brands Coolspring Mcdowells Goodwill Max Kinley Bisleri Oxyrich Others Total Weekly sales of each brands 3776 1007 314 126 252 378 189 251 6293 Sales volume in %age 60% 16% 5% 2% 4% 6% 3% 4% 100
Graphical representation :
A graphical representation establishes the leading brands as COOLSPRING in terms of volumes. There are other different brands present in the market too but the kind of volume traded by and market COOLSPRING has captured is phenomenal and unmatched.
3% 6% 4% 2% 5% 16% 60% 4% Coolspring Mcdowells Goodwill Max Kinley Bisleri Oxyrich Others
Percentage analysis of volume of business done by various brands shown in the graphical representation above the percentage volume of business done by COOLSPRING is 66% and it much more than any brand present in the market. It also shows a clear cut strategy of COOLSPRING to mass market its product and marketing strategy to bulk dealing. There are hardly any clients with COOLSPRING where the weekly supply is less than 14 jars. However BISLERI, which has niche market, dose supply even 7 jars per week to certain clients.
60% 50%
Yes No
0%
Yes
.
No
REASONS:
As corporate respondent their dealership had been set up and are also getting satisfied service with their previous distributor and so they dont want to change to other because of only brand name. Instead of quality they are much concern to their relationship with the distributor.
SWOT ANALYSIS:
The abbreviation SWOT stands for STRENGTHS, WEAKNESSES, OPPORTUNITIES & THREATS. A SWOT analysis is done to find out a companys current position to determine its vulnerability and standing against competitors and the strategic decision made by the competitors which create a weakness and which in turn might turn into a threat in future. Here I would do a SWOT analysis for BISLERI. STRENGTHS Brand name of Bisleri ensures quality and world class standards and immediate recognition and acceptability in the market. Unique and better taste. Specially made jars (eco-friendly) can be added to the USP. Unique Process of Reverse Osmosis can be communicated and advertised to add to the quality dimension. Direct to Home Service; it has eliminated the channel members and hence benefits (financial) can be passed on to the consumers.
WEAKNESSES The yardstick for measurement of service performance and quality of product is higher. Rigidity of pricing; no multiple pricing policies like other brands. Eliminating channel members shortens the reach. Direct marketing requires a lot of resources and focus which in turn affect the product and other associated activities.
Premium Pricing Policy of BISLERI brand has adverse effects on volume of sales as corporate clients are interested in better deals. Cost of production is higher compared to other brands. Elimination of channel members is more than a necessity than a choice of action as the margins for them are comparatively very low.
OPPORTUNITIES With the growth of bottle industry market at 30% p.a. the market is increasing and there are ample growth opportunities in corporate and residential segments. Rigidity of pricing has made it more suitable for the residential customers as other competitive brands sell at reasonably same price. Residential market will present more loyal customers and repeat orders.
THREATS For corporate market. There are no current threats to BISLERIs position and market share as it has made a niche market for it self. However, I believe to get into volume we need to counter the multiple pricing strategy and the cost advantage that is given by market leader COOLSPRING to the corporate clients.
In residential market the only threat I can identify is Kinley; it has become the generic
name for mineral water in India. It is winning lost grounds because of the lack of proper brand positioning and highlighting of products USP by BISLERI. However, corporate market study points out that the high price of BISLERI.
RESEARCH FINDINGS:
It also point out that BISLERI is having a market share of nominal value in terms of sales volume and COOLSPRING is the market leader for corporate market. Judgment analysis and Observation also suggests that Brand awareness of BISLERI requires a rethinking. Especially the multiple packages need to be communicated and marketed. BISLERI is the priced at a premium. USP of BISLERI is not well communicated and marketed. BISLERI is making a niche market for itself and earning on Margins but at the same time losing ground on volumes to COOLSPRING. Corporate market segment, which is dominated by COOLSPRING has high degree of volatility to price and therefore corporate customers not quality centric. COOLSPRING is luring the corporate customers by providing rock bottom price and free accessories on complementary basis.
Except BISLERI all the brands have adopted variable or multiple pricing strategic. Judgmental analysis of customer satisfaction reveals that the customers are satisfied with the quality. However, the same can not be said about the service. Residential market has a better scope for BISLERI as penetration is easy. Price difference is hardly much and market is quality centric.
We need to be actively doing sales promotion activity. Campaigns which aim to enhance consumer knowledge about BISLERI should be undertaken.
We must position our product on the basis of our USP. The sweet taste of purity; is the slogan of BISLERI and I believe our brand positioning should be undertaken.
Residential customers are more interested in convenience and service after the key factor i.e. products quality. I believe we should extend our flex out logistics timings for residential who are interested in taking the delivery in odd hours (night).
I would suggest a live experiment which sends the message, You are the Judge there; we can organize small campaigns and get people to taste our water and any other leading competitors water and ask them to tell the difference. We can also do a bit of brand positioning by putting print advertisements where we compare ourselves with a leading brand on various factors like taste. Appearance, process etc, as we have seen many a times in electronic gadgets.
I would suggest to take a leaf out from the competitors book i.e. COOLSPRING and use it in our favor. I would suggest BISLERI to use the age old method of complementary gifts in the form of accessories i.e. dispensers, to lure the corporate customers.
As in the corporate market the leading competitor COOLSPRING is on the offensive. I would suggest BISLERI to go on for a strategy which is more defensive in nature, i.e. we must make efforts to retain our market share. Improve our service quality and time to time announce various schemes which in a way turn out to give loyalty bonus for our customers at the same time I think we should make an effort to make inroads in the market of other brands by starting to share clients and then try to build or increase our share from there.
We also need to improve our TAT (Total Turn around Time) after a lead is generated or an order is placed. I would suggest putting various storage points in different parts of the city for quick fast delivery if feasible.
I would also suggest a more intensive and thorough survey of residential market. I would suggest that the sample size must be of at least 2500 units in size for residential and it should be chosen from Higher Middle class and Higher Class Income group.
I would advise to make efforts for streamline all production activities so as to have a regular and steady supply in the market.
Separate Customer support cell for grievances and problems should be established with a person accountable and answerable to the management for day to day customer problems and these problems should be analyzed to find out the most recurrent and common problem with focus to eradication of the problem.
Data regarding price of the brands were not shared all the companies.
The survey of only 100 companies and 100 residential was done which doesnt give the true picture of the situation.
Not all the companies were ready to give time to share the data and meet the researches and hence lots of observation study is done.
Certain judgmental approximations are made the report more accurate and relative.
CONCLUSION:
This study analyzes the market potential of the 20 liter pack of packaged drinking water: BISLERI water. The packaged water industry continues to grow and across the globe with India hitting the maximum growth rate of 25% in 2005 which has increased further up to 40% in 20062007. As many other industries are entering in this sector it becomes increasingly difficult for any brand to compete on the basis of its Brand name alone. It may give an advantage for a time. However bigger brands require more attention and have greater expectations. As a result we must seek opportunities to differentiate our product offering from those of our competition, build customer loyalty, and attract new customers. This is achieved mainly by providing a better service to customers than the competitors. A good service will reduce costs, wastage and complaints.
Providing a good service helps in growing the business: customers stay longer; customer churn rates reduce; referrals to new customers increase from increasing numbers of satisfied customers and overall the organizations service flows and teams work more efficiently and more happily. This report offers a brief overview on the key strategy adopted by the market leader to gain a stronger market position in this competitive environment.
BIBLIOGRAPHY:
www.enwikepedia.com
QUESTIONNAIRE
Questionnaire for Corporate Market Survey. Questionnaire for Residential Market Survey.
BISLERI INTERNATIONAL PVT. LTD. Name: -----------------------------Address: -----------------------------Telephone no.: -----------------------E- Mail id: -----------------------------(1) What kind of water do you use for daily consumption and drinking? (a)Municipal water (2) (3) (4) (5) (b) Filtered/Aquaguard water (c) Packaged water. Organizational Survey Form (Research & Marketing)
What is the size (No. of Employees) in your organization? If you use packaged drinking water for daily consumption; then in what qty? Which Brand do you use? -----------------------------------------What price do you pay for a 20 liter Jar?
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-------------------------------------------------------(6) Do you use Dispenser? If yes please mention Category? (b) Plastic
Are you satisfied with the service & quality of Brand that you are using? (b) No
(8) (a)Yes
BSLERI being a leading brand and a superior product; would you like to buy (20 lit. pack); if supplied at the same rate at your doorstep and on demand? (b) No if NO, Reason-----------------------
BISLERI INTERNATIONAL PVT. LTD. Name: -----------------------------Address: -----------------------------Telephone no.: -----------------------E- Mail id: -----------------------------1) 2) 3) 4) (a)BISLERI What kind of water do you use for daily consumption and drinking? (a) Municipal water (b) Filtered/Aquaguard water (c) Packaged water. What is the size (member in the family) of your family? ----------------------------------------------------------------------If you use packaged drinking water for daily consumption; then in what qty? ----------------------------------------------------------------------------------------Which Brand do you use? (b) Kinley (c) Oxyrich (d) Zee (e) Others Residential Survey Form (Research & Marketing)
5) What price do you pay for a 20 liter Jar? -------------------------------------------------------6) Do you use Dispenser? If yes please mention Category? (A) Hot & Cold Dispenser 7) (B) Plastic
Are you satisfied with the service & quality of Brand that you are using? (A) Yes (B) No
8)
BSLERI being a leading brand and a superior product; would you like to buy (20 lit. pack); if supplied at the same rate at your doorstep and on demand? (A) Yes (B) No if NO, Reason-----------------------
EPILOGUE:
The experience at BISLERI INTERNATIONAL Pvt. Ltd. has given me an opportunity to have a very close look at the packaged water business. I have been able to delve into the various aspects of the company in a much focused manner. We have better understand of this industry and are fortified with experiences of addressing various problems, faced during the expansion of market, countering price war with quality and USP.
On the marketing and research front, I have had an excellent hands on experience in the areas of research (primary) and corporate presentation of the product, distribution channel and technicalities involved. We have also been able to get a generic view of the Bulk pack of bottled water industry in India by doing a Competitive Analysis of various players.
To sum up, the training with BISLERI INTERNATIONAL Pvt. Ltd. has given us an opportunity to see the market from a proximal distance.