under – Signor Felice Bisleri

Italian entrepreneur
 •Glass bottles
•2 variations
üBubbly
üStill

•
•Prakash Chauhan– Chairman Parle Agro
•
•Ramesh Chauhan – CEO Parle Bisleri
1971,
Italy,
Europe

Mumbai
, India
(Asia)
 1992

§Packaged water industry –worth 3 billion

§Produced around 95 million liters
§Bisleri - Market leader with a 70% market share
§Synonymous to branded water
§
§1993-Every 3 months a new brand was launched
and another died
§Branded mineral water sold in 60 towns
§1997- 250 towns
§Late 1990’s - Launched pure n safe ad
campaign(to convince the customers
that it’s the only Pure and Safe
branded water in the market ‘there is
just one bisleri’.)
§
 1998

§Over a period of six years- packaged water industry:

ØGrown upto 424 million liter business
ØValued at Rs 4 billion

§200 brands available in the market

§Bisleri still a market leader
ØGarnered a market share of only 60%
ØRest occupied by bailley with 20%
ØOther regional players 20%
 2000

§7 billion industry
§Tamper proof sealed bottles
üTo face intense competition
üQuality alone could no longer be basis for product
differentiation
§Competitors also came up with similar tamper proof packaging
§New players entered
üPepsi's Aquafina
üCoca-Cola's Kinley
üNestle's Pure Life
§Bisleri’s 5 and 20 litres packs in the bulk segment accounted
for 20% of its sales
§
 2000

§Market was segmented into

üPremium
üPopular
üBulk segments
ü
§The premium brand was least crowded with
just 4 brands:
üDanone’s EVIAN
üNestle’s PERRIER
üFERRARELLE
üSAN PELLAGRINO
§
§
§
 2000
ü
ü
§The popular segment had the most action,
popular segment was dominated by:
üBisleri
üBailley
üKinley
üAquafina
§The bulk segment was dominated by Bisleri
ü5 ltrs
ü12 ltrs
ü20ltrs
§Bisleri also wanted to target the share of the
booming soft-drinks market; planned to add fun
element to the product; branded water quenched
thirst; had negligible fun element.
§
§To make it’s brand stand apart
ØSeptember 2000 – Play Safe campaign

Lady in
bikini
photo
§Built around the tamper proof seals
§Trendy Hexagonal Flat-Sleeved bottle
ØAt first only used for
ü500 ml bottle
ü5 ltrs bottle
ØLater would be used for other sizes
§Information visible from all sides
§Labelling became easy
§
§Break away seals
ØThis was done to create doubt in the
minds of the consumer regarding the
purity of other brands
§Social message for the youth:
üBe safe even while having fun.
Hexagonal
flat
sleeved
bottle
photo
 2001

§Bisleri shifted its concentration towards the Bulk Segment

§Planned to have 75% of its sales from bulk packs
ü5 liters
ü20 liters
§Kinley and Aquafina started making huge investments in
bottling plants and distribution to make their
presense in the Bulk Segment
§Bisleri investing on marketing andadvertising for the same
§2001 - Mineral water market was worth Rs 10 billion
§Bisleri’s Aim -Turnover from 4billion in 2000 to 10 billion
by 2003
 2001

§August 2001-Coca-Cola’s kinley

Ø‘Bondboond mein vishwas’ campaign
ØAggressive marketing to get at par with
marketing
of Bisleri
§Late 2001-Coca-Cola wanted to enter Bulk Segment
where Bisleri was the dominant player
§Sanjiv Gupta(senior Vice-President, Coca-Cola India)
ØAiming to be #1 or close #2
§Bisleri estimated to touch a turnover of 10 million by
2003
ØConsidered too late accounted at the growth
pace of Kinley and Aquafina
§
 2002

§Coca-Cola India planned to double the number

of water bottling plants to 16
§Pepsi announced that it would add 7 more plants
to the existing 5
§Bisleri however had
Ø15 bottling plants
Øthree franchisees
§Kinley had 500,000 outlets compared to Bisleri's 350,000.
 2005
Looking
forward
§Coca-Cola planned to invest Rs 700-750 million
in its water business
§Pepsi around Rs 800 million to Rs 1 billion
4P’s
photo
 §Branded mineral water
P §7 unique pack sizes
ØNon Returnable packs
R ü250ml cups
O ü250ml bottles
ü500ml
D ü1L
U ü1.2L
ØReturnable packs
C ü5L
T ü20L
§
 PRICING
PACKAGING PRICE (Rs.)
20 Litre 60

5 Litre 30

1.2 Litre 12

1 Litre 10

250 ml Bottles 3

250 ml Cups 3
PLACE
PROMOTION
 The

H
O
L
E

In the
Bucket
 Competition
&
Problems faced

Porters Five Forces Model

 SUBSTITUTES

GAIN POWER OF SUPPLIER INDUSTRY RIVALS NEW ENTRANTS

BARGAIN POWER OF CUSTOMER

 I
INDUSTRY RIVALS
ORGANISED

UNORGANISED
PLAYERS
•HLL water purifier
•
•Various new local brands
(unorganized players)
•
•Shaw Wallace is also in a process NEW ENTRANTS
to
enter the bottled market in the
premium segment
 SUBSTITUTES

•Soft drinks
•Water purifiers
•Tap water
•
•The most economical drink -limbu pani
•
•The industry estimates that bottled water is
the fastest growing beverage segment and
is
immediately followed by the soft drink/
aerated beverages market
 •When the company’s suppliers are
able to:
Øraise price
GAIN POWER OF SUPPLIER Øreduce quantity
then the supplier power
would be high

•Packaging (PET bottles)

•Labeling material
•Buyer’s demand
ØBetter quality or service
ØSet competitors against each other
§At the expense of sellers
profitability
•Reason:
ØIndustry where many brands fighting for
existence and their share
§Large number of choices available
to retailer
§Low switching cost for retailer
•Prices of other products are more of less the same
ØBrand Loyalty of customer is very low
§

BARGAIN POWER OF CUSTOMER

Other
threats…
Bisleri
spreads
awareness…
other brands
enjoy

Distribution
problem
 S
E
A
L

the
HOLE
Distribution strategy
For profitable work
Position your name at their
finger tips
Display in front of their eyes-
‘JO DHIKHTA HAI WHO BIKTA HAI’
This needs to be taken care
off as against the well
established distribution
network of Kinley and
Aquafina.

This can be achieved through

improving distribution network
Improving services offered
Improving distribution
network
POPULAR SEGMENT
 Improving services
BULK SEGMENT

§To improve service provided and retain

existing customers Bisleri must
 Retailer Margin To Be Increased
Bailley Kinley Bisleri Aquafina

500ml 1L 20 500ml 1L 20 500ml 1L 20 500ml 1L

Distributor 25 29 33 46 24 18 45 25 28 - -

Retailer 44 71 - 20 80 - 20 71 - 20 60
•Enter Into Premium Market Segment
 Recommendation
• DISTRBUTION NETWORK –
• RETAILER MARGIN TO BE INCREASED
–
• ENTER INTO PREMIUM MARKET
SEGMENT – NEW NAME, PET
BOTTLES
• INCREASE PRODUCTION CAPACITY
WITH NEW PLANTS
• CHANGE IN PACKAGING – EASIER TO
HOLD
• BISLERI STANDS AT THE TOLL NAKKA
•

• •One of the way to defend against consumer

power would be to develop superior offer
that strong buyers cannot refuse.