Bisleri

Water king -Ramesh Chauhan as Social Entrepreneur.

Presented ByAmit Yadav (01)Dipshikha Singh (15)(2008-2010)Harshit Bhatt (08)Urvish Prajapati (29)

Ramesh Chauhan

• Founder – Signor Felice Bisleri

Italian entrepreneur

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.

Values

Integrity, Leadership, Teamwork, Cooperation, Quality, Passion, Openness & Transparency.

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.

1965 • Bisleri came to Mumbai

1967 • First plant in Mumbai

1969 • Sold to Parle exports

•Glass bottles•2 variations

Bubbly Still

1980

• Shifted to PVC bottles

Mid-1980• It switched to PET

bottles

1995• It launched 500 ml

bottle

2000• It introduced

container of 20 liters to reduce the price.

PRODUCT

Branded mineral water8 unique pack sizes

Non Returnable packs 250ml cups250ml bottles500ml1L1.2L1.5L

Returnable packs5L20L

Indian Water IndustryThe bottled water industry is estimated at

about Rs 3,000 crore and is growing at 30% by 2010.(The economic times epaper)

Health conscious people, improper water supply and the unpredictable municipal water supply,Water pollution.

Major players in the market includes Parle Bisleri, Kinley, Aquafina, Oxy rich and Bailley.

PESTLE Analysis of Industry Political political parties protesting against the pricing of

mineral water. Government has imposed price ceiling on bottled

water

Economical Increase in per capita income. No licensing policy adopted in this sector Availability of cheap labor.

Social Earlier considered as a status symbol. Only source of pure drinking water. Considered to be safe as compared to ordinary tap

water. Increase in health consciousness of people.

Cont…

Technological Distillation, reverse osmosis, activated carbon

filter. Bottles made of PET. helps in recycling and

reducing environmental pollution.

Legal Governed by BIS standard.

Environmental Use of Plastic for bottled water increases

environmental pollution. Increase in consumption of bottled water causes

depletion of valuable fossil fuels.

Swot analysis of BisleriStrength

Extensive range of products Strong brand image High quality standard Packaging Safety seal Maximum market share

(60%) 

Opportunities Growing industry Increasing water pollution Increasing population Health consciousness of

customer is increasing . Introduction of premium pack Entry in PET waste industry Improve distribution channel

Weaknesses

Unable to fulfill demand(distribution channel)

Reusable bottles

Threats  Easy entry Families- tap water Single SBU(one product

category) Water purifier technology New government policies

Value chain analysis

Source: Wikipedia.com

Strategic DirectionsAnsoff matrix

Source: Wikipedia.com

Ansoff matrix Analysis of BisleriMore focusing on Market

Penetration.By providing Bottles in Various Packages.

Targeting Bulk water segment

Product development by launching product like Fruit juice and Mountain premium water.

Market development strategy by expanding 25 plants by 2012.(The Economic Times Epaper)

Bowman’s strategic clock

Source: Wikipedia.com

Year 1969 to 2000In 1969, Parle acquired Bisleri with an

aim to increase its product portfolio.

Parle introduced Bisleri soda.

Company used No-frills strategy Product was initially packed in glass bottles Initially the perceived value of the product was low

as well as the price was low.

In 1980, the company changed the packaging from glass bottles to PVC , to PET.

Cont….Removed soda water and focused to

packaged drinking water.

The initial consumers of packaged water were foreigners.

There were no competitors in the market.

So Bisleri adopted low price strategy.

The company achieved low price by reducing its operational costs.

Year 2001 to 2010In August 2000, Coca Cola saw

potential in bottled water industry - introducing its brand Kinley.

The market saw entry of big players like

Pepsi - Aquafina Nestle - Pure LifeTata’s – HimalayaManikchand – Oxyrich

• Differentiation in the form of packaging, price and distribution.

Cont….Targeting new channels like chemists

and stationery shops.

Used its own fleet of about 2000 trucks to manage the distribution network.

Differentiated in the terms of packaging by making available the products in different shapes and size.

Used tamper proof seal to assure good quality.

Cont….Patented the tamper proof seal

technology .

The present strategy Targeting the bulk water segment, strengthen distribution, innovate on packaging and product line extension.

Presently uses Hybrid strategy wherein it has differentiated its offering from its competitive and at the same time making it available at cost lower than its competitors.

INDUSTRY RIVALS

NEW ENTRANTS

BARGAIN POWER OF CUSTOMER

BARGAIN POWER OF SUPPLIER

SUBSTITUTES

Porter’s 5 Forces model

Threat of Entry law entry barrier local low production cost, less amount of capital, easy

to access government and legal law, local production law, less legal and government barrier and low switching cost.

Various new local brands (unorganized players)

Suggestions

Bisleri have to increased distribution network.

Economies of Scale- production capacity.

Bargaining Power of Suppliers

•Bargaining Power of Suppliers is low

Large availability of suppliers

Packaging Cap of bottles Labeling material

• The municipal water system

Bargaining power of Buyer(Customers)Low bargaining powerOligopoly industry.Few big competitors,

Customers do not have any advantage moving from one brand to other brand

The product differentiation is almost zero,

So the bargaining power of customer is low.

Brand Loyalty of customer is very low

Substitute products•Soft drinks

•Water purifiers

•Tap water

•The most economical drink -limbu pani

Rivalry:There is a high competition to increase the

market share.

Few Big players like , Aquafina, kinley, and Oxyrich.

There is no much difference among the product by different competitor,

The rivalry is only in terms of service and of marketing strategy.

Bisleri boss Ramesh Chauhan plots new rags-to-riches story

Article on 3rd September 2010In

Economic TimesBy

Kala VijayraghavanMumbai

Mr. Chauhan’s review meeting with the Rag Pickers

He links up Rag Pickers to Reliance and sets up ecosystem to recycle PET waste.

He initiated this partnership to tackle an environmental hazard.

Over 3 lakh tonnes of PET containers are used and discarded every year.

What is PET?

Known as Polyethylene Terephthalate.

Non – biodegradable plastic.

Used to package drinking water, carbonated drinks and Juices.

Cont….

No market for PET scrape in India.

Commissioned collection centers, purchases about 5000 kg every month.

Processed it and sold to Reliance industries.

After Mr. Chauhan’s intervention entire Pet recycling Ecosystem now collects about 1200 tonnes of PET waste from Mumbai’s streets every day.

700 tonnes from rest of Maharashtra.

Business Transaction

Focus is to make it viable venture for Rag Pickers.

After the success of Pilot Project, he Charged 1500 distributers and 2300 sales staff for establish such ecosystem.

Identify users for the scrape.

Market Share

Organized bottled water market is estimated to Rs.3000 crore- growing at 30% annually.

Bisleri has 60% market share.

Total unorganized market is 10,000 crore.

(Source: The Economic Times Epaper)

Use of PET Waste ForCarpets

Car parts

Fabrics

Fiberfil for products like pillows and jackets.

Roads where Recycled plastics is mixed with asphalt.

Building relationship with Rage- pickers

Mr. Joyce Fernandes senior Bisleri executive.

With employees explaining Everything to rag pickers.

Asked Rag pickers for help to clean up the environment.

Gingerly made contact with few rag pickers in Dharavi.

It is not easy to build partnership with rag pickers.

Enter in new Market

Once built iconic brand like Goldspot, Thumps Up, Limca, Maaza( Sold to Coca-Cola in 1993).

Roped into Indian education. RHYTHM his research center.

He studied 56 rag pickers and 38 scrap dealers (bhangarwallas).

He found for PET scrap had no buyers.

Cont….

He decided to create market for PET waste.

For PET recycle process he went in Horai in Japan.

He study and found plant which crushed bottles and chopped it to flakes.

Consumer of that flakes is reliance which is used it for make pillows and fiber cables.

Pricing For PET Waste

Around 1 million Rag pickers are in Country.

Rag pickers were offered Rs. 8-10 per Kg. later it was increased to Rs.17 per kg.

Each rag pickers could sale 5-10 kg per day and earning Rs.60 to 150.

Scrape dealers buy PET from Rag pickers and sell it to Bisleri at Rs.15-18 per kg.

Bislari would process it and sell to Reliance At Rs 30 per Kg.

Political Help

Vijay Merchant a senior member of ICPE.

Closed friend and Tennis Partner.

He help Bisleri to set up collection center in holiday spots and Pilgrimage for the PET waste.

Also provide hand crushers to Rag pickers which will help them to flatten empty PET bottles and easy to store it.

Main idea

He is exploring the possibility of using this community(Rag pickers) to improve Bisleri Distribution reach.

Deliver Bisleri products to Kiosks and smaller shops that are hard to access with trucks.

This could be solve their problem of beating the traffic.

If this plan work out, it could turn out to be rags-to-riches story.

Corporate social responsibility as Business Strategy

Promoting Thought Leadership... Corporate social responsibility as business strategy.

CSR as Reactive strategy.CSR as Image building exercise.CSR for improved operating

efficiencyCSR as Source of competitive

advantage

Summary of Strategies of BisleriThe company has adopted market

penetration strategy.

Had initially a varied product portfolio.

Expansion and Product development strategy products like the Mountain premium water and

enter the fruit juice segment.

Strengthen its distribution network by CSR.

Dual distribution plan- entering newer markets including towns and rural areas

Cont….

Focusing on bulk water consumption is untapped by the organized players

Extension of product length and product line extension.

Core competencies of Bisleri include its Brand name and Packaging.

Hybrid strategy- Differentiated product at lower price

Forward integration by PET recycling

BibliographyThe Economic Times EpaperThe Business Standard Epaperwww.bisleri.comwww.rediff.comwww.labnol.orgwww.financialexpress.comwww.wikipedia.com

Thank You