A COMPARATIVE BRAND ANALYSIS & MARKETING RESEARCH OF BISLERI VIS – A – VIS ITS COMPETITORS: AQUAFINA, HELLO & KINLEY SUBMITTED PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION (BBA) GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY S UBMITTED BY: KARTIK SAHAI ENROLLMENT NO. 0941411706 SESSION 2006-2009
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A COMPARATIVE BRAND ANALYSIS & MARKETING RESEARCH OF
BISLERIVIS – A – VIS ITS COMPETITORS:
AQUAFINA, HELLO & KINLEY
SUBMITTED PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION (BBA)
GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY
S UBMITTED BY:KARTIK SAHAI
ENROLLMENT NO. 0941411706
SESSION 2006-2009
GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY
ACKNOWLEDGEMENT
The present work is an effort to throw some light on “Brand Analysis & Market
Research Of Bisleri A comparative analysis with three competitors 'Acquafina',
'hello' & 'kinley' ”. The work would not have been possible to come to the present
shape without the able guidance, supervision and help to me by number of people.
With deep sense of gratitude I acknowledge the encouragement and guidance received by
my organizational guide
I convey my heartful affection to all those people who helped and supported me during
the course, for completion of my Project Report.
EXECUTIVE SUMMARY
Water is the most important liquid in the world. Without water, there would be
no life, at least not the way we know it. In today's living condition, the need for
Pure Drinking Water is becoming the issue for the common man.
There are rapid changes that are taking place in our environment since long and the
air and the water pollution is on an increase. The main source of drinking water is
river and downstream which have also not been able to escape the pollution.
When a consumer became aware of the problems caused by water pollution the
market saw an advent of ceramic water filters, which filters the dust and suspended
particles but dissolved impurities and microbiological impurities are not cleared out.
The mineral balance is also not maintained.
A Research Methodology defines the purpose of the research, how it proceeds, how to
measure progress and what constitute success with respect to the objectives
determined for carrying out the research study.
The appropriate research design formulated is detailed below.
Exploratory Research: This kind of research has the primary objective of development
of insights into the problem. It studies the main area where the problem lies and also
tries to evaluate some appropriate courses of action.
The research methodology for the present study has been adopted to reflect these
realties and help reach the logical conclusion in an objective and scientific manner.
The present study contemplated an exploratory research
The following are the main objectives of my Research study:-
To make a brand analysis of Bisleri as a Brand. To conduct a market survey of Bisleri.
The affects on Bisleri sale, profit and market share after the launch of ‘Acquafina’ by
Pepsi and ‘Kinley’ by coca cola. To find out the current position of Acquafina, hello
and Kinley mineral water. Threats caused by Aquafina, Kinley and hello to Bisleri.
Strategies and measures adopted by Bisleri to counter the competition by hello &
Kinley.
TABLE OF CONTENTS
1. INTRODUCTION 1-3
Introduction to mineral Water Industry-current Scenario 4
Mission of Bisleri 5
2. RESEARCH METHODOLGY 6
Objective 7-9
Source of data 8
Sample design 9
3. COMPANY PROFILE 10-19
Marketing mix of Bisleri 20-23
Promotional Activity 24-41
SWOT analysis 42
4. FINDINGS OF RESEARCH 43-70
5. CONCLUSION 71-73
6. RECOMMENDATIONS 74-76
7. ANNEXURE 77-82
8. BIBLIOGRAPHY 83-84
INTRODUCTION
Water is the most important liquid in the world. Without water, there would be
no life, at least not the way we know it. In today's living condition, the need for
Pure Drinking Water is becoming the issue for the common man.
Eighty percent of the human metabolism consists of water. This is the reason why
90% of human diseases are water borne. There are 3 types of water impurities,
which are root cause of water borne diseases.
1. Microbiological-Bacteria / virus.
2. Dissolved impurities - chemical.
3. Imbalance of Mineral Content.
There are rapid changes that are taking place in our environment since long and the
air and the water pollution is on an increase. The main source of drinking water is
river and downstream which have also not been able to escape the pollution.
When a consumer became aware of the problems caused by water pollution the
market saw an advent of ceramic water filters, which filters the dust and suspended
particles but dissolved impurities and microbiological impurities are not cleared out.
The mineral balance is also not maintained.
1980's witnessed more changes by a tap attachment wherein Iodine resin is used to
filter the water. It deactivates microbiological impurities to an extent but has side
effects due to iodine and does not take care of dissolved impurities mineral balance.
Late 1980's witnessed Ultra Violet based purifier, which filters dust and
deactivates bacteria to a great extent. It maintains the odour and colour of water but
does not clear out the dissolved impurities and mineral particles. Thus came advent of
mineral water.
Historically, the need for purified water within Indian homes had been kept down to a
minimum. Essentially, 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 – drinking
water – and was very often boiled before use.
Since an average family needed a small quantity, not more than five or six litres a day,
boiled and filtered water had been a convenient solution for some time. The fallouts
were obvious. “It was very difficult to convince the people that purification
system was worth the price. There was no visible way to demonstrate the
benefit,” The otherwise somnolent market began to change once companies like
Eureka Forbes targeted the office segment, while the mineral water players went
after travelers. Ion Exchange was the only company which had any measure of
success in entering homes with Zero-B. But clean drinking water returned on the
national agenda a little later.
Around 1989, drinking water became an issue again.
“Around early 1990sTime did a story on India as a key emerging market and
that was the trigger for all the players eyeing this market."
INTRODUCTION TO MINERAL WATER INDUSTRY
CURRENT SCENERIO
The best beverage for India in the new millennium seems to be water. In recent years,
the bottled driving water market has been witnessing high-decibel levels of activity,
with a host of new entrants swelling the clutter. With over 200 players jostling to be
the thirst quenching favourite of the Indian consumer, the business is growing at a rate
of over 50 per cent annually. The country's bottled water business is estimated to be
around
Rs. 1, 100 crore, of which the branded market accounts for Rs. 700 crore and about
700 million litres in volume.
In India, the core proposition of bottled drinking water lies in hygiene, as the quality
of tap water is bad and is rapidly deteriorating. This is in stark contrast with the West
where 'mineral water' indicates the attendant minerals present in the water. Mineral
water in Western countries is obtained from natural springs and is, generally, named
after those springs. Most of the bottled water passed off as mineral water in India,
however, is filtered, boiled or purified by other means such as reverse osmosis. A
better description of bottled drinking water sold in India therefore, would be 'purified
bottled water.
The growth of the category indicates the need for this 'mineral water' and the fact that
heavyweights are eyeing the segment points to the potential that is seen in this market.
Coke's Kinley, Pepsi's Aquafina, Brittania, Nestle, Kingfisher, Auswater-are keen on
raising their stakes in the Rs. 700 crore, 700 million litre market. The entry of
Danone’s brand, Evian, the high-priced mineral water from the French Alps, shows
the perceived potential India presents in this product category. Clearly targeted at the
premium segment of consumers, the brand is being distributed in the country by
Britannia Industries. Currently, Evian has more of an institutional presence (five star
hotels) than on the retail shelves, with a 1-litre bottle being priced a hefty Rs. 80
The market today has grown to more than Rs15bn. The organised sector -- branded
mineral water -- has only Rs7bn of market share. The rest is accounted for by the
unorganized sector which is dominated by small regional players. The market is still
growing – at a rate greater than 80% per annum.
Today there are more than 200 brands, out of which 10 of them are from top
companies.
In the branded segment, Parle’s' Bisleri 'is the market leader with a share of more than
45%. Parle Agro’s' Bailey' comes a close second with market share of 15%. Other
major players in the market are' Yes 'of Kotharis, 'Ganga' of T-Series,
'Himalayan,' Hello', Prime,' Florida' etc.
MISSION OF BISLERI
“To provide the highest quality product, keeping in mind all aspects including
freshness, purity and safety, and making it easily available to the consumer at a very
affordable price”.
RESEARCH METHODOLGY
A Research Methodology defines the purpose of the research, how it proceeds,
how to measure progress and what constitute success with respect to the
objectives determined for carrying out the research study.
The appropriate research design formulated is detailed below.
Exploratory Research: This kind of research has the primary objective of
development of insights into the problem. It studies the main area where the
problem lies and also tries to evaluate some appropriate courses of action.
The research methodology for the present study has been adopted to reflect
these realties and help reach the logical conclusion in an objective and
scientific manner.
The present study contemplated an exploratory research
RESEARCH OBJECTIVES
The following are the main objectives of my Research study:-
1. To make a brand analysis of Bisleri as a brand.
2. To conduct a market survey of Bisleri.
3. The affects on Bisleri sale, profit and market share after the launch of
‘Acquafina’ by Pepsi and ‘Kinley’ by Coca Cola.
4. To find out the current position of Acquafina, Hello and Kinley mineral
water.
5. Threats caused by Aquafina, Kinley and Hello to Bisleri.
6. Strategies and measures adopted by Bisleri to counter the competition by
Hello & Kinley.
NATURE OF DATA
PRIMARY DATA: Data which is collected through direct
interviews and by raising questionnaires to
retailers.
SECONDARY DATA: Secondary data that is already available and
published. Various internet sites, newspaper,
magazines like A&M were searched in order to
find information useful for completion of this
project.
It could be internal and external source of data.
Internal source: Which originates from the specific field or area where
research is carried out e.g. publish broachers, official
reports etc.
External source: This originates outside the field of study like books,
periodicals, journals, newspapers and the Internet.
DATA COLLECTION
Primary Data: The primary data has been collected by conducting a
survey in the following areas.
1. Rajendra place
2. Naraina Industrial area
3. Karolbagh market
4. Janak puri district center
SAMPLE DESIGN
Sampling unit: Residents & Retailers in the above
mentioned areas.
Sample size: 100 persons
SAMPLING PROCEDURE
Simple Random Sampling to select the sample
DATA COLLECTION
Sources of data: 1) Primary Data which included the input
received from directly the residents through
Interview.
2) Secondary data from the Industry manual,
policy manuals, books and internet etc.
Method of collecting data: Interview method
COMPANY PROFILE
The origins of Bisleri lie in Italy, and the brand owes its name to founder Felice
Bisleri, an Italian entrepreneur. In India, Bisleri set up a plant in Mumbai for bottling
and marketing mineral water, which was first of its kind in India. However, it did not
quite work. Among other reasons, the fact that the Indian consumer was unprepared to
accept bottled mineral water was responsible for its failure. Consumer mindsets were
more geared towards boiling water at home.
In 1969, Parle bought over the' Bisleri' brand. In those days Bisleri water was
available in glass bottles. Parle's taking charge of Bisleri did not make a dramatic
difference to the brand's fortunes immediately. While it did gain in terms of visibility
and reach (piggybacking on Parle's existing distribution network), efforts to expand
the bottled water market were not exactly painstaking. Parle at that particular time
was interested in making soda water and not mineral water. There were just minor
initiatives on part of the company for making mineral water as it was not considered
to be a very profitable business at that time a people still considered boiling water to
be a safer bet than mineral water. Moreover they were not ready to pay for a
commodity like water which was so abundantly available.
In 1972-73 Parle changed the packaging of its bottled water to plastic bottles and that
significantly made a difference in the sales. The buyers, then, were mainly the upper
class - the trendy people.
In 1993, Coca-Cola bought parle’s soft drink brands- thums-up, limca etc. While
Coca-Cola actually bought over Parle's beverages, it agreed to a settlement that
allowed the multinational to bottle and distribute Bisleri soda for a time frame of five
years. The charge of Bisleri water, however, remained with Parle. The upsurge in the
sales of Bisleri started from this point as Parle sold off its stable of brands to Coca-
Cola. This was the time when its started concentrating on making Bisleri a success in
the domestic mineral water market. The reason why Parle chose to retain the Bisleri
name was that Parle saw a fairly lucrative business of mineral water in Bisleri's
equity.
The real shift in company’s policy towards mineral water industry came in 1998,
although the conscious efforts had already been started in 1994. This change was
primarily because of the fact that the people, at this time, had started becoming more
health conscious.
PRODUCT PROFILE
“It’s a compliment being generic to the category, but its not very good when
consumers think any mineral water brand is Bisleri”
Bisleri, a product established in India by Ramesh Chauhan, Chairman of Parle
Aqua Minerals has become a generic brand. Bisleri was the first marketed bottled
water in a totally virgin market. The brand has become synonymous with mineral
water; consumers accept any brand offered by the retailer when they ask for Bisleri.
So far Ramesh Chauhan’s Bisleri enjoys the largest market share of 56% in the
Rs1100 crore mineral water market and is growing at the rate of 180% per
annum. Annual sales of Bisleri have touched Rs400 crores. In seventies, 'Bisleri'
was the only mineral water which had national presence and the sale was to the tune
of approximately one hundred thousand cases valued at about Rs.60 lacs.
MANUFACTURING
A quick look at Bisleri's manufacturing reach indicates that it is represented across the
country – North accounts for 35% of sales for the industry, West accounts for 30%,
South 20% and the East 15%.
In order to be available in untapped areas Bisleri has setup 16 plants located all over
the country - three-fourths of which are company owned. The balance are run by
franchisees. Bisleri has 5 plants in the North, 5 in the West- two of which were setup
in the last year at Ahemdabad and Surat, 4 in the South and 2 in the East. The
company has bottling units located in Chennai, Bangalore, Goa, Calcutta, Mumbai,
Delhi, Jaipur, Uttar Pradesh, Punjab, Indore and Nepal. The new plants are being set
up in states like Kerala, Orissa, Bihar and North Eastern States, which hitherto have
been unexplored by the company.
It is also changing its production strategy and shifting to a 10-hr production schedule
with sudden increase in demand planned to be met by additional production.
Bisleri has planned to expand its operations by investing Rs 60 crore in the
upgradation of facilities. The 120-bottles per minute (BPM) capacity of the 16 units
across the country will be increased to 240 BPM.
Conscious of the environmental implications of its PET bottles, the company is to set
up recycling plants at Delhi and Chennai, each with an outlay of Rs.50m. These will
process 500 kg of PET per hour. The processed material will be an input for polyester
yarn manufacturers. In centers other than Delhi and Chennai, the company will set up
crushing units to crush the used PET bottles.
The company's expansion plans will see its water bottling capacity go up from the
present 400 million litres to 500 million litres. Parle Bisleri Limited (PBL) is planning
to invest Rs 200 crore to increase its bottling capacity and double its turnover. The
expansion will also increase the number of company's bottling plants from 16 at
present, to 25. The company will set up all the new plants as green field plants. It
doesn’t have any intentions to acquire any existing plants.
DISTRIBUTION
It's obvious that availability holds the key to the market. For any product to be
successful the distribution system has to be really good. Large tracts of the country
have not been explored by the national brands,which explains the proliferation of
smaller brands.
Bisleri’s strategy is to build a direct distribution system at an all-India level.
Currently, Bisleri has around 80000 retail outlets in the country with about
12000 each in the Metros of Delhi and Mumbai. It is intended to increase this
number to 10 lakh outlets in order to expand brand’s reach.
That means serious investments in company-owned trucks and carts. Parle hopes to
double its existing fleet of 1000 trucks. This would make it the largest fleet owner in
the country.
In order to service the home segment, the 5 litre packs are being pushed through
the route of “Fat Dealers”( wholesale dealers) who are retailers as well as
stockist and serve as supply points from where customer can pick the required
quota. The customer can call the fat dealer and place order for home delivery of the 5
litre pack. 180 of these dealers are already functional, and more are in the process of
being appointed. "The idea is to make Bisleri all-pervasive,".
The company plans to have its own distribution network in places where it has its own
plants. Franchisees would manage the distribution in their respective areas of
operation.
PACKAGING
Variety is spice of life. Today for any business organisation to be successful it has to
provide its customers with the differentiated product that is a value buy for them. In
order to cater to the changing needs of the customers the business has to continuously
come out with the variants of the product so that it can target the maximum segments.
Today, Acqua Minerals offers a variety of packaging options:150 ml, 300 ml, 500 ml,
1 litre, 2 litre, 5 litre, and 20 litre. The 5-litre bottles account for 35 per cent of sales
showing a growing health concern among the Indian society. 1 litre bottles account
for 30 percent of the share, whereas the 500 ml bottles taking up 15 per cent. The
remaining sizes share the rest of the contribution.
The 2 litres bottles were introduced to slowly and steadily replace the conventional 1
litre bottles. This would give them an advantage over others. The 500-ml category
was re-focused as a trendy product, targeted at the teenage crowd and for the roadside
consumers.
Acqua Minerals is currently a supplier to Indian Airlines with 125-ml cups. The five-
litre packs, launched in December 1999 in Goa, are currently available in six cities,
including Delhi, Bombay and Bangalore, and sell over 5,000 bottles a day.
Following is a quick overview of the various packaging
options provided by bisleri along with the target consumers:
Size of the bottle Price per
bottle
Target consumer
500 ml Rs. 7 Teenagers, college students and roadside
consumers. Also aimed to supply to the Indian
Railways.
1 litre Rs. 10 General consumers and travelers.
1.2 litres Rs. 12 Consumers demanding a little more water at just a
little more price.
2 litres Rs. 18 Small offices, shopkeepers, households