Presentation1

Reinventing Bisleri

By:Pinaki Basu

Introduction Bisleri was originally an Italian company

created by Felice Bisleri.

Bisleri then was introduced in Mumbai in glass bottles in two varieties – bubbly & still in 1965.

Parle bought over Bisleri (India) Ltd. in 1969 and started bottling water in glass bottles under the brand name ‘Bisleri’.

Cont..... Later Parle switched over to PVC non-

returnable bottles & finally advanced to PET containers.

In 1995

Ramesh J. Chauhanstarted expanding

Bisleri operations.

History

1971: Parle Bisleri's Bisleri brand was launched.

Early 1990s: The branded mineral water industry was worth Rs 3 billion.

1992: Around 95 million litres of mineral water was produced in India.

Reinventing Bisleri By Pinaki Basu

Cont... After 1993: Several new brands were

launched.

Late 1990s: Many international brands were planning to enter Indian Market.

Brands

Mineral Water Bisleri Mineral Water

contains minerals

such as magnesium

sulphate and potassium

bicarbonate which are essential minerals for healthy living.


Cont...

It is available in 250ml cups, 250ml bottles, 500ml, 1L, 1.5L, 2L which are the non-returnable packs & 5L, 20L which are the returnable packs.

Brands

Mountain Water Bisleri Natural Mountain

emanates from a natural spring,

located in Uttaranchal and

Himachal nestled in the vast

Shivalik Mountain ranges.

It is available in six different pack sizes of 250ml, 500ml, 1 litre, 1.5 litre, 2 litre and 5 litres.

Brands

Fizzy Soda It is the most recent product

from Bisleri. Fizzy soda is carbonated

water, and comes under soft

drinks segment.

Brands

Bailley -- Parley Agro

Bailley is a product of

Parle Agro Group.

Competitors

Kinley Kinley is a product of

Coca Cola.

Competitors

Aquafina Aquafina is a product of

PepsiCo India Pvt Ltd.

Competitors

Himalayan Water Himalayan Water is a

product of Tata Group.

Competitors

Kingfisher Premium Kingfisher Premium is a

product of United Breweries

Group.

Competitors

Perrier Perrier is a product of

Nestle group.

Competitors

Evian Evian is owned by Danone

Group, a French multi

-national company.


Strategic Advantage Profile (SAP)

Factors Strategic (Sub factors) Strengths (+) Weakness (-) Neutral (0)

Marketing P1 (Product)P2 (Price)P3 (Place)P4 (Promotion)

Finance Financially Strong

HR Healthy/ Competent/ High Employee Morale

Production Well Organised/ Resourceful/ High Capacity/ Strong R&D

System Efficient/ Latest


Environmental Threat & Opportunity Profile (ETOP)

Factors Sub-Factors Opportunities Threats Neutral

Political Law Making, Tax Policies, VAT, Corporate Tax, Price Control, Etc.

Legal Employment Laws, Law Regarding This Industry, Govt Policies, Safety Regulatory

Economical Subsidy, Interest Rate, Inflation, Labour Policies, Business Cycles Etc.


Cont....Factors Sub-Factors Opportunities Threats Neutral

Socio-Cultural

Demographics, Income, Life Style, Social Mobility, Education

Technology New Technology, IT etc.

Competitors Brand Substitutes etc


SWOT AnalysisStrengths

1) Marketing• P1 (Product)• P4 (Promotion)2) Finance3) HR4) Production5) System

Weakness1) Marketing• P3 (Place)

Opportunity1) Economical2) Socio-Cultural3) Technology

Threat1) Political2) Legal3) Competitors


Decision ModelTurn Around

Growth/ Aggress

Sell / Closed

Decision Model

STRENGTH

THREAT

OPPORTUNITIES

WEAKNESS

Area Of Concern Bisleri tried to make purification and

quality as their USP.

They used tamper proof seal, to make it safe.

But this idea didn’t work as it was common to other brands.

New competitors decreased its market share.

Cont... New competitors had an edge over

Bisleri in distribution channel.

Kinley had 500,000 outlets compared to Bisleri's 350,000

Quality of the bottles wasn't consistent.

Cont...

Different shapes of bottles increased labelling time.

New competitors invested

hugely in advertisements

and promotions.

Alternative Actions By Company Promoted their tamper proof seals as a

“Break Away Seal”.

To reinforce the message that Bisleri was "pure and safe."

Launched “Alaska Neck” bottles- used less plastic – cost saving.

Cont...

Penetrated every possible segment of the market by introducing more pack sizes.

Cont...

Focused and invested more on advertisements.

Cont... Planned to target the soft drinks

market.

Reportedly focused on the bulk segment.

Changed it’s base colour from “Blue” to “Aqua Green” which helped it stand out in a sea of almost-uniformly blue-toned bottles of water.

Cont...

FROM "PURE AND SAFE" TO "PLAY SAFE"

Convey a social message:

“Young people need to make sure they are safe even when they are having fun.”


Targeting malls, multiplexes, five-star hotels and premium restaurants to stock the variant.

Target customer -- affluent, urban and health conscious.

Cont...


Cont...

Introduced a new variant i.e Natural Mountain Water.

Announced its plans to launch the brand in the US -- a huge market for designer waters.


Cont...

Invested in:

-setting up two new plants in Uttaranchal and Himachal Pradesh

-infrastructure development

-widening the distribution network.


Cont...

Bisleri is setting up 25 new bottling plants across India.

Invested US$ 10 million for setting up these new bottling plants in Maharashtra, Kerala, Jammu & Kashmir, Himachal Pradesh, Tamil Nadu, Karnataka, UP, Orissa, Jharkhand and north Bengal.

Bisleri Today Bisleri recently introduced Bisleri

Natural Mountain Water

Recently introduced “Fizzy Soda”.

Cont...

At present, the company has 52 bottling plants across India.

Bisleri has a 60% market share in the bottle mineral water segment.

It also plans to launch:

-branded ice

-flavoured vitamin-enriched water .


Suggestions

The promotions should target all the age groups and not just the youth.

Should increase their distribution channel and franchisee.

Brand extension to brand proliferation.


Some Interesting Videos.....


Questions&

Answers


Question

1. Analyse Bisleri's strategy of shifting its positioning in the late 1990s. Do you think bisleri's new positioning will help it achieve ambitious targets?


Answer

As product differentiation on the basis of quality became increasingly difficult, with each company claiming that its brand was safe and pure, companies began to use packaging to differentiate their products. Bisleri introduced a tamper proof seal.

Analysts felt that Kinley and Aquafina had an edge over Bisleri because of their strong distribution network.


Cont...

In the late 1990s, Parle Bisleri launched an ad campaign to create a distinct brand image- ‘There is just one Bisleri.’

In place of the round ringed bottles, Bisleri would be available in hexagonal flat-sleeved bottles. The new pack is trendy and has been well accepted by the consumers.


Cont...

In September 2000, Bisleri launched its Play Safe ad campaign. The campaign targeted the youth and hoped to convey a social message: young people need to make sure they are safe even when they are having fun. The ad campaign saw a shift in positioning from "pure and safe" to "play safe."


Question

2. What is the market segmentation in branded water? How is the industry shaping?


Answer

The market was segmented into premium, popular and bulk segments.


SEGMENT COMPANY BRAND PACKS PRICE (Rs)

Popular

Parle Bisleri Bisleri

250 ml 3

500 ml 5

1.2 litres 12

Parle Agro

Bailley

330 ml 3.5

500 ml 5

Pepsi

Aquafina

750 ml 10

1 litre 11

Coca Cola Kinley 1 litre 10

Bulk

Parle Bisleri Bisleri 5 litres 25

Parle Bisleri Bisleri 20 litres 60

Premium

Nestle

Perrier

330 ml 55

750 ml 90

Danone Evian 1 litre 85


Question

3. With Pepsi and Coca-Cola entering the branded water market do you think competition will intensify in this market and that water wars will replace cola wars? Where do you think Bisleri stands in this market?


Answer

Bisleri had almost a monopoly in Branded Water market in India in 70s and 80s.

When Pepsi and Coca Cola entered Indian branded water market it posed a threat to Bisleri.

They captured a large market share of Bisleri.

Bisleri had to change its strategies.


Cont...

Now Bisleri again regained its market share.

But still Pepsi’s Aquafina and Coca Cola’s Kinley poses a threat to Bisleri.

Though the market of packaged water is growing day by day but still it will take a long time to be at par with that of Soft Drink market.


Any Question

s???

Thank You

Presentation1

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