Bisleri-Consumer Behaviour
Bisleri-Consumer Behaviour
Bisleri-Consumer Behaviour
Introduction
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About the organization
A few years back, the packaged drinking water market had been crawling at
the rate of 3-4%, or even a lower figure. Indians carried drinking water in
earthen pitchers, plastic or PUF bottles. But increasing case of typhoid and
other water borne diseases began to be reported. In addition to this,
liberalization happened and the mineral water industry began to be stirred
and shaken. The market started growing an astounding rate of over 100% per
annum. The fact that there were very few players in the market meant that
their business grew by leaps and bounds.
The market today has grown to Rs.1100 crore. The organized sector-
branded packaged drinking water – has only Rs.700 crore 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.
In the branded segment, Parle’s Bisleri is the market leader with a share of
more than 40%. Other major players in the market are Kinley, Aquafina,
Kingfisher, Ganga of T-Series, Himalayan, Nestle, Bailey, Catch, Paras.
Sensing the opportunity that this segment holds, MNCs began to draw up
plans to enter the market. Today the market is proving to be yet another
battlefield for an ongoing battle between the domestic and MNCs. Last year
the industry had around 170 brands. This figure is over 300 presently. The
boom in the market has also encouraged MNCs to draw up plans to enter the
market. Coca-Cola made a splash when it launched Kinley brand and is
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now doing reasonably well. Nestle, the global leader in the packaged
drinking water market, has also come up with its premium product, Perrier
though Brand Pure Life is almost dying. Pepsi’s Aquafina is also growing
in the market. Britannia is also launching Evian.
Almost the first to challenge Bisleri’s near monopoly was Pepsi’s Aquafina.
Though Pepsi launched its bottled water in just one SKU (stock keeping
unit) of 750 ml. in the very starting but now they have also launched 1 litre,
the Chauhans of Bisleri were galvanized into action. They launched their
500ml. bottle to stave off competition.
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OBJECTIVE OF THE STUDY
The objective of the study was to find out the consumer preference,
availability of the products, competitor’s activity, consumption pattern
channel behavior of various SKUs and the market share of Bisleri and Its
competitors. The major emphasis was given on:
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the packaging medium, bottle size and price of packaged drinking
water.
LIMITATIONS
While doing survey I found some limitations. The limitations I faced are
given as under:
There was time constraint for the study work given to me while
doing all the survey I did in this project work. While doing dealers
survey, institutional survey and consumers survey I got the limited
time period for there completion.
The area considered for this survey was taken randomly. So, the
area taken for this study was limited. For the dealers’ survey and
consumer survey the area was chosen randomly and for
institutional survey the area was limited to the hotel region of
Carol Bagh only.
The sample size taken for each of the survey in this project was very less and
limited.
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RESEARCH METHODOLOGY
RESEARCH DESIGN
Research design is an important and the vital part of the research. Research
design is a comprehensive master plan specifying the procedure for
collecting and analysis the needed information. Research design provides an
excellent framework for the research plan of action. The function of the
Research design is to ensure that the required data is in accordance; research
design is a blue print for the research study, which guides research in
collecting and analysis the data.
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Here in our project we have used the two type of research design:
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DATA COLLECTION METHOD
The success of any project or market survey depends heavily on the data
collection and analysis. It is necessary that the data collected is a reliable
data in order to achieve the research objective. All data sources can be
classified into two data:
1. PRIMARY DATA
2. SECONDARY DATA
1. PRIMARY DATA- Primary data is the data which are fresh and
collected for the first time, and are original in character. It consist of
the actual information. There are various Primary data collection
techniques, which have helped in data gathering.
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The secondary data source here in this project are: -
a) MAGAZINES
b) COMPANIES INTERNAL RECORDS
c)WEBSITES
SAMPLING DESIGN
1. Sampling unit
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Puri, Khan Market, Lodhi Road, Lodhi Colony, Defence
Colony, M.M.Market, Vasant Kunj and Vasant Vihar.
2. Sampling Techniques
3. Sample size
The sample size for the survey conducted for the analysis of:
Dealers were 303 retail outlets.
Institutions were 69 hotels.
And 50 customers for consumer survey.
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Chapter-2
Profile of the
organization
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COMPANY PROFILE
AQUA Mineral Ltd. is the owner of famous BISLERI brand of packaged
drinking water. It is the part of renowned PARLE group in India. This group
is engaged in various activities of which packaged drinking water forms one
of its core business.
MISSION STATEMENT
“To provide the highest quality product, keeping in mind all aspects
including freshness, purity and safety, and making it easily available to
the consumers in the very affordable price.”
CORPORATE PROFILE
The origin of Bisleri lies in Italy and the brand owes its name to founder
Felice Bisleri, an Italian Entrepreneur. In 1967, Bisleri set up a plat in
Mumbai for bottling and marketing mineral water, which was first of its kind
in India. However, it did not work. Among other reasons, the fact was that
the Indian consumer was unprepared to accept bottled mineral water. This
was the main reason 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 the Bisleri water
was not 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
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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 packaged drinking water. There were just minor
initiatives on the part of the company for making packaged drinking water as
it is not considered to be very profitable business at that time a people still
considered boiling water to be safer than packaged drinking 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 boiling
water and made it available in PVC (poly vinyl chloride) bottles and that
significantly made a difference in the sales. The buyers, then, were mainly
the upper class- the trendy people.
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UPS & DOWNS
It was around the year 1995, when Parle Exports took charge of the brand
operations and the business took off in the market. With factories across
India and a strong distribution network, Bisleri established itself as a force to
reckon with in the domestic packaged safe drinking water market.
Earlier the packaged drinking water consisted of five star hotels, tourists and
foreigners. As a marketing strategy, a conscious decision was taken by the
company that only 40% of these sales should come from the outlets and 60%
from general market. i.e. paanwalas, street shops, general stores and even
non-tourists.
This brought about a sea change in the perception in the consumer’s mind
about consumption of Bisleri. Earlier, drinking bottled water was considered
to be more of a status symbol. That thinking was slowly changed to the point
where today, not drinking Bisleri is considered as been behind the times.
Such has been the presence and penetration of the Bisleri brand in the
bottled water segment.
In 1998, a strategy was adopted to concentrate aggressively on the home
market. The habit of boiling water or using electronic gadgets was not
adequate, since the source of water itself was unreliable. The bulk packages
like the 2, 5 and 20 lt. bottles were introduced to meet this market need. The
price per litre went down as a result, making bottled water very economical
for the consumer.
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The company has a total plant of 35 Plants of Bisleri (21 owned) and is
committed to cater the remotest players in India.
MARKET SHARE
At present the various major players in the packaged drinking water market
can be outlined as following in terms of % market share:
Bisleri
Kinley
10%
others
Aquafina
others
15%
Aquafina
brands
31%
Kinley
44%
Bisleri
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REGIONAL PLAYERS IN THE MARKET.
As there is less entry barriers in this industry various regional players crop
up at regional players who are involved in Guerilla Warfare. These regional
players can’t be neglected as they eat away a bite of market shares at local
level.
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FUTURE PLANS
Bisleri was the first to market bottled water in a totally virgin market and
naturally people associate the brand with bottled water. Now Bisleri is
perhaps already ten steps ahead of its local competitors and endeavor to
widen its gap in the months to come.
The brand positioning of Bisleri stresses on pure, clean and safe drinking
water. Sales have grown by 140% in the year 2000 in the coming year,
Bisleri hopes to boost its sales by more than 400%.
Bisleri expects 75% of its volume to come from bulk parts of 5 lt. and 20 lt.
(Currently it amounts to be less than 35%). The latter is to be targeted at
homes and the former at offices.
Some of the future plans to be at the top-spot that Bisleri commands in the
Indian market are:
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MAJOR NODAL CENTERS
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ACHIEVEMENTS OVER THE YEARS
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PRODUCT PROFILE
“It’s a compliment being generic to the category, but it’s not very good
when consumers think any mineral water brand is Bisleri”.
So far Ramesh Chauhan’s Bisleri enjoys the largest market share of 44% in
the giant packaged drinking water industry and is growing at the rate of 80%
per annum. Annual sales of Bisleri have touched Rs.616 crores. In seventies,
‘Bisleri’ was the only packaged drinking water which had national presence
and the sale was to tune of approximately one hundred thousand cases
valued at about Rs.60lacs.
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SALES MANAGEMENT SYSTEMS
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Roles and Responsibilities
Director Sales
Sales Manager
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o Sales cost control.
o Implementing MIS in the area.
o Customer Service.
o Help Company owned as well as franchisees plant to achieve their
respective sales target.
o To collate and analyze figure before competitors action in the region.
Sales Executive
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o Market intelligence.
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SALES PROMOTION
To expand the market, various below the line promotional activities are
carried out in the form of schemes.
The schemes are carried out differently for various SKUs.
The schemes which the company follows in Delhi region for targeted growth
are as follows:
Promotions specifically for schools and colleges are given for this.
Executives are given specific targets and incentives for activating
restaurants, cinema hall and other institutional segments.
Small sub-distributors are given incentives in form of discounts and
schemes to promote specifically in walled cities.
1.2 lt.
Cross schemes are given on other packages mainly 500 ml. and 1 lt.,
which will be in terms of 1.2 lt.
Some routes are exclusively served by only 1.2 lt. and no 1 lt. this
helps in giving boost to sale of this SKU.
Display of 1.2 lt. on specified route on at least 5 outlets per market.
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2 litre & 5 litre
20 litre jars
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SALES FORECASTING
Sales Forecast is a starting point for any business. Marketing operation and
financial and personnel planning will collapse if Sales forecast is not reliable
within reasonable/ acceptable level of tolerance. Sales Forecasting is a
quantitative estimate expressed in volume or value terms of future sales for a
specific time period under assumed marketing programs and environmental
problems.
The forecasting method starts with taking the inputs from sales executive in
terms of sales they will be able to achieve the following year through a
prescribed format.
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OTHER COMPETITORS
The mineral water market is to set to explode and hit the Rs.2000 cr. mark in
the next couple of years. This drew the big gun’s attention. First Britannia
launched Evian. And then Pepsi entered the fray with Aquafina. Then Nestle
with Pure Life but now with Perrier, pure thrust. Meanwhile, Parle Agro’s
Bailey has been growing steadily. Small local players are breathing down
Bisleri’s neck riding on better trade margins and intensive distribution (in
their respective areas of operation). Bisleri faces tough competition from
these in organize sector
Coca-Cola Kinley
Pepsi Aquafina
Nestle
Parle Agro’s Bailey.
KINLEY
Kinley water was launched in August 2000 in one litre bottles for Rs. 10 but
not been rolled out nationally. Coca-Cola joined the race by announcing the
imminent launch of fits own brand of water and, in the process, putting to
rest rumors of its so-called takeover of Bisleri. The water is produced at
Coca-Cola's three green field manufacturing plants at Bidadi near Bangalore,
Dasna in Uttar Pradesh and Goa. The company plans to either add more
water bottling operations or go for contract bottling as it goes national.
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In September, CCI made an announcement that literally grabbed the
headlines. CCI announced that Kinley had overtaken the near-generic Bisleri
brand in terms of market share. Quoting ORG-MARG/ AC Nielsen data,
CCI claimed that for the period ended July 31, 2002, Kinley's market share
had been recorded at 35.1 per cent, against that of Bisleri's 34.4 per cent.
The peak summer months saw CCI rolling out Kinley in 200 ml cups. The
cups, priced at Rs 3 each, were first rolled out in pockets of Gujarat. With
this initiative in place, the company is hoping to generate market share from
the institutional segment such as restaurants and hotels, caterers, and
transport channels such as buses and trains. CCI said it was doubling the
bottling capacity for Kinley through a combination of company-owned
plants, franchisee operations and contract packers. Two of CCI's key bottling
partners, namely the Gandharis and Goenkas, invested Rs 10 crore for a new
bottling water plant in Punjab for Kinley. Its consumers are also quality
conscious and brand loyal.
AQUAFINA
The advantage for Aquafina is that though they are over 300 labels of bottled
water in the Indian market, few can be called. It is necessary to remember
that every product with a name is not a brand; even Bisleri has become
generic to this category.
It does not have any emotional values attached to it. So there was no
difficulty for Pepsi in creating space in such a market which is completely
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different from the soft drinks market, where it will be very difficult for any
new player to find a slot. So the creative team at HTA virtually had an
empty canvas to work on.
And it came up with a campaign that did have people talking. First, as series
so teasers, followed by a film that showed healthy bodied and youthful
people and, of course, lots of water. Although Aquafina started with only
750 ml. pet at Rs. 10 but now it launched its 1 lt. pack also with the price
range of Rs.12. in addition to the tamper proof seal, there is reliable method
of checking whether the bottle has been reliable. The date of manufacturing
has been written on the cap as well as on the bottle. Thus a person who is
refilling it would have to find a matching cap and bottle, the probability of
which is very low.
NESTLE
Nestle India is the latest to enter this market with the launch of its brand
`Pure Life' in New Delhi. It plans to grab a 50 per cent market share in the
next two years and emerge as a strong player. The company has not ruled
out acquiring existing brands. The product will be available in other cities as
well soon.
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PARLE AGRO’S BAILEY
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Chapter-3
ANALYSIS &
INTERPRETATION
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SWOT ANALYSIS
Those forces which effect the organization from within i.e. due to its own
activities and performance. Those forces can be controlled by the
organization and an organization can improve on its strength and
weaknesses in the market.
STRENGTHS :
Those activities, which put the organization a step ahead of others with its
performance in the field of marketing mix, are products, price, promotion,
and physical distribution.
Strength of the Bisleri in the market are:
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Charging better prices from the customers.
Now paying more emphasis on break-away seal and attracting
consumers to use only Bisleri.
Company is having large surplus of funds.
Large stock maintained by the company.
Availability of water bottles at the nearest possible outlets.
They maintain constant quality checks on quality of purified water.
WEAKNESSES :
They charge more for 5 lt. And 20 lt. Bottles as compared to other
emerging companies.
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OPPORTUNITIES :
The business is growing at the rate more than 80% per annum
There is a high growth in 500 ml., 2 lt., 5 lt., 20 lt., water bottles.
Now middle class people also use packaged drinking water at their
shops and homes and it become the need of the metros.
THREATS :
Its higher prices and low retailer’s margin has made the competitor to
strengthen their feet in the Bisleri’s market.
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Chapter-4
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FINDINGS
During our training whatever we have learned we have tried to present in the
report although it is just equivalent to touching the tip of ice berg but it is
surely helpful to the company for which the study was conducted after
studying and gathering the information through direct interview of customer
and retailers and observation it may be concluded:
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CONCLUSION
To conclude the information which we got through the various sources, it is
quite evident that an efficient promotion, physical distribution and proper
communication can increase the total sale of the company in a big way and
an inefficient coordination between all these spoil the efforts made by Sales
force. It is also very clear that proper and systematic use of limited resources
can do wonder for the company.
As we have seen from the market survey that packaged drinking water
industry is very huge and growing rapidly. The water market is going to
reach Rs. 2000 cr. till the end of 2003. Thus we can imagine how big the
water market is and imagine the growth in this industry. This market is
having large share of unorganized sector. In water industry production cost
is very low. But the distribution cost of operations and make sure about the
availability of water.
Bisleri distribution network to retail outlets is the best example. They have
given 20 lt. jars to the retailers and thus reduce the distribution cost. Now
there is trend in the market to give bottle without security and a dispenser
free of cost to a party using 100 lt. of water.
To increase Customers Company should go upon this strategy but only when
it has production capabilities to give regular supply to their customers. As in
this business most of the customers give preference to delivering service and
availability on time.
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According to Deepak Jolly, executive vice president, corporate
communications, Pepsi Foods Ltd. “Aquafina will be helped by Pepsi’s
network. Moreover, Aquafina will be served absolutely chilled.’ That makes
sense too, since surveys have indicated that an overwhelming majority of the
bottled water that is consumed in India is by people who are traveling.
With the big players, who have the support of the financial muscle and a
large consumer base in other categories with them, like Pepsi, Britannia,
Nestle and Coca-Cola the battle is the tougher arena of brand building. All
the multinationals are looking at high-octane advertising targeting specific
consumer segments. Sensing troubled waters ahead, Bisleri is busy working
in strategy to soak up the competition and protect his water kingdom. By the
strategies followed by the Bisleri has become a synonym of packaged
drinking water.
By the institutional (hotel) survey, dealers survey and the consumers survey
we got many conclusions and found out the market share of the brands
involved in this industry. According to it Bisleri is the market leader having
the market share of 44%, Kinley is its nearest competitor having its market
share of 31%, Aquafina 15% and other brands are covering 10% of their
market share. Thus company should emphasis more on its advertisements,
retailers and wholesaler’s margin. Company should also have a keen quality
control system because their break-away has been accepted by the public
and if sometimes the complaint comes then it will affect the sales of Bisleri.
As this water industry is going up with a very high pace so company should
develop some new strategies and should always look on competitor’s
strategies.
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RECOMMENDATIONS
Advertisement to build the brand image that will provide the required
ground to establish the authenticity to the product.
To win over the consumer belief and faith over the genuinity the
product.
Display of hot and cold dispensers and bottles at places like hotels,
clubs and airports where upper class group visits, as they are the
potential customers. Place like departmental stores, petrol pumps and
super bazaars can also be considered.
The company should organize camps at various part of the city. Also
road shows to bring about the difference between packaged drinking
water and filter/ purified water and to tell the people how packaged
drinking water is more hygienic than filtered water/purified water.
To aware people the cost benefit analysis to the customer of how the
water costs less and benefit more, because people using purifier
system cost too much.
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Special emphasis should be given to availability of water on time.
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BIBLIOGRAPHY
3. www.Bisleri.com
4. www.google.com
5. www.indiainfo.com
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QUESTIONNAIRE
Q 1.) In which packaged drinking water by which brands you are well aware
of?
a) __________.
b) __________.
c) __________.
d) __________.
Q 2.) Which brand will you prefer most for packaged drinking water?
a) Bisleri b) Kinley
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Q 5.) From where do you generally buy packaged drinking water?
Q 6.) What do you think is the most essential thing for packaged drinking
water?
Purity & Quality Purity Seal & packaging Brand name Availability
( ) ( ) ( ) ( ) ( )
( ) ( ) ( ) ( )
Q 8.) How can we increase the availability of our product, Bisleri in the
market?
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Q 9.) Do you use 20 lt. Jar of packaged drinking water?
a) Yes b) No
Q 10.) (i) Have you heard about our free home delivery service of 20 lt.
Jars?
a) Yes b) No.
a) Fine b) Good
c) V.Good d) No comments
a) Yes b) No
Q 12.) What would you like to suggest for the betterment of our company?
Your Suggestions:
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________.
NAME :______________.
ADDRESS :_______________
_______________
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