BISLERI : Analyzing the

Distribution Network
Pranjal Parate (11/035)
Rishikant Rajan (11/044)
Sarit Guha Thakurta (11/174)
Srinivas Sandeep Tompala (11/179)
Supriya Gahlot (11/184)

Presented By
Group 5
Agenda
Research Methodology
Background
Products
Distribution System
Hygiene & Quality Commitment
Pure and Safe -> Play Safe
Channel Objectives
Diversity in Channel Strategies
Margins
Suitability of Bisleri in India
Competition
Recommendations




Research methodology

Collection of Secondary data & analysis
News articles
Website of Bisleri
Case study on Bisleri, Going Green


Background
Bisleri - An Italian Company created by Signor Felice
Bisleri
Introduction of Bottled Water in India in two varieties
bubbly & still in 1965
Parle Took over Bisleri (India) Ltd. in 1969
Parle initially sold Mineral water in glass bottles
Later Parle switched over to PVC non-returnable
bottles
Most popular brand for mineral water in India today





Products
Bisleri Mountain Water
Bisleri Mineral Water
Developed 8 unique pack sizes to suit the
need of every individual
Non-returnable packs
250ml cups, 250ml bottles, 500ml, 1L, 1.5L, 2L
Returnable packs
5L, 20L

Distribution System
Integrity of the product across all channels
Proper care in Storage and Transportation units
to avoid chemical contamination
Ensure complete control over quality in the
entire Distribution network owned by Bisleri
High Emphasis on easy accessibility
Use of Hybrid marketing systems to suffice
diverse consumer profiles



Distribution System(Contd..)
Built a well networked distribution system to
ensure accessibility
Competitors had a very strong distribution
network giving Bisleri tough competition
Number of intermediaries were used to
minimize fault points in the network
Bottled water is transported from the factory ->
bottling plant -> distributor -> retail outlets



Hygiene & Quality Commitment
Put through multiple stages of purification
Ozonised and finally packed for consumption
Rigorous R&D & stringent quality controls
Maintain strict quality controls
Purchases caps only from approved vendors
Produce their own bottles in-house

Pure and Safe -> Play Safe
Ad campaign to create a distinct brand image'There
is just one Bisleri.
The campaign focused on the safety provided by the
"breakaway" seal
Objective - To highlight the tamper-proof seal and
create doubt in the consumer's mind of the purity of
the other brands
To penetrate every possible segment of the market by
introducing more pack sizes and Trendy Packaging
Channel Objectives
To ensure high quality and integrity of the product at
various levels of distribution network
To ensure high accessibility and reach for the product
by introducing various options in pack sizes as per
consumer needs
Use of minimum hierarchy in distribution network to
reduce errors and faulty points
To increase its reach and availability by use of
horizontally diverse distribution network and hybrid
marketing systems



Diversity in Channel Strategies
Diversity in channels
Manufacturer Distributor Retailer
Franchisee
Direct selling to end customer office/home
delivery


Retail Channel
Maximize reach and availability in a cost efficient
manner while ensuring quality
Made packaged water as a commodity
Bisleri a generic name for Bottled water in market
More product options to choose from and low costs
increased brand loyalty
Attractive Packaging with competitive pricing helped
increase sales


Bisleri Distribution Channel
Manufacturing
Plants (35)
Distribution
Centers
(120)
Retail Outlets
(3.5 lacs)
Retail Outlets
Distribution
Centers
Retail Outlets Retail Outlets
Direct Home/Office Channel
Delivery of packs of water to home & office at minimum cost and
optimum quality and service levels
Homes/offices/Stores/Restaurants Regular need for safe and pure
drinking water
Ensuring service guarantee and high quality
Channel gave enough scope for Differentiation and value addition
than competitors
20 ltrs. SKU responsible for 70% of the sales
Fleet of small vans
Reduced intermediaries leading to better margins
Cash-on-Delivery reduces average receivables
Bisleri Delivery System
How Bisleri does route selling?
Large fleet of trucks
Trained truck drivers who can service
Benefits
Reduces overheads of sales representatives
Better control and information flow
Efficient operations
Disadvantage
Higher investment

Franchisee
For regions where Bisleri doesnt own a
manufacturing plant
Franchisee owns the distribution network
Quality norms set by Bisleri
Ensures pan-India availability with less
resources
Minimizes taxes and lead time




Margins
For a 1-litre Bisleri Bottle
In case of larger SKUs of sizes 5 lts. and 20 lts., the packaging costs are
even lower
Larger SKUs are also recycled reducing the cost
State PCB Charges @ Rs. 0.14 for
1000 lts. of ground water
1-litre bottled water requires 2-3
lts. groundwater
Raw material cost = 0.02-0.04
paise
Purification Cost Rs. 0.25 per ltr. (max)
Cost of pre-form from Reliance Rs. 1.00 per bottle
Total cost of packaging (including
cost of bottle, cap, carton, etc.)
Rs. 2.50 Rs. 3.75
Overheads and Margins
Overheads:
Labor costs
Establishment costs (cost of equipments, assets etc.)
Marketing and sales expenses
The overheads vary regionally
In the packaged water industry, major costs are in the
packaging and marketing while the raw material
(water) is an insignificant expense

Margins:
GM range in the order of 20-35% in packaged drinking
water depending on the location, SKU, overheads, etc.

Supporting the Channel Structure
In packaged drinking water industry, reliability and depth of
distribution is the key to success.
Stock-outs need to avoided
Bisleri leverages its past experience of highly successful
product distribution of Gold Spot and Thums-up to support its
distribution system with:
Robust processes
Backup processes
Balanced scorecard
Company wide efficient SCM

Investment in Logistics - 2002 to 2007
Parle Bisleri invested Rs 400 crore for expanding its
facilities including its bottling capacity and distribution
network.

The company expanded its bottling capacity from the
current 50 million cases to 200 million cases a day.

An additional Rs 200 crore was invested in Bisleri's
distribution network spanning 2,500 towns and cities
in India.




Competition
Bisleri, Aquafina, & Kinley
Bisleri Aquafina Kinley
No of Bottling Plants 35 12 15
No of Retail Outlets 3,50,000 5,00,000 9,00,000
Market Share 51% 11% 22%
Prices of Packaged Water in India
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
Suitability of Bisleri in INDIA
Hygienic drinking water availability is scarce in India
Tourism industry is a huge potential market
Large number of local/regional players suggests that
there is a huge market for packaged drinking water
With its brand name & extensive distribution Bisleri
has the potential to further increase its market share
by capturing some of the local players sales
In the 5 & 20 lts. segment there are no other branded
national level players other than Bisleri
Suitability of Bisleri in INDIA
Future Plans
Introduction of vending Machines
Automated machines in offices, shopping malls,
airports and other high traffic points
High price of bottled water at airports and cinema
halls discourages sales
There are also places where bottled water is not
available
Vending Machines will take care of both the
problems

Future Plans
Introduction of flavored Water
Launch of 12 fruit flavors
Position it as a premium segment Product
Huge opportunity
Aimed at trebling Bisleris sales from around
Rs300 crore now, to Rs1,000 crore by 2009
To double its distribution network from 800
distributors to around 1,500 in next 6 months



Logistics growth



2001
25 bottling plants
2000 vehicles
1,20,000 retailers
Plan for 2008-09
Doubling bottling Capacity
5000 vehicles
10,00,000 retailers



Recommendations
Recommendations
Targeting Office Segment for 20 liter Bottled
water
B2B Sales Force at distribution centre
Promotional Schemes For bulk deal
Promotion of 200 ml bottle/cup
Target parties, marriages, functions
Easy to carry in pockets or ladies purse


Recommendations
Introduction of Fresh lime juice
Target regions close to Bottling plants such as Delhi,
Hyderabad, Chennai
200/250 ml bottles/cups
Promote it as healthy substitute for cold drinks
Price range Rs 4-5
Extensive Advertising and POS display




References
http://www.livemint.com/2008/02/04225623/Bisleri-to-introduce-vending-m.html
http://www.icmrindia.org/free%20resources/casestudies/reinventing-bisleri2.htm
http://www.livemint.com/2007/11/06011457/Bisleri-plans-to-tap-flavoured.html
http://www.hinduonnet.com/fline/fl2307/stories/20060421006702300.htm
www.bisleri.com
http://economictimes.indiatimes.com/articleshow/msid-2234344,flstry-1.cms
http://www.financialexpress.com/news/Parle-Bisleri-firms-up-summer-
strategy/195494/
http://www.hinduonnet.com/businessline/2001/03/10/stories/021018g1.htms
www.rediff.com/money/2005/jun/10spec.htm
http://en.wikipedia.org/wiki/Bisleri
http://www.projectsmonitor.com/detailnews.asp?newsid=2015







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