Bisleri Analysis
Transcript of Bisleri Analysis
TIMELINE (JOURNEY )
• Founder – Signor Felice BisleriItalian entrepreneur
•Prakash Chauhan – Chairman Parle Agro
• Ramesh Chauhan – CEO Parle Bisleri
1965 • Bisleri came to Mumbai
1967 • First plant in Mumbai
1969 • Sold to Parle exports
•Glass bottles•2 variations
Bubbly Still
1971, Italy, Europe
Mumbai, India (Asia)
1992
Packaged water industry –worth 3 billionProduced around 95 million liters Bisleri - Market leader with a 70% market shareSynonymous to branded water
1993-Every 3 months a new brand was launched and another diedBranded mineral water sold in 60 towns1997- 250 towns
Late 1990’s - Launched pure n safe ad campaign(to convince the customers that it’s the only Pure and Safe branded water in the market ‘there is just one bisleri’.)
1998
Over a period of six years- packaged water industry:
Grown upto 424 million liter business Valued at Rs 4 billion200 brands available in the market
Bisleri still a market leader Garnered a market share of only
60% Rest occupied by bailley with 20% Other regional players 20%
MARKET SHARE 1998
BISLERI 60%BAILLEY 20%OTHERS 20%
2000
7 billion industryTamper proof sealed bottles
To face intense competitionQuality alone could no longer be basis for product
differentiationCompetitors also came up with similar tamper proof packagingNew players entered
Pepsi's AquafinaCoca-Cola's Kinley Nestle's Pure Life
Bisleri’s 5 and 20 litres packs in the bulk segment accounted for 20% of its sales
MARKET SHARE 2000
BISLERI 53%BAILLEY 28%OTHERS 19%
2000
Market was segmented intoPremiumPopularBulk segments
The premium brand was least crowded with just 4 brands:
Danone’s EVIANNestle’s PERRIERFERRARELLESAN PELLAGRINO
2000
The popular segment had the most action, popular segment was dominated by:
BisleriBailleyKinleyAquafina
The bulk segment was dominated by Bisleri5 ltrs12 ltrs20ltrs
Bisleri also wanted to target the share of the booming soft-drinks market; planned to add fun element to the product; branded water quenched thirst; had negligible fun element.
Lady in bikini photo
To make it’s brand stand apartSeptember 2000 – Play Safe campaign
Built around the tamper proof seals Trendy Hexagonal Flat-Sleeved bottle
At first only used for 500 ml bottle5 ltrs bottleLater would be used for other
sizesInformation visible from all sidesLabelling became easy
Break away sealsThis was done to create doubt in
the minds of the consumer regarding the purity of other brands
Social message for the youth: Be safe even while having fun.
Hexagonal flat sleeved bottle photo
2001
Bisleri shifted its concentration towards the Bulk Segment Planned to have 75% of its sales from bulk packs
5 liters20 liters
Kinley and Aquafina started making huge investments in bottling plants and distribution to make their presense in the Bulk SegmentBisleri investing on marketing andadvertising for the same 2001 - Mineral water market was worth Rs 10 billion Bisleri’s Aim -Turnover from 4billion in 2000 to 10 billion by 2003
MARKET SHARE-MARCH 2001
BISLERI 51%KINLEY 10%AQUAFINA 4%OTHERS 35%
MARKET SHARE-JUNE 2001
BISLERI 47%KINLEY & AQAFINA 37%OTHERS 18%
2001
August 2001-Coca-Cola’s kinley ‘Bondboond mein vishwas’ campaignAggressive marketing to get at par
with marketing of Bisleri
Late 2001-Coca-Cola wanted to enter Bulk Segment where Bisleri was the dominant playerSanjiv Gupta(senior Vice-President, Coca-Cola India)
Aiming to be #1 or close #2Bisleri estimated to touch a turnover of 10 million by 2003
Considered too late accounted at the growth pace of Kinley and Aquafina
2002
Coca-Cola India planned to double the number of water bottling plants to 16Pepsi announced that it would add 7 more plants to the existing 5Bisleri however had
15 bottling plantsthree franchisees
Kinley had 500,000 outlets compared to Bisleri's 350,000.
2005Looking forward
Coca-Cola planned to invest Rs 700-750 million in its water businessPepsi around Rs 800 million to Rs 1 billion
4P’s photo
PRODUCT
Branded mineral water7 unique pack sizes
Non Returnable packs 250ml cups250ml bottles500ml1L1.2L
Returnable packs5L20L
PACKAGING PRICE (Rs.)20 Litre 60
5 Litre 30
1.2 Litre 12
1 Litre 10
250 ml Bottles 3
250 ml Cups 3
PRICING
15 Bottling Plants
3 Franchisees
Total 350,000 outlets
PLACE
PROMOTION
Late 1990’s •Pure and Safe
2000 •Play Safe
The
HOLE
In the
Bucket
Porters Five Forces Model
Competition &
Problems faced
INDUSTRY RIVALS NEW ENTRANTS
BARGAIN POWER OF CUSTOMER
BARGAIN POWER OF SUPPLIER
SUBSTITUTES
UNORGANISED
PLAYERS
I
INDUSTRY RIVALSORGANISED
•HLL water purifier
•Various new local brands (unorganized players)
•Shaw Wallace is also in a process to enter the bottled market in the premium segment
NEW ENTRANTS
•Soft drinks•Water purifiers•Tap water
•The most economical drink -limbu pani
• The industry estimates that bottled water is the fastest growing beverage segment and is immediately followed by the soft drink/ aerated beverages market
SUBSTITUTES
•When the company’s suppliers are able to:
raise pricereduce quantity then the supplier powerwould be high
•Packaging (PET bottles) •Labeling material
BARGAIN POWER OF SUPPLIER
•Buyer’s demand Better quality or serviceSet competitors against each other
At the expense of sellers profitability
•Reason:Industry where many brands
fighting for existence and their share
Large number of choices available to retailer
Low switching cost for retailer•Prices of other products are more of less the same
Brand Loyalty of customer is very low
BARGAIN POWER OF CUSTOMER
Other threats…Bisleri spreads awareness… other brands enjoy
Distribution problem
SEAL
theHOLE
Distribution strategyFor profitable workPosition your name at their finger tipsDisplay in front of their eyes- ‘JO DHIKHTA HAI WHO BIKTA HAI’This needs to be taken care off as against the well established distribution network of Kinley and Aquafina.
This can be achieved through improving distribution networkImproving services offered
Improving distribution networkPOPULAR SEGMENT
To improve service provided and retain existing customers Bisleri must
Improving servicesBULK SEGMENT
Have their own distributors
Who would look after the services.
Retailer Margin To Be Increased
Bailley Kinley Bisleri Aquafina
500ml 1L 20 500ml 1L 20 500ml 1L 20 500ml 1L
Distributor 25 29 33 46 24 18 45 25 28 - -
Retailer 44 71 - 20 80 - 20 71 - 20 60
•Enter Into Premium Market Segment
• DISTRBUTION NETWORK – • RETAILER MARGIN TO BE INCREASED – • ENTER INTO PREMIUM MARKET SEGMENT –
NEW NAME, PET BOTTLES• INCREASE PRODUCTION CAPACITY WITH NEW
PLANTS• CHANGE IN PACKAGING – EASIER TO HOLD• Price packs –
Recommendation
• BISLERI STANDS AT THE TOLL NAKKA
•One of the way to defend against consumer power would be to develop superior offer that strong buyers cannot refuse.