Marketing of mineral water-Bisleri

• The reasons for a stunted growth in the package drinking water  brand• T o k n o w h o w t h e b r a n d B I S L E R I s t i l l r u l e s t h e b o t t l e w a t e r   market•T o k n o w t h e m a r k e t i n g s t r a t e g i e s a p p l i e d b y B I S L E R I , i t s manufacturing process its 4 Ps etc and what is its impact on the consumers•To understand and realize the needs and wants of consumers and how to fulfill them•F i n a l l y I c a r r i e d o u t a s u r v e y t o f i n d o u t w h i c h i s t h e m o s t  preferred brand by the people & the survey was carried on in south Mumbai especially in areas like church gate and cloaca.

How is bottle water different from tap water?Consistent quality and taste are two of the pr inc ipal d i f ferences between  bottled water and tap water. While bottled water originates from protected sources - largely from underground aquifers and springs - tap water comes mostly from rivers and lakes.Marketing of mineral water-Bisleri Another factor to consider is the distance tap water must travel and what it goes through before it reaches the tap. In compliance with international regulations, bottled water is sealed and packaged in sanitary containers. If a bottled water  product is found to be substandard, it can be recalled. This can’t happen in case of tap water .According to regula t ions in the US, when bot t led water i s sourced f rom a community water system the product label must state so clearly. However, if the water i s subjec t to d is t i l la t ion , de ioniza t ion or reverse osmosis , i t can be categorized that way, and does not have to state on its label that it is from a community water system or from a municipal source. Process ing methods such as reverse osmosis remove most chemical and microbiological contaminants

Marketing of minerals water-BisleriCompetitionThe bottled water industry has two other industries as its biggest competitor’s in from of Water purifiers industry and the soft drinks industry. Though the water purifier industry should be credited to have done the spadework, for setting up the foundation of bottled water industry but still it acts as competitors’ especially in the household and institutional consumption market. So the water purifier is a strong competitor in household and institutional market the soft drinks market isa strong rather very strong competitor in the retail consumption market. Bottled water became a product in the West during the 1920’s and developed r a p i d l y . H u g e m a r k e t s i z e ,

n u m e r o u s l o c a l b r a n d s a n d c o n t r o l l e d p r i c e mechanism are some of the features of the market there. Consumers in the West are quality conscious and display brand loyalty .Indian consumers lack on both the counts. In Asia, Indonesia is the largest and the oldest market for bottled water. In India, bottled water is still not perceived as a product for masses though; the scene i s changing s lowly thanks to low pricing and aggressive marketing  strategy adopted by new entrants. Some surveys show that truck drivers onhighways form a major chunk of bottled water drinkers. Penetration in rurala r e a s i s a n o t h e r s i g n i f i c a n t f a c t o r t h a t i s l i k e l y t o p l a y a k e y r o l e i n t h e development of the bottled water trade.In comparison to global standards India’s bottled water segment is largelyunregulated. Safe water is rated with a different yardstick in different countries.In India, the aspect has been overlooked for long. Indian consumers tend to believe that any bottled water is safe water. This may not be the case.

Marketing of mineral water-Bisleri Types of Bottled WaterThere are severa l d i f ferent var ie t ies of bot t led water . The produc t may be labeled as bottled water, drinking water or any of the following terms.

Artesian Well Water:Bottled water from a well that taps a confined aquifer (a water bear ing underground layer of rock or sand) in which the water level stands at some height above the top of the aquifer.

Drinking Water:D r i n k i n g w a t e r i s a n o t h e r n a m e f o r b o t t l e d w a t e r . Accordingly drinking water is water that is sold for human consumption insanitary containers and contains no added sweeteners or chemical additives (other than flavors, extracts or essences). It must be calorie-free and sugar- free, Flavors, extracts or essences may be added to drinking water, but they must comprise less than one-percent- by –weight of the final product or the product will be considered a soft drink.

Mineral Water:Bottled water containing not less than 250 parts per million to ta l d issolved sol ids may be labeled as minera l water . Minera l water i s distinguished from other types of bottled water by its constant level and relative proportions of mineral and trace elements at the point of emergence from the source. No mineral can be added to this product.

Purified Water:Water that has been produced by distillation, deionization, reverse osmosis or other suitable process can be labeled as purified bottled water. Other suitable product names for bottled water treated by one of the above processes may include “distilled water” if it is produced by distillation, “de-ionized water” if the water is produced by deionization, or “reverse osmosis water” if the process used is reverse osmosis.

Marketing of mineral water-Bisleri

Sparkling Water:Water that after treatment and possible replacement withcarbon dioxide conta ins the same amount of carbon dioxide tha t i t had a temergence from the source.

Spring Water:Bottled water derived from an underground formation fromwhich water flows naturally to the surface of the earth. Spring water must becollected only at the spring or through a borehole tapping the undergroundformation finding the spring.

Well Water:Bottled water from a hole bored drilled or otherwise constructedin the ground, which taps the water of an aquifer.

Growth in Bottle Water Industries:•It was in 1967 that BISLERI set up a bottling plant for manufacturing andmarketing its mineral water, which failed badly.•In 1968-69 the brand “ BISLERI” was sold to the “Parle group” by theItalian company, Parle group launched BISLERI soda and mineral water, but again the concept failed as the Indian customer was not ready to buy water in bottled form.• The market remained dormant for the next two decades (i.e. from 1970to 1990) the market throughout this period was formed mainly by the premium segment like five- star hotels.

• In the early 1990’s was the onset of liberalization policy, and sell-off of major soft drinks brands, BISLERI was compelled to test the watersagain.• Today the demand of bottled water is increasing at a much higher ratethat of carbonated soft drinks. The market size of bottled water too is

Marketing of mineral water-Bisleri expected to surpass the size of soft drinks market in near future. HLL, which too has identified the bottled water as a growth area of future, is presently looking or some suitable brand for acquisition. Britannia too evinced some in i t ia l in te res t in the marke t but now seems to have  postponed i t s p lans . The exis t ing p layers too are se t to expand the i r  distribution network to have their presence across the country.

•The market is also expected to undergo a major consolidation phase. Asone of the major factors that are important for success in the market isthe distribution network, the players with deep pockets are expected togo for acquis i t ion of exis t ing smal l regional p layers to spread the i r  ne twork across the country . Already Coke has t ied up wi th Yes for  manufacturing of its brands in areas where it doesn’t have presence.

•Though Coke and Pepsi have both, well established distribution network a s w e l l a s b o t t l i n g & m a n u f a c t u r i n g p l a n t s , t h e y s e e m s t o b e a t advantage but players like HLL and Nestle with strong financial muscle can easily turn the tables in their favor through acquisition route.Marketing of mineral water-Bisleri

Introduction of BisleriIn 1967, Bisleri an Italian company, started by Signor Felice Bisleri, first brought the idea of selling bottled water in India. It started a company calledBisleri India. In 1969, Ramesh Chauhan, the Chairman of Parle Exports, boughtover the brand. In those days, Bisleri packaged drinking water was available inglass bottles.Being a returnable package owing to various other problems such as breakageand weight, in 1972-73, Bisleri was made available in PVC (Poly VinylChloride) bottles. After this plastic packaging was introduced, things started tochange, and sales increased rapidly.The upsurge in the sales of Bisleri started in 1993 as Ramesh Chauhan sold off the Parle stable of brands, including Thums Up, Limca and Gold Spot.Recognising the potential of the packaged drinking water market, he then wenton to concentrate on making Bisleri a top selling brand in India.Marketing andBrands BlogBisleri a brand name synonymous to mineral water in India. It hasapproximately 60% market share in packaged drinking water in country. Brandis owned by Parle Company, which bought over Bisleri in 1969 from Italiancompany. Initially, Bisleri faced the problems of acceptance from consumers. Itwas difficult to advertise for a company something as a bottled water, which iscolourless, tasteless and odourless. In mid eighties company changed its packaging to PET bottles which shows transparency and clear water toconsumers. This gave mineral water market a boost.In India, water is scarce and quality is poor so initially the consumers were onlyforeigners and NRI’s. Therefore, to increase its customer’s base, company cameup with comfortable and affordable price bottle which was a great success andshowed 400% growth.India bottled water market is appox is worth Rs 1,000-1,200 crore (Rs 10-12billion). Seeing this growth over the years, many new players have enteredthe

market. Amongst them Kinely from Coke, Aquafine from Pepsi, kingfisher and now Himalayan from Tata are main players of industry. There are many upsand down in last couple of years but brand recall of Bisleri is amazing whichhelped company. In order to differentiate form other players company tries tocome up with different and new campaigns on regular intervals.

Marketing of maineral water-BisleriIn case of food and water, whenever people are suspicious of the quality of  product they don’t eat unhygienic food and instead of having non purified water they prefer to stay thirsty. Bisleri itself seems to play on this need for safety,coining the popular tag-line ‘Play it safe’. The advertising helped differentiatethe product from its competitors who, more or less, communicated nothing.Bisleri’s seal was also breakaway (hence irreplaceable), even though thismanufacturing process of sealing seems to be slow and could clog up theassembly line.Somewhere along the now that space was occupied by Aquafina and Kinley.The “safe” breakaway seal was replaced by a regular seal, but the change wasn’tcommunicated and more variants (packaging) emerged. Some of these variantswere sold simultaneously. They were manufactured in different parts of Delhi,and one had the website www.bisleri.com printed on it, while the other hadwww.bisleri.co.in printed.So, the mistake was a complete lack of communication on Bisleri’s part. Nowthey have a new product out - a mineral water brand (as opposed to a packageddrinking water brand), and they are advertising it. Still, there are three types of Bisleri bottles in the market in Delhi right now. Now again Bisleri changed its packaging and came up with a new bottle. It has been general feeling that Kinley’s new packaging is more acceptable by the people as it is easy to grip it. In a packaged water market, where the product isnot so differentiated, the company has to constantly innovate new brandingtechniques, distribution channels, advertising and in fact new packagingtechniques.According to the Bureau of India [ Images ]n Standards there are 1,200 bottledwater factories all over India (of which 600 are in one state -- Tamil Nadu).Over 100 brands are vying for the Rs 1,000-crore (Rs 10 billion) bottled water market and are hard selling their products in every way possible -- better margins to dealers, aggressive advertising, catchy taglines.... In such a scenario,The Strategist takes a look at how it all started -- with Bisleri -- and howRamesh Chauhan, chairman, Parle Bisleri created a market out of pure water.Excerpts from a conversation with Prerna Raturi:Western Express Highway in Mumbai has been the route to success for twowell-known men. One was the make-believe super biker cum thief Kabir. Marketing of maineral water-BisleriJohn Abraham in the Bol lywood f l ick Dhoom; and the o ther i s the craf ty Ramesh Chauhan, who has masterminded the runaway success of the Rs.500crore bottled water brand, BISLERI in the country, from his 1st floor office. BISLERI was originally an Italian Company created by Signor Felice BISLERIwho first brought the idea of selling bottled water in India. BISLERI then wasintroduced in Mumbai in glass bottles in two varieties – bubbly & still in 1965.Parle bought over BISLERI (India) Ltd. in 1969 & started bottling Mineralwater in glass bottles under

the brand name ‘BISLERI’. Later Parle switchedover to PVC non-returnable bottles & finally advanced to PET containers. Since1995 Mr. Ramesh. J. Chauhan has started expanding BISLERI operations. In2003 BISLERI announced its venture to Europe.For over 30 years, BISLERI has been the pioneer in the bottled water industrywith its innovations and an eye for perfection. And ever since it was establishedin 1969, BISLERI has constantly searched for inspiration in nature.

Marketing of maineral water-BisleriThe journey till now1969: Buys Bisleri bottled water from an Italian company, Felice Bisleri. It was bottled in glass bottles then.Early-1980s: Shifts to PVC bottles. Sales surgeMid-1980s: Switches to PET bottles, which meant more transparency and lifefor water.1993: Sells carbonated drink brands like Thums Up, Gold Spot and Limca toCoca-Cola for Rs 400 crore.1995: Bisleri launches a 500 ml bottle and sales shoot up by 400 per cent.2000: Introduces the 20-litre container to bring prices down from Rs 10 a litre toRs 2 a litre.1998: Introduces a tamper-proof and tamper-evident seal.2000: BIS cancels Bisleri's licence of a water bottling in Delhi [ Images ] sincesome of the bottles did not carry ISI label; the licence is restored one-and-a-half months later.2002: Kinley overtakes Bisleri. The national retail stores audit by ORG-MARGshow Kinley's marketshare at 35.1 per cent compared to Bisleri's 34.4 per cent.

Marketing of mineral water-Bisleri EXPANSIONChauhan may be short, stocky and nearing 70, but his enthusiasm and vibrancyover the years has not diminished an iota. After all, despite the entry of a slewof MNCs (including Coca- Cola with KINLEY and PepsiCo with AQUAFINAand their cutting edge marketing gimmicks, Chauhan has not lost his first mover advantage in the segment. He has been able to sustain and grow his marketshare in the over Rs.2000 crore Indian bottled water mart. “We have nocompetitor. Our biggest competition is our own incompetence,” he grins,describing how it is the unorganized sector, which is presently walking awaywith the largest chunk of their potential consumers. BISLERI claims 66%market share of the organized segment. “If we were present where theunorganized players are selling, they would not be there at all,” grimacesChauhan.Parle Bisleri Limited: Expansion plans

Parle Bisleri Limited is undertaking a major expansion to increase itsmanufacturing facility as also to widen the distribution network. The total project cost is estimated around Rs 260 crore. Of this, Rs 60 crore will beutilised to expand the existing manufacturing facilities wherein the bottlingcapacity would be doubled to 200 million cases per day. Around Rs 200 crorewill be spent on increasing its distribution network five-fold over the next twoyears. As a result, the company will have 10-lakh retail outlets backed by a fleetover 5,000 vehicles.Parle Bisleri also plans to procure recycling plants from Japan, for its PET bottles,

and set up at least two such plants in Chennai and Delhi at a cost of Rsfive crore each by this year-end. Crushed and compacted bottles from other  parts of the country will be transported to the two plants and a better part of thecompacted PET will go into manufacturing polyester yarn.Though the company plans to come out with an IPO, two years down the line,the present capital expenditure plan will be financed entirely through internalaccruals.

  Marketing of maineral water-BisleriUnder the leadership and vis ion of Mr. Ramesh J . Chauhan, BISLERI has u n d e r g o n e s i g n i f i c a n t e x p a n s i o n i n t h e i r o p e r a t i o n s . T h e c o m p a n y h a s witnessed an exponential growth with their turnover multiplying more thantwenty times in a short span of 10 years. The average growth rate over this period has been around 40% with BISLERI enjoying more than60%.

Marketing of mineral water-Bisleri BISLERI TODAYBISLERI values its customers & therefore has developed 8 unique pack sizes tosuit the need of every individual. We are present in 250ml cups, 250ml bottles,500ml, 1L, 1.5L, 2L which are the non-returnable packs & 5L, 20L which arethe returnable packs. Till date the Indian consumer has been offered BISLERIwater, however in our effort to bring to you something refreshingly new, wehave introduced BISLERI Natural Mountain Water - water brought to you fromthe foothills of the mountains situated in Himachal Pradesh. Hence our productr a n g e n o w c o m p r i s e s o f t w o v a r i a n t s : B I S L E R I w i t h a d d e d m i n e r a l s & B I S L E R I M o u n t a i n w a t e r   It is capturing its market in India as well as other continents. BISLERI has beenno 1 and is capturing Indian market by providing best quality over a period of long time. None of the water products in line are able to compete with BISLERIand thus BISLERI stand unique in the market.Bisleri’s commitment is to offer every Indian pure & clean drinking water.BISLER water is put through multiple stages of purification, ozonised & finally packed for consumption. . Rigorous R&D & stringent quality controls has madeB I S L E R I a m a r k e t l e a d e r i n t h e b o t t l e d w a t e r s e g m e n t . BISLERI’S endeavor to maintain strict quality controls each unit purchases  performs & caps only from approved vendors. BISLERI produces their own bottles in-house; & have recently procured the latest world class state of the artmachineries that puts them at par with International standards. This has not onlyhelped them

improve packaging qual i ty but has a lso reduced raw mater ia lwastage & doubled production capacity. You can be rest assured that you are.   Marketing of maineral water-Bisleridrinking safe & pure water when you consume BISLERI. BISLERI is free of impurities & 100% safe. Enjoy the Sweet taste of Purity !Manufacturing ProcessBISLERI manufacturers its own products and has its own manufacturing unitwhich includes various machines, the whole manufacturing process is carried on by BISLERI a t i t s p lant . The whole manufactur ing process i s d iv ided in todi fferent par t s and i t consis t s of d i f ferent ac t iv i t ies l ike wate r pur i f ica t ion treatment, blowing of the bottles, filling of the bottles, packing of the bottlesetc.The manufacturing process of BISLERI is carried on in different parts:Storing Of WaterThe water i s taken f rom the bor ing wel l and then i s s tored in huge tanks , BISLERI has 6 tanks of 50,000 litres each, and water is first taken from the boring well and stored in these tanks.

  Marketing of maineral water-BisleriTanks in which water is Stored

6 STAGES OF WATER TREATMENT PLANT:1 . O Z O N A T I O N 2 . F I L T E R A T I O N 3 . C A R B O N F I L T E R A T I O N 4.RESERVE OSMOSIS SYSTEM 5 . M I C R O F I L T E R A T I O N .

  Marketing of maineral water-Bisleri6 . O Z O N E T R E A T M E N T1)OZONATION:The process of ozonat ion ensures tha t the water remains f ree f rom bacteria, so that the water can have a longer life and the machine used for this process of ozonation is called ozonator.2)FILTERATION:The process of filteration removes suspended particles from the water bysand filteration.3)CARBON FILTERATION:The stage of carbon filteration removes bad odour and colour from water and purifies it.4)REVERSE OSMOSIS SYSTEM:

This s tage of reserve osmosis sys tem cont ro ls a l l the d issolves sol id  particles and it converts hard water into soft water.5 ) M I C R O F I L T E R A T I O N :Under this stage of micro filteration additional safety measures are takedto guarantee purity of water. In this stage addition of mineral magnesiumsulphate and potassium bicarbonate is processed.Marketing of maineral water-Bisleri6 ) O Z O N E T R E A T M E N T :The ozone treatment increases the shelf life of water. To ensure mineral water isheld safe free from contamination, ultraviolet treatment and ozonisation processis carried out. Ozone is unstable trivalent oxygen, a very powerful bactericidewi th no s ide ef fec t , a s i t d i s in tegra tes in to oxygen wi th in couple of hours .Sterilization effect of ozonised water continues even after water is packaged,thereby ensuring safety of Mineral Water up to its final packing. To ensure highquality of packing materials, components like caps and bottles are manufacturedin-house from resins of quality suppliers.Good Manufacturing Practices are stringently followed at all times. Processingis re l ig ious ly moni tored a t every s tage . Test ing source water , process ing  parameters, microbial quality, packaging material integrity and finally, shelf lifestudies, forms an integral part of quality and safety assurance plan.

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