Case Study on Reinventing of Bisleri Presented to, Prof. Murgesh Gaglani GROUP MEMBERS HARSHADA MAHADALKAR 86 JAMUNA AGRAWALLA 102 KAUSHAL VEDANT 114 MANDAR TERSE 130 MOHD. IBRAHIM MIRZA 149 SANTOSH SHAD 244 SUFIYAN PATEL 267 VIJAY DINDRAMA 287 ZEUS MISTRY 302 BACKGROUND OF THE CASE • In 1990 Parle Bisleri had become synonymous with branded water & had a market share of 70%. • Other players position them self as packaged drinking water. • In 1990 Bisleri comes up campaign of Pure and Safe ad. • But in 2000-01 , company face major competition from CocaCola & Pepsi. • The market share of Bisleri decline, starting loosing the No.1 position from the market. • In September 2000, Parle Bisleri launched its Play Safe ad campaign. PACKAGED DRINKING WATER INDUSTRY 2008 • Rs. 1500 crore packaged water industry • The industry which is growing at the rate 55% per anum • Estimated to grow around Rs. 1800 crore by 2010 • Approximate 20% brands in organized market & around 80% Local Brands THE MAJOR PLAYERS IN PACKAGED WATER INDUSTRY – Parle's Bisleri – Coca Cola Kinley – PepsiCo Aqua Fina – Manikchand Oxyrich – Parle Agro Bailley Major Players Market Share in India 2008 Percentage 60% 50% 40% 30% 20% 10% 0% Percentage Bisleri Profile • A Italian origin company. • Parle bought over Bisleri in India In 1969 • Currently 54 bottling plants , 9 plants are company owned & rest are franchisee or contract packers. • Company put through multiple stages of purification, ozonised & finally packed for consumption. • Company commitment to offer every Indian pure & clean drinking water Strengths •Bisleri is the synonymous with branded water Weakness •No continuous innovation in the product •Not able to penetrate on premium segment •Bisleri is the pioneer in the market •Not more focus on advertisement •Major market share •Generic name for packaged drinking water •40 years old brand so name its self is TRUST •Focus on safety Opportunities •Can enter in the market of juices & beverages Threats •From the players like Kinley, Aqua fina, Himalaya Bailley, & Other local & rural products •Can enter in the market of water purifier •New enters in the market like Amul •Can tab the maximum rural market of the country •Tie-up with railway canteen & stalls •If government ban on plastic use then company will be in trouble PORTER'S 5 FORCES Continue…… • Bargaining Power of Suppliers • Increase in the cost of Raw Material (cap cost , labeling cost, bottle cost, carton cost) • Suppliers supply raw material to local players • As plastic bottle banned another substitute will be glass bottle • Threat of Substitute • Substitute are Fruit Juices, Health Drinks ,Soft Drinks • Juices like Real , Slice Mangola , Priya gold Treat, Coca Cola Continue…… • Intensity of Rivalry Firms – Local brands are major contributing 80% of market share – Around 200 registered brands in India • Bargaining Power of Buyers • Local brands are available in the market in the cheap price • Buyers have choice from wide variety of suppliers • Demand is more in the market but branded suppliers is less compare to local suppliers • Barriers to Entry / New Product • New entrants in the market like Amul “Narmada Neer” • Market is growing which attracts new entrants Segmentation • Geographic - City Size:- Mostly Major Cities & Sub Metros – Climate:- Hot & Humid • Psychographic – Lifestyle:- Travel Freak – Personality:- Health Conscious • Demographic – Family Size:- Mostly Individual & Sometimes Families – Corporate • Behavioral – Benefit:- Thirst & Quality – Brand Loyalty:- Split Loyal Targeting • Targets middle segment people • Price of the Bottle is such that can be affordable to the all segments • Company planning to target more towards lower segment Positioning • Where is the Product in the Customer’s Mind Mineral Water Bisleri Aquafina Kinley Oxyrich Himalaya Brilliant Best Brain Cells Product A range of products that suits all the occasion – For daily traveling consumption (250ml cups, 250ml & 500ml bottles) – For Long traveling consumption (2, 1.5 & 1 Ltr.) – For Office, Home, Marriage or Meeting use (5 & 20 Ltr. Returnable packs) Price • Comparative Pricing – Geographical Pricing (Transportation Chugs) E.g. Gujarat Village Mumbai Rs.5/- Per Ltr. Rs.12/- Per Ltr. • Product Line Pricing – Image Pricing Old Pack New Pack Rs.5/-Per 500ml Rs.9/-Per 500ml Place • Intensive Distribution – 25 bottling units – A fleet of 2,000 vehicles – 1,20,000 retail outlets ,12,000 each in the metros of New Delhi and Mumbai Promotion • Advertising Campaign – First Ad Campaign – PLAY SAFE – Second Ad Campaign – The Sweet taste of Purity – Third Ad Campaign – Bisleri The Mountain Water – Fourth Ad Campaign – Bisleri bottle falling from mountain Recommendation – Keep Innovating at regular interval – Improve penetration in the market which includes rural market – Advertise regularly to maintain top of mind recall – Improve ties up resorts & restaurant – Introduce sparkling water to cater to niche category & obtain more shelf space – Keep tab for duplication tHaKu YoU