STRATEGIC ANALYSIS OF BISLERI

PHASE 2

SUBMITTED TO
MRS. AMRITA S.

SUBMITTED BY
PETHE SARANG S. 10189157 MADAN LAL 10189167 VIPIN Y. 10189121 KRATI S. 10189171 ABHILASH N. 10189036

EXECUTIVE SUMMARY
The bottled water industry in India is currently valued at more than $ 1.5 billion. The bottled water industry is growing at rate of 18% CAGR and has attracted many players including Pepsi and Coca Cola. The pioneer of the industry Parle Bisleri has grown over the years and maintained its top position. The bottled water industry consists of organized and unorganized players. There are about 2000 unorganized players which operate locally. The industry is dynamic and the companies operates in hypercompetitive environment. The strategic analysis of company like Parle Bisleri becomes very important in this situation. In the present report we have done strategic analysis of Parle Bisleri. We have used different models for analysis purpose. We tried to analyze the different strategies adopted over the years, the strategy development and have evaluated those strategies considering the external environment and core competencies. We have found that the company has gained sustainable competitive advantage through its brand, logistics and marketing. The company however faces threat from its competitors as it is single product company. The company has adopted expansion strategy to increase the reach and achieve operational efficiencies. We have made certain recommendation based on this analysis. We recommend that the company should strengthen its distribution network, form alliances and joint venture, acquire small players and adopt related diversification.

Contents
INTRODUCTION .......................................................................................................................... 4 PESTLE Analysis .......................................................................Error! Bookmark not defined. Porters model..............................................................................Error! Bookmark not defined. Core Competency ........................................................................................................................ 4 MARKET SIZE & SHARE ........................................................................................................ 5 COMPETITOR ANALYSIS .......................................................................................................... 5 STRATEGIC DIRECTIONS .........................................................Error! Bookmark not defined. EXTENDED VALUE CHAIN ANALYSIS .................................Error! Bookmark not defined. Primary activities: ....................................................................................................................... 7 Supporting activities:................................................................................................................... 9 CORPORATE LEVEL STRATEGY ............................................Error! Bookmark not defined. CURRENT BUSINESS STRATEGY ...........................................Error! Bookmark not defined. Year 1969 to 2000: .................................................................................................................... 10 Year 2001 to 2010: .................................................................................................................... 10 STRATEGIC DEVELOPMENT AT BISLERI............................................................................ 12 FUNCTIONAL STRATEGIES .................................................................................................... 13 Organizational structure ............................................................................................................ 13 Marketing strategy..................................................................................................................... 15 Funding strategy ........................................................................................................................ 15 EVALUATION OF STRATEGY ADOPTED ............................................................................. 16 Suitability .................................................................................................................................. 17 Feasibility .................................................................................................................................. 17 RECOMMENDATION ................................................................................................................ 18 CONCLUSION ............................................................................................................................. 19 REFERENCES ............................................................................................................................. 20 APPENDIX ................................................................................................................................... 22

INTRODUCTION
The global bottled water industry consists of selling of flavored as well as unflavored water. With regards to Indian context there is sale of only unflavored water. The bottled water segment is rapidly growing which has a total market size of more than $ 1.5 billion. The market is mainly controlled by the organized sector with over 500 brands existing in the market. A growth in the sector has been viewed mainly because of the health conscious people, improper water supply and the unpredictable municipal water supply. With a high growth rate and low entry barriers has attracted many players in this segment. The market operates in lower margins, the price increases when the cost of packaging and transportation increases the major players in the market are trying to establish themselves in bulk water business through brand equity, whereas the unorganized players are resisting them by using differentiation strategy. Parle acquired Bisleri from an Italian entrepreneur Mr. Felice Bisleri in 1967. The company established its first plant in Mumbai in the same year. The company was the first player in the bottled water industry and so it has gained first mover advantage. The company has undergone changes over the years. There was a strategic shift in the direction of the company over the years. We have selected Parle Bisleri for the analysis purpose mainly because, it is important to study how a company with a single product brand has maintained its market position? We have gained insights about the strategic decisions taken by the company over the years, which have enabled it to gain sustainable competitive advantage.

Core Competency
The brand of Bisleri itself is the core competency for Bisleri. The seal of Bisleri bottles help the consumers clear their doubts on the purity of water. The company maintains the physical and financial resources very efficiently and effectively. These resources when combined helps in maintain and retaining customers expectations to achieve the targets of the company. The intellectual capital of the brand plays a major role as the bottle seal of Bisleri is patented. Bisleri has a very strong distribution network, which makes it reach out to almost all the region in the country, company has about 350000 outlets across the country. The company worked on its dualdistribution strategy to gain competitive advantage.

MARKET SIZE & SHARE

The bottled water industry is expected to grow at 18% CAGR in the year 2010. The sale of bottled water industry is expected to reach at 6466.8 million liters translating to market worth of more than $ 1.5 billion. The off trade value of the sales has increased by 25% in 2009. There were no significant products launched during last year. The average price per unit has increased by 4% in the off-trade business in 2009 ("Bottled water- India," 2009). The market consists of organized as well as unorganized players. The organized players consist of brands like Bisleri, Kinley, Aquafina, Oxyrich, Himalaya, etc. Parle Bisleri has continued to be the market leader with a market share of 38.5%. The bottled water industry in India still consists of still bottled water. The carbonated and flavored water has very niche segment and there were negligible sales in 2009. There are large numbers of unorganized players and most of them are involved in selling by means of tampering with seals of organized players product. The market share of different companies in bottled water industry is shown in appendix

COMPETITOR ANALYSIS
The parameters are taken to differentiate Bisleri from its competitors. Bisleri acquires 38.5% of market share whereas Kinley has a market share of 21% only and Aquafina covers only 14% of the total market share of the bottling water. Kinley has a cost price of manufacturing a bottle up to Rs 12.25 and it sells the bottles for Rs. 14/15 which gives it a profit margin of Rs 1.75/2.75. Whereas, Bisleri has a profit margin of Rs 2 as its cost price is Rs 10 and the selling price is Rs 12. Aquafina on the other hand earns a profit margin of Rs 2 with cost price as Rs 8 and selling price as Rs 10. Bisleri focuses a lot on the advertisement of its brand and keeps on differentiating

itself by making variances in the brand or packaging of the bottles. As it uses green color packaging whereas the other bottling companies use blue color to pack their bottles ("Parle Bisleri Ltd- Soft drinks- India," 2009). The advertisement commits that it provides safe and pure drinking water whereas Kinley is going to launch its advertisement as Vishwaas Karo. Aquafina does not concentrate on advertising; it has a very low advertising in selected places like cinema halls. The distribution network of all the three companies varies. The distribution network helps in making the product available to its customers whenever they need it. The distribution network of Bisleri is such that from the manufacturing plant the bottles reach company warehouse from their through the trucks it reach to its retailers or through distributors it reach to the retailers and then from retailers finally to the customers. Through distributors it also goes to the institutional buyers or orders over internet. Aquafinas distribution system is different. From the companys manufacturing unit the bottles reach to distributors and from there to institutional buyers or retailers and then finally to customers. Kinley has different distribution network it does not include a big network. From the manufacturing unit the bottles are sent to the sales and distribution department from there the bottles are sent to the distributors and outlets directly and the bottles from distributors are also sent to the outlets. A very small network is there. This makes the product less available in the market.

We can divide the Bisleris activities in two parts on the basis of value chain model 1. Primary activities 2. Supportive activities

Primary activities: Bisleri is a leading organization in packaged bottled water. Bisleris primary activities are Inbound logistics: The raw material for Bisleri drinking water is water, plastic grain for bottle, packaging equipment, minerals, bottle cap and labels. Bisleri has good inventory system and transportation system. Its inbound logistic is good enough to supply the Bisleri water regular. This helps to available the product at everywhere. The product availability adds the value to the customer. BISLERI manages all the semi finished, finished goods and raw material in stores department. In store department they all keep the stock of rejected bottles or cap to reuse it. Every day 5o tones of stock dispatch from the store house. So this increases the availability of product to consumer. The models are made from polymers like HDPE, LLDPE, PET grains. Operation: Bisleri manages its seven department of different operation where hygiene and safety concern is primary focused. Different departments are: 1. Filter department 2. Caps department. 3. Water treatment plant 4. Water blowing department 5. Water testing laboratory

6. HORAI department(grinding plant) 7. Stores department. Filter department is responsible for the filling and packaging of bottles under the rigid control of the hygiene and safety. In the caps department the PET material is used to make the cap and plastic bottles by using 6 Ekou injection modeling machine of 180 and 330 as per the requirement of market. Caps are made from a mixture of HDPE and LLDPE using 4 Cincinnati Milacron and 2 Windsor injection-moulding machines. Water treatment plant where the water is make pure and safe. Water laboratory taste checks the quality before and after packaging. The scraps or used bottle again send to HORAI department for the recycle of bottles. Stores department manages the all raw material and scraps. Bisleri add value at each steps of its operation. Customer perceived Bisleri as pure and safe water with cap security. Outbound logistics: The outbound logistic of Bisleri is very strong. To increase the capacity and to cover the maximum market Bisleri increased its transportation by increasing the number of trucks from 1000 to 2000 trucks. Bisleri uses the route mapping method, in this method the route of transportation and operation is designed in such a way that it takes minimum time to transport the stuffs. Bisleri makes route sheet along with the scheduled to make sure the things happen in an effective manner. Current Bisleri manages 16 plants at 14 locations in different part of India to increase the availability of product. Bisleri plan to open the 25 new plants till 2010 to increase the growth of 40%. So it will decrease the supply time and make the product easily available. Bisleri decide to increase its distribution network by 30%. Marketing and sales: Bisleri uses competitor price strategy to get the market. As Bisleri has the first mover advantage and the market is full of competition so they decide to increase the advertising expenses for ad campaign. Bisleri itself is known as mineral and pure water. The branding and segmentation of Bisleri is very strong as it cover household to big hotels. To target the customer Bisleri launched different product line with different prices and different size of bottles. The Bisleri uses three level of distribution channel as it consists of wholesalers, dealers and retail shop.

Services: Bisleri has a vast distribution channel so the service and delivery quality of Bisleri distinct it from others.

Supporting activities:
Firm infrastructure: Bisleri manage its network by establishing it unit near by the resources where the availability of water is enough to run the business. Bisleri has the vast and strong distribution channel. Technology and development: As the competition in the market is increasing Bisleris main focus in on to develop new brands and new technology to increase the customer satisfaction. Bisleris unique bottling packaging and temper seal cap technique distinct itself from others. There unique and safe production process also helps to attract the large pool of customer. Bisleri has a good inventory management that helps Bisleri in continuous supply of water. VRHN analysis The company has a motive always to beat its competitors and gain competitive advantage. VRHN analysis will help in assessing all that a company gives which differentiates it from its competitors. Valuable- The purification process of Bisleri is a valuable resource for it. Ozonization and micron filtration is included in its process to purify the water. The transport facility of Bisleri is regarded as a valuable resource. It has large fleet of trucks to supply the bottles and make the product available. More than 75 vans are there in Mumbai to carry the bottles from the manufacturing plant to its distributor. Rare- Bisleri is launching water in fruity flavor which is rare. The peach and green apple flavor water will be available to its customers. This rare combination makes it unique. Natural mountain water which is also launched by Bisleri is rare. The green packaging of Bisleri is also rare. The distribution network of Bisleri is also rare as its bottles are available in all its stores.

Hard to imitate- The bottle of Bisleri have a seal which has a patent, which is hard to imitate. Non substitutable- There are substitutes for water but water is the sole agent for thirst quenching. So we can say that for the company the product itself is non substitutable.

Year 1969 to 2000: In 1969, Parle acquired Bisleri with an aim to increase its product
portfolio. Parle introduced Bisleri soda in carbonated and non carbonated types to get a hold in soda market. The product was initially packed in glass bottles. Initially the perceived value of the product was low as well as the price was low. The product was basic and thus we can say that company used No-frills strategy. As the company saw potential in bottled water segment, the company used differentiation in the form of packaging. In 1980, the company changed the packaging from glass bottles to PVC (Polyvinyl chloride) to PET (Polyethylene terephthalate). There was a shift in paradigm for Bisleri when it sold its soft drinks brand to Coca Cola in 1993. The company removed soda water from market and now focused its attention to packaged drinking water. The initial consumers of packaged water were foreigners and NRIs (Non-resident Indians). There were no competitors in the market, so Bisleri adopted low price strategy. The aim of using this strategy was to penetrate the market and establish a significant market share. The price of the product was as low as Rs 5 for 500ml bottle. The company achieved low price by reducing its operational costs. The company had initially 15 plants and the product was sold through over 50000 outlets. So we can see that in period 1969 to 2000 the company used no frills and low cost strategy. The company shifted the position from point 1 to point 2. Now let us analyze the strategies adopted by Parle Bisleri from 2001 to 2010 (Anonymous, 2007).

Year 2001 to 2010: In August 2000, Coca Cola saw potential in bottled water industry and
entered this market by introducing its brand Kinley. The market saw entry of big players like Pepsi through its brand Aquafina and Nestle through its brand Pure Life. The other players in the market include the Tatas through its brand Himalaya, Manikchand through brand Oxyrich and Parle Agro through its brand Bailey. The organized bottled water segment which was initially dominated by Parle Bisleri saw entry of many players. Currently there are about 8-10 players in the organized sector. In the response to the growing competition Bisleri started using hybrid strategy. According to this strategy differentiation was based on quality; however with number of competitors the differentiation based on quality became difficult. Bisleri has now used

differentiation in the form of packaging, price and distribution. The company differentiates through distribution by targeting new channels like chemists and stationery shops which were not used earlier. The company has used its own fleet of about 2000 trucks to manage the distribution network (Iyer, 2010). The company differentiated in the terms of packaging by making available the products in different shapes and size. The company has used tamper proof seal to assure good quality. The company has patented the tamper proof seal technology and has created barriers for its competitors. The packaged water industry has bifurcated in two segments, retail and bulk water segment. The company has in response to entry of new players have used refocusing strategy. The present strategy of Bisleri involves targeting the bulk water segment, pricing competitively, strengthen distribution, innovate on packaging and product line extension. The company by passes the competition and reduces operational cost by targeting the bulk bottled water segment. The company has shown innovation in packaging by changing the shape and color of pack from blue to aqua green. The company operates in hypercompetitive environment, so it is necessary that company changes its strategies according to the dynamic environment. We have found that the company can be located on position 3 on the strategic clock. However, the company can switch between hybrid and differentiation strategy in accordance with changing environment. The company however presently uses hybrid strategy wherein it has differentiated its offering from its competitive and at the same time making it available at cost lower than its competitors.

STRATEGIC DEVELOPMENT AT BISLERI

Parle Bisleri Pvt Ltd has owned one of the top-three packaged brands in the country, has formulated plans for a diversification into the fruit juice business. The company has already established a fruit juice concentrate plant in Chittor, Andhra Pradesh. Plans are going on to identify a place for the companys offered second plant that is likely to be established in the eastern or northern part of India. Company has decided to make an investment of Rs 100 crores in the fruit juice projects in the next three years. This amount will be generated through internal accumulation and institutional loans. The company is going to begin with mango and guava juice to begin with will be marketed under the Alfa umbrella brand. Company has realized that fruit juices have come out as a fancy drink after water. It is a logical business series for the bottled water producing company to adapt to the fruit juice segment. Bisleri has to establish its market in the region through a restore marketing strategy and a focus on enhanced and innovative packaging. The idea is to be raised by hundred percent in the next one year and 250 percent in the next three years. The company is planning to increase its presence in the eastern part of India. It has assigned Orient Beverages Ltd as its only franchisee in West Bengal, Jharkhand and Orissa. Company has firmed up expansion plans for Sikkim. The company has also prepared to explore for business opportunities in adjacent countries like Nepal and Bhutan in the future. Bisleri is facing severe challenges from both family and outside competitors. There is a big threat to the leadership of Bisleri in the mineral-water market. The company is in the process of developing a market strategy for its next innovation that is enhanced water. The company is planning to launch mineral and protein-added, packaged water in various essences. There are three major brands in the bottled water market Aquafina, Bisleri and Kinley. Market strategy development and implementation Market strategy includes the analysis, strategy development and implementation. First, company has developed a vision about the market of interest to the company and then selected market

target strategies, establishing objectives and developing and implementing the strategies. It includes managing and marketing program positioning strategies formulated to fulfill the value needs of the customers in every market target. Strategic marketing is a process of market-driven strategy development, taking into consideration a consistent varying business environment and the requirement to bring excellent customer value. Bisleri has developed strategic marketing to concentrate on organizational performance instead of focusing on increasing sales. The marketing strategy of Bisleri tries to bring excellent customer value by integrating the customerinfluencing strategies of the business into an organized set of market- driven activities. The company has connected its strategic marketing with the organizational environment and views marketing as a liability of the whole business instead of a specialized purpose. There is marketings boundary orientation between the organization and its customers, competition and channel members. The marketing processes are centralized to business strategy planning process. Strategic marketing supplies the knowledge for environmental screening, for choosing what customer group to serve, for directing product specifications and for selecting competitors for position against. Bisleri has successfully integrated cross-functional strategies which are decisive for offering excellent customer value.

FUNCTIONAL STRATEGIES
Organizational structure
In this part we are going to discuss about the organization structure and marketing strategies of Parle Bisleri. We have taken Mintzbergs organizational configuration as reference. Mintzberg suggests that there can be six organizational structures depending upon the environment. We can observe that the company operates in a dynamic environment and has simple processes. So the

company is more suited to have a CEO controlled structure. The company follows the CEO controlled structure. The Chairman and founder of the company Mr. Ramesh Chauhan controls and directs all the organizational processes. The company follows a centralized decision making and all strategic decisions are taken by the Chairman. The company has grown over the year under the leadership and vision of Mr. Ramesh Chauhan. The present organization structure is suitable as the company has single product and the centralized decision making enables flexibility to changing conditions which is necessary for the success of the organization.

Configurati on
Simple

Environment Internal

Typical Structure

Key processes
Direct supervision

Typical relationships
Centralized

Simple/Dynam Small/ ic Young/ Simple Task

CEO control

Machine Bureaucracy

Simple/ Static

Old/ Large/ Functional Regulated tasks

Planning systems

Centralized strategic planning

Professional Bureaucracy

Complex/ static

Simple systems/ Professional control

Functional

Cultural processes/ Self control

Devolved

Divisionalised

Simple/static diversity

Old/

very Multidivision al

Performanc e/

Devolved/financ

large/divisib le tasks

target/ ial or strategic control Devolved/ network alliances and

markets Projects Cultural processes/ Self control

Adhocracy

Complex/ dynamic

Complex tasks/ Expert control

Missionary

Simple/static

Middle age/ Teams Ideological control

Cultural processes

Networks

Figure 3: Mintzbergs organizational configuration

Marketing strategy
The strategic situation analysis considers competitor and market analysis, market segmentation and incessant erudition of markets. Formulating marketing strategy checks customer targeting and positioning strategies, market relationship strategies and planning for latest products. Marketing program development includes product, price, distribution and promotion strategies formulated and applied to fulfill the value needs of target buyers. Strategy execution and management considers marketing strategy implementation, control and organizational design. The marketing strategy adopted by the company has also changed over the years. In the initial years when it was the sole player in the bottled water market it positioned itself as luxury item. The punch line was Veri very extraordinari. The entry of players like Pepsi and Coca Cola made it to change the strategy. Now the company positioned itself as quality product to gain the trust of the consumers. The catch line now said Pure and safe. In the recent years there were cases where insecticide contents were found in bottled waters of some major players including Bisleri. This strongly affected the sales of Bisleri which decreases about 15%. The company carried out a rebranding exercise to recover from the dent created by this incident. The company has changed its packaging and the color has been changed from blue to aqua green. The company is now positioning itself as best product. The present catch line says Play safe. The company uses medium such as television, hoardings, magazines and company trucks for advertising purpose.

Funding strategy
The financial strategies will change according to the phase in which the business is operating. We can find that Parle Bisleri is in maturity phase. The business risk is medium to high. So if we use growth/share matrix, we can find that the company can use debt and equity for funding purpose. The company currently uses only debts as source of finance. However, we would like to propose that the company should use a mix of debt as well as equity. The company should come up with an Initial Public Offering (IPO). The money raised through the IPO can be used to finance its expansion plans and developing new products. The use of equity as source of finance will reduce the financial risk for the company.

Figure 4: Growth/ share matrix

EVALUATION OF STRATEGY ADOPTED

The strategic evaluation can be based on quantitative and qualitative criteria. The quantitative analysis requires use of financial ratios like return on investment, profit margin, earnings per share, return on equity, etc. Parle Bisleri is a Private Limited company, so the financial data is not readily available. So, to evaluate the strategy we adopt the following procedure, Compare the performance of the firm over the different time line. Compare the companys performance with the competitors. Compare performance of the company with the industry averages.

The company has maintained its position over the years and still remains a market leader with a market share of 38.5%. The company industry is growing at rate of 17% whereas the company is growing at rate of 36%. The company is targeting a growth rate of 40% in the year 2010. Thus the companys growth rate is well above the industry growth rate. The company has plans to increase the number of plants. With the establishment of new plants, the company will have total 55 plants, with its competitors Kinley having 16 plants and Aquafina with 11 plants. While evaluating the strategies adopted by the company we have considered suitability, acceptability and feasibility.

Suitability
The company has adopted market penetration strategy. From the PESTLE analysis we can find that the external environment is favorable for the growth of industry. There has been growth in IT and other allied industries in tier 1 and tier 2 cities. So there is increase bulk water consumption. The bulk water consumption is untapped by the organized players. The strategy adopted by Bisleri is suitable in this context. The company has its own fleet of 2000 trucks also company has enabled online ordering of bulk water. This facilitates the penetration in this segment. Also the core competencies of Bisleri include its Brand name and distribution channel. The company can use these competencies to introduce more products in the market and thus product development strategy is also suitable them. The company uses its capabilities like control over distribution network and tamper proof to reinforce the quality perception in the minds of the consumer. The company plans to adopt expansion by increasing the capacity of current plants and establish new plants thus facilitating the penetration. The company uses Hybrid strategy. This strategy is suitable for the company because the company is the market leader. The company has been present since 1969 and hence has achieved learning curve. This enables the company to provide differentiated product at lower price.

Feasibility
The feasibility of the strategy adopted by company depends upon the resources and competencies. We do not have financial data of the company however we can infer from company analysis that the company has sufficient financial resources to support the expansion strategies. The company also has internal resources and sufficient reach to support the expansion strategies. From the value chain analysis, we can infer that the strength lies in its human

resource, logistics and marketing. These capabilities will help the company to set up new plants, increase the number of distributors and cater to demand of the market. The expansion plans will help to reduce the per crate cost. Presently the company spends Rs. 35 per crate. The expansion will help to bring this cost to Rs. 5 per crate. The company can use the savings in promotional activities and to increase the logistics. This will also help to reduce the cost of production and thus the company will be able to supply the product at lower prices as compared to the competitors. Thus, we can conclude that the expansion and hybrid strategies adopted by the company are feasible. These strategies are well supported by the financial capabilities and the resources of the organization.

RECOMMENDATION
On the basis of the analysis done, we would like to suggest following recommendations, The brand recall of Bisleri is stronger as compared to its competitors. However, problem arises when the brand is not available and customer ends up buying the brand of competitor. The company should therefore invest heavily on logistics. The company can acquire smaller unorganized players to extend the reach or can tie up with major local players.

In Indian villages, even today there is shortage of safe drinking water sources and there is spread of water borne diseases due to contaminated water. The company should therefore focus on rural market penetration.

The company is a single product portfolio company. The company should try to introduce more product more beverage products in the market. The company will require funds for the expansion and other projects. The company should fund these projects and plans by coming up with an IPO. Introducing equity in the capital structure will reduce the interest burden on the company.

The company should form a joint venture with some companies who have greater rural distribution network to introduce products catering to rural market.

CONCLUSION
The analysis of Parle Bisleri has helped us to understand the different strategies adopted by it to sustain and grow in the hypercompetitive market. From the analysis we have found that the strength lies in its brand, packaging, logistics and marketing. However, the company is subjected to higher risk, as it is a single product company. The bottled water industry which is dominated by Bisleri is facing problems due to arrival of bigger players like Pepsi and Coca Cola. The company has bypassed the competition by shifting the focus towards bulk water segment.

However we feel that the company needs to strengthen its present business and diversify in related business. The company can typically form alliances and joint ventures. We feel that tough time for Bisleri is about to come and the company will be severely affected if it does take proper strategic decisions in the present scenario.

REFERENCES
Anonymous. (1999). Bottled water proves it's a big fish. Beverage industry, 90(7), 38-40. Anonymous. (2001). Ramesh Chauhan's biggest gamble with water Retrieved 3/4/2010, from http://www.domainb.com/companies/companies_p/Parle_bisleri/20010201_Parle_bisleri. html

Anonymous.

(2007).

How

Bisleri

reinvented

itself

Retrieved

3/4/2010,

from

http://www.rediff.com/money/2007/feb/06spec.htm Bisleri's Chauhan sees big business in small packs. (21/4/2006) Retrieved 3/4/2010, from http://www.financialexpress.com/printer/news/151843/ Bisleri plans 25 plants in 2010 to retain market leadership. (2/6/2009) Retrieved 3/4/2010, from http://www.moneycontrol.com/news/searchnews.php?call=687474703a2f2f7777772e666 96e616e6369616c657870726573732e636f6d2f6e6577732f4269736c6572692d706c616e 732d32352d706c616e74732d696e2d323031302d746f2d72657461696e2d6d61726b6574 2d6c6561646572736869702f3438333639382f Bottled water- India. (2009) Country sector briefing: Euromonitor International. Bureau. (2005). Parle Bisleri plans foray into fruit juice biz, Business Line. Retrieved from http://www.thehindubusinessline.com/2005/08/10/stories/2005081002330800.htm Ferrier, C. (2001). Bottled water: Understanding a social phenomenon. Ghosh, A. (2010). Fruitflavoured water from Bisleri soon. Retrieved from

http://business.rediff.com/report/2010/apr/19/fruit-flavoured-water-from-bisleri-soon.htm Harden, A., & Flecker, K. (2006). Bottled water and water privatization: The ruse and the resistance. Our School, Our Selves, 15(4), 105-110. Iyer, B. (2010). Bisleri's expansion thirst, Business Standard. Retrieved from

http://www.business-standard.com/india/news/Bisleri\s-expansion-thirst/389299/ Johnson, G., Scholes, K., & Whittington, R. (2005). Exploring Corporate Strategy Text and Cases (7 ed.). Essex: Pearson Education Limited. Parle Bisleri Ltd- Soft drinks- India. (2009) Local company profile (pp. 1-2): Euromonitor International Slater, J. (2000). Water wars. Far eastern economic review, 163(8), 45. Srinivasan, L. (2009). Bisleri gets ready to take on Tata water brand The Financial Express. Retrieved from http://www.financialexpress.com/news/bisleri-gets-ready-to-take-on-tatawater-brand/561668/ Srinivasan, L. (2009). Packaged water cos hike prices in select mkts, The Financial Express. Retrieved from http://www.financialexpress.com/news/packaged-water-cos-hike-pricesin-select-mkts/478882/

Srinivasan, L. (2010). Bisleri to take on Kinley with Vedica, The Financial Express. Retrieved from vedica/594184/ Wilk, R. (2006). Bottled water: the pure commodity in the age of branding. Journal of consumer culture, 6(3), 303-325. http://www.financialexpress.com/news/bisleri-to-take-on-kinley-with-

APPENDIX
Appendix 1

Appendix 2 Parameters Bisleri Kinley Aquafina

Market Share Selling Price Profit margin Marketing

60% Rs 12 Rs 2 Mass advertisements, hoardings, etc

20-25% Rs 14/15 Rs 1.75/2.75 media With

10% Rs 10 Rs 2

aggressive Minimal advertising, restricted point to only

promotional are campaign,

of cinema halls and few television

used for promotional purchase

promotion local

campaign. Change in and encasing on the without any hoarding packaging to brand value of other or bill board. Not

reposition its brand. power brands of CCI, much reinvention in Already credence having Kinley is creating a packaging too over attributed PULL in the market. the years. Only the price is kept lower than their national and international competitors. Hence no PULL creation in the market.

and positioned itself as safe in the minds of consumers. Has

become generic brand for mineral water and creating entirely. PULL

Appendix 3: Distribution network of Bisleri

Manufacturing Unit

Company warehouse

Trucks

Distributors

Institutional Buyers/ Seasonal Party Orders

Retailers

Customers

Appendix 4: Distribution network of Kinley

Manufacturing Plant

Sales and distribution operations

Distributors

Outlets

Outlets

Appendix 5: Distribution network of Aquafina

Company

Distributor

Institutional Buyers Retailer (hotels, corporates, offices of varios companies)

consumer

consumer

Appendix 6

SALES OF BOTTLED WATER TO INSTITUTIONAL CHANNELS IN MILLION LITRES

YEAR SALES % GROWTH 2004 1354.5 2005 1652.2 22 2006 1983 20 2007 2350 18.5 2008 2820 20 2009 3440 22

Appendix 7

FORECAST OFF-TRADE SALES OF BOTTLED WATER IN RS. MILLION

YEAR BOTTLED WATER 2009 2010 2011 2012 2013 2014 35628.1 43555.4 52083.5 61310.7 70977.5 80508.3

Appendix 8

BOTTLED WATER
90000 80000 70000 60000 50000 40000 30000 20000 10000 0 2009 2010 2011 2012 2013 2014 BOTTLED WATER

Appendix 9

BRAND SHARES OF BOTTLED WATER BY OFF TRADE VALUE

BRAND Bisleri Kinley Aquafina Oxyrich Bailey 2006 31 22 14.5 9.5 2 2007 37 20.5 14.5 9.5 1.5 2008 38 20 14.5 9.5 1.4 2009 38.5 21 14.5 9.5 1.4