study of the market scenario of indian packaged drinking water industry with focus on bisleri

CHAPT

ER

ONE

INTRO

DUCTI

ON

Water is the

fountain of all

life. Even a

toddler will

tell you it is a

prime need of

the body. Sixty

percent of our

body weight is

made up of it.

Water can also

be the cause of

much misery

especially in

India, where

contaminated

water

continues to

bring down

millions with diseases such as diarrhea, dysentery, typhoid, jaundice and

gastro-enteritis.

Getting pure drinking water from municipal taps in cities and towns is

now a luxury. At home most people are forced to either boil water or

install purifiers. While traveling or eating out in restaurants, buying

bottled water has become a necessity. This need has seen an explosion of

companies marketing “safe drinking water” in bottles across the country.

1.1 THE PACKAGED DRINKING WATER INDUSTRY –

AN OVERVIEW

India is the tenth largest bottled water consumer in the world. In 2002, the

industry had an estimated turnover of Rs.10 billion

(Rs.1,000crores).Today it is one of India's fastest growing industrial

sectors. Between 1999 and 2004, the Indian bottled water market grew at a

compound annual growth rate (CAGR) of 25 per cent - the highest in the

world. With over a thousand bottled water producers, the Indian bottled

water industry is big by even international standards. There are more than

200 brands, nearly 80 per cent of which are local. Most of the small-scale

producers sell non-branded products and serve small markets. In fact,

making bottled water is today a cottage industry in the country. Leave

alone the metros, where a bottled-water manufacturer can be found even in

a one-room shop, in every medium and small city and even some

prosperous rural areas there are bottled water manufacturers.

Despite the large number of small producers, this industry is dominated by

the big players - Parle Bisleri, Coca-Cola, PepsiCo, Parle Agro, Mohan

Meakins, SKN Breweries and so on. Parle was the first major Indian

company to enter the bottled water market in the country when it

introduced Bisleri in India 25 years ago. The total annual bottled

water consumption in India

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1.2 OVERVIEW OF THE MARKET SHARE

Currently, Bisleri continues to lead in the Rs 700-1,000 crore organized, packaged water market

with an estimated 40 per cent market share, followed by Kinley at 28 per cent and Aquafina with

an 11 per cent share. In terms of volumes, the North and West remain Bisleri's biggest

performing markets, despite the brand's sustained national-level presence. The market has been

growing for the last three years at an unimaginable rate of 80%. The market size of bottled water

is expected to surpass the size of soft drinks market very soon in the near future.

Individual Market Shares:

BISLERI-40%, KINLEY-28%, AQUAFINA-11%, OTHERS-21%

Due to the demand for water, a large number of "mineral water manufacturers" have been

spawned selling little more than tap water to the unsuspecting consumer, the majority of whom

are still very native about mineral' water.

Pepsi Co's Aquafina brand, which debuted the bottled water business in September 1999, targets

the youth sector and concentrates on just one pack size, 750ml priced ten rupees.

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Coca-Cola is the most recent entrant (May 2000) with its Kinley, brand and in a controversial

and unsuccessful marketing campaign, it obtained an endorsement from the Federation of Family

Physicians' Association of India (FFPAI), a lesser known body of doctors for its brand.

Estimates show that there are around 100 small regional players in the bottle water market and

the number have been growing at an unbelievable 70%-100% per year, year on year, for the past

four years. This has enticed a number of international brands in the market besides Coca-Cola

and PepsiCo-Nestle (Pure Life), Britannia, Lever, United Breweries and Shaw Wallace. Danone

Pairs launched Evian some time back and even imported hundreds of cases for VIP guests

celebrating the Hindu festival, KumbhMela.

The government has been forced to sit up, take notice and tighten regulations after

comprehensive sample tests were taken by consumer groups and found that a number of the

smaller and more unscrupulous "opportunistic" players were selling little more than tap water.

Until recently the government of had set standards only for mineral water and even the PFA

(Prevention of Food Adulteration Act) and BIS (Bureau of Indian Standards) were deficient

when compared to international markets.

Under the new regulations 48 specifications are to be met for water to become mineral water and

for packaged drinking water there are 43 specifications. But small players are bound to fall out of

the market by April 1, 2001 when the new regulations were supposed to be enforced.

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1.3 SEGMENTATION

The mineral water market is segmented according to the type of consumers:

Foreign Tourists

Foreign tourists have been the main consumers of the mineral water as they face a lot of

digestion problems due to different food habits.

Domestic Tourists

Domestic tourists have switched to mineral water mainly because of safety and hygiene

factors.

Health/Fashion Conscious

Like soft drinks, drinking mineral water is also considered fashionable by some people.

The mineral water consumer is mainly in the age group of 20-35 years and is an educated middle

class person. This is also the segment of fruit drinks, which have usually been positioned as fun

and health drink for young adults.

The mineral water market is also segmented along pack sizes:

One litre bottle

This is meant to spell safety and security for consumers. It is positioned on a prestige

platform for the achiever segment - who like to make a fashion statement by drinking

mineral water. This segment gets the maximum sales.

500ml bottle

This size has been introduced in the market to target the individual and local travelers.

PET bottles

The size of the PET bottles varies from 10 to 20 litres. These are mainly for institutional

sales (Wedding parties, Hotels, Corporate, etc.)

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1.4 CONSUMER HABITS & PRACTICES

Consumers are growing more health conscious and are more careful of their drinking habits.

Brand loyalty is very low as all the products taste the same so they can buy just any product

which is on the shelf, same as that of soft drinks and fruit beverages.

Availability in the chilled form and brand awareness plays a crucial role in purchase

decisions.

While there is no aversion to consumption of mineral water by any age group, this product is

mainly consumed by the people in the age group of 20-35 years who have less attraction of

soft drinks or other synthetic drinks whereas youngsters look in for soft drinks and fruit

beverages to quench their thirst.

Visibility is another factor that should be taken care of by the companies as consumers are

not very brand loyal and consume whatever is in front of them.

Consumers often drink bottled water as an alternative to tap water. They think it tastes better (no

chlorine taste) and perceive it to be safer and of better quality. They also look for security: food

scandals in industrialized countries and water-borne diseases in developing countries greatly

influence consumers’ attitudes. Consumers buy bottled water to feel well and to lose weight.

Bottled water is perceived as a healthy alternative to other beverages. Thus, for the aerated

beverages bottled water offers a potential threat.

Moreover, increasing urbanization, causing declines in tap-water quality, can also explain the

popularity. Because it is untreated, natural mineral water is perceived as “natural” by city

dwellers looking for genuine products. Higher living standards and auto usage enable people to

easily bring home more and heavier bottles of water. At the office, a bottle of water is now a

common sight on the desk, next to the computer and the telephone. Drinking bottled water is a

sign of a rise in the social scale. Above all, bottled water has become a huge marketing success.

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1.5 SWOT ANALYISIS OF THE INDISN PACKAGED DRINKING WATER

INDUSTRY

STRENGTHS

The industry is growing @ 40%.

In India the market is huge & untapped

Growing awareness among the people about the importance of mineral water

WEAKNESSES

Many players entering in the race.

Any local person can start manufacturing.

Rural population is not using the packaged water.

Not very economical.

Quality not properly maintained.

OPPORTUNITIES

Sustained market growth increase in coming years.

Literacy rate growing and hence the awareness of safe drinking water to avoid the

diseases.

Huge population & untapped market.

THREATS

Many substitutes available,

Too many players will dilute the market & the profit margin.

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1.6 MAJOR PLAYERS

With over 200 players jostling to be the thirst-quenching favorite of the Indian consumer, the

business is growing at a rate of over 50 per cent annually. The country's bottled water business

is estimated to be around Rs. 1,100/- crore, of which the branded market accounts for Rs. 700

crore and about 700 million litres in volume.

After the Cola wars the time has come for water wars. Here we discuss the major players and

warriors in the bottled water market.

1. BISLERI

The brand is a product of Parle International and presently is the market leader with more than

45% market share. The company pioneered the concept of bottled water in the Indian market as

early as 1967. The company is also credited with SKUs of 500ml, 1.2 ltr, 1.5 ltr and 2 ltr in the

Indian market

The re-launch of Bisleri in 1993, however was a success due to growing awareness and high

consciousness of health and hygiene among people. In 1993, when Ramesh Chauhan,

Chairman, Parle Bisleri sold his right to market Bisleri brand to Coca-Cola, Bisleri, which

underwent the new management for a period of 5 years, remained largely neglected. On getting

the rights back, he started building Bisleri as a mineral water brand. Bisleri had a brand name, a

product, the brand building of Bisleri started in a small way in 1998, which bore fruit in 1999-

2000 when it grew by 140%.

Positioning : Playing Safe

Target audience : Health and hygiene conscious people

Personality : Guardian, Authoritative, Reliable

Punch Line : “Play Safe”

USP : Pioneer advantage in bottled water industry, old player with lot of

Experience

In the case of 500ml and 1 litre it directly supplies to the retailer

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In the case of 20 litre jar they have appointed distributor over the area to reach through the

corporate. But then also they lack in providing better service to the customer.

2. KINLEY

This brand was first introduced in the country in March 1998, when COKE launched Kinley

Soda. The company entered in the business in May’00 through its brand, Kinley. The company

tied up with Kothari Beverages, of Yes brand of mineral water, for manufacturing coke’s brand

at Yes’ facilities. Starting with Bangalore, Kinley mineral water was rolled out nationally in a

phased manner.

Positioning: Safety and health oriented


Personality : Trustworthy, Strong, Confident

Punch Line : “Boond Boond mein Vishwas”

USP : Belongs to the Coca Cola lineage, gains advantage from the

distribution and retail network

Error: Reference source not foundIn the case of 1 litre and 500ml it directly supplies to the

retailer without any distributor.

In the case of 20 litre jar they have their own distributor.

These above 2 are the top players in the market other brands present are:-

3. AQUAFINA

Entered the bottled water business in September 1999 by test launching its first in Mumbai and

then in Bangalore. PEPSI with its AQUAFINA brand has backing of a good distribution

channel of 60000 outlets, its refrigerators at retail outlets which stock its cold drinks along with

Aquafina as well. Initially Aquafina was available in just one pack-750 ml and was priced at Rs.

10. Now they also have competing packages of 500ml and 1 ltr ml pack priced at Rs.6 and Rs. 10

respectively. The main target audience for Aquafina is the youth segment. By end 2002 PEPSI

added 7 more to its existing base of 5 plants. Unlike most players, Pepsi is not looking at bulk

buys or in-house consumption at the moment. The focus was thus only on one SKU, that too

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750ml. Though the company is present only in selected market as of now, it has plans of

increasing share in the market by expanding its SKUs portfolio as well as its distribution reach.

4. NESTLE

With its mass-market product branded PURE LIFE has banked on its distribution network for

chocolate, which are marketed through a large chain of retail outlets. Pure Life is aimed to have a

National presence; the second brand which is being tried for by the company is aimed at

targeting the regional markets. Pure Life is for Mass Market like hotels, restaurants and café

segment and Perrier for the bars, San Pellegrino for the restaurants, but nestle is not yet into

home & office segment.

The company has priced the ‘Pure Life’ brand very competitively in the market.

5. THERMAX

A player of Technical Expertise is THERMAX, through a joint-venture with US-based

CULLIGAN WATER TECHNOLOGIES largely into industrial water purification. It has

entered into the household segment with the launch of 20-litre packs of drinking water – branded

as Good Water, priced at Rs.60 per pack. GOOD WATEREVERFLO is positioned for

organizations that are actively improving the quality of the workplace for employees and visitors.

It is an ideal solution to those wanting to make pure, safe drinking water available, without

buying and maintaining in-house equipment like purifiers, water coolers etc. However the

company has no plans to introduce smaller package for its product

6. BAILEY

Though a pioneer in this field; Mr. Ramesh Chauhan Chairman- of Parle Bisleri had to contend

with several new entrants in this segment. For starters, his own brother, Mr. Prakash Chauhan

through Brand Bailey has been trying to emulate the Bisleri success through the franchising

route, but Bailey has never been successful in it. The brand is a product of Parle Agro, the

company of Frooti fame. The company presently is the second largest player in the market with

share of 20%. The company has recently extended its Bailey brand name for its soda water. It is

also credited with forming a new segment of 330ml SKU in the market


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Personality : Guardian, Authoritative, Reliable

Punch Line : “I want my bailey”

USP : Pioneer advantage in bottled water industry, old player with lot of

Experience

7. EVIAN

Evian by DANONE INTERNATIONAL is marketed by BRITANNIA INDUSTRIES in

India. The high-priced mineral water from French Alps is clearly targeted at the premium

segment of consumer. Currently Evian has more of an Institutional presence (5 star hotels) than

on retail shelves. With 1 litre bottle being priced a hefty Rs.80

Then, there is GODREJ with AQUAPURE.

Britannia also plans to launch its own branded water very soon.

NATIONAL DIARY DEVELOPMENT BOARD also plans to launch DHARA through its

distribution channel.

New Entrant ATCO with BRILLIANT WATER &DS FOODS with CATCH SPRING water

positioned on the mineral water plant.

Even HLL is said to be firming up plans to enter the market. Apart from these, are other players

which cater to nearly same market as the big players do. Other players in the market with strong

regional presence are: Brilliant, Yes, Hello, Purette, Fountain, Himalayan, Golden Eagle, Prime,

Pure Natural Aqua, Ganga, Florida, Metro etc

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CHAPTER TWO

BISLERI

2.1 COMPANY PROFILE OF BISLERI

In 1967, Bisleri an Italian company, started by Signer FeliceBisleri, first

brought the idea of selling bottled water in India. It started a company called

Bisleri India. In 1969, Ramesh Chauhan, the Chairman of Parle Exports,

bought over the brand. In those days, Bisleri packaged drinking water was

available in glass bottles.

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Being a returnable package owing to various other problems such as breakage and

weight, in 1972-73, Bisleri was made available in PVC (Poly Vinyl Chloride)

bottles. After this plastic packaging was introduced, things started to change, 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 went on to

concentrate on making Bisleri a top selling brand in India.

2.2 The Present

It was around the year 1995, when Parle Exports took charge of the brand

operations and the business took off in the market. With factories across India and

a strong distribution network, Bisleri established itself as a force to reckon with in

the domestic packaged drinking water market.

Earlier the packaged drinking water market consisted of five star hotels, tourists

and foreigners. As a marketing strategy, a conscious decision was taken by the

company that only 40% of the sales should come from these outlets and 60% from

general market, i.e. paanwallas, street shops, general stores and even non-tourists.

This brought about a sea change in the perception in the consumer's mind about

consumption of Bisleri. Earlier, drinking bottled water was considered to be more

of a status symbol. That thinking has slowly changed to the point where today, not

drinking Bisleri is considered as being behind the times. Such has been the

presence and penetration of the Bisleri brand in the bottled water segment.

About few years ago, in 1998, a strategy was adopted to concentrate aggressively

on the home market. The habit of boiling water or using electronic gadgets was

not adequate, since the source of water itself was unreliable. The bulk packages

like the 2, 5 and 20 litre bottles were introduced to meet this market need. The

price per litre went down as a result, making bottled water very economical for

the consumer.

2.3 Future Plans

Bisleri was the first to market bottled water in a totally virgin market and naturally

people associate the brand with bottled water. Now Bisleri is perhaps already ten

steps ahead of its competitors and will endeavor to widen its gap in the times to

come.

Bisleri's brand positioning stresses on pure, clean and safe drinking water.

Some of the future plans to maintain the top spot that Bisleri commands in the

Indian market are:

New pack sizes in bottles and cups

Increase the distribution network with an investment of over 200 crores

Strengthen presence in traditionally weak areas by setting up 12 new

bottling facilities at a cost of Rs. 150 crores.

2.4 Technology Developments

To make sure that the product that reaches the consumer is always of highest

standard and also meets international standards, Bisleri has always been involved

in improving its product packaging. One such recent development is the tamper

proof break away seal. Bisleri also recognizes the need to produce environment

friendly products and is working on the PET project.

The break away seal

Keeping in mind the consumer's need to recognise a genuine product that cannot

be tampered with, Bisleri developed the break away seal. The unique cap has been

patented and cannot be duplicated or tampered with. This technology

development in the product ensures that the consumer will only get a highly safe

product when they consume Bisleri packaged drinking water.

Product packaging

To ensure purity of the bottled water, the bottles that are used are blown and filled

at the factory itself, to avoid contamination.

2.5 Purification Process

At BISLERI plants, water undergoes multi - stage purification process to ensure

proper blend of minerals and complete removal of microorganisms and toxic

substances. So a habit of drinking PURE and SAFE BISLERI will ensure a healthy

life

What advantages Bisleri purification process has over purification done by other

methods. Traditional process of boiling water for purification has its limitations. lt

is time consuming. For boiling, water has to be heated to 100 deg. Celsius. Also,

to kill microbes water should be boiled continuously for a minimum of 20

minutes. Boiling may kill the microbes but can not remove other physical

impurities and toxic substances.

Many home appliances are available in market for water purification. These

gadgets use either filtration technique or Ultra Violet rays or a combination of the

two techniques. These techniques do not guarantee 100 % purity of water.

Filtration removes only the visible suspended particles and not the minute ,

invisible particles , toxic substances or microorganisms. The filters are cleaned

rarely and all the muck accumulates inside leading to more contamination. Ideally

such filters need to be cleaned every day which is cumbersome. Ultra Violate rays

kill the microbes but cannot ensure removal of toxic substances and physical

impurities. These purification equipment are incomplete and need continuous

monitoring and maintenance.

At BISLERI, through our multi - stage purification process we ensure removal of

toxic substances as well as physical and microbiological impurities. In our state-

of-the-art processing plants we follow rigorous Good Manufacturing Practices and

strict Quality Assurance norms so each and every bottle of BISLERI is made

tasty, pure and safe for the consumer.

PROTECT YOUR HEALTH WITH BISLERI WHICH USES

6 STAGES OF PURIFICATION

1. CHLORINATION: Kills micro organisms. Remove organic matter.

2. ARKAL FILTER: Removes suspended matter and turbidity.

3. CARBON FILTER: Removes residual chlorine &odours

4. REVERSE OSMOSIS: Removes organic material. Controls total

dissolved solids in the water.

5. MICRON FILTRATION: Additional safety measures of filtration.

6. OZONATION: Ensures water remains bacteria free for longer shelf life.

2.6 Product & Packaging

Bisleri is available in a range of sizes.

The Bisleri bottled water range comprises the conventional 500 ml, one

litre, 1.2 litre and two litre bottles; five litre and 20 litre jars for the home

segment, and smaller packs sizes of 250 ml cups and 330 ml bottles,

though in very limited numbers for now.

2.7 Vision

A major, diversified, transitional, integrated consumer product

manufacturing company, with National Leadership and a strong

environment conscience, playing a national role in safe water and Agro

based drinks.

Mission

To provide the highest quality product, keeping in mind all aspects

including freshness, purity and safety, and making it easily available

to the consumer at a very affordable price.

To achieve international standards of excellence in all aspects of

energy and diversified business with focus on consumer delight

through value and services of product and cost reduction.

To enhance capital and fixed assets of the group to withstand

challenges and tough market trends.

To attain leadership in developing, adopting and assimilating state or

art technology for competitive advantage.

To provide better quality of product and services through sustained

market research and product development.

To foster a culture of participation and innovation for employee

growth and contribution.

To cultivate high standards of business ethics, and total quality

management for a strong corporate identity and brand equity with

continuous and positive growth.

To help enrich the quality of life of all the communities specially the

neglected ones and preserve ecological balance and heritage through

a strong environment conscience.

2.8 Why Bisleri?

Bisleri is totally safe & protects you from all water borne

diseases.

Bisleri is trusted by 50 lakh households across the country.

Bisleri is the brand leader in bottled water category.

The water is purified through six stages of purification process

that includes reverse osmosis and Ozonation.

Where Can We Use Bisleri?

Drinking

Making tea, coffee, lassi, cold drinks, mixing with drinks

Kneading the dough

Cooking

Mixing with baby foods

Mixing with medicines

2.9 THE JOURNEY TILL NOW

1969: Buys Bisleri bottled water from an Italian company, Felice Bisleri. It was bottled in glass

bottles then.

Early-1980s: Shifts to PVC bottles. Sales surge

Mid-1980s: Switches to PET bottles, which meant more transparency and life for water.

1993: Sells carbonated drink brands like Thums Up, Gold Spot and Limca to Coca-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 to Rs 2 a litre.

1998: Introduces a tamper-proof and tamper-evident seal.

2000: BIS cancels Bisleri's license of water bottling in Delhi since some of the bottles did not

carry ISI label; the license is restored one-and-a-half months later.

2002: Kinley overtakes Bisleri. The national retail stores audit by ORG-MARG show Kinley's

market share at 35.1 per cent compared to Bisleri's 34.4 per cent.

2003: Bisleri says it plans to venture out into Europe and America to sell bottled water

2004: Water king, Mr. Ramesh Chauhan set to take brand Bisleri across the globe.

2005: Bisleri has announced its plans to foray into the domestic fruit juice market and earmarked

an investment of Rs 100 crore for upgradation of its Chittor plant and setting up of a new facility.

2006: Bisleri Natural Mountain water will be available in aqua green packaging against the blue

packaging of old and will be available in six sizes.

2007: Parle Bisleri changed the look introduced a new variant (natural mountain water) and

announced its plan to launch the brand in US- a huge market for designer waters.

2008: Bisleri International has decided to register the mango drink brand — Maaza — in eastern

European countries, and launch the brand through a franchisee operation.

2009: Company plans to concentrate on markets such as Jammu and Kashmir, Kerala, Southern

part of Tamil Nadu and Punjab, which are its weaker links to steer a 40% annual growth in sales.

OBJECTIVES OF THE STUDY

To learn about the domestic packaged drinking water market, its market share and Brand

Bisleri in detail.

To find about consumers' and retailers' brand preference

To see whether there is a threat to the mineral water market from water purifiers and soft

drinks.

Whether the people of Delhi & its Ncr are happy, paying for water.

Whether the people of Delhi & its Ncr are getting health conscious.

To find the retailers view on the mineral water market and to assess the future prospect of

the market.

To find the potential of Mineral water market in Delhi & its Ncr.

CHAPTER THREE

LITERATURE REVIEW

3.1 BOTTLED WATER

Consistent quality and taste are two of the principal differences 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.

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 regulations in the US, when bottled water is sourced from a community water

system the product label must state so clearly. However, if the water is subject to distillation, de

ionization or reverse osmosis, it 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.

Processing methods such as reverse osmosis remove most chemical and microbiological

contaminants.

3.2 THE MANUFACTURING PROCESS

Processing and Quality Assurance

The casing tube itself is protected with stainless steel mesh to give a preliminary filtration to

the water.

Ultra filtration gives water reduction in turbidity and adds sparkle

Activated carbon purifier to remove color and odour in water

Reverse osmosis membrane has porosity of less than 0.01 micron the process renders water

free of microorganisms and also reduces dissolved solids

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To ensure mineral water is held safe free from contamination, ultraviolet treatment and

ionization process is carried out. Ozone is unstable trivalent oxygen, a very powerful bactericide

with no side effect, as it disintegrates into oxygen within couple of hours.

Sterilization effect of ionized water continues even after water is packaged, thereby ensuring

safety of Mineral Water up to its final packing. To ensure high quality of packing materials,

components like caps and bottles are manufactured in-house from resins of quality suppliers.

Good Manufacturing Practices are stringently followed at all times. Processing is religiously

monitored at every stage. Testing source water, processing parameters, microbial quality,

packaging material integrity and finally, shelf life studies, forms an integral part of quality and

safety assurance plan.

Labeling

The Name of the Product shall be the appropriate terms as defined. Water containing carbon

dioxide that emerges from the source and is packaged directly with its entrapped gas or from

which the gas is mechanically separated and later reintroduced at a level not higher than

naturally occurring in the water, may bear on its label the words naturally carbonated or naturally

sparkling. Packaged water which contains carbon dioxide at levels than those naturally occurring

in the source of the product shall be labeled with the words carbonated, carbonation added or

sparkling.

Rules and Regulations

The Bureau of Indian Standards (BIS) has just recently got involved in the process. In September

2000, the Government of India made it mandatory for all bottled water companies to get an ISI

mark, including imported bottled water brands like Evian and Perrier. The Ministry of Health

and Family Welfare had set a deadline of Mar 29, 2001 for complying with the new norms.

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3.3 MARKET CATEGORISATION

The market initially had only one SKU of 1 litre this was followed a by a number of smaller and

bigger SKUs. Based on these SKUs we can divide the entire market into two segments:

Retail consumption market

Household & Institutional consumption market

Each of these consumption markets have a number of SKUs under it. Some of the most

consumed SKUs in retail market are 500ml, 1 litre, 1.2 litre, 1.5 litres, 2 litres, and 5 litres.

Recently Bailley has launched 330ml pack targeted against 330ml pack size of soft drinks

especially the aluminum-can drinkers.

The institution market is largely constituted by the hotel industry, caterers, offices, parties, travel,

tourism, hospitals etc. The SKUs that are available in this market are 10 litres and above besides

this we have pack size of 250ml plastic cups.

The market can also be divided on the basis of the price at which this bottled water is available

into three categories:

Super premium mineral water

Premium local natural mineral water

Popular or plain bottled water

Presently, Evian of Danone group; Perrier and San-Pellegrino of Nestle belong to super premium

category. Catch, Himalayan, Brilliant etc. belong to premium local natural mineral water

category.

All other brands like Bisleri, Bailley, Kinley, Aquafina etc. belong to popular or plain bottled

water category.

The packaged drinking water market is often categorized as per the clients they have:

Corporate, Theaters, Gymkhanas, College Canteens, Retail Outlets, Hotels and Restaurants and

Occasions.

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3.4 INDIA TO FACE SEVERE WATER CRISIS IN THE FUTURE

The per capita water availability in India is projected to decline to about 1,140 cubic meters per

year in 2050 from 1820 cubic meters per year recorded in 2001 according to the

Intergovernmental Panel on Climate Change (IPCC).

"India will see a severe water crisis in 20 years if the government doesn't change its ways and

clashes are already taking place because the resource is so scarce." This was the warning by the

World Bank way back in 2005. "Estimates reveal that by 2020, India's demand for water will

exceed all sources of supply.

All these reports point to just one thing for us now. That we should he on serving water and be

judicious in its use. If water is wasted today then it is our future generation which will suffer

because of it. So everyone needs to make a point from now to save water in any way they can.

If we cannot do that then the future is very clear. Water will be one of the most expensive

commodities and everyone will have to buy water shelling out huge amount of money for the

same. The implications could be worse than these if action is not taken now.

Water infrastructure projects should also speed up in the country through public-private

partnership. This is of immense importance in a country where rural population has very little

access to safe drinking water. What these infrastructure projects will also ensure is employment

generation and in the current global crisis the country need to stand up and generate local

employment through these opportunities and challenges.

The fastest growth in the consumption of bottled water in the world has been recorded in India

according to a new study conducted by the US based earth policy institute. It even questions the

rising thirst for bottled water with consumption tripling in India over the past five years.

2World Bank report

3.5 INDIAN SCENARIO

In 1967, Bisleri set up a bottling plant for manufacturing and marketing its mineral water but that

time the concept of mineral water was failed. The brand was later on sold off to Parle group

acquired the Bisleri of Italy for launching soda water but later launched bottled water also. The

launch at that time was a big flop as concept of buying Water that ton the Indian public did not

accept form. The market remained dormant for quite long (for a period of 20 years or so). The

market throughout this period was formed only by the premium products that too available

through 5-star hotels.

In early 1990s with onset of liberalization policy by the Indian government, coming in of cola

majors, sell out of local soft drink brands of Campa, Thumb’s Up, Gold Spot etc. by pane to

coke and other factors led Bisleri to test waters again. Bisleri re-launched its bottled water in

1994. With exposure of media and exposure to international life styles, deteriorating levels of

portable water, increases in a number of water borne classes, increases in awareness about health

and hygiene and other related factors led to acceptability of concept of mineral water. The

market has not looked back ever since then and has grown leaps and bounds to such an extent

that a number of genuine as well as fly-by-night operations have entered it to milk it.

Bottled water slaking consumers thirst.

The Indian bottle water industry has grown phenomenally over the past decade. A major part of

the demand stems from out of home consumption by people on the move, because the quality of

drinking water available otherwise is suspect. Of course, some also consume bottled water (or

high price mineral water in some instance) as a style statement. While it has its positive aspect,

the bottle water industry is often questioned for its over-extraction of the ground water. It’s very

high cost of delivery and massive generation of solid waste in the form of non-biodegradable

plastic bottles is this industry really slaking in consumer's thirst or is it being too expensive and

wasteful?

3www.bottledwaterindia.web

The Big Boom

The bottle water industry has tin-doubted been one of the fastest growing business sectors in

India. The way it has grown since the early 1990s is indeed astounding.

And the high growth rate is expected to continue into future. Starling from a small base, the

growth was exponential up to early years of current century. Thereafter, there was a decline in

the pace of growth, and we now witness a comparatively linear growth, but nonetheless fairly

rapid.

The bottle water industry is reported to have growth nine-fold over the past decade from around

15 million cases in 1997-98 to an estimated 130 million eases in2007-08 (I case=48 liters)this

traction to a compounded annual growth rate 24% per annum. In same year, the growth rate has

been as high as 40%. The market size is further projected to increase to 265 million cases by the

year 2014-15 this works out of a projected growth rate of nearly 11% a year. While one has

crossed the exponential growth phase experienced during the industry's nascent period, there is

lot of untapped potential and the industry would continue to experience double digit growth rates

for several years to come."'

In terms of value, the Indian bottled water segment is estimated currently at Rs.3000cr per

annum and expected to double within the next seven years. The international players currently

see India as the destination with a lot of growth possibility. India is already the tenth largest

bottled water consumer in the world.

A major part of the demand for bottled water stems from out of home consumption by people on

the move, because the quality and safety of drinking water available otherwise is suspected the

fear of contracting water-home infection prompts many to go in for bottled water during journey

and when one is away from home. Of course, sonic also consume bottled water (or high price

mineral water in some instance) as a style statement.

In part the industry pews its existence to the poor quality of portable Water supplied by the

municipal authorities/water supply boards and further to the inadequate hygienic standard

prevalent in most public eating place, where the water served of often contaminated. The demand

has been further fueled due to increasing income and changing lifestyle of the urban middle and

upper classes of the population. It is also triggered by advertising and wide —spread distribution

of the product.

3www.bottledwaterindia.web

Life Cycle of the Industry

Here 1990 was selected as base year and from 1990 sales in bottled water has increased year by

year but not that much level to 2004-05 so this covers under introduction stage of bottled water

industry. After increase in awareness among people and known side effects of non purified

water, people have moved from tap water to bottled water and this change has increased sales of

bottled water in market. Until 1992, the demand for bottled water in India was mostly limited to

foreign tourists, corporate meetings, conferences, etc. The introduction of bulk packaging

extended the market to new and numerous consumers (Jose Raphel, 1998). In this period firms

focus on branding and patenting for maintaining right to produce played an important role.

Advertising express May 2008, pg-55

TABLE1

EXPONENTIAL INCREASE IN DEMAND OF BOTTLED DRINKING WATER: 1990-2015

Year Million Cases

1990-91 2.2

1991-92 2.6

1992-93 3.5

1993-94 4.7

1994-95 6.5

1995-96 8.5

1996-97 11.5

1997-98 15.5

1998-99 20

1999-2000 26

2000-2001 33

2001-02 44.5

2002-03 55.6

2003-04 68.15

2004-05 82

2005-06 97

2006-07 112.85

2007-08 129.85

2008-09 146.8*

2009-10 164.45*

2014-15 265*

Estimated Projects(Prediction) Source:indiastat.com

After 2005-06 bottled water sales increased in market and it showed growing stage of industry,

because people started using bottled water for status and for health safety. Now in 2008 bottled

water industry grew at a rate of 38% so its sales increased faster as compared to past year so we

can say that the industry came under growth stage. Maintaining existing features and adding new

features to the product was seen here, broader audience was available for industry product.

In India for instance, the bottled water industry, with more than 100 companies, has a turnover of

about US$ 70 million, growing at an average rate of 50% every year. This sector employs 15'000 to

20'000 people in the country (Jose Raphel, 1998).

(Source-4Advertising express May 2008, pg-55)

3.6 Hypothesis to be tested

An assumption taken to be true for the purpose of argument or investigation is called a

hypothesis. Following are the two types of hypothesis.

Null Hypothesis, Ho – It is an assumption which the researcher tries to disprove, reject or

nullify.

Alternate Hypothesis, Ha - It is a statement of what a statistical hypothesis test is set up to

establish and negate the null hypothesis.

Following are the set of hypothesis established to answer various research problems.

1. Frequency of use of mineral water

Ho: Larger Proportion of people always use mineral water.

Ha: Larger Proportion of people go for an occasional use of mineral water

2. Choice of soft drink over mineral water

Ho: People prefer soft drink when thirsty.

Ha: People like to have mineral water in a thirst condition.

3. Awareness of all major brands of mineral water

Ho: People are aware of all the brands of mineral water.

Ha: People are not aware of all the brands of mineral water.

4. Customer preference in terms of bottle sizes

Ho: 5 ltr and 20 ltr bottles of mineral water are the most preferred ones, by the

population.

Ha: 5 ltr and 10 ltr bottles of mineral water are not preferred by the population.

5. Effect of advertising on purchase

Ho: Advertisement doesn’t affect purchase decision of Mineral Water.

Ha: Advertisement affects purchase decision of Mineral Water.

6. Size of bottle having higher sales

Ho: Selling of 5 ltr& 20 ltr bottles occur more frequently.

Ha: Selling of 5 ltr& 20 ltr bottles occur less frequently.

7. Reason for growth during the last five years, according to retailers.

Ho: Tremendous growth in mineral water segment is not owing to increased health

consciousness and scarcity of portable drinking water amongst the population.

Ha: Tremendous growth in mineral water segment is due to increased health

consciousness and scarcity of portable drinking water amongst the population.

CHAPTER FOUR

RESEARCH METHODOLOGY

4.1RESEARCH DESIGN

A research design is purely and simply the framework or plan for a study that guides the

collection and analysis of data. The Survey Research was used in this project, because retailer’s

and consumers feedback was necessary for obtaining the data. Starting a research project needs a

basic preparation regarding the issues related to the topic selected. For this one needs to do some

deskwork. Deskwork includes:

1. Determining the basic objectives of the study undertaken.

2. Collection of secondary data related to the topic from Internet, magazines & newspapers.

3. Studying the market, which one wants to cover.

4. Analyzing the objective on the basis of information collected by secondary data.

5. All the above activities at the initial stage of the project must be completed & then the main

part follows.

4.2 DATA SOURCES

a) Primary data: These are those data which are collected afresh and for the first time, and thus

happen to be original in character. I have used the structured questionnaires.

b) Secondary data: These are those which have already been collected by someone else and

which have already been passed through the statistical process. I have collected it from the

sources like internet, published data etc.

Population of the study

People from Delhi/ NCR region will be included in the population.

Sample Size:

I took 100 consumers and 50 retailers as my respondents. They were selected by random

sampling method because in this case systematic sampling is not possible since one cannot say

whether a person is using mineral water or not.

Sampling Technique

Random sampling technique will be used in this research project.

4.3 RESEARCH INSTRUMENT

For doing the survey research, structured questionnaire with closed-ended and open–ended

questions were used.

Mode of Survey

The mode of survey for the retailers and consumer’s was the filling up of the questionnaires.

Preparing the Questionnaire

As per the requirement of the project & to achieve the objective both consumer of

mineral water & retailers of mineral water were studied apart from studying about the

domestic packaged drinking water market, Brand Bisleri in detail.

For that close and open ended questionnaires for the consumer & for retailer were

prepared.

4.4 Data Processing

Daily data will be entered into MS-Excel sheets. After the exhaustion of the specified

geographical area this data will be analyzed using simple graphical and tabulation techniques.

Analytical Tools

After collection of data another work necessary for any data collector is to correctly analysis that

data. Statistical tools helped me to correctly analyze the data. I used here the software named Ms

EXCEL for analysis of the data. I used following statistical tools:

Hypothesis Testing

Chi-square test will be used when the set of observed frequencies obtained after experimentation

have to be supported by hypothesis or theory. The test is known as χ2 test of goodness of fit and

is used to test if the deviation between observation (experiment) and hypothesis may be

attributed to chance (fluctuations of sampling).χ2also enables us to explain whether or not two

attributes are associated or related to each other.

To test the goodness of fit: It helps to test goodness of fit by using null and alternate hypothesis.

STATISTICAL TOOLS TO BE USED

1. Chi –Square Test

Procedure:

(1) Set up the null hypothesis that there is no significant difference between the observed and

expected value.

(2) We compute the value of CHI- square by using the formula

CHI-square = Σ χ2=Σ (( Oi- Ei)2/Ei)

O- Observed value

E- Expected value

Degree of freedoms=(R-1)(C-1)

Level of significance=5

4.5 Alignment of primary and secondary data

For the purpose of the market survey, I had designed the research based on primary data. For the

collection of primary data, two structured questionnaire for the retailers and the customers were

designed.

Secondary data will be used to supplement the primary research and in terms of capacity and

profile of package drinking water industry. We will try to confirm the facts of secondary data

with the primary study related to growth in the industry and Bisleri’s market strategies to be

adopted for increasing its sales and brand preference in the market.

CHAPTER FIVE

ANALYSIS AND INTERPRETATION

CONSUMER RELATED SURVEY

1. WHICH BRAND DO YOU PREFER WHILE BUYING MINERAL

WATER?

NAME OF BRAND CONSUMER PREFERENCES

Bisleri- Most Preferred 56%

Kinley 24%

Aquafina 12%

Others 8%

According to the survey conducted in Delhi & its Ncr it was analyzed that 56% of the users

go for Bisleri Water and 24% for Kinley while there are 8% of the respondents who still go

for other packaged drinking water.

2. NUMBER OF RESPONDENTS USING

MINERAL WATER FREQUENTLY

Always Often Sometimes Never

28% 27% 36% 9%

According to the survey it was seen that 28% of the users responded as using

mineral water always while 27% agreed to use it often. 36% of respondents

said they used mineral water sometimes while there are 9% of the

respondents who said they never use packaged drinking water.

HYPOTHESIS TESTING

Step1: State Hypothesis:

Ho: Larger Proportion of people always use mineral water.

Ha: Larger Proportion of people go for an occasional use of mineral

water.

Step2: State the rejection criterion

DF=4-1=3

At alpha .05 and 3 degrees of freedom, the critical value from the chi square

distribution table is 7.82.

Step 3: Compute the Test Statistics: χ2 = Σ (O-E)^2/E

Preference Observed Expected (O-E) (O-E)^2 (O-E)^2/E

Always 28 25 3 9 0.36

Often 27 25 2 4 0.16

Sometimes 36 25 11 121 4.84

Never 9 25 -16 256 10.24

χ2=15.6

Interpretation:

As the Chi-square test statistics value 15.6 exceeds the critical value of 7.82

hence null hypothesis is rejected and our alternative hypothesis is accepted.

Hence it can be concluded that that 34% of the mineral water users go in for

an occasional use while there are still 9% of the respondents who never go

for packaged water.

3. RESPONDENTS CHOICE AMONGST MINERAL

WATER AND SOFT DRINKS

48% respondents agreed to always choosing mineral water over soft drinks

when thirsty while 15% chose it often, 25% agreed to choosing it sometimes

while 12% consumers said they never have mineral water when thirsty.

Always Often Sometimes Never

48% 15% 25% 12%

HYPOTHESIS TESTING


Ho: People prefer soft drink when thirsty.

Ha: People like to have mineral water in a thirst condition.

Step2: state the rejection criterion

DF=4-1=3




PREFERENCE OBSERVED EXPECTED O-E (O-E)^2 (O-E)^2/E

Always 45 25 20 400 16

Often 15 25 -10 100 4

Sometimes 25 25 0 0 0

Never 12 25 -13 169 6.76

X2=26.76

Interpretation:

As the Chi-square test statistics value 26.73 exceeds the critical value 7.82

hence null hypothesis is rejected and hence we reached at the result that our

alternative hypothesis is accepted. Hence it can be concluded that that 48% of

users always go in for mineral water when they are thirsty.

4. BRAND AWARENESS OF MINERAL WATER

AMONG RESPONDENTS

Brands Respondents

0-2 40%

3-5 50%

6-10 10%

10 and above 0

The survey conducted in showed that 40% of the respondents were aware of

0-2 brands packaged drinking water, 50% of 3-5 brands, 10% were aware of

6-10 brands while none were aware of more than 10 brands.

HYPOTHESIS TESTING


Ho: People are aware of all the brands of mineral water.

Ha: People are not aware of all the brands of mineral water.

Step2: State the rejection criterion

DF=4-1=3At alpha .05 and 3 degrees of freedom, the critical value from the

chi square distribution table is 7.82.



0-2 40 25 15 225 9

3-5 50 25 25 625 25

6-10 10 25 -15 225 9

ll

10 and above 0 25 -25 625 25

χ 2

=68

Interpretation:

As the Chi-square test statistics value 68 exceeds the critical value of 7.82


alternative hypothesis is accepted. Hence it can be concluded that most of the

people know only about the main brands which are owned by the big

companies and are advertised hugely. Mainly 3 -5 brands only comes to the

minds of the customer in regards to mineral water.

5. CUSTOMER PREFERENCE IN TERMS OF BOTTLE

SIZES

SIZE OF BOTTLES CONSUMER

PREFERENCES

0.5 ltr 60%

1 ltr 20%

5 ltr 5%

20 ltr 15%

According to the survey 60% of the respondents preferred to buy 500ml

bottles, 20% preferred 1ltr bottles while 5%& 15% preferred 5ltr and 20 ltr

respectively.

HYPOTHESIS TESTING


Ho: 5 ltr and 20 ltr bottles of mineral water are the most preferred ones,

by the population.

Ha: 5 ltr and 10 ltr bottles of mineral water are not preferred by the

population .


DF=4-1=3


distribution table is 7.82



0.5 ltr 60 25 35 1225 49

1 ltr 20 25 -5 25 1

5 ltr 5 25 -20 400 16

20 ltr 15 25 -10 100 4

χ2 =70

Interpretation:

As the Chi-square test statistics value 70 exceeds the critical value of 7.82


alternative hypothesis is accepted. Hence it can be concluded that that the 5

Ltr. and 20 Ltr. bottles are usually preferred only during special occasions

such as marriage and Birthday parties. Otherwise the 1 ltr and 500 ml bottles

are the most preferred once.

6. CUSTOMERS PREFERENCES REGARDING PRICE

OF MINERAL WATER

Respondent’s view Yes No

% of Respondent’s 42% 58%

The observation shows that most of the people are not happy paying the

price, the companies are charging for the product. They feel that the price

should be a little lower.

7. AFFECT OF ADVERTISING ON PURCHASE

Response % of respondents

Strongly Agree 10%

Agree 46%

Strongly Disagree 14%

Disagree 25%

Indifferent 5%

46% agreed to the fact that advertising of packaged drinking water affected

their purchase while 10% strongly agree, 25% of the respondents disagreed,

14% strongly disagreed, while 5% consumers said they were indifferent

towards it.

HYPOTHESIS TESTING


Ho: Advertisement doesn’t affect purchase decision of Mineral Water.

Ha: Advertisement affects purchase decision of Mineral Water.

Step 2: Set the Rejection criteria:

DF = 5-1 = 4

At alpha .05 and 4 degrees of freedom, the critical value from the chi

square distribution table is 9.49



Strongly

agree

10 20 -10 100 5

Agree 46 20 26 676 33.8

Strongly

disagree

14 20 -6 36 1.8

Disagree 25 20 5 25 1.25

Indifferent 5 20 -15 225 11.25

2=53.1

Interpretation:

As the Chi-square test statistics 53.1 exceeds the critical value of 9.49 hence

null hypothesis is rejected and hence we reached at the result that our

alternative hypothesis is accepted. Hence it can be concluded that

advertisements affect purchase decision of Mineral Water.

8. AVAILABILITY OF PACKAGED WATER BRAND

OF YOUR CHOICE

Good Availability % of respondents

Yes 51%

No 47%

Can’t say 2%

It was seen in the survey that 51% said that their choice of mineral water was

readily available everywhere, whereas 47% disagreed and 2% were not sure.

9. GROWING HEALTH CONSCIOUSNESSAMONG

INDIANS

Yes No

73% 27%

The observation shows that most of the population in Delhi & its NCR agree

that Indian are getting Health Conscious now-a-days

10.PREFERENCE FOR MINERAL/PACKAGED

WATER OVER NORMAL WATER BECAUSE OF

HYGIENE

Yes No

82% 18%

The reason for the higher preference for Mineral water considering hygiene

important may be the fact that the normal water which we get is not always

very hygienic and may cause many diseases, also the increase in the

awareness of being fit and people becoming health conscious.

RETAILER RELATED OBSERVATIONS AND FINDINGS

1. TYPES OF BRANDS RETAILERS KEEP

Advertised Non-Advertised Both

35% 5% 60%

According to survey, 35% of retailer go in for advertised products and non-

advertised products do not have any weight Around 60% retailer believe in the

combination of both (advertised and non-advertised version).

2. BRAND MOSTLY SOLD

NAME OF BRAND % OF RETAILERS AGREEIN

Bisleri 62%

Kinley 26%

Aquafina 4%

Others 8%

According to the survey of retailers 62% said the most sold brand was Bisleri

followed by Kinley to which 26% agreed while 4% said that Aquafina was sold

most and 8% voted for other brands.

3. SIZE OF BOTTLE SELLING MORE

Size of bottle 0.5 ltr 1 ltr 5 ltr 20 ltr

% of respondents 60% 28% 4% 12%

According to the survey of retailers 60% said that 500ml bottles were sold most

followed by 1ltr as said by 28% while 4% and 12% said 5lts & 20ltr were sold the

most.

HYPOTHESIS TESTING


Ho: Selling of 5 ltr& 20 ltr bottles occur more frequently.

Ha: Selling of 5 ltr& 20 ltr bottles occur less frequently.


DF = 4-1 = 3



Step 3: Compute the Test Statistics: χ² = Σ (O-E)^2/E


0.5 ltr 30 12 18 324 27

1 ltr 14 12 2 4 0.33

5 ltr 5 12 -7 49 0.75

20 ltr 6 12 6 36 3

2=31.08

Interpretation

As the Chi-square test statistics 31.08 exceeds the critical value of 7.82 hence null

hypothesis is rejected and hence we reached at the result that our alternative

hypothesis is accepted. Hence it can be concluded that both 0.5 Ltr and 1 Ltr version

are selling well but 5 Itr are selling less as compared to others.

4. Basis of selling a particular Packaged Drinking

Water Brand

Reasons % of Respondents

Demand by the customer 48%

Schemes offered by the companies 10%

Advertisement 14%

More margins 26%

Others 2%

Mostly the demand by the customer is the main reason for selling of

particular brand of Packaged Drinking Water and then it comes to schemes,

advertisements and margins. The other reasons included availability,

replacement of leaked bottles etc.

HYPOTHESIS TESTING


Ho: Demand of the customer is not the main reason for selling of a

particular brand of packaged drinking water.

Ha: Demand of the customer is the main reason for selling of a

particular brand of packaged drinking water.


DF = 5-1 = 4





Demand by

the customer

2410 14 196 19.6

Schemes

offered by the

companies

510 5 25 2.5

Advertisement 710 -3 9 0.9

More margins 1310 3 9 0.9

Others 110 -9 81 8.1

2=32.00

Interpretation

As the Chi-square test statistics 32 which exceeds the critical value of 9.49 hence

null hypothesis is rejected and hence we reached at the result that our alternative

hypothesis is accepted. Hence it can be concluded that demand of the customer is

the main reason for selling of a particular brand of packaged drinking water.

5. MORE MARGINS ON SELLING BRAND

Brand (with maximum margins) % of respondents

Bisleri 40%

Kinley 28%

Aquafina 11%

Others 21%

Among the 50 retailers that took part in the survey 40% said that they earn

maximum margins on Bisleri while 28% said Kinley and 11%& 21% said Aquafina

and others respectively.

6. GROWTH DURING THE LAST FIVE YEARS

ACCORDING TO RETAILERS

Health consciousness Advertisements Scarcity of water Others

38% 32% 25% 5%

According to the retailers the growth rate has been very high as 38% think that the

population has become health conscious, 32% say it is due to scarcity of drinking

water and 25% say it is due to increased advertisements while 5% say that there may

be other reasons like higher living standars, more disposable income etc.

HYPOTHESIS TESTING


Ho: Tremendous growth in mineral water segment is not owing to increased

health consciousness and scarcity of portable drinking water amongst the

population.

Ha: Tremendous growth in mineral water segment is due to increased health

consciousness and scarcity of portable drinking water amongst the

population.


DF=4-1=3





Health

Consciousness

38 12 26 679 56.33

Advertisement 32 12 20 400 33.33

Scarcity of

portable

drinking water

25 12 13 169 14.33

Others 5 12 -7 49 4.08

2 =108.7

Interpretation:

As the Chi-square test statistics value 108.07 exceeds the critical value of 7.82


alternate hypothesis is accepted. Hence it can be concluded that Last five year

seen a tremendous growth in the mineral water segment. The growth rate has

been very high, owing to increased health consciousness amongst the

population, arising from scarcity of potable drinking water.

7. FUTURE PROSPECTS OF MINERAL WATER

MARKET

40% of the total respondents said that the future prospects of the mineral

water industry is excellent, 30% said it was good while 16% gave it an

average & 12% said it had a poor future.

SWOT ANALYSIS OF BISLERI

Strengths

Core business of company.

First mover in this business since 1969.

Good brand awareness and brand positioning.

Available in different packs like cups, 500 ml, 1 lit, 1.2 lit, 2 lit, 5 lit and

20 lit.

Has become generic name in the mineral water market.

Availability of Bisleri in all over India with solid infrastructure facility.

Focus on customer orientation through low price strategy.

Product differentiation by introducing patented break way seal cap.

Best service and proper response to dealers and customers.

Retailer's prediction Excellent Good Average Poor

% of retailers 42% 30% 16% 12%

Weakness

Lack of brand loyalty as MNC's are entering the market like Nestlé’s

Purelife, Pepsi's Aquafina.

Lack of Global Awareness in brand.

Lack of proper advertising to create brand awareness.

Market coverage is not fully utilized.

Institutional sales are not penetrated properly.

Lack of technological up gradation.

Opportunity

Indian bottled water industry is still at growth stage.

Influence of tourists and expatriates.

Bisleri as a daughter company of Parle has a strong presence in India.

Unreliable municipal water quality.

People are becoming health conscious.

Threats

Numbers of players like Kinley and other local players are present in the

market have already captured the market.

Tough competition from MNC's like Coke & Pepsi.

Fluctuation in sales due to seasonality.

Local manufacturers who refill used bottle Hampers the image of the

industry.

Water filters and soft drink industry is a major threat to industry.

Coke and Pepsi are already having strong distribution network in bottle

water industry with their own fleet of trucks & vans.

PEST ANALYSIS

Political Analysis

Government failure to provide safe drinking water.

Laws encouraging ground water exploration.

Environmental regulations.

Economic Environment

Developing Economy.

Better infrastructure:

Social Environment

Scarcity of water.

Health conscious people.

Population growth rate.

Technological Environment

Economies of scale

CHAPTER SIX

DISCUSSIONS OF STUDY

100 consumers & 50 retailers were identified in some of major areas in the

city for conducting the survey.

FOLLOWING INFERENCES WERE DRAWN FROM THE

FINDINGS....

Brand awareness of the customers is mainly more about the top, more

publicized brands which they also brought more.

Initially we enquired about the numbers of brands that the retailers sell

and most of them specified not more than 3 - 4. This indicates that the

retailers prefer only the main brands.

Most of the retailers usually keep highly advertised brands.

Here two basic questions as to which brands are selling more and which

one is being supplied more were combined. The answer was obvious and

i.e., the one which is sold more is supplied more and it is 'Bisleri' (in

most cases).

51% of respondents said that their preferred brand was readily available

everywhere which is 5% lower to that of the people who said that their

preferred brand is Bisleri which means that there is a probability that

some consumers are not able to readily find Bisleri always.

Mostly the demand by the customer is the main reason for selling of

particular brand of packaged drinking water by a retailer but there were

considerable number of retailers who said higher margins was also one of

the deciding factors.

It was a mixed reaction of the retailers when asked about the highest

margin paid to them by a company out of the total 50, majority said that

Bisleri paid the highest.

Consumer’s answer to which size of bottle they prefer was 500ml and

1ltr bottles.

The retailers' answers as to which size of bottle is selling more were

inclined towards the 1 ltr and 500 ml bottles with certain exceptions.

Majority consumers also agreed that advertisements affected their

purchase decision of a particular packaged drinking water brand.

With the increasing heath consciousness of the consumers they prefer

packaged drinking water more to tap water due to hygienic

considerations.

Regarding the growth and future prospect of the mineral water market

nearly all of the retailers were optimistic and ranked it as a very rapidly

growing excellent market.

CHAPTER SEVEN

RECOMMENDATION AND SUGGESTIONS

FOR BISLERI

Bisleri should spend more on sales promotions to reinforce its brand

image in the market.

Campaign, stalls to beat local brands & create awareness.

They can tie up with large commercial complex, hotels & airlines

industries as they are the emerging sector.

New Market segments

Retailers need to concentrate on 5 and 20 ltr bottle which can be

possible only if properly advertised & home delivery of jars is

done to the end customers.

The market is too congested and confused in the Delhi & its Ncr

region, so the company should properly promote & strengthen the

distribution channel to survive the competition.

Can enter into premium segment market. It can also explore

international markets specially developing market

They can target the youth segment.

Launching trendy packs to attract more and more customers.

In Bottled water industry people purchase those products which are

easily available in market

So transportation is key activity for bottled water industry.

Hence development of transportation is important.

Action plan for covering the sample population: There are

four major segments selected for the jar and dispenser business

which Bisleri should focus to have better availability of its

product:

Hospitality industries: Hotels, restaurant, Bakers &

confectioneries Ice cream parlors, bars, and catering services.

Institutional sales: Factories, Export house, School& Education

institution and hospitals.

Offices & Households: Commercial complexes, main market,

residential flats & housings colonies.

Retail segment: All Panwalas, general store, and Juice & Ice

cream parlors.

As the future of the industry is very bright if is important to leverage

this growth by-

Investing in Research and development.

Looking out for product differentiation.

CONCLUSION

After analysis of the data & facts we have collected from consumer &

the retailers & matching them with the objectives one can say that

there is very good future for mineral water market. Soft drink

market might be some threat to the mineral water at present but

within few years the scenario is going to change. Trend signifying

increasing health consciousness amongst Indians could also be

observed.

Market has seen a tremendous growth from the early nineties & now it

is increasing by 40% every year so one can easily say there is great

potential in the mineral water market.

It could also be observed that the living standards of the people

improving & as they are becoming health conscious are ready to pay

for water now. On the question of survival of so many companies

government has made policies & restrictions from April 2001 which

will force many manufactures to shut down their factories. But due to

potential in the market companies with quality product will survive.

Finally from the data collected at both primary and secondary level one

can confidently say that Bisleri as packaged water brand is the current

market leader.

CHAPTER EIGHT

LIMITATIONS OF THE STUDY

Any research or study always has some limitations under which this has to

be undertaken. This one too was not an exception. These limitations are

poised by the environment some external and some inherent. This study has

been conducted with utmost consideration to the adequacy of data and

quality of information, though as mention earlier the reliance on the sources

cannot be minimized to zero in context of precision. The limitation can be

enlisted as hereunder:-

1. The perception level of the respondents. The responses given by

respondents were not always accurate because the respondents gave the

response according to their understanding.

2. Availability of documents as sources of secondary information.

3. Reliability of information collected from various public information

sources such as magazines and website.

4. Respondents are not willing to fill the questionnaire.

5. Very often the respondent do not express their true feelings, in such

case their habit, preference, practice, cannot be assessed correctly.

6. Some of the respondents refuse to give the important information best

known to them.

7. Time was a limiting factor for the study

8. Cost and coverage of survey area

However in spite of these limitations all efforts have been put to make the

report correct, genuine, and fulfilling the objectives of the reports.

CHAPTER NINE

REFERENCES

BOOKS & JOURNALS–

Kotler Philip, “Marketing Management” New Delhi, Prentice Hall of

India, 2003(9th edition)

Kothari C.R, “Research Methodology” New Delhi, VishwaPrakash,

2003(2nd edition).

S H.W. Boyd, R. Westfall and S.F. Stasch, “Marketing Research-

Text and Cases” (7th Edition)

Britannica Encyclopedia

Mr. Hari Sundar(2008), “Indian Packaged drinking water industry”,

Advertising Express page no-55

Jaspreet Bhasin Chandok (2003), “Strategies for Survival of Indian

FMCGs” Journal of Retailing Vol. 68,Pg 34

Catherine Ferrier(2001), “Bottled water: Understanding a social

phenomenon” , WWF Reports

OTHERS –

Internet

Magazines

en.wikipedia.org/wiki/Bisleri

www.finewaters.com/Bottled_Water/India/Bisleri.asp

www.bisleri.com/

www.bottledwaterindia.web

www.nrdc.org/water/drinking/

ANNEXURE

CONSUMER QUESTIONNAIRE

Name of the respondent __________________________

Address of the respondent __________________________

Contact no. ________________________________________

QUESTIONS

Ql. How often do you consume mineral water?

a) Always b) Sometimes

c) Often d) Never

http://www.bisleri.com/

Q2. When feeling thirsty you opt for Mineral water over Soft drink,

juices etc

a) Always b) Sometimes

c) Often d) Never

Q3. How many brands of mineral water are you aware of?

a) 0-2 b) 3-5

c) 6-10 d) 10 and above

Q4. Is your preferred brand of mineral water easily available?

a) Yes

b) No

c) Can’t Say

Q5. Which size of bottle do you prefer?

a) 500 ml b) 1 ltr.

c) 5 Itr d) 20 Itr

Q6. Do you think mineral water is much more hygienic than normal water?

a) Yes b)No

Q7. Do you think the price the companies are charging, is worth the

product?

a) Yes b) No

Q8. Does advertising of this product has any effect on your purchase?

a) Yes b) No

Q9. Do you think Indians are getting more health conscious day by day?

a) Yes b) No

Q10. Which brand do you prefer while buying mineral water?

a) Bisleri b) Kinley

c) Aquafina d) other

RETAILER'S QUESTIONNAIRE

Name of the respondent ___________________________

Address of the respondent _________________________

Contact no. ______________________________________

QUESTIONS

Q1. How many brands of mineral water do you sell (specify)?

a) 2-3 b)3-5

c) More ___________

Q2. What types of brands do you have?

a) Advertised b)

No

n-

Ad

vert

ised

c) Both

Q3. Which brand is selling more?

a) Bisleri b) Aquafina

c) Kinley d) Others

Q4. Which size of bottle is selling more?

a) 500 ml b) 1 ltr

b) 51tr d) 20 Itr

Q5. What is your basis of keeping a particular Packaged Drinking

Water Brands at your shop?

a) Demand by the customer

b) Schemes offered by the companies

c) Advertisement

d) More margins

e) Others ______________

Q6. On which brand do you get more margins?

a) Bisleri b) Aquafina

c) Kinley d) Others

Q6. Do you feel there is growth in the mineral water market in the last 5

years?

a) Yes b) No

Q7. If answer to above question is yes, then what do you think is the

reason for this

growth?

a) Increase in Health consciousness of people

b) Increase in Advertisements

c) Scarcity of drinking water

d) Others

Q8. What is the future prospect of this market?

a) Excellent b) Good

c) Average d) Poor

study of the market scenario of indian packaged drinking water industry with focus on bisleri

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