Bisleri and Aquafina Essay

1. INTRODUCTIONThe tradition of nursing bottled peeing and mineral water is not very old. Even in westerly countries the beat of bottled beverage water started in 1950s. The trend of having mineral water gained one thousand in the commercialise. Now around 100 companies sell an estimated 424 million liters of bottled water valued at around Rs. 200 crores in the country annually. Since antediluvian patriarch time people have used water from mineral springs, particularly hot springs, for bathing due to its supposed therapeutic value for rheumatism, arthritis, splutter diseases, and various other ailments. This started the trend of using mineral water for drinking purpose to exploit the therapeutic value of the water. This trend started gaining momentum in mid 1970s and since then large quantities of bottled water from mineral springs in France and other European The concept of bottled has been quite prevalent in western countries due to greater wellspringness consciousness and risqueer awareness near health and hygiene countries are exported every year.In India, with exposure of media and foreign life styles, deteriorating levels of potable water, drastic increase in a scrap of water borne disease cases, increased 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 limit to such an extent that a number of genuine as well as fly-by -night operators have entered it to milk it. In 1967 Bisleri wad up a bottling plant for manufacturing and marketing its mineral water but failed. The stigmatize was later interchange off to Parle in 1968-69. mineral water market had its seeding as early as 1968-69 when Parle Group acquired the Bisleri tarnish from 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 also in bottled for m was not accepted by the Indian public. 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 wares that too available through 5-star hotels. In early mid-nineties with onset of easyization policy by the Indian government, coming in of cola majors, sell off of local soft drink brands of Campa, Thumps up, property Spot etc by Parle to Coke and other factors led Bisleri to test amniotic fluid again. Bisleri re-launched its bottled water in 1994.3. PESTLE ANALYSIS OF THE INDIAN BOTTLED WATER drinking INDUSTRYPolitical* at that place are various political parties protesting against the determine of mineral water. * There is stable government at the centre with liberal policies. * The government has imposed price ceiling on bottled water.Economical* attach in per capita income.* Expansion of multinationals, IT and BPO companies in Tier 1 and 2 cities.* There is no licensing policy adopted in this sphere.* Availability of cheap labor. kind* Bottled water was earlier considered as a status symbol. * Bottled water is at one time the only source of pure drinking water in areas where in that location is scarcity of water. * The bottled water is considered to be safe as compared to ordinary fee water. * There in increase in health consciousness of people. expert* The bundling of technologies like distillation, reverse osmosis, activated carbon filter, etc dish ups in erupt quality of water. * There has been a shift in packaging from bottles make of glass to bottles make of PET. This helps in recycling and reducing environmental pollution. well-grounded* Governed by PFA and BIS standard. * BIS has tenderd standards for mineral and drinking water. The BIS approval was made mandatory from 1999. * Mineral water should be packed in clean, colorless, transparent, odorless, tamper proof bottles made up of polyethylene. * PFA and BIS lays standard for metals like lead, mercur y, arsenic, aluminum and barium.Environmental* The use of credit card for bottled water increases environmental pollution. * The increase in consumption of bottled water causes depletion of expensive fossil fuels.4. INDUSTRY ANALYSIS (PORTERS FIVE FORCE MODEL)a) Determinants of admittanceAs the Packed bottled water is growing at the rate of 19% in India and is expected to grow from 8000 crores to 10000 crores by 2013 it is the most stipendiary and fastest growing sector currently. The market capitalization is 50-50 i.e. 50% by organised players and 50% by unorganised players. There are more than than 200 players in the segment1- High demand sector.2- Unorganised working class requirement.3- Absolute Cost Advantage.4- Low switching cost.5- Recession proof industry.b) Determinants of competitorThe rivalry is not only among the top and the organised players in the sector but also among the unorganised players who are weak in brand identity. The major reasons are* Distribution ch annels* Retailers ledge space* Price* Flexible packaging of the water to suite the buy office of the consumer.c) Bargaining power of buyersThe bargaining power of the buyers is very lavishly in the B2C and the B2B segment because of the number of players present in the market. d) Bargaining power of suppliers- The bargaining power of the supplier of the raw materials to the industry is very high because of lack of easing of the raw material. Also since the demand of the end product is very high and the industry is growing the suppliers whoremaster demand a premium for the services rendered. e) Substitution threatThough theoretically speech production there is no substitute for water but then we can say the pursual can be considered as a substitute for it* Aerated drinks.* Juices5. BISLERI5.1 Brand Tagline Play SafeMission Statement To provide the highest quality product, keeping in mind all aspect including freshness, white and safety and making it easily available to the co nsumer at very affordable price.5.2 Company BackgroundParle Bisleri Ltd is the biggest domestic player in soft drinks in India. It is a private bon ton owned by Ramesh Chauhan. The company sold off the Thumps Up and Gold Spot brands to Coca-Cola India in the early 1990s. Since then, the company has focused solely on bottled water in India. Due to the coarse number of players present in bottled water in India, Parle Bisleri has tried to differentiate its brands from the competition. The company shifted its slogan from Pure and Safe to Play Safe, following the attempt of many regional players to emulate the look of the companys brands. Parle Bisleri is credited with revolutionizing bulk bottled water in India through the introduction of modern 20-litre jar packaging. The company developed consumer-friendly packaging for its 20-litre jars by adding threaded fittings and valve caps, as opposed to other brands that feature snap-on fittings. These innovations facilitated easier draini ng of water from the jar.5.3 HistoryThe billet of BISLERI lies in Italy and the brand owes its name to its founder MR.FELICE BISLERI, an Italian entrepreneur. In 1967, BISLERI set up a plant in Bombay for bottling and marketing actual mineral water, which did not quite work. By 1969, BISLERI wanted to exit the business and to help him out the Chauhans bought the brand, intending to turn it into a soda brand. Since then it has come a long way. Now, it owns a large percentage of shares in the Indian market and also it has its presence in International Water Market.5.4 ProductsBisleri offers a wide gamut of pack and price options. It offers 7 packaging options a 250-ml transfuse and bottles in 500 ml, 1-litre, 2-litre, 5-litre, 12-litre and 20-litre packs. The 1-litre bottle accounts for nearly 50 per cent of the sales, with the 2-litre bottle taking up 20 per cent of the sales. The remaining sizes share the balance.5.5 end product Parle Bisleri Ltd operates a ne 2rk of 55 plants sp read across the country. This ensures an extensive grant for the companys products. The company reportedly has plans to increase production capableness further in 2008. Parle Bisleris latest product, Bisleri Mountain Water, is bottled in two plants in Uttarakhand (formerly Uttaranchal) and Himachal Pradesh. The company plans to invest Rs100 million to increase the new brands manufacturing and distribution capacity.