Business Environment Assessment Of Bisleri Marketing Essay

commerce Environment Assessment Of Bisleri foodstuffing seeA study of business environment is rattling multipurpose to squ in all opportunities and to plan resources to exploit these opportunities successfully. It unripe goddess alike be used as an early warning system to prevent threats or to turn obstacles into opportunities.Business environment is a sum total of all those factors, conditions, situations or environs which directly affect the working of business. It is a comprehensive term and c all anyplaces factors a kindred consumer behavior, economic policies, competition in the commercialize, technology and so on.ABSTRACT body of body of piddle is one of the basic necessities for human life to survive on this artificial satellite today getting spl rarityid pee is non an easy assess with so much harmful chemical being disposed into the pissing supply by various industries is fashioning the water system harmful for drinking.71% of the state is made of water out of which merely 1% of water bottom of the inning be used by living beings. Among this 1% of water 50% of water is polluted.This is an analysis report of one of the support, recognized trusted taint in the Indian bottlefulfuld water trade named BISLERI INTERNATIONAL PVT LTD. This is enjoying the colossal pct in the foodstuff both in bulk segment in small packs.HISTORY OF BISLERIWATER WATER EVERYWHERE, BUT JUST A inadequate THAT IS CLEANThe origin of BISLERI lies in Italy and the smirch owes its name to its break dance MR.FELICE BISLERI, an Italian entrepreneur. In 1967, BISLERI set up a plant in Bombay for bottling and grocerying actual mineral water, which did non quite work. By 1969, BISLERI treasured to exit the business and to help him out the Chauhans bought the post, intending to turn it into a keynote tick.Since then it has come a long way. Now, it owns a liberal plough voice of functions in the Indian market and excessively it has its presence in transnational Water Market.WATER WATER EVERYWHERE, BUT JUST A LITTLE THAT IS CLEANJOURNEY OF BISLERI OVER THE PAST FEW YEARS1969 Buys BISLERI bottled water from an Italian caller, Felice Bisleri. It was bottled in glass bottles then.Early-1980s Shifts to PVC (Poly Vinyl Chloride) bottles. Sales peckMid-1980s Switches to PET bottles, which meant much(prenominal) transp atomic number 18ncy and life for water.1993 Sells carbonated drink grunges like ThumsUp, G grizzly 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- l container to bring prices raze from Rs. 10 a litre to Rs. 2 a litre.1998 Introduces a tamper-proof and tamper-evident close.2000 BIS heapcels BISLERIS authorise of water bottling in Delhi since some of the bottles did not carry ISI label the permission is restored one-and-a-half months later.2002 KINLEY oertakes BISLERI. The national retail stores audit by ORG-MARG show Kinsleys market sh atomic number 18 at 35.1 per cent comp ard to BISLERIS 34.4 per cent.2003 BISLERI ventured out into Europe and America to sell bottled water.THE appendage OF BISLERI OVER THE YEARS1. HOW THE QUALITY STANDARD IS IMPROVED-Every bottle of BISLERI is put through a rigorous Multi stage purification processes which includes micrometer filtration and ozonisation.It acquires 6 stages of purification processes which ensure timberland water which is pure and just for drinking purpose. Good manufacturing are the strength all the time affect in religiously monitored at every stage.2. THE TRUST FOR BRAND HAS unendingly BEEN CONSISTENT -More than 50 lakhs people trust the BISLERI. They buy scarce BISLERI water because it has became generic name for mineral water. For example When people go to buy the mineral water some(prenominal) of them ask for BISLERI, even though they get other stain.3. LARGE RANGE OF PRODUCTS OFFERED-BISLERI offers a large turn tail of con vergences which attracts consumer of all categories. For example 1 litre or 500 ml pack is useful for individual buyers, 12 litres or 20 litres is useful for organization. on that pointfore it attracts large number of customer.4. securities industryING STRATEGY-BISLERI is promoted by an self-asserting print TV. TV is backed by a Hoarding stagecoach of sale material. Every interface with customer is used as an fortune to reinforce. For example All vehicles used for supply consider been painted in light green, bears the BISLERI logo sport catchy baseline likes drink and drive.5. dissemination SYSTEM.With little belief in the distri justor system, the order leverage its large fleet to truck to supply bottled water directly goes to retailers through a system called Route Selling where the driver of truck are adept to be the service psyche. This ensures that water supplied are fresh and bottles are in the good shape. BISLERI has more than 80,000 outlets in the country.6. BULK SEGMENT IS USEFUL FOR HOUSEHOLDS besides-Households in certain parts of the country spend a huge amount of money on fuel in order to sick the water. They are supposed to buy the adulterate water and then they have to spend money to purify it.For instance the water scarce mho people spend large some of money to buy water and still more to purify it. The 12 litre product is sprout in various cities of south.7. emergence POPULARITY-The popularity of BISLERI is increasing rapidly day by day. People in the market when it comes to mineral water a person goes to any shop and asks for BISLERI as his/her first preference. BISLERI is seeing a suppuration of almost 50% per course of instruction. With the small pack being popular among individuals user its bulk pack is in addition generating the huge look at which is capturing the market for BISLERI. right away 60-70 % of total income of BISLERI comes from its bulk segment and the partnership is planning to increase it up to 80%.8. THE BREAK AWAY SEAL-Keeping in instinct the consumers need to recognize a genuine product that cannot be treated with. The unique cap has been patented and cannot be duplicated. This technical strength ensures that the consumer bequeathing only get a high safe product when they bleed drink BISLERI.MISSION STATEMENTTo provide the highest look product, keeping in mind all aspect including freshness purity and safety and making it easy available to the consumer at very affordable price.MARKET coat AND GROWTHMarket share 2005Bisleri53%Yes13%Bailey23%Others11%BisleriYesBaileyOthersMarket share 2007Bisleri51%Yes11%Bailley17%Aquafina4%Kinley10%others7%BisleriYesBailleyAquafinaKinleyOthersmarket share feb 2008Bisleri38%Kinley28%Aqua pure11%Bailey6%Others17%BisleriKinleyAqua pureBaileyOthersThe Bisleri in the mineral water market is still maintaining the pace at which it has been growing over past few years. The brand has been witnessing launch of a number of role player wit h every passing day. Presently the market is skewed towards regional players and has more than 250 players in the fray. Besides these there are a number of funny operators who enter the market in summers, reap benefits by packaging knap water and selling as pure mineral water, and then ensue once the season is over. The task in the market is not with the players just with the consumers. Poverty levels, illiteracy has led these players to take full advantage of consumers by selling even the tap water as mineral water. keep down bottled market has a size of Rs11-12bn of this round Rs7bn is in the hands of organized sector and rest is with unorganized sector. In the organized sector Bisleri is the market attracter with 45% market share followed by Bailey with 23-24% market share. The Rs 1,000 crore mark packaged water market has always been synonymous with the desi Bisleri.Market partake in of players among usersThe brand is a product of Parle worldwide and presently is the market attractor 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 lts, 1.5 lts and 2 lts in the Indian marketThe relaunch of Bisleri in 1993, yet was a success due to growing awareness and high mind 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 downstairswent the untried 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 SafeTarget audience wellness and hygiene conscious peoplePersonality Guardian, Authoritative, ReliablePunch task Play SafeUSP Pioneer advantage in bottled water industry, old player with lot ofexperienceBisleri, which enjoys 65 per cent market share in the branded water segment, is also eyeing a sharp offset in sales during the present year 2010.The company, that recently launched its premium brand with medical regard ass Vedica, is expecting a 50 per cent growth in sales from this brandWith so many brands launched and to meet the growing demand in the bottled-water segment that is growing at 40 per cent year on year, the company plans to scale-up its production units. It would be opening 10-15 bottling units in the a yetting six months.In this year so far, Bisleri has set up 5 plants .At present, the company has 52 bottling plants across the country.On Bisleris overseas plans, company is in dialog with local beverage-makers in Sri Lanka, the UAE, Bangladesh and Oman to set up units and franchise the Bisleri brand.The company also plans to expand its global footprint this fiscal. Currently, it exports its products to Singapore.The bott led water brand leader is opening 35 newborn plants in smaller towns and entering the high-margin segmentsBottled water brand leader, Bisleris new plants are ready to meet the summer demand. And over the next six months, the company entrust start operating more plants in the remaining parts of the country.This is part of the companys plans to open as many as 35 new plants across the country to tap the invasive market for packaged water (at Rs 2,400 crore like a shot) in Indias hinterlands. The growth get out come, Parle Bisleri says, as there is an increasing consciousness even in villages to the fact that over 1,600 Indians are dying every day because of waterborne diseases and almost foursome million people in India are affected by water-borne diseases every year.Theres another reason for Bisleris ambitious plans. It pull up stakes help the company fling off cost. Typically, in this business, transporting water to a distance of 200 km costs the company Rs 30 per case freig ht. But with distances cut, the company will now spend only Rs 4-5 per case freight. But Bisleri invariably starts selling the product in a given location before the plant comes up.There was a point in the early 90s the sales and the market value of the bisleri were going down.No doubt, that was furrowed to take for Bisleri. The first thing it did was to form the look and rule of its brand. From the earlier conical shaped bottle, Bisleri took on a streamlined, round shape, replacing the erstwhile blue logo with an aqua green one. The move paid offBisleri is also doing several other things as well to open up the higher margin market. For one, it is in talks with beverage makers and bottlers in countries such as Sri Lanka, Bangladesh, Oman and the United Arab Emirates to franchise its brand name. Exports to Singapore have already started.It also launched Vedica, its first mineral water, in January 2010 and is test marketing flavoured water across the country. The company is also s cenery up a new manufacturing facility for its enhanced water brands, which will be fortified with vitamins and minerals. These are brands that will tap the top end of this market, which now account for just 10 per cent of the packaged water market, and bring in substantial profits. Vedica will take on Himalayan and unlike brands like Evian and Perrier in a category that is willing to outsmart out that extra buck.Enthused by its 35% growth in 2008-09, Parle Bisleri is targeting 40% growth this year. With a 60% market share, they are the market leaders in this segment.. The company has already geared up to foray into the flavored water segment in October 2009. Currently, the company has 52 bottling plants across the country.July 26 2009 Bisleri International Pvt Ltd, the packaged water brand grew at 78 per cent in the current fiscal on the back of increasing capacity.They always had an rapacious growth plan in place. Not only they developed the brand further through several market ing initiatives, they also planned on setting up more manufacturing facilities in the country. The television campaign for Bisleri has worked wonders for the brand giving it a bombastic boost.The important increase in India can be easily explained through the growth of the population and problems of water quality and water supplies. 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.Bottled water is a particularly competitive market, and then companies need to develop diverse marketing strategies, such as accessing new markets by owning or developing partnership with regional brands, developing new products (such as flavored water) or by-products (such as cosmetics) and developing services (home and office slant of water).WEAKNESS1. METHOD ADOPTED FOR DISTRIBUTION-THE ROUTESELLING policy adopted by BISLERI for distributi on is more expensive than more commonly followed method of appointing distributors in different towns. This reduces the profit of company. The dealer margin is reduced due to this .therefore not many dealer keeps BISLERI in many areas. Indirectly this is reducing the reportage of BISLERI.2. REUSE OF BOTTLE BY LOCAL SELLERS AND guilty MANUFACTURERS-Market look into conducted by BISLERI revealed that the other overriding concern for this set of buyers is the tampering of seal and the reuse of bottles. Many have witnessed used bottles being refilled at railway stations. This deteriorates the brand image of BISLERI.For example local sellers fill the bottle of BISLERI with impure water and the bottles are purchased by illiterate customers as BISLERI water but they buy water of low quality. In this way brand of BISLERI gets affected.3. FAULTS IN PRODUCTION-Tests conducted by various authorities shows that it contains pesticides. In 2002 the 2cm long dirt ball was comprise in the bott le of BISLERI. This has affected its sales and reputation. The license of its deuce factories one at Noida and other at Bangalore has been cancelled because of fault in production.4. PRESSURE BY GOVERNMENT AUTHORITY-After insect was represent in the bottles, FDA (Food Drug Adulteration) has cancelled the production of BISLERI. Afterwards it was allowed to resume it but in this period its customer were moved towards other products. It is constantly under check by various authorities.5. NOT MEETING THE DEMAND OF THE customer-In certain parts of south in our country big bottles of BISLERI are in huge demand but the company is ineffectual to meet the demand of the consumers. This is affecting the demand for the product. So People are forced to use other brands of mineral water.OPPORTUNITY1. FAST GROWING FIELD-The best beverage for India in the new millennium seems to be water. In recent years, the bottled drinking water market has been witnessing high atomic number 105 level of activ ity, with a host of new entrants. The bottled water market which price Rs. 1000 crore is expected to be Rs. 5000 crore by 2010. This will increase a lot of scope for bottled water market.2. BISLERI CAN UTILISE ITS DISTRIBUTION roll out of mountains-With BISLERI becoming a generic name for bottled drinking water. If company can manage the distribution chain of the product to make it available where the consumer ineluctably it the most, the company may well succeed in his gamble with water. For this the company can connect it with dealers and other distributors who will market the products for them all around the world.3. EXPANSION IN EUROPE-The launch of BISLERI in the European market on 4th September, 2003 has created a lot of scope for BISLERI in the field. This will also compensate the deterioration of image BISLERI has suffered after insect was found in the bottle. It will silence the critics and it will also increase the assurance of the customer for the brand. It will creat e an international brand image and the quality will increase.4. LAUNCH OF PREMIUM PACK-The company also has its premium product range. This is prepared keeping 5-star hotels and other premium customer. This pack will be sold at Rs. 20 per litre. This will give a tough competition to the EVIAN, the biggest player in the premium water range which sells its 1 litre water at a hefty of Rs.85 per litre.5. swap OF IMAGE-The company has changed the colour of the product. It has changed from blue to green. By changing the colour, the company has provided a new product to the consumers they will be getting a new and a refreshing product.6. INCREASE IN PRODUCTION-BISLERI is eyeing the Market and is in the process of increasing the production by setting 4 new plants adding to its 23plants. This will increase the production capacity of the company.THREAT1. MARKET IS EYED BY THE BIG PLAYERS-The growth of the market indicates the need for the mineral water. Due to this the heavy weights are eyei ng the market. Coke, Pepsi, Britannia, Nestle, Auswater-is keen on raising their venture in this market. With the cut throat competition between Coke and Pepsi, BISLERI is not safe.2. ENTERING OF NEW PLAYERS-To get some share in the market many new players are entering in the market. Among them major label are Godrej, which is launching its product AQUA-PURE and Tata-Tea is looking forward to but Himalayan, this will increase the competition. Also Britannia which is distributing EVIAN is planning to launch its own brand. There are also new entrants ATCO with BRILLIANT water, DS FOODS with CATCH are also coming. Even Hindustan lever is planning to enter into the market. This is give a tough competition to the current water brands including BISLERI.3. WATER FILTER MANUFACTURERS-BISLERI is not only getting competition from mineral water maker but is also facing a tough competition from various water leach manufacturers such as Eureka Forbes (Aqua guard). They have been marketing the re purifiers in the market which has decreased the sales of bottled water supply to homely customers.4. ILLEGAL MANUFACTURERS-Company is facing a tough competition from illegal manufacturers in the rural areas. The illegal manufacturers provide water at a very cheaper rate then the branded manufacturers. There are 1000s of illegal manufacturers which are providing the water at a very cheaper rate. This is a serious problem for branded manufacturers. This companies also use the fake name of branded bottled water i.e. BISLERI and supply their products in the market.5. STRONG DISTRIBUTION CHANNEL OF THE OTHER MANUFACTURERS-Analysts feel that BISLERIS break away seal will not at all be effective the company having immobile distribution channel will only survive. This rings the warning bell for BISLERI because among other players Kinley and Aquafina are having a strong distribution network of Coke and Pepsi. Nestle will be banking on its chocolate distribution network. Even though the B ISLERI has a strong networks but its concentration on bulk segment can lead to improper network.For example A chemist who is selling the 1 litre pack may not sell the 20 litre pack. This could ail the network.