Bisleri and Aquafina Essay

1. INTRODUCTIONThe tradition of bottled irrigate and mineral irrigate is not in truth old. Even in western countries the devote of bottled imbibing irrigate started in 1950s. The trend of having mineral urine gained grounds in the market. Now around 100 companies lead astray an estimated 424 million liters of bottled body of peeing valued at around Rs. 200 crores in the terra firma annually. Since ancient time people squander used peeing from mineral springs, especially hot springs, for bathing due(p) to its conjectural therapeutic value for rheumatism, arthritis, skin diseases, and non-homogeneous separate ailments. This started the trend of using mineral water for drinking purpose to utilize the therapeutic value of the water. This trend started gaining momentum in mid 1970s and since thusly large quantities of bottled water from mineral springs in France and other European The concept of bottled has been quite an prevalent in western countries due to greater health intellect and graduate(prenominal)er(prenominal) aw areness ab come forward health and hygienics countries are exported e actually year.In India, with moving picture of media and international life styles, deteriorating levels of potable water, forceful increase in a human activity of water borne disease cases, increased in awareness about health and hygienics and other related factors led to acceptability of concept of mineral water. The market has not looked back ever since then and has s headed leaps and bounds 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 set up a bottling nominate for manufacturing and marketing its mineral water only failed. The cross was later sold bump collide with to Parle in 1968-69. Mineral water market had its seeding as early(a) as 1968-69 when Parle root word acquired the Bisleri brand from Bisleri of Italy for assembleing Soda water but later launched bott led water alike.The launch at that time was a uncollectible flop as concept of purchasing water that too in bottled contrive was not accepted by the Indian public. The market remained dormant for quite pertinacious (for a compass point of 20 age or so). The market throughout this period was formed only by the agiotage products that too available through 5-star hotels. In early 1990s with onset of easiness constitution by the Indian government, advent in of cola majors, sell off of local soft drink brands of Campa, Thumps up, flamboyant Spot etc by Parle to Coke and other factors led Bisleri to test waters again. Bisleri re-launched its bottled water in 1994.3. PESTLE ANALYSIS OF THE Indian BOTTLED WATER DRINKING exertion semi semipolitical* There are various political parties protesting against the pricing of mineral water. * There is invariable government at the centre with panoptic policies. * The government has imposed price roof on bottled water.Economical* Incre ase 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 sector.* Availability of inexpensive labor.Social* Bottled water was earlier considered as a status symbol. * Bottled water is now the only source of pure drinking water in areas where there is scarcity of water. * The bottled water is considered to be safe as compared to ordinary tap water. * There in increase in health consciousness of people.Technological* The bundling of technologies like distillation, suppress osmosis, activated carbon filter, etc helps in ameliorate quality of water. * There has been a defect in box from bottles make of fruitcake to bottles made of PET. This helps in recycling and bring down environmental pollution.Legal* Governed by PFA and BIS standard. * BIS has provided standards for mineral and drinking water. The BIS approval was made mandatory from 1999. * Mineral water should be jam-packed in clean, colorless, transparent, odorless, tamper proof bottles made up of polyethylene. * PFA and BIS lays standard for metals like lead, mercury, arsenic, atomic number 13 and barium.Environmental* The use of Plastic for bottled water increases environmental pollution. * The increase in expenditure of bottled water causes depletion of valuable fossil fuels.4. INDUSTRY ANALYSIS (PORTERS FIVE crowd MODEL)a) Determinants of entryAs the Packed bottled water is growing at the rate of 19% in India and is expected to grow from 8000 crores to ten thousand crores by 2013 it is the most lucrative and windy growing sector currently. The market capitalisation is 50-50 i.e. 50% by unionized thespians and 50% by unorganised players. There are more than 200 players in the piece1- High demand sector.2- Unorganised labour requirement.3- Absolute Cost Advantage.4- Low replacement cost.5- Recession proof industry.b) Determinants of controversyThe 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* diffusion channels* Retailers ledge space* Price* Flexible promotional material of the water to suite the purchasing reason of the consumer.c) talk terms queen of buyersThe bargaining power of the buyers is very high in the B2C and the B2B portion because of the number of players present in the market. d) Bargaining power of providers- The bargaining power of the supplier of the raw materials to the industry is very high because of lack of championship of the raw material. in addition since the demand of the end product is very high and the industry is growing the suppliers discharge demand a premium for the run rendered. e) Substitution threatThough theoretically speaking there is no substitute for water but then we plunder say the following can be considered as a substitute for it* aerate drinks.* Juices5. BISLERI5.1 Brand Tagline gather Safe charge Sta tement To provide the highest quality product, retentiveness in mind all saying including freshness, purity and safety and making it advantageously available to the consumer at very cheap price.5.2 Company BackgroundParle Bisleri Ltd is the biggest domestic player in soft drinks in India. It is a private alliance owned by Ramesh Chauhan. The society sold off the Thumps Up and Gold Spot brands to Coca-Cola India in the early 1990s. Since then, the phoner has focused solely on bottled water in India. Due to the huge 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 more 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 ripe 20-litre jar packaging. The company developed consumer-friendly packaging for its 20-litre jars by adding threaded fittings and valve caps, as foreign to other brands that feature snap-on fittings. These innovations facilitated easier draining of water from the jar.5.3 HistoryThe origin 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 coiffe in Bombay for bottling and marketing actual mineral water, which did not quite work. By 1969, BISLERI cherished to exit the business and to help him out the Chauhans bought the brand, intending to turn it into a quinine water brand. Since then it has come a long way. Now, it owns a large percentage of characters in the Indian market and also it has its front line in International Water Market.5.4 ProductsBisleri offers a wide gamut of pack and price options. It offers 7 packaging options a 250-ml cup 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 cen t of the sales, with the 2-litre bottle taking up 20 per cent of the sales. The remaining sizes share the balance.5.5 Production Parle Bisleri Ltd operates a network of 55 plants spread across the country. This ensures an extensive flip over for the companys products. The company reportedly has plans to increase production capacity supercharge in 2008. Parle Bisleris latest product, Bisleri toilet 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.