Bisleri and Aquafina Essay

1. Introduction

The tradition of bottled H2O and mineral H2O is non really old. Even in western states the pattern of bottled imbibing H2O started in 1950s. The tendency of holding mineral H2O gained evidences in the market. Now around 100 companies sell an estimated 424 million litres of bottled H2O valued at around Rs. 200 crores in the state yearly. Since ancient clip people have used H2O from mineral springs. particularly hot springs. for bathing due to its supposed curative value for rheumatism. arthritis. tegument diseases. and assorted other complaints. This started the tendency of utilizing mineral H2O for imbibing intent to work the curative value of the H2O. This tendency started deriving impulse in mid 1970s and since so big measures of bottled H2O from mineral springs in France and other European The construct of bottled has been rather prevailing in western states due to greater wellness consciousness and higher consciousness about wellness and hygiene states are exported every twelvemonth.

In India. with exposure of media and international life manners. deteriorating degrees of drinkable H2O. drastic addition in a figure of H2O borne disease instances. increased in consciousness about wellness and hygiene and other related factors led to acceptableness of construct of mineral H2O. The market has non looked back of all time since so and has grown springs and bounds to such an extent that a figure of echt every bit good as fly-by -night operators have entered it to milk it. In 1967 Bisleri set up a bottling works for fabrication and selling its mineral H2O but failed. The trade name was subsequently sold off to Parle in 1968-69. Mineral H2O market had its seeding every bit early as 1968-69 when Parle Group acquired the Bisleri trade name from Bisleri of Italy for establishing Soda H2O but subsequently launched bottled H2O besides.

The launch at that clip was a large floating-point operation as construct of purchasing H2O that excessively in bottled signifier was non accepted by the Indian populace. The market remained hibernating for rather long ( for a period of 20 old ages or so ) . The market throughout this period was formed merely by the premium merchandises that excessively available through 5-star hotels. In early 1990s with oncoming of liberalisation policy by the Indian authorities. coming in of Cola big leagues. sell off of local soft imbibe trade names of Campa. Thumps up. Gold Spot etc by Parle to Coke and other factors led Bisleri to prove Waterss once more. Bisleri re-launched its bottled H2O in 1994.

3. PESTLE ANALYSIS OF THE INDIAN BOTTLED WATER DRINKING INDUSTRY

Political

* There are assorted political parties protesting against the pricing of mineral H2O. * There is stable authorities at the Centre with broad policies. * The authorities has imposed monetary value ceiling on bottled H2O.

Economic

* Increase in per capita income.
* Expansion of multinationals. IT and BPO companies in Tier 1 and 2 metropoliss.
* There is no licensing policy adopted in this sector.
* Availability of low-cost labour.

Social

* Bottled H2O was before considered as a position symbol. * Bottled H2O is now the lone beginning of pure imbibing H2O in countries where there is scarceness of H2O. * The bottled H2O is considered to be safe as compared to ordinary tap H2O. * There in addition in wellness consciousness of people.

Technological

* The bundling of engineerings like distillment. rearward osmosis. activated C filter. etc helps in better quality of H2O. * There has been a displacement in packaging from bottles made of glass to bottles made of PET. This helps in recycling and cut downing environmental pollution.

Legal

* Governed by PFA and BIS criterion. * BIS has provided criterions for mineral and imbibing H2O. The BIS blessing was made mandatary from 1999. * Mineral H2O should be packed in clean. colorless. transparent. odorless. tamper cogent evidence bottles made up of polythene. * PFA and BIS lays criterion for metals like lead. quicksilver. arsenic. aluminium and Ba.

Environmental

* The usage of Plastic for bottled H2O additions environmental pollution. * The addition in ingestion of bottled H2O causes depletion of valuable fossil fuels.

4. Industry ANALYSIS ( PORTER’S FIVE FORCE MODEL )

a ) Determinants of entry

As the Packed bottled H2O is turning at the rate of 19 % in India and is expected to turn from 8000 crores to 10000 crores by 2013 it is the most moneymaking and fastest turning sector presently. The market capitalisation is 50-50 i. e. 50 % by organized participants and 50 % by unorganized participants. There are more than 200 participants in the section:

1- High demand sector.
2- Unorganised labour demand.
3- Absolute Cost Advantage.
4- Low shift cost.
5- Recession cogent evidence industry.
B ) Determinants of competition
The competition is non merely among the top and the organized participants in the sector but besides among the unorganized participants who are weak in trade name individuality. The major grounds are

* Distribution channels
* Retailer’s shelf infinite
* Price
* Flexible packaging of the H2O to suite the buying power of the consumer.

degree Celsius ) Bargaining power of purchasers
The bargaining power of the purchasers is really high in the B2C and the B2B section because of the figure of participants present in the market. vitamin D ) Bargaining power of suppliers- The bargaining power of the provider of the natural stuffs to the industry is really high because of deficiency of replacement of the natural stuff. Besides since the demand of the terminal merchandise is really high and the industry is turning the providers can demand a premium for the services rendered. vitamin E ) Substitution menace

Though theoretically talking there is no replacement for H2O but so we can state the undermentioned can be considered as a replacement for it
* Aerated drinks.
* Juices

5. BISLERI
5. 1 Brand Tagline: “Play Safe”

Mission Statement: “To provide the highest quality merchandise. maintaining in head all aspect including freshness. pureness and safety and doing it easy available to the consumer at really low-cost monetary value. ”

5. 2 Company Background

Parle Bisleri Ltd is the biggest domestic participant in soft drinks in India. It is a private company owned by Ramesh Chauhan. The company sold off the Thumps Up and Gold Spot brands to Coca-Cola India in the early 1990s. Since so. the company has focused entirely on bottled H2O in India. Due to the huge figure of participants present in bottled H2O in India. Parle Bisleri has tried to distinguish its trade names from the competition. The company shifted its motto from “Pure and Safe” to “Play Safe” . following the effort of many regional participants to emulate the expression of the company’s trade names. Parle Bisleri is credited with revolutionising majority bottled H2O in India through the debut of advanced 20-litre jar packaging. The company developed consumer-friendly packaging for its 20-litre jars by adding threaded adjustments and valve caps. as opposed to other trade names that characteristic snap-on adjustments. These inventions facilitated easier draining of H2O from the jar.

5. 3 History

The beginning of BISLERI lies in Italy and the trade name owes its name to its laminitis MR. FELICE BISLERI. an Italian enterpriser. In 1967. BISLERI set up a works in Bombay for bottling and marketing existent mineral H2O. which did non rather work. By 1969. BISLERI wanted to go out the concern and to assist him out the Chauhan’s bought the trade name. meaning to turn it into a sodium carbonate trade name. Since so it has come a long manner. Now. it owns a big per centum of portions in the Indian market and besides it has its presence in International Water Market.

5. 4 Merchandises

Bisleri offers a broad gamut of battalion and monetary value options. It offers 7 packaging options ; a 250-ml cup and bottles in 500 milliliter. 1-litre. 2-litre. 5-litre. 12-litre and 20-litre battalions. The 1-litre bottle histories for about 50 per cent of the gross revenues. with the 2-litre bottle taking up 20 per cent of the gross revenues. The staying sizes portion the balance.

5. 5 Production

• Parle Bisleri Ltd operates a web of 55 workss spread across the state. This ensures an extended range for the company’s merchandises. The company reportedly has programs to increase production capacity further in 2008. • Parle Bisleri’s latest merchandise. Bisleri Mountain Water. is bottled in two workss in Uttarakhand ( once Uttaranchal ) and Himachal Pradesh. The company plans to put Rs100 million to increase the new brand’s fabrication and distribution capacity.