Marketing strategy class lectures_239184159-Bisleri-Marketing-Strategies

Content type

User Generated

Subject

Business

Type

Note

Uploaded By

qbpznfgre1

Pages

Rating

A few years back, the mineral water market had been crawling at the rate of 3-4%, or even a lower

figure. Indians carried drinking water in earthen pitchers, plastic or PUF bottles. But increasing cases

of typhoid and other waterborne diseases began to be reported. In addition to this, liberalization

happened and the mineral water industry began to be stirred and shaken. The market started

growing an astounding rate of over 100% per annum. The fact that there were very few players in

the market meant that their business grew by leaps and bounds. The market today has grown to

Rs11bn. The organized sector --branded mineral water -- has only Rs5bn of market share. The rest

isaccounted for by the unorganized sector, which is dominated by smallregional players. The market

is still growing – at a rate greater than80% per annum.In the branded segment, Parle’s Bisleri is the

market leader with ashare of more than 45%. Parle Agro’s Bailley comes a close secondwith market

share of 15%. Other major players in the market are Yes of Kotharis, Ganga of T-Series, Himalayan,

Hello, Nestlé’s Pure Life,Pepsi’s Aquafina, Coca-Cola’s -Kinley Prime, and Florida etc.Sensing the

opportunity that this segment holds, MNCs began to draw up plans to enter the market. Today the

market is proving to be yet another battlefield for an ongoing battle between the Desi’s andMNC’s.

Last year the industry had around 170 brands. This figure isover 300 presently. The major foreign

players are Coca-Cola promoted Kinley, Pepsi’s Aquafina, Britannia’s Evian, Nestlé’sPerrier, Herbert

sons and Danone International.

COMPANY PROFILE The origins of Bisleri lie in Italy, and the brand owes its name tofounder Felice

Bisleri, an Italian entrepreneur. In 1967, Bisleri set upa plant in Mumbai for bottling and marketing

mineral water, which wasfirst of its kind in India. However, it didn’t work well. Among otherreasons,

the fact that the Indian consumer was unprepared to acceptbottled mineral water was responsible

for its failure. Consumermindsets were more geared towards boiling water at home.In 1969, Parle

bought over the Bisleri brand. In those days Bisleriwater was available in glass bottles. Parles taking

charge of Bisleridid not make a dramatic difference to the brands fortunesimmediately. While it did

gain in terms of visibility and reach(piggybacking on Parles existing distribution network), efforts

toexpand the bottled water market were not exactly painstaking. Parleat that particular time was

interested in making soda water and notmineral water. There were just minor initiatives on part of

the company for making mineral water, as it was not considered to be avery profitable business at

that time as people still considered boiling water to be a safer and better than mineral water.

Moreover they were not ready to pay for a commodity like water, which was so abundantly

available. In 1972-73 Parle changed the packaging of its bottled water to plasticbottles and that

significantly made a difference in the sales. The buyers,then, were mainly the upper class - the

trendy people.In 1993, Coca-Cola bought Parle’s soft drink brands- Thumps-up, limcaetc. While

Coca-Cola actually bought over Parles beverages, it agreedto a settlement that allowed the

multinational to bottle and distribute

Bisleri soda for a time frame of five years. The charge of Bisleri water,however, remained with Parle.

The upsurge in the sales of Bisleristarted from this point as Parle sold off its stable of brands to Coca-

Cola. This was the time when it started concentrating on making Bisleria success in the domestic

mineral water market. The reason why Parlechose to retain the Bisleri name was that Parle saw a

fairly lucrativebusiness of mineral water in Bisleris equity.The real shift in company’s policy towards

mineral water industry camein 1998,although the conscious efforts had already been started in1994.

This change was primarily because of the fact that the people, atthis time, had started becoming

more health conscious.

MARKETINGSTRATEGY

MARKETING STRATEGYIt is complete and an unbeatable plan designed specifically for attainingthe

marketing objective of a firm. The marketing objective indicate what thefirm want to achieve. The

marketing strategy provides the design forachieving them the linkage between marketing strategies

and over allcorporate success is indeed direct and vital. Realizing the marketingobjectives is the

purpose of two generic categories . 1. price based 2. Differentiation basedprice based marketing

strategya business that opts for the price route in its competitive battle will enjoycertain flexibilities

in matter of its product and use prices as maincompetitive level . it will price its product to suit the

varying competitivedemands . it will be enjoying certain inherent cost advantages , whichpermits it

to resort a price based fight . the major forms where such costadvantage can occurs are economies

of sale , absolute cost advantages ,.Benefits of early entry a large market share build over a time . it

providesfreedom in the matter of pricing but after producing a particular productand getting stuck in

the face of the competition , one can not successfullyopt for a price led strategy .

ADVERTISING CAMPAIGN OF BISLERIEvery brand needs a good ad campaign to establish itself in

themarket. So it becomes very imperative to look at various adcampaigns that Bisleri undertook to

build itself as a brand. Bisleristarted its game plan with the punch line of ‘Pure and Safe’ andused the

same catch-line for advertising. But with the advent of manynew players, all claiming the purity, it

became very imperative forBisleri to differentiate its product so as to stand out in the market.Bisleri

found the answer in ‘sealed cap bottles’. It claimed 100%purity. While the bottles of the other

brands, it claimed, could berefilled with ordinary, or even germinated water, Bisleri’s seal

cappedbottles ensured the consumer of purity of water and single-used nessof the bottles. The ad

showed a milk-man and a child showering theirbuffaloes and filling the ‘so-called’ mineral water

bottles with thesame water and packing them with the simple polythene seal and theconsumer not

knowing about the ‘purity’ of the water he is drinking.Next clip shows the Bisleri bottles being sealed

with plastic caps andensuring the purity of water. The ad did work for Bisleri and it got itsmuch

needed product differentiation.In 2000, some giant brands like Pepsi and coca-cola entered

themineral water industry with a big bang. Bisleri now had a big threat ofmaintaining its market cap.

While Coca-cola introducing its brand‘Kinley’ as a health care product, Pepsi projected ‘Aquafina’

assomething as pure as ‘Your own body’. Pepsi targeted the younggeneration and introduced

Aquafina as a fancy product to carry.The ad campaign of Aquafina emphasized as ‘70% of your body

iswater’ and thus give your body the purest water. The ad showed

young vibrant models and created the atmosphere of youthfulness.Water, Pepsi claimed, was no

longer a simple beverage, but wassomething highly fashionable. They complimented it by giving

theirbottles an attractive look. This soon caught the eye of the consumer.All these factors made

Pepsi the biggest upcoming competitor ofBisleri (whereas Kinley lagged behind the race, showing a

doctoradvising a family to take Kinley for pure water – not a very attractivead campaign).Bisleri, to

counter-attack the new ‘Feel-Young’ fever had to even boldersteps. They first changed their base

line from ‘Pure and Safe’ to ‘PlaySafe’. They tried a brand new ad campaign to catch the fancy of

consumer.The new ad showed a young romantic couple on a marooned island, whenthe girl

seductively attracts the guy and he follows her in trance. Themoment he gets hold of her, she

whispers something in his ears. The nextfew shots show the guy looking for something in frenzy…can

End of Preview - Want to read all 7 pages?

Access Now

Unformatted Attachment Preview

A few years back, the mineral water market had been crawling at the rate of 3-4%, or even a lower figure. Indians carried drinking water in earthen pitchers, plastic or PUF bottles. But increasing cases of typhoid and other waterborne diseases began to be reported. In addition to this, liberalization happened and the mineral water industry began to be stirred and shaken. The market started growing an astounding rate of over 100% per annum. The fact that there were very few players in the market meant that their business grew by leaps and bounds. The market today has grown to Rs11bn. The organized sector --branded mineral water -- has only Rs5bn of market share. The rest isaccounted for by the unorganized sector, which is dominated by smallregional players. The market is still growing – at a rate greater than80% per annum.In the branded segment, Parle’s Bisleri is the market leader with ashare of more than 45%. Parle Agro’s Bailley comes a close secondwith market share of 15%. Other major players in the market are Yes of Kotharis, Ganga of T-Series, Himalayan, Hello, Nestlé’s Pure Life,Pepsi’s Aquafina, Coca-Cola’s -Kinley Prime, and Florida etc.Sensing the opportunity that this segment holds, MNCs began to draw up plans to enter the market. Today the market is proving to be yet another battlefield for an ongoing battle between the Desi’s andMNC’s. Last year the industry had around 170 brands. This figure isover 300 presently. The major foreign players are Coc ...
Purchase document to see full attachment