Competitor Analysis Industry Bottled Water

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Agenda

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Introduction

As a new entrant to the bottled water industry we identified some bigwigs of the industry which could provide healthy competition to us and those are

Bisleri Aquafina Kinley Manikchand Oxyrich

We have done the analysis by considering Bisleri as our main competitor.

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Main Competitor Bisleri

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History

Bisleri came to India in year 1965 with head quarters in Mumbai.

It opened first plant in Mumbai in year 1967 In 1969 it was brought by Parle exports. Before 1980 Bisleri was mainly using glass bottle but later on they started using PVC packing in mid 1980.

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In year1995 introduce 500ml bottle

Changed Packaging Color

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Launched Vedica- Natural Mountain Water

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Mission:

To provide every Indian access to scientifically purified and fortified drinking water that is readily available and easily affordable; and to support initiatives that rejuvenate the Earth's natural sources of pristine drinking water.

Vision:
An India in which every person has uninterrupted access to scientifically purified and fortified drinking water, irrespective of geographical barriers or 3/24/12 economic limitations.

Future goals

Stated Financial goal is 30-35% growth Parle Bisleri is slowly phasing out its premium brand Natural Mountain Water and will launch a new product Bisleri Vedica, which will have medicinal properties. Parle Bisleri Private Limited is set to launch a fruit juice brand Alfa in five to six flavours, in the course of the next one year with an investment of Rs 100 crore. Bisleri had drawn up an aggressive expansion plan for eastern India and appointed Orient Beverages Limited as its sole franchisee for West 3/24/12 Bengal, Jharkhand and Orissa.

Future goals

In future the thrust areas of the company would be direct home delivery for safer delivery and prevention of counterfeiting. In future Bisleri would invest Rs 6 crore in developing and introducing coloured caps which would be difficult to replicate for the 20 litre water units. It had also planned to invest Rs 10 crore in filling and capping facilities and upgrade production facility from 4500 bottles per minute to 6000 bottles per minute in the next 18 months. Leadership: Everything is done in consultation of 3/24/12 Mr Ramesh Chouhan, CMD Bisleri Ltd. ; Of the

PORTFOLIO ANALYSIS
High

Growth

Star Question Mark Modest cash flow Large negative cash flow Cash Cow Large positive cash flow Dog Modest cash flow

Low

High

Low

Relative market share

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Assumptions

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Competitors belief about its relative position

Considers itself as Market leader.

Competitor s historical or emotional identification with particular products

Packaged water has got a very strong emotional identification at Bisleri.

There are no cultural and regional 3/24/12

Competitors belief about future demand and about industry trends

Bisleri is quite confident of growing demand and as well as of industry growth which is evident from Mr Ramesh Chouhans interview to CNBC recently in which he said Water is the safest to bet on after which he also said bisleri aiming for 35 to 40 % growth. Try to Remain on same price . Distribution network . Joint venture.
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Acquire small players .

CAPABILITIES

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Core capabilities Product, Brand, Distribution network Ability to grow Very bright Quick response capability- Weak Ability to adapt changes- Weak Staying power Strong (emotional, growing market) Our Unique Selling Proposition (USP) is the Break away seal. Also, our double ozonisation process is a major USP
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STRENGTH:

WEAKNESS:

Extensive Range of Products Patented Tamper Proof Seal Strong Brand Image High Quality Standard Increased Popularity Distribution Channels
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Unable to fulfill customer demand Reuse of bottle by illegal manufacturers Faults in Production

Experienced Leadership

CURRENT strategy
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CURRENT STRATEGY

Aggressive market penetration strategy which is a dual distribution plan - penetrating newer markets - including townships and rural India (including smaller and interior markets) and aggressively looking at entering newer territories and increasing shelf presence in the metros and existing markets. They plan to set up 25 new bottling plants across India in the next two years, and this will be a pan India coverage namely in the states like Maharashtra, Kerala, Jammu & Kashmir, Himachal Pradesh, Tamil Nadu, Karnataka, UP, Orissa, Jharkhand, and North Bengal states. They are also 3/24/12 setting up channels for 20L jars in order to fill

CURRENT STRATEGY
contd..

Maintaining social responsibility by recycling used PET bottles with the help of rag pickers.

Promoting social initiatives such as rain water harvesting. Bisleri Kinley Aquafina Market Share 38% 21% 14% 10 12 2 12.25 15 1.75 2.75 8 10 2

Manufacturing Cost Selling Price Profit Margin

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COMPETITOR RESPONSE PROFILE

Bisleri is satisfied with the current position as it is still enjoying the largest market share. Likely Moves / Strategy Shifts include Expansion & Diversification. Vulnerability- Its strength i.e., the distribution network is a vulnerable area, given right schemes and margin the same distributors can work for rival company simultaneously. Greatest & Most effective retaliation by Bisleri will be provoked by a National Level Marketing campaign by other market players or Cost Differentiation.

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Bibliography

Bisleris Chauhan sees big business in small packs. Retrieved on 3rd April 2010 from http://www.financialexpress.com/printer/news/151843/ Bottled water of India. Retrieved on 3rd April 2010 from Bottled water- India. (2009) Country sector briefing: Euromonitor International.
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http://www.finewaters.com/Bottled_Water/India/index.a

Commitment. Retrieved on 3rd April 2010 from

Competitive Analysis : Bottled Water Group-4 Industry

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Bharat Sharma

Deepshikh

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3/24/12 Ishita