Market position of Bisleri

Market come out of BisleriThe case discussed below is about the biggest post in the world of mineral pissing that is Bisleri, the bon ton as all of us know is the scoop out in its field simply due to nearly problems before some time its reapingion was stopped by the government and at the comparable time its customers who stub non find Bisleri any more(prenominal) shifted to some other brands and its commercialize carry on declineThe discussion below is about the actual foodstuff panorama of the friendship using the SWOT, Porters five forces and the PESTEL framework which analyzes the actual position of the political party in the indus settle as well as the market place and society. contentINTRODUCTION water supply is hotshot of the basic necessities for human life to put out on this planet today getting pure piss is non an easy task with so much ruinous chemical be disposed into the weewee by various industries is making the body of piddle harmful for dri nking. 71% of the earth is made of peeing out of which only 1% of pee can be utilize by living universes. Among this 1% of water supply 50% of water is polluted. (Upadhyay, 2005)According to the Bureau of Indian Standards in that respect atomic number 18 1,200 bottled water factories all over India (of which 600 ar in one state Tamil Nadu). Over 100 brands ar vying for the Rs. 1,000-crore (Rs. 10 billion) bottled water market and be hard selling their reapings in e truly federal agency possible better mouldings to dealers, aggressive advertising, catchy taglines. In such a scenario, The Strategist takes a look at how it all started with Bisleri and how Ramesh Chauhan, chairman, Bisleri created a market out of pure water. (Bisleri, 2008)This is an SWOT analysis report of one of the allowance, acknowledge trusted brand in the Indian bottled water market appellationd BISLERI transnational PVT LTD. This is enjoying the huge share in the market both in come out seg ment in small packs.The origin of BISLERI lies in Italy and the brand owes its give ear to its founder MR.FELICE BISLERI, an Italian entrepreneur. In 1967, BISLERI set up a despatch in Bombay for bottling and marketing actual mineral water, which did not quite work. By 1969, BISLERI wanted to exit the business and to help him out the Chauhans bought the brand, intending to playing period it into a soda brand. (Raturi, 2005)Since then it has come a long way. Now, it owns a blown-up percentage of shares in the Indian market and in addition it has its presence in International Water Market. (Bisleri, 2008)Tag line of BisleriWATER EVERYWHERE exclusively JUST A LITTLE THAT IS CLEANSWOT ANALYSIS ON BISLERISTRENGTHS1. QUALITY STANDARD E precise bottle of BISLERI is put through a rigorous Multi stage purification processes which includes micron filtration and ionization. It acquires 6 stages of purification processes which look into quality water which is pure and skilful for drink ing purpose. Good manufacturing are the strength all the time processing in religiously monitored at every stage. (Vora, 2009)2. TRUST FOR BRAND-More than 5 million slew trust the BISLERI. They buy only BISLERI water because it has became generic name for mineral water. For example When people go to buy the mineral water some(prenominal) another(prenominal) of them ask for BISLERI, notwithstanding though they get other brand.3. LARGE commit OF PRODUCTS-BISLERI offers a large range of products which attracts consumer of all categories. For example 1 cubic decimetre or 500 ml pack is useful for individual buyers, 12 cubic decimeters or 20 liters is useful for organization. in that locationfore it attracts large number of customer.4. market-BISLERI is promoted by an aggressive print TV. TV is backed by a Hoarding point of sale material. Every interface with customer is employ as an opportunity to reinforce. For example All vehicles used for supply carry been painted in light green, bears the BISLERI logo sport catchy service line same(p)s drink and drive.5. scattering SYSTEM.With little belief in the distributor system, the community leverage its large fleet of transport to supply bottled water outright to retailers through a system called Route Selling where the driver of truck is trained to be a service person. This ensures that water supplied is fresh and bottles are in good shape. BISLERI has more than 80,000 outlets in the country.6. EXPERIENCE OF MR.CHAUHAN (M.D OF BISLERI)From the vast get down of marketing Gold Spot and Thumps Up, Mr. Chauhan knows that distribution plays a all important(p) voice in the successful marketing of bottled drinks. He knows that making fresh water available within a particular period of time is crucial for its success. He is pursuing a multi- pack and multi- price strategy.7. BULK constituent IS USEFUL FOR HOUSEHOLDS ALSO-Households in certain parts of the country surpass a huge amount of silver on fuel in localise to purify the water. They are supposed to buy the impure water and then they have to spend money to purify it. For instance the water scarce southernmost people spend large some of money to buy water and still more to purify it. The 12 liter product is hit in various cities of south.8. GROWING POPULARITY-The popularity of BISLERI is increasing quick 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 comprehend a growth of almost 50% per year. With the small pack creation popular among individuals user its bulk pack is also generating the huge affect which is capturing the market for BISLERI. Today 60-70 % of total income of BISLERI comes from its bulk segment and the company is preparation to increase it up to 80%.9. THE BREAK AWAY SEAL- guardianship in mind the consumers strike to recognize a genuine product that cannot be tempered with. The unique cap has been patented and cannot be duplicated. This skilful strength ensures that the consumer pull up stakes only get a spirited safe product when they volition drink BISLERI. (Vora, 2009)WEAKNESS1. METHOD ADOPTED FOR DISTRIBUTION-THE ROUTESELLING insurance policy adopted by BISLERI for distribution 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 . in that locationfore not many dealer keeps BISLERI in many areas. Indirectly this is reducing the coverage of BISLERI.2. REUSE OF BOTTLE BY local SELLERS AND ILLEGAL MANUFACTURERS-Market research conducted by BISLERI revealed that the other overriding invade 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 motion-picture show of BISLERI.For example local sellers fill the bottle of BISLERI with impure water and the bottles are purchased by unknowing customers as BISLERI water but they buy water of low quality. In this way brand of BISLERI gets bear on.3. FAULTS IN PRODUCTION-Tests conducted by various political science shows that it contains pesticides. In 2002 the 2cm long insect was found in the bottle of BISLERI. This has affected its sales and reputation. The license of its two factories one at Noida and other at Bangalore has been cancelled because of fault in ware.4. PRESSURE BY GOVERNMENT potency-After insect was found 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 locomote 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 learn but the company is unable to meet the be fulfillch of the consumers. T his is affecting the demand for the product. So People are force to use other brands of mineral water. (Hiteshi, 2010)OPPORTUNITY1. FAST GROWING FIELD-The best beverage for India in the virgin millennium seems to be water. In recent years, the bottled drinking water market has been witnessing high decibel level of activity, with a host of advanced entrants. The bottled water market which worth Rs. 1000 crore is expected to be Rs. 5000 crore by 2010. This pass on increase a cumulation of scope for bottled water market.2. BISLERI rear end UTILISE ITS DISTRIBUTION CHAIN-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 needs it the most, the company may well keep an eye on in his gamble with water. For this the company can connect it with dealers and other distributors who ordain 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 mountain of scope for BISLERI in the field. This exit also compensate the deterioration of image BISLERI has suffered after insect wasfound in the bottle. It will silence the critics and it will also increase the faith of the customer for the brand. It will create an international brand image and the quality will increase.4. LAUNCH OF PREMIUM PACK-The company also has its gift product range. This is prepared keeping 5-star hotels and other premium customer. This pack will be sold at Rs. 20 per liter. This will give a tough competition to the EVIAN, the biggest player in the premium water range which sells its 1 liter water at a hefty of Rs.85 per liter.5. CHANGE 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 cognitive content of the company. (Hiteshi, 2010)THREATSMARKET 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 eyeing the market. puff, Pepsi, Britannia, Nestle, Auswater-is not bad(p) on peak their stakes in this market. With the lessened throat competition between Coke and Pepsi, BISLERI is not safe.ENTERING OF NEW PLAYERS-To get some share in the market many new players are entering in the market. Among them study names are Godrej, which is launching its product AQUA-PURE and Tata-Tea is looking forward to arrive 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 Hi ndustan lever is planning to enter into the market. This is giving a tough competition to the current water brands including BISLERI.WATER FILTER MANUFACTURERS-BISLERI is not only getting competition from mineral water maker but is also facing a tough competition from various water filter manufacturers such as Eureka Forbes (Aqua guard). They have been marketing there purifiers in the market which has decreased the sales of bottled water supply to plain customers.ILLEGAL MANUFACTURERS-Company is facing a tough competition from guilty manufacturers in the rural areas. The under-the-counter manufacturers provide water at a very cheaper rate then the brand manufacturers. There are 1000s of illegal manufacturers which are providing the water at a very cheaper rate. This is a sedate 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.STRONG DISTRIBUTION CHANNEL OF THE new(prenominal) M ANUFACTURERS-Analysts feel that BISLERIS break away seal will not at all be effective the company having strong distribution melodic phrase 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 BISLERI 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 disturb the network.NEW GOVERNMENT POLICY-For preparing 1 liter of mineral water 3 liters of constitute water is required. Government was not charging levy on the extraction of the cause water. Now by introducing the new policy government is going to impose tax on the extraction of the ground water, this will increase the production cost because of which the companies will be forced to increase the price which all consumers of all categories cannot afford. The companies can compensate the high production cost by reducing their marketing expenses but this will keep the consumer unaware about the product. This is also affecting the quality of the bottled water. (Vora, 2009) (Porter M. , 1980)PORTERS basketball team FORCES ANALYSISAnalyzing the above through the porters frameworkAs we can see above that the company is going through various threats instead of being in a good position and capturing a large market share still it is facing a very tough competition from the existing competitors as big players like Coke and Pepsi are keen to increase their market share and both of them being the biggest competitor of each(prenominal) other, there is a hyper competition in the market and a cut throat situation where any of the companies can take away the market at any time without being late in order to rule the market.Bisleri being in the market of water which a very profitable area faces the n ew entrants threat also as brands like Godrej, Tata Tea, Britannia, Atco, DS Foods etc. are coming out with their own brands and move to make money in fact some of them are even out with their brand and planning to modify and expand it which in turn increases the threat to Bisleri with the fear of losing the market share. (Gerry Johnson, Exploring Corporate strategy, 2005) (Porter M. E., The Five Competitive Forces that build Strategy, 2008)PESTEL ANALYSISAnalyzing the above through the PESTEL frameworkAs can be seen above that the company is affected a lot by the new government policy and that is to charge tax on the extraction of ground water but now the government is imposing tax which is a major concern for the company as to manufacture 1 liter of water they need to extract 3 liters of water from ground which in turn will increase their cost of production which they will try to reduce by reducing the quality of the product which will in turn harm the health of people and comp any image. (Gerry Johnson, Exploring Corporate Strategy, 2008) endingWith this SWOT analysis we have derived the conclusion thatThe base of BISLERI water is very strong in the Indian market. Its managing director is one of the biggest achiever in the packed water bottled market it is found that its weakness lies in the production. The company was in trouble because of its production related techniques The Company has a lot of opportunity which can be exploited in the future which will give the company a profit, proper utilization of opportunities will be a key to survive in the market, But with more and more competitors entering the market, there are also various threat to company. matchless wrong step can lead to a white-wash of company from the market in the future.REFRENCESBisleri. (2008). Bisleri.com. Retrieved January 1st, 2011, from bisleri.com/home.htmlCharles Hill, G. J. (2009). Strategic Mnagement Theory An Integrated Approach (9th ed.). South-Western .Economic time of In dia. (2010). Fruity flavoured water from bisleri to hit market soon. finewaters.Gerry Johnson, K. S. (2005). Exploring Corporate Strategy (7th ed.). FT Prentice Hall.Gerry Johnson, K. S. (2008). Exploring Corporate Strategy (8th ed.). FT Prentice Hall.Hindustan Times. (2010). Bisleri to launch flavoured water soon. Hindustantimes.Hiteshi. (2010). SWOT analysis of Bisleri Co.Hitt, M. I. (2003). Strategic Management (5th edn ed.). Singapore. South-Western.Porter, M. (1980). Competitive Strategy. Free Press.Porter, M. E. (1996). What Is Strategy? Harvard Business Review.Porter, M. E. (2008). The Five Competitive Forces that Shape Strategy. Harvard Business Review.Raturi, P. (2005). And this is how Parle Bisleri began. Rediff.Upadhyay, S. J. (2005). Mineral Water of the World. Minerakwaters.org.Vora, Y. (2009). Bisleri.