INTRODUCTION

Consumer behaviour is the study of when, why, how, and where people do or do not buy
product.
It blends elements from psychology, sociology, social anthropology and economics. It
attempts to understand the buyer decision making process, both individually and in
groups. It studies characteristics of individual consumers such as demographics and
behavioural variables in an attempt to understand people's wants. It also tries to assess
influences on the consumerfrom groups such as family, friends, reference groups, and
society in general.
Customer behaviour study is based on consumer buying behaviour, with the customer
playing the three distinct roles of user, payer and buyer. Relationship marketing is an
influential asset for customer behaviour analysis as it has a keen interest in the re-
discovery of the true meaning of marketing through the re-affirmation of the importance
of the customer or buyer. A greater importance is also placed on consumer retention,
customer relationship management, personalisation, customisation and one-to-one
marketing. ocial functions can be categori!ed into social choice and welfare functions.
Consumer products such as shampoo or tomato sauce are designed so that they appeal
to consumers, encouraging them to buy those products. "o that end, the industrial R#$
organisation tends to focus on understanding and manipulating product attributes.
%owever, buying behaviour is not only a function of the product& it is also, and in some
cases perhaps more so, a function of the consumer, his social environment of other
consumers, the competing products in the marketplace, and the brand marketing strategy.
In order to design the best product, it is necessary to understand not 'ust the physics and
chemistry of the product, but also the psychology of consumers and the sociology of
consumer groups or networks.
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"he goal of this study is to have a model of the marketplace that describes certain aspects
of consumer buying behaviour. "here are two main parts to such a model&
( A description of a population of )consumers*, who each choose +buy, repeatedly one
of a number of competing )brands* +we can ignore the dierence between product and
brand for these purposes,. "his subdivides into a description of the behavior of a single
consumer +)psychology*,, and of the collective behaviour of a group, in other words of
the interactions between consumers +)sociology*,.
( A description of )brand management*, i.e. the strategy of brand managers when
changing the attributes of a brand such as price or -uality in response to events in the
marketplace.
"raditional marketing models tend to focus on the second element, and treat the large
number of consumers in a macroscopic, averaged way. Alternatively, one can look at
individual consumers and their buying behaviour, and try to derive observable large scale
eects, like changes in market share. Ideally one would like to connect the )microscopic*
consumer viewpoint to the )macroscopic* viewpoint of the brand manager.
.ater is the most important li-uid in the world. .ithout water, there would be no life, at
least not the way we know it. In today's living condition, the need for /ure $rinking
.ater is becoming the issue for the common 0an.
1ighty percent of the human metabolism consists of water. "his is the reason why 234
of human diseases are water borne. "here are 5 types of water impurities, which are root
cause of water borne diseases.
6. 0icrobiological-7acteria 8 virus.
9. $issolved impurities - chemical.
5. Imbalance of 0ineral Content.
"here are rapid changes that are taking place in our environment since long and the air
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and the water pollution is on an increase. "he main source of drinking water is river and
downstream which also have not been able to escape the pollution. .hen a consumer
became aware of the problems caused by water pollution the market saw an advent of
ceramic water filters, which filters the dust and suspended particles but dissolved
impurities and microbiological impurities are not cleared out. "he mineral balance is also
not maintained.
62:3's witnessed more changes by a tap attachment wherein Iodine resin is used to filter
the water. It deactivates microbiological impurities to an e;tent but has side effects due
to iodine and it does not take care of dissolved impurities mineral balance.
<ate 62:3's witnessed =ltra->iolent based purifier, which filters dust and deactivates
bacteria to a great e;tent.
It maintains the odor and color of water but does not clear out the dissolved impurities
and mineral particles. "hus came advent of mineral water
%istorically, the need for purified water within Indian homes had been kept down to a
minimum. 1ssentially, there were three types of water that was used for different
purposes. "he first type was used for rinsing. "he second type, which was used for
cooking, was cleaner and kept covered. "he third type was the cleanest ? drinking water
? and was very often boiled before use.
ince an average family needed a small -uantity, not more than five or si; liters a day,
boiled and filtered water had been a convenient solution for some time ."he fallouts were
obvious. It was very difficult to convince the people that purification system was worth
the price. "here was no visible way to demonstrate the benefit. "he otherwise somnolent
market began to change once companies like 1ureka @orbes targeted the office segment,
while the mineral water players went after travelers. Ion 1;change was the only
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company, which had any measure of success in entering homes with Aero-7. 7ut clean
drinking water returned on the national agenda a little later.
Around 62:2, drinking water became an issue again.
BAround early 6223s,"ime did a story on India as a key emerging market and that was
the trigger for all the players eyeing this marketC
Factors in the models
"he main features which were included in the various models are&
Loyalty
<oyalty is the tendency for +some, consumers to stick to the same products. .ith this as
a key eect, deterministic, continuous-time models will be systems of ordinary
dierential e-uationsD the stronger the loyalty, the slower the changes in numbers of
people buying particular products. @or discrete-time models, the degree of loyalty
corresponds to the si!e of diagonal elements in a transition matri;. En the other hand,
with no loyalty +or inFuence of other people, whatsoever, market share G or chance of
someone making a particular purchase G has no dynamic behaviour and would instead
depend only upon what is currently on the supermarket shelves.
Another aspect of loyalty, not allowed for in our models so far, would be a memory
eect, to represent people returning to products they had previously used, after trying
something new they then didn*t like. "his could be taken into account perhaps by using
recurrence relations or dierential e-uations of higher than Hrst order +or even
employing delay-dierential e-uations,.
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Sociology
ociology in this conte;t is concerned with how one person*s buying is inFuenced by
that of others. .ith some sort of tendency of people to buy the same brands, there is a
possibility of )lock-in*, with one product dominating the market, even if its competitors
have more or less identical )-ualities* +including price,. "his eect and its opposite,
people wanting to be dierent, are easily modelled by E$1 and discrete-time models.
Psychology
/sychology covers what, and how, aspects of the actual items on the shelves inFuence
people to make their choices, possibly buying something dierent from previously.
+Advertising might be subsumed into these characteristics but could also possibly be
considered as part of the sociological inFuences, especially if the advertising takes the
form of a well known Hgure endorsing a product., 0ore speciHcally, the following four
properties have been identiHed by =nilever as being important and their inFuences were
included in one or more models&
6. 0inimise anticipated regret. "his refers to how 'ust two products compare with each
other as regards dierent -ualities, which can include price +or )aordability* I 68price,.
A consumer might 'udge one item to be superior to another in all respects. "he Hrst is
then a safe choice for the consumer.
9. Attribute change. "he introduction of a new product onto the market can change the
way consumers, or at least some of them, view established brands. "his might be by
drawing attention to some -uality which was not previously much regarded, or it might
make people give dierent weightings to the +established, -ualities when making their
decisions. "he former can be considered to be a special case of the latter.
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5. Eutlier avoidance. .hen a number of products are in many aspects -uite similar, there
can be a tendency for people to avoid )strange* ones, i.e. others which are substantially
dierent from the ma'ority in price or some other respect. Items near the average can be
favoured.
J. $ecision process change. A straight choice between two items might be relatively
easyD they can be compared according to price, si!e etc. and a decision made.
.ith three or more, comparisons might be made between two things at a time, one could
be eliminated and then the winner contrasted with a third.
Possible predicted eects
"he models which were looked at during the course of the tudy Kroup were intended
to shed light on&
6. %ow a )decoy* product might inFuence the market. "he appearance of a third product
might signiHcantly change the market shares of two others, while getting minimal sales
itself. "his eect is one of the most robust biases in consumer choice, and has been
observed in product classes from chocolate bars to "> sets to beer. "he decoy eect
illustrates the importance of consumer psychology, of understanding how consumers
perceive products, and how consumers 'udge -uality prior to purchasing the product.
9. "he dynamics of market shareD how sales of products can vary over time. @or e;ample,
even if two products are e-ual in all relevant aspects, then after a long time of consumer
activity it might be that each product takes L34 market share +preserving the symmetry,,
or one product takes nearly 6334 market share +breaking the symmetry,, or that there is
no steady state, with market dominance alternating between the two brands. "he second
of these three cases is called )lock-in*, corresponding to one brand obtaining a virtual
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monopoly, which is almost impossible to break.
5. %ow a new product will fare, given its -uality proHle compared with e;isting brands.
"his -uestion is complementary to that of the decoy, asking what market share a new
product will gain rather than how it will aect the market shares of e;isting products.
J. )Choice overload*& when there are 'ust too many possible options for potential
consumers to pick from, and many will walk out of the shop without making a purchase.
"his possibility was considered only brieFy during the tudy Kroup, since the focus was
on market share and it was assumed that the types of product being modelled were
)consumer staples*, so that every consumer would make some purchase.
The models
"he main thrusts of the week*s activities were in building a handful of -uite speciHc
models, into which the above psychological and sociological inFuences could be fed, and
in seeing how these aspects 7 and C.6 ? C.J should be represented. >arious types of
overall model were looked at. "he sorts which might be considered could be mainly +but
probably not e;clusively, categorised according to whether they were&
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Allowing for continuous or discrete agents, this already gives 2M types of model.
Needless to say, only a few were looked at. As well as the basic types of model
mentioned above, they can e;clude or include sociological influences +making 629 types
of model, or 9:: if )drivers*, people of significantly more than average influence, are
allowed for,
WT!R" WT!R !#!R$W%!R!
Water - the Beverage your Body Needs Most
.hen we were kids in school, we learned that each molecule of water is made up of two
hydrogen atoms and one o;ygen atom. .e also learned that it was great fun to fill up our
s-uirt guns with water, at least until the principal caught us. .hat we really didn't learn,
however, was how much water we needed in order to be healthy human beings.
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.est 1uropeans, south Asians and Oapanese live in the most densely populated regions of
the globe and worry constantly about the -uality of their drinking water drawn from
rivers and lakes. 0ost is polluted and unfit for human consumption. In North America,
people never worried about water -uality and safety until early 62P3*s and restaurants
always provided iced water free. ome still do. "hen came /errier, the @rench mineral
water emphasi!ing how restaurateurs could increase their revenues by replacing iced
water service with bottled water. Restaurateurs never miss an opportunity to increase
their profits, and soon studies started to surface claiming that serving iced water was
costly and no one benefited. 0any restaurants started serving automatically bottled
water, and charged outrageous amounts i.e Q 5.L3 for 533 ml. "hese days, a PL3 ml bottle
goes for Q 63.- in some restaurants, plus applicable ta;es and tipR
0eanwhile, the word savvy bottled water marketers started circulating the myth that
drinking bottled mineral water is safer, never mentioning what their studies were
comparing.
It is said that the inhabitants of seven cities between wit!erland and the Netherlands
consume the water of the Rhine River. In these parts people drink beer, wine, bottled
water or fruit 'uices and shun tap water. North Americans have recently begun to drink
bottled water, but already the distinction between spring water, mineral water, and
filtered tap water is blurred beyond redemption. pring water must come from a natural
springs with proven purity of contaminantsD mineral water must contain 9333 parts per
million in mineralsD and filtered tap water means 'ust that. 1uropeans always preferred
mineral water or eau de source +spring water, since their rivers were polluted a long time
ago. Now considerable efforts are made to clean all ma'or 1uropean Rivers. "he Rhine
River, the "hames, the <oire are clean enough to allow several species of fish to thrive.
As always, large companies with considerable cash reserves dominate the market.
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Kroupe$anone, a @rench conglomerate, markets 1vian, >olvic and Crystal pringsD
Nestle, a wiss food multinational with head-uarters in 0ontreu; markets /errier, Nestle
/ure <ife and an /ellegrino. Not to be outdone soft drink giant Coca-Cola 'oined the
cause with filtered tap water and positioned their brand as pure, safe, life-style water.
Coca Cola markets $asani and /epsi Cola A-uafina. .hen it comes to mineral water,
>oss +Norway,D "ynant +Ireland,D >itel, Cathledon, >olvic, +@rance,D Appolinaris
+Kermany,, pa +7elgium,D Kasteiner +Austria,D an 7enedetto, an /ellegrino, A-ua di
Nepi, <ete +Italy,, Ramlosa +weden,D7orsec +Romania, stand out. "hey display distinct
taste profiles that spring and filtered waters lack, but tend to be more e;pensive. .hen it
comes to consumption, Canadians consume appro;imately 53 litres per capita, Italians
6L: litres, @rench 655, $utch 662, Kermans 636 and Americans PM. "he low per capita
consumption can be attributed to the illusion that tap water is safe. In reality, only large
cities control tap water -uality regularly and vigorously and treat it appropriately for
safety. In small communities, scarce financial resources and lacking e;pertise often make
tap water safety -uestionable. ince the introduction of /1" bottles +polyethylene
terephate, bottled water consumption increased by 6M percent in five years and
continuing growth of the market is forecast by the Canadian 7ottled .ater Association in
Richmond %ill, Entario. "he -uestion for restaurant patrons remains whether to ask for
bottled or mineral water, or demand ice water.
It all depends on the situation. Sou can ask politely for ice water, if that is what you
prefer, or a glass of wine, or beer. "he cost is almost the same for all the three, or you can
complain to management that prices charged for bottled water are ridiculous as is the
case with wine.

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O&'!CTI#! OF T%! STUD$
O&'!CTI#!S OF T%! STUD$
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"he following are the main ob'ectives of my Research study&-
6. "o do a brand analysis of 7isleri as a brand.
9. "o conduct a market survey of 7isleri.
5. "o know the affects on 7isleri sale, profit and market share
J. "o find out the current market position of 7isleri mineral water.
L. "o know the trategies and measures adopted by 7isleri to counter the
competition by A-uafina.
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INDUSTR$ PROFIL!
INDUSTR$ PROFIL!
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(CURR!NT )R*!T SC!NRIO+
A few years back, the mineral water market had been crawling at the rate of 5-J4, or
even a lower figure. Indians carried drinking water in earthen pitchers, plastic or /=@
bottles. 7ut increasing cases of typhoid and other waterborne diseases began to be
reported. In addition to this, liberali!ation happened and the mineral water industry
began to be stirred and shaken. "he market started growing an astounding rate of over
6334 per annum. "he fact that there were very few players in the market meant that their
business grew by leaps and bounds.
"he market today has grown to Rs66bn. "he organi!ed sector -- branded mineral water --
has only RsLbn of market share. "he rest is accounted for by the unorgani!ed sector,
which is dominated by small regional players.
"he market is still growing ? at a rate greater than :34 per annum.
In the branded segment, /arle*s 7isleri is the market leader with a share of more than
JL4. /arle Agro*s7ailley comes a close second with market share of 6L4. Ether ma'or
players in the market are Ses of Totharis, Kanga of "-eries, %imalayan, %ello, NestlU*s
/ure <ife, /epsi*s A-uafina, Coca-Cola*s -Tinley /rime, and @lorida etc.
ensing the opportunity that this segment holds, 0NCs began to draw up plans to enter
the market. "oday the market is proving to be yet another battlefield for an ongoing
battle between the $esi*s and 0NC*s. <ast year the industry had around 6P3 brands. "his
figure is over 533 presently. "he ma'or foreign players are Coca-Cola promoted Tinley,
/epsi*s A-uafina, 7ritannia*s 1vian, NestlU*s /errier, %erbert sons and $anone
International.
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India*s largest packaged water company 7isleri International /vt. <td is to enter value-
added water business. "he company will launch flavored packaged drinking water in the
country by 0arch ne;t year.
B.e are conducting research and development with at least 69 fruit flavours, such as
nimbupaani, strawberry and orange, for flavoured water. .e aim to launch it by 0arch
ne;t year,C said Ramesh Chauhan, chairman, 7isleri.
According to $atamonitor /lc., a =T-based consumer research firm that tracks various
sectors in India, the flavoured water market was estimated to be around QL3 million
+Rs62M crore, in 933M and is e;pected to grow to QP3 million by 9363.
.ith the move, 7isleri aims to strengthen its position in a space in which other leading
beverage companies have also evinced interest. Companies such as Coca-Cola India Inc.,
/epsiCo India %oldings /vt. <td and "ata "ea <td, also plan to enter the flavoured water
business. o far, there is only one prominent player, $ @oods, in the segment. Its brand,
Catch, is priced at Rs53. B"he flavoured water market is still at a nascent stage in India.
%igher price, limited products and alternative home-made products are some of the
barriers for the growth of this segment,C said /uneet7ansal, senior analyst with
$atamonitor.
7isleri*s focus on premium segment, however, is part of its strategy to tap higher-margin
opportunities in the packaged water business. <ast year, it had launched a premium water
brand 0ountain .ater, which currently contributes 9L-534 to its total sales. "he
company plans to launch this brand in 1urope soon.
B.e are in talks with several distributors in 1urope to launch our premium water there.
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"he deal is e;pected to go through by $ecember this year,C said Chauhan. "he company
also plans to tweak its packaging and look to give it an international appeal and compete
with biggies such as Nestle and Kroupe$anone.
"he moves, said Chauhan, are aimed at trebling 7isleri*s sales from around Rs533 crore
now, to Rs6,333crore by 9332. "o push its sales, the company is also planning to double
its distribution network from :33 distributors this year to around 6,L33 in the ne;t si;
months. Also, the company plans to double its capacity of one million bottles a day
through adding more contract packers and upgrading its bottling capacity.
0eanwhile, the company continues to rule the conventional bottled water segment. It
said that for Ectober, it registered sale of 9.MM million cases across the country against
6.P2 million cases sold in the same month last year.
Chauhan also dismissed speculation that he may sell out his water business.
%e said 7isleri was doing well and he had no plans to sell it out.
B.e might have sold our carbonated brands, including "hums-=p, <imca and Kold pot,
due to a lack of choice. 7ut, now I am in a position to build and sustain 7isleri and will
not sell it at any cost,Che added.
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CO)PN$ PROFIL!
CO)PN$ PROFIL!
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0ineral .ater under the name '7isleri' was first introduced in 0umbai in glass bottles in
two varieties - bubbly # still in 62ML by 7isleri <td., a company of Italian origin. "his
company was started by ignor @elice7isleri who first brought the idea of selling bottle
water in India.
/arle bought over 7isleri +India, <td. In 62M2 # started bottling 0ineral water in glass
bottles under the brand name '7isleri'. <ater /arle switched over to />C non-returnable
bottles # finally advanced to /1" containers. . /arle's taking charge of 7isleri did not
make a dramatic difference to the brand's fortunes immediately. .hile it did gain in
terms of visibility and reach +piggybacking on /arle's e;isting distribution network,,
efforts to e;pand the bottled water market were not e;actly painstaking. /arle at that
particular time was interested in making soda water and not mineral water. "here were
'ust minor initiatives on part of the company for making mineral water, as it was not
considered to be a very profitable business at that time as people still considered boiling
water to be a safer and better than mineral water. 0oreover they were not ready to pay
for a commodity like water, which was so abundantly available.
In 62P9-P5 /arle changed the packaging of its bottled water to plastic bottles and that
significantly made a difference in the sales. "he buyers, then, were mainly the upper
class - the trendy people.
In 6225, Coca-Cola bought /arle*s soft drink brands- "humps-up, limca etc. .hile Coca-
Cola actually bought over /arle's beverages, it agreed to a settlement that allowed the
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multinational to bottle and distribute 7isleri soda for a time frame of five years. "he
charge of 7isleri water, however, remained with /arle. "he upsurge in the sales of 7isleri
started from this point as /arle sold off its stable of brands to Coca-Cola. "his was the
time when it started concentrating on making 7isleri a success in the domestic mineral
water market. "he reason why /arle chose to retain the 7isleri name was that /arle saw a
fairly lucrative business of mineral water in 7isleri's e-uity.
ince 622L 0r. Ramesh O. Chauhan has started e;panding 7isleri operations
substantially and the turnover has multiplied more than 93 times over a period of 63
years and the average growth rate has been around J34 over this period. /resently we
have : plants # 66 franchisees all over India. .e have our presence covering the entire
span of India. In our future ventures we look to put up four more plants in 3M-3P. .e
command a M34 market share of the organi!ed market. Everwhelming popularity of
'7isleri' # the fact that we pioneered bottled water in India, has made us synonymous to
0ineral water # a household name. .hen you think of bottled water, you think 7isleri.
7isleri value customers # therefore have developed : uni-ue pack si!es to suit the need
of every individual. .e are present in 9L3ml cups, 9L3ml bottles, L33ml, 6<, 6.L<, 9<
which are the non-returnable packs # L<, 93< which are the returnable packs. "ill date
the Indian consumer has been offered 7isleri water, however in our effort to bring to you
something refreshingly new, we have introduced 7isleri Natural 0ountain .ater - water
brought to you from the foothills of the mountains situated in %imachal /radesh. %ence
our product range now comprises of two variants. 7isleri with added minerals #7isleri
0ountain .ater.
It is commitment to offer every Indian pure # clean drinking water. 7isleri .ater is put
through multiple stages of purification, o!onised# finally packed for consumption. .
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Rigorous R#$ # stringent -uality controls has made us a market leader in the bottled
water segment. trict hygiene conditions are maintained in all plants.
In endeavour to maintain strict -uality controls each unit purchases performs # caps
only from approved vendors. .e produce our own bottles in-house. .e have recently
procured the latest world class state of the art machineries that puts us at par with
International standards. "his has not only helped us improve packaging -uality but has
also reduced raw material wastage # doubled production capacity. Sou can be rest
assured that you are drinking safe # pure water when you consume 7isleri. 7isleri is free
of impurities # 6334 safe. 1n'oy the weet taste of /urity.
%istory o, &ISL!RI
"he origin of 7I<1RI lies in Italy and the brand owes its name to its founder
0R.@1<IC1 7I<1RI, an Italian entrepreneur. In 62MP, 7I<1RI set up a plant in
7ombay for bottling and marketing actual mineral water, which did not -uite work. 7y
62M2, 7I<1RI wanted to e;it the business and to help him out the Chauhan*s bought the
brand, intending to turn it into a soda brand.
ince then it has come a long way. Now, it owns a large percentage of shares in the
Indian market and also it has its presence in International .ater 0arket.
%o- Parle &isleri began
According to the 7ureau of Indian tandards there are 6,933 bottled water factories all
over India +of which M33 are in one state -- "amil Nadu,. Ever 633 brands are vying for
the Rs 6,333-crore +Rs 63 billion, bottled water market and are hard selling their
products in every way possible -- better margins to dealers, aggressive advertising,
catchy taglines.... In such a scenario, "he trategist takes a look at how it all started --
with 7isleri -- and how Ramesh Chauhan, chairman, /arle 7isleri created a market out of
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pure water. 1;cerpts from a conversation with /rerna Raturi&
.hen we bought 7isleri mineral water from the Italian company, @elice 7isleri, in 62M2
-- the company had been unable to market bottled water and wanted to e;it the market --
we too did not see any potential for the product at that time.
As a soft drinks company, we had "hums =p, Kold pot and <imca +cola, orange drink
and lemonade, but no soft drink company was complete without a soda. o we merely
used the name and launched 7isleri soda with two variants -- carbonated and non-
carbonated mineral water.
7ut three decades ago, what could we say about a category that had no marketV .e didn't
know our target group. "hen, since bottled water is colorless, tasteless and odorless, it
was not an easy product to advertise.
"hus, the earlier brand building efforts focused on 7isleri being healthy with ade-uate
minerals. "he Italian name added a dash of class to it. "he first print ad campaign
captured the international essence and showed a butler with a bow tie, holding two
bottles of 7isleri.
"he punchline was, W7isleri is veriverie;traordinariW +the spelling of the punchline was
designed to capture the consumer's attention,. "he campaign was successful and we were
being noticed as someone who catered to the need for safe, healthy drinking water.
%owever, the real boost to mineral water came in the early-to-mid-62:3s when we
switched to />C packaging and later to /1" bottles. "he /1" packaging did not 'ust
ensure better transparency -- we could now show sparkling clear water to the consumers.
It also meant better life for the water.
0eanwhile, 7isleri soda was doing well but we had to discontinue production as we sold
our soft drink brands to Coca-Cola in 6225. 7ut my interest was in building brands and
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not in bottling soft drinks. "hat's when I started to concentrate on developing the 7isleri
water brand.
"here was a clear opportunity of building a market for bottled water. "he -uality of water
available in the country was bad. It was similar to what 1urope faced before .orld .ar
II. "he -uality of water in 1urope was e;tremely poor, which created the bottled water
industry there. In India, too, not only was water scarce, whatever was available was of
bad -uality.
Initially, though bottled water was something only foreigners and non-resident Indians
consumed, we still had to increase the distribution, which meant the dealer margins
reduced. And because of limited sales, the dealer margin had to be kept high to
compensate low sales. Now we had to push sales.
7ut to reach out to the masses, we had to make the category more affordable. "he
introduction of a comfortable-to-carry L33-ml bottle for 'ust Rs L in 622L not only
answered that need, but also meant doing away with carrying the e;cess water or
throwing it away if you were to buy a one-litre bottle.
"he idea was a success and gave the company a growth of J33 per cent. .e also
introduced the 6.9 litre bottle in 9333, which was aimed at those who share their water.
"his also gave us the advantage of higher margins that a crate +69 bottles, generated.
.ith other brands 'oining the fray, things were hotting up -- the bottled-water market was
estimated at Rs 533 crore +Rs 5 billion, and was growing at L3 per cent a year. 7isleri
had captured J3 per cent of the market.
It was time to move to the ne;t level -- the bulk segment. everal commercial
establishments had no access to piped water. .e tapped into this segment by introducing
22 43
44
the 69-litre container, followed by the 93-litre can. "he bulk segment also helped bring
down the price per litre from Rs 63-69 a litre to about Rs 5 a litre.
At present, the bulk segment constitutes M3 to P3 per cent of our sales and we intend to
increase it to :3 per cent in the ne;t two years. .ith water scarcity in several cities, even
households are demanding bottled water now.
"he home pack was made more user-friendly by introducing pouring spouts and 'ars with
dispensers. At the same time, we were constantly looking for new ways to tap the
market. .e noticed that during wedding receptions, the older guests +above L3 years of
age, generally stayed away from ice cream, soft drinks and so on.
%ence, introduced free sampling of 7isleri at the tables where the elderly guests would
sit. oon customers were ordering bottled water on special occasions. Currently, the
consumption of bottled water is far in e;cess of soft drinks on such occasions.
"he other ma'or challenge was distribution. I still have the mindset of a soft drink seller.
oft drink sales are in glass bottles and the distribution model is built around picking up
empty bottles and getting them back to the factory.
"hat's not the case with the retail bottled water packs +below 9 litre,. 7ut a product that's
not available where it's needed, is useless.
"he number of outlets where 7isleri is available has increased from L3,333 in 622L to
9,33,333 at present. 7ut that is not enough -- we need to keep looking for different
avenues. "ake stationery shops and chemists, for instance. "hey don't keep soft drinks
but sell 7isleri. "hat is the kind of e;clusivity we look for to get ahead of the distribution
network that soft drink companies talk of.
23 45
46
The 'o.rney o, &isleri
/010& 7uys 7isleri bottled water from an Italian company, @elice7isleri. It was bottled in
glass bottles then.
!arly2/034s& hifts to />C bottles. ales surge
)id2/034s& witches to /1" bottles, which meant more transparency and life for water.
/005& ells carbonated drink brands like "hums =p, Kold pot and <imca to Coca-Cola
for Rs J33 crore.
/006& 7isleri launches a L33 ml bottle and sales shoot up by J33 per cent.
7444& Introduces the 93-litre container to bring prices down from Rs 63 a litre to Rs 9 a
litre.
/003& Introduces a tamper-proof and tamper-evident seal.
7444& 7I cancels 7isleri's license of a water bottling in $elhi since some of the bottles
did not carry II labelD the license is restored one-and-a-half months later.
7447& Tinley overtakes 7isleri. "he national retail stores audit by ERK-0ARK shows
Tinley's market share at 5L.6 per cent compared to 7isleri's 5J.J per cent.
74458 7I<1RI says it plans to venture out into 1urope and America to sell bottled
water.
74408 7isleri International planned to set up 9L new bottling plants across India and aims
to achieve a J3 4 growth rate in the current fiscal.
D#!RTISIN9 C)PI9N8
.hile designing the advertisement campaign, it is necessary to keep in mind the opinion
leaders. South are the opinion leaders of the present time. And thus it becomes necessary
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48
to design the campaign keeping the youth in mind. "he opinion leaders would further
trickle down the message to the less active members of the society.
"his is e;actly what 7isleri is doing. 7isleri has started an advertisement campaign
stressing the point of purity and flaunting the patent right the company has over the
breakaway seal. "he company has tried to put the message across louder, by using the ad
campaign that catches the eye of everyone, specially the youth.
CONT!NT OF T%! C)PI9N8
7isleri that was looking for a differentiator decided to make the breakaway seal the
symbol of purity. "he tamper-proof seal was developed, around which the
communication was woven. "he campaign stresses the safety provided by the breakaway
seal by illustrating the ease with which conventionally sealed bottles can be refilled and
recycled.
"he ob'ective with the campaign would have been to highlight the tamper-proof seal and
create doubt in the consumer*s mind of the purity of the other brands. "hat is, 7isleri is
the only one that guarantees purity and keeps you safe.
To concl.de8
@ind that new advertisement campaign of 7isleri is eye catching. "his is what the
company should do. And also the company should make the message clearer to the
customers that it has the patent right over the breakaway seal. In the survey we found
that the consumers are aware of the breakaway seal but are not aware that the company
has the patent right.
Apart from a high dose of investments on e;panding bottling capacities and an ad budget
that*s risen si;-fold over last year, if 7isleri wants to penetrate every possible segment of
25 49
50
the market, it can do that by introducing more pack si!es and establishing the brand
strongly with trendy new packaging.
Apart from creating consumer pull with campaign, the company, to increase its sales
would have to do the sales push as well. @or that it would have to give the retailers and
other stockiest high trade margins and incentives for keeping the product. "his is very
important in case of this product because consumers would take up what is available to
them at ease and whatever retailer is giving.
D#!RTISIN9 C)PI9N OF &ISL!RI
1very brand needs a good advertising campaign to establish itself in the market. o it
becomes very imperative to look at various ad campaigns that 7isleri undertook to build
itself as a brand. 7isleri started its game plan with the punch line of )/ure and afe* and
used the same catch-line for advertising. 7ut with the advent of many new players, all
claiming the purity, it became very imperative for 7isleri to differentiate its product so as
to stand out in the market. 7isleri found the answer in )sealed cap bottles*. It claimed
6334 purity. .hile the bottles of the other brands, it claimed, could be refilled with
ordinary, or even germinated water, 7isleri*s seal capped bottles ensured the consumer of
purity of water and single-used ness of the bottles. "he ad showed a milk-man and a
child showering their buffaloes and filling the )so-called* mineral water bottles with the
same water and packing them with the simple polythene seal and the consumer not
knowing about the )purity* of the water he is drinking. Ne;t clip shows the 7isleri bottles
being sealed with plastic caps and ensuring the purity of water. "he ad did work for
7isleri and it got its much needed product differentiation.
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52
In 9333, some giant brands like /epsi and coca-cola entered the mineral water industry
with a big bang. 7isleri now had a big threat of maintaining its market cap. .hile Coca-
cola introducing its brand )Tinley* as a health care product, /epsi pro'ected )A-uafina* as
something as pure as )Sour own body*. /epsi targeted the young generation and
introduced A-uafina as a fancy product to carry.
"he ad campaign of A-uafina emphasi!ed as )P34 of your body is water* and thus give
your body the purest water. "he ad showed young vibrant models and created the
atmosphere of youthfulness. .ater, /epsi claimed, was no longer a simple beverage, but
was something highly fashionable. "hey complimented it by giving their bottles an
attractive look. "his soon caught the eye of the consumer. All these factors made /epsi
the biggest upcoming competitor of 7isleri +whereas Tinley lagged behind the race,
showing a doctor advising a family to take Tinley for pure water ? not a very attractive
ad campaign,.
7isleri, to counter-attack the new )@eel-Soung* fever had to even bolder steps. "hey first
changed their base line from )/ure and afe* to )/lay afe*. "hey tried a brand new ad
campaign to catch the fancy of consumer. "he new ad showed a young romantic couple
on a marooned island, when the girl seductively attracts the guy and he follows her in
trance. "he moment he gets hold of her, she whispers something in his ears. "he ne;t few
shots show the guy looking for something in fren!yXcan not find itX.rushes towards
the chemist*s shopX.buys )something* +keeping the audience in suspenseXor rather
implicitly pointing for )XX*,. "he girl opens it andX./EE@X.takes out a bottle of
7isleri and -uenches her thirst. Caption& B/lay afeC. "his campaign was to catch the
attention of youth and a new Indian society which is supposed to be )not-so-prudish*.
"hus 7isleri has taken a very bold step. "he ".>. ads have been complimented by print
ads also. "he company has to focus on the marketing management of the product. In
27 53
54
light of the challenge in front of the company and its current strengths and position, we
have incorporated the marketing mi; to counter the marketing strategies of the
competitors by developing its own marketing.
:UFIN D#!RTIS!)!NTS ND &ISL!RI
A drop-dead gorgeous body fle;es its muscles on the screen. "his starkly arresting black
and white image is then splashed with water. A voice-over informs you that P3 per cent
of your body is water. .hy not give it the purestX. A-uafina 7ottled water from /epsi.
"his kind of advertisement campaign used by the competitors is giving the company a
tough time. "he competitor, /epsi, is utili!ing the brand image built by it and is again
targeting the BKeneration YC maintaining the company image. It*s an unusual ad for this
category. "ill now, most marketers have focused on educating the consumer on how
bottled water is a safer option, with the lead of course, taken by the popular national
brand 7isleri.
7ut /epsi chose to 'unk this approach and it could well afford to. 7isleri, after all, had
already done most of the hard work needed to build the bottled water category. .hat
/epsi needed was to establish its brand in this crowded, fragmented market. Eur task was
made easier because was made easier because 7isleri had concentrated on educating the
consumer, instead of building its own brand values,W says RohitEhri, vice president and
client services director, %industan "hompson Associates <imited +%"A,. .e wanted the
imagery to positZon A-uafina as a youthful, premium and fun brand,W says >ibha Rishi,
e;ecutive director, /epsi. "he idea, she says, was not to ob'ectify bodies so that one
could drool over them. WInstead, we are talking about your body and the need for each
one to take care of his or her body.W "he ad copy, which spoke of the water content in our
bodies, was actually trying to establish how important water was to our well- being and
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how we need to continuously replenish it.
.hile the thinking was clear that the imagery had to be built in and around purity, %"A
did toy with a couple of other ideas and situations. Initially, the idea was to focus more
strongly on the fun aspect and create a story line complete with a smart idea and a twist
at the end. W7ut we gave it up because we felt that the story might take the mind away
from the purity aspect that was a must to highlight,W says Ehri.
o %"A adopted a minimalist approach and created a film with little clutter and no props,
which tried to capture the emotion of Wfeeling good about yourself'. .hile the film and
the imagery are completely the work of %" A, the strategic thinking comes from the
0other Company in the =.
A-uafina, in fact, is the largest-selling bottled water brand in the = with a 69 per cent
market share, and India is the first country outside of the = where A-uafina is being
bottled. 1ven in the =, the ad talks of the percentage of water in our bodies, but the
handling is a little more serious. @or e;ample, the film will show an emotional moment
where someone starts crying, and then you will hear the voice-over, :L /er cent of ;our
eye are waJep. W"here is no internal law that forces us to follow the international
positioning. 7ut seeing the -uality of thinking that has gone into this, we decided to stay
with this positioning, though the statements here are -uite different,W e;plains Rishi.
A-uafina, like all offe@ings that come from the /epsi stable, also imbibes the core values
of the mother brand. It addresses the /epsi-user base, largely the youth, and like /epsi ,it
is also being positioned as a hip brand. 7ut A-uafina is a lot that /epsi is not. It is a little
bit older, mature and affluent, and not as mass based as /epsi.
/epsi's role in the communication is that it is the source of credibility for the product
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and, of course, establishes the youthfulness of the brand. 7ut A-uafina is a brand in its
own right and with each piece of communication, its personality will emerge,W feels
Ehri. 7ut while A-uafina is being given a distinct identity, it is also being targeted at the
/epsi consumer and is addressing their need for safe and reliable drinking water. .ill
this not cannibali!e /epsi salesV W.ater does eat into the cola market,W agrees Rishi, Wbut
we can't build a business for /epsi based on people's lack of access to safe drinking
water.
%ow can any business be built on deprivationVW 7oth will have to co-e;ist and carve a
market out for themselves, AndZ while /epsi targets the 6:-9L year olds, A-uafina also
includes the 53-somethings together with the college crowd. <ike /epsi, A-uafina too is
looking to command a premium without being unaffordable.
It is being positioned as a premium product, not via pricing, but in imagery and
packaging. /riced at Rs. 63 in $elhi for a PL3ml. bottle, it is priced marginally higher
than the competition that gives you one liter for Rs. 63. "he swirl shaped /1" bottle
resembles the /epsi family and is sturdier and more hip than most others in the category
that take their design cues, it seems, from the one liter refined oil bottles in the market.
"he decision to break the norm and come up with a PL3 ml pack si!e was more driven by
the fact that water is fundamentally consumed on the go and the PL3 ml si!e is easy to
carry around. WIt is ideal for a half-an-hour in the sun, one liter gets too bulky,W says
Rishi. /epsi's future plans at the moment don't include coming up with si!e variants.
"hey have also ruled out the possibility of catering to the bulk market, which actually
constitutes 53 per cent of the total bottled water market that stands at P3 million liters
annually, and is growing anywhere between 53 and L3 per cent.
/epsi, obviously, is looking for a big slice of this burgeoning market, but as
30 59
60
ubrotoChattopadhyay, e;ecutive vice president, marketing, /epsi, says, W.e have a
building blocks approach, first we have to build the brand, and then the volumes.
7isleri is tackling the situation by building the brand on the purity plank. Akin to brand
building in soft drinks, an aggressive print-and-"> campaign is being backed by
hoarding, point-of-sale material, and every interface with the consumer is being used as
an opportunity to reinforce the message. @or instance, all the vehicles used for supply
have been painted in bright blue, bear the 7isleri logo and sport catchy baselines like.
W/lay afeW.
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PRODUCT PROFIL!
32 63
64
PRODUCT PROFIL!
&isleri -ith added )inerals8
7isleri 0ineral .ater contains minerals such as magnesium sulphate and potassium
bicarbonate which are essential minerals for healthy living. "hey not only maintain the
p% balance of the body but also help in keeping you fit and energetic at all times.
&isleri )o.ntain Water8
7isleri Natural 0ountain emanates from a natural spring, located in =ttaranchal and
%imachal nestled in the vast hivalik 0ountain ranges. <auded as today's 'fountain of
youth', 7isleri Natural 0ountain .ater resonates with the energy and vibrancy capable
of taking you back to nature. 7isleri Natural .ater is bottled in its two plants in
=ttaranchal and %imachal /radesh and is available in si; different pack si!es of 9L3ml,
L33ml, 6 litre, 6.L litre, 9 litre and L litres.
It;s <al.es8
=Integrity =[uality
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=/assion =<eadership
="eamwork =Epenness
=Co-operation ="ransparency
It;s #ision8
"heir vision is to be the dominant player in the branded water business where
the second player is less than 934 of our business.
It;s )ission8
"hey are in the business to serve the customer. %e is the most important person.
%e is the one who pays. %e deserves the best -uality # presentation at a worth of the
price. .e must have world class -uality at the lowest production # distribution cost.
"his will make us an unbeatable leader and will have satisfied loyal customer.
DISTRI&UTION S$ST!) OF &ISL!RI
PC*9IN9 ND DISTRI&UTION
PC*9IN9&-
>ariety is spices of life. "oday for any business organi!ation to be successful it has to
provide its customer with the differentiated product that is a value buy for them. In order
to cater to yhe changing needs of the customer the business has to continuously come out
with the variants of the products so that it can target the ma;imum segments.
"oday A-ua 0inerals offers a variety of packaging options& 6 lit, 9 lit, L lit, 93 lit. "he L
liters bottles account for 5L 4 of sales showing a growing health concern among the
34 67
68
Indian society. 6 liter bottles account for 534 of the share .
"he 9 liters bottle introduced to slowly and steadily replace the conventional 6 liter
bottle. "he L liters packs, launched in $ec 6222 in Koa, now available everywhere.
DISTRI&UTION
It*s obvious that availability holds the key to the market .@or any product to be successful
the distribution system has to be really good. <arge tracts of the country have not been
e;plored by the national brands, which e;plains the proliferation of smaller brands.
7isleri*s strategy is to build a direct distribution system at an all India level that means
serious investment In company owned trucks and carts, this would make it the largest
fleet owner in the country. 7isleri has around :3,333 retail outlets in the country with
about 69,333 each in the $elhi and 0umbai. It is intended to be increased this no. to
63,33,333 in order to e;pand brands reach.
"he company will invest appro;imately Rs.933 cr. to procure 9333 trucks and hire same
no. of sales people . the company plans to have its own distribution network in places
where it has its own plant
DISTRI&UTION N!TWOR*8
"he small-scale players built their sales by piggybacking on the generic category built up
by 7isleri. It*s a battle that 7isleri can win by sheer distribution muscle. Ene of the
reasons why 7isleri is running strong in this industry is its strong distribution network
built over the years since its inception. @urther, 7isleri plans to increase its distribution
network over the southern and eastern region, where it is behind popular brands like
s"eam in "amil Nadu and in Andhra /radesh.
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)R*!TIN9 )I>&
"he set of controllable tactical tools- product, price, promotion, and place +J /s,, that the
firm blends to produce the response it wants, in the target markets.
The ?Ps
PRODUCT&
"he main product of the company is the mineral water by the name of 7isleri 0ineral
water. Ether than mineral water the company has also the soda water under its brand
name called theFizzyoda .ater. "he concept of bottled mineral water was introduced in
India, first by 7isleri, and that is the reason, it has become a generic name for the mineral
water. 7isleri has become a perfect synonym of the mineral water for the Indian
consumers.
"he main challenge facing the company or any other player in this mineral water
industry is that there is no scope of invention and innovation in the product, which can be
added as the additional benefits of the product. It is 'ust water after all. "his is what the
Indian customers think of the bottled water. If we are talking about a product like
television we can think that the innovations could provide e;tra benefits derived from the
product. @or e;ample other than its core usage the product can provide for Internet
facilities using conversion
PLC!&
/lace stands for the company activities that make the product available to the target
customers. "o make the product available to the target consumers a good distribution
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network has to be there to support the good -uality of the product. %ere in the case of the
mineral water industry the distribution network is the important factor in being
competitive and the catch lies in making water available to ma;imum number of places
in the country.
PRIC!S FOR FOLLOWIN9 PC*9IN9 #RINTS
+An 1conomic @actor Affecting "he 7uyer*s 7ehavior,
/rice is the sum of values that consumer e;change for the benefits of having or using the
product or service. /rice is the only element in the marketing mi; that produces revenue.
All other elements represent costs.
In India, where the ma'ority of the population comprise of the middle-income group and
lower income groups it is not hard to understand that pricing is one of the most important
factor in the buying decisions.
7isleri has met the e;pectations of the consumers in terms of pricing the product and also
making the product available in variations of litres, making 7isleri both convenient and
affordable. "he company is following a very aggressive pricing. Its product is available
at a very reasonable price.
6.9 <trsRs. 6L8-
9 <trsRs. 998-
L <trsRs. 5L8-
93<trs Rs. P38-
PRO)OTION8
0odern marketing calls for more than 'ust developing a good product, pricing it
attractively, and making it available to the target customers, companies must also
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communicate with their customers, and what they communicate should not be left to
chance.
A Company*s total marketing communications program- called its /romotion 0i;
consists of specific blend of advertising, personal selling, sales promotion, and public
relations tools that the company uses to pursue its advertising and marketing ob'ectives.
CO)P!TITION IN )R*!T
CO)P!TITION8
"he mineral water market is set to e;plode and hit the Rs.9,333-crore mark in the ne;t
couple of years. "his is drawing the big guns attention. @irst 7ritannia launched 1vian.
And recently, soft drinks giant /epsi entered the fray with A-uafina. Now, Nestle too is
reportedly planning a foray. 0eanwhile, /arle Agro*s 7ailey has been growing steadily.
mall local players too are breathing down 7isleri*s neck riding on better trade margins
and intensive distribution +in their respective areas of operation,.
"he competition facing 7isleri can be categori!ed into a few brand names like
/arle 7ailey
/epsi A-uafina
Coca Cola Tinley
.ith /arle*s 7ailey being the main competitor and second in market share in the
organi!ed market, 7isleri faces tremendous competition from the unorgani!ed sector.
:UFIN&
"he advantage for A-uafina is that though there are over 533 labels of bottled water in
the Indian market, few can be called brands. It is necessary to remember that every
product with a name is not a brandD even 7isleri has become generic to this category.
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It does not have any emotional values attached to it. o there was no difficulty for /epsi
in creating space in such a market, which is completely different from the soft drinks
market, where it will be very difficult for any new player to find a slot. o the creative
team at %"A virtually had an empty canvas to work on. And it came up with a campaign
that did have people talking. @irst, a series of teasers, followed by a film that showed
healthy bodies and youthful people and, of course, lots of water.
Although A-uafina is only available in a PL3 ml pet bottle, the pricing, at Rs.63, is
competitive. And it is safe. In addition to the tamper proof seal, there is a reliable method
of checking whether the bottle has been refilled. "he date of manufacturing has been
written on the cap as well as on the bottle. "hus a person who is refilling it would have to
find a matching cap and bottle, the probability of which is very low.
COC COL2 *INL!$
Coca-Cola 'oined the race by announcing the imminent launch of its own brand of water
and, in the process, putting to rest rumors of its so-called takeover of 7isleri. Tinley is
targeting institutions.
Parle gro;s2 &ailley&
7ailley the brand that is owned by Ramesh Chauhan*s brother /rakashChauhan is very
popular in the southern part of India. outhern part of India accounts for 934 of the sale
of the whole water market industry. Another thing that makes the competition difficult
for the company is the price at which it*s competitor is offering the product. <ike 7isleri
it also gives the 6 lt. @or Rs.6L. "he only strength point of the company, which it can
capitali!e, is it*s generic name. And also the company would have to enter that market
with a strong distribution base. .e know the fact that 7ailley has grown at a rapid pace
using the route of franchising, which 7isleri has not adopted as yet. "his is another point,
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which the company would have to take care of to face the BIt*s a compliment being
generic to the category, but its not very good when consumers think any mineral water
brand is 7isleriC.7isleri, a product established in India by Ramesh Chauhan, Chairman of
/arle A-ua 0inerals has become a generic brand. 7isleri was the first marketed bottled
water in a totally virgin market. "he brand has become synonymous with mineral waterD
consumers accept any brand offered by the retailer when they ask for 7isleri.
o far Ramesh Chauhan*s7isleri en'oys the largest market share of LM4 in the Rs6633
crores mineral water markets and is growing at the rate of 6:34 per annum. Annual sales
of 7isleri have touched RsJ33 crores. In seventies, '7isleri' was the only mineral water,
which had national presence, and the sale was to the tune of appro;imately one hundred
thousand cases valued at about Rs.M3 lacs.
)NUFCTURIN982
A -uick look at 7isleri's manufacturing reach indicates that it is represented across the
country ? North accounts for 5L4 of sales for the industry, .est accounts for 534, outh
934 and the 1ast 6L4.
In order to be available in untapped areas 7isleri has setup 6M plants located all over the
country - three-fourths of which are company owned. "he balance is run by franchisees.
7isleri has L plants in the North, L in the .est- two of which were setup in the last year
at Ahmedabad and urat, J in the outh and 9 in the 1ast. "he company has bottling
units located in Chennai, 7angalore, Koa,
Calcutta, 0umbai, $elhi, Oaipur, =ttar /radesh, /un'ab, Indore and Nepal. "he new
plants are being set up in states like Terala, Erissa, 7ihar and North 1astern tates,
which hitherto have been une;plored by the company.
It is also changing its production strategy and shifting to a 63-hr production schedule
40 79
80
with sudden increase in demand planned to be met by additional production.
7isleri has planned to e;pand its operations by investing Rs.M3 crores in the upgradation
of facilities. "he 693-bottles per minute +7/0, capacity of the 6M units across the
country will be increased to 9J3 7/0.
Conscious of the environmental implications of its /1" bottles, the company is to set up
recycling plants at $elhi and Chennai, each with an outlay of Rs.L3m. "hese will process
L33 kg of /1" per hour. "he processed material will be an input for polyester yarn
manufacturers. In centers other than $elhi and Chennai, the company will set up
crushing units to crush the used /1" bottles.
"he company's e;pansion plans will see its water bottling capacity go up from the
present J33 million liters to L33 million liters. /arle 7isleri <imited +/7<, is planning to
invest Rs 933 crores to increase its bottling capacity and double its turnover. "he
e;pansion will also increase the number of company's bottling plants from 6M at present,
to 9L. "he company will set up all the new plants as green field plants. It doesn*t have
any intentions to ac-uire any e;isting plants
PUR! &OTTL!D DRIN*IN92WT!R IS DN9!ROUS
The Sa,ety o, &ottled Drin@ing2-ater
7ecause of the large number of possible ha!ards in drinking-water, the development of
standards for drinking-water re-uires significant resources and e;pertise, which many
countries are unable to afford. @ortunately, guidance is available at the international
level.
"he .orld %ealth Ergani!ation +.%E, publishes Kuidelines for $rinking-water [uality
which many countries use as the basis to establish their own national standards.
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International Standards ,or &ottled Drin@ingA-ater
"he intergovernmental body for the development of internationally recogni!ed standards
for food is the Code; Alimentarius Commission +CAC,. .%E, one of the co-sponsors of
the CAC, has advocated the use of the Kuidelines for $rinking-water [uality as the basis
for derivation of standards for all bottled waters.
CS! Report on pesticide resid.es in bottled -ater
"he Centre for cience and 1nvironment, a non-governmental organi!ation based in
New $elhi, has set up the /ollution 0onitoring <aboratory to monitor environmental
pollution. Its main aim is to undertake scientific studies to generate public awareness
about food, water and air contamination.
"he bottled water market share of ma'or brands is 7isleri +L64,, 7ailley +6P4,, Ses
+664, followed by Tinley +634,, A-uafina +J4,.
$rinking water filled in hermetically sealed containers of various compositions, form,
and capacities that is suitable for direct consumption without further treatment
FCTS
7ottled drinking water samples of some top brands? 7isleri +/arle 7isleri /vt. <td.,,
7ailley +/arle Agro /vt. <td.,, A-uafina +/epsico India %olding /vt. <td.,, Tinley
+%industan Coca Cola 7everage /vt.<td., and of other less popular brands like 7est,
Royal A-ua, eagull etc., which were being sold and manufactured in 0umbai and
nearby areas like /une and $aman, were purchased randomly. All the samples were
purchased from retail outlets in the market and from railway station and were checked
for proper seal, date of manufacture and batch number.
1ven the top brands, which claim to use treatment methods like purification filtration,
42 83
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activated carbon filtration, deminerali!ation and reverse osmosis were found to contain
residues of pesticides. It might be due to the reason that the manufacturers may be by-
passing the raw water after partial treatment and remi;ing it with the fully treated stream
so as to cut down the cost of treatment. En the basis of the results different brands can be
rated in terms of total organ chlorine and organ phosphorus pesticides from least to most
contaminated as-
B.a,ina )acbl.e
&ailley*inley
Seag.ll Sheetal
&isleri &rilliant
&ally p.r<a
43 85
86
)R*!TIN9 STRT!9$
)R*!TIN9 STRT!9$
It is complete and an unbeatable plan designed specifically for attaining the marketing
ob'ective of a firm. "he marketing ob'ective indicate what the firm want to achieve. "he
marketing strategy provides the design for achieving them the linkage between
marketing strategies and over all corporate success is indeed direct and vital. Reali!ing
the marketing ob'ectives is the purpose of two generic categories
6. /rice based
9. $ifferentiation based
PRIC! &S!D )R*!TIN9 STRT!9$
A business that opts for the price route in its competitive battle will en'oy certain
fle;ibilities in matter of its product and use prices as main competitive level. it will price
its product to suit the varying competitive demands . it will be en'oying certain inherent
cost advantages , which permits it to resort a price based fight . the ma'or forms where
such cost advantage can occurs are economies of scale , absolute cost advantages ,.
7enefits of early entry a large market share build over a time. It provides freedom in the
matter of pricing but after producing a particular product and getting stuck in the face of
the competition, one cannot successfully opt for a price led strategy
T%! DIFF!R!NTITION &S!D STRT!9$
44 87
88
0arketing strategy based on differentiation works on the principle that any aspect of the
offer and any activity of the firm can be made distinctive compared with the competiting
offers. Right from technology, plant location to post sale and service a company can
perceptibly differentiate and many buyer values. Companies usually choose those
functions , .hich give them the greatest relative advantage
$ifferent firms adopts different strategy stances as their situational design differ-
7roadly strategy stances can be classified under three heads-
O,,ensi<e Strategy2
Effensive trategy also known as confrontation strategy , is a strategy of aggression. A
firm that is not presently the leader usually employs it, but it aspires to leadership
position in the Industry.
De,ensi<e Strategy2
"he leader who has the compulsion to defend his position against the confrontation of
powerful e;isting competitors or to dislodge the leader from his topmost position usually
employs it.
Niche Strategy2
A firm practicing the niche strategy neither confronts other nor defends itself. It
cultivates a small market segment for itself with uni-ue products 8 services supported by
a uni-ue marketing mi;.
FOR)ULTIN9 T%! )R*!TIN9 STRT!9$2
@ormulating the marketing strategy consists of two main steps-
/2 Selecting the target mar@et2
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It does not fully bring out the import of the inseparable linkage between the two. .hen
the selection of the target market is over an important part of the marketing strategy of
the firm is already determined, defined and e;pressed.
72ssembling the mar@eting miC2
Assembling the marketing mi; means assembling the four /*s of marketing in the right
combination.
"he firm has to find out how it can generate the best sales and profit. It plans different
marketing mi;es with varying levels of e;penditure on each element and tries to figure
out the effectiveness of each combination in terms of the possible sales and profit.
46 91
92
R!S!RC% )!T%ODOLO9$
47 93
94
R!S!RC% )!T%ODOLO9$
De,inition o, Research8
"he word research is derived from the <atin word meaning to know. It is a systematic
and a replicable process which identifies and defines problems, within specified
boundaries. It employs well designed method to collect the data and analyses the results.
It disseminates the findings to contribute to generali!e able knowledge.
"he five characteristics of research are&
ystematic problem solving which identifies variables and tests relationships
between them
<ogical, so procedures can be duplicated or understood by others
1mpirical, so decisions are based on data collected
Reductive, so it investigates a small sample which can be generali!ed to a larger
population
Replicable, so others may test the findings by repeating it
Research )ethodology82
"he research conducted by 1;ploratory Research this type of research is [ualitative
and [uantitative.
[ualitative refers to the characters of the data or process by which the data are gathered.
"he research process consists of a series of closely related activities. .hy a research
study has been undertaken. .hy a research study has been undertaken, how the research
48 95
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problem has been defined, in what way and why the hypothesis has been formulated,
what data has been collected and what particular method has been adopted and a host of
similar other -uestion are usually answered when we talk of research methodology
concerning a research problem or study.
Sampling82
"he data was to be collected only from the Consumers and Retailers. A -uestionnaire
was prepared and interviewing with Retailers and Consumers.
A decision has to be taken concerning a sample unit before selecting the number of
samples. It may be geographical as well as individual.
SiDe o, Sample82
"his refers the number of items +Eutlets, to be selected from the finite universe to
constitute a sample si!e. "he survey was conducted of 6L3 outlets in Noida.
R!S!RC% D!SI9N
)!NIN9 OF R!S!RC% D!SI9N&
"he formidable problem that follows the task of defining the research problem is the
preparation of the design of the research pro'ect, popularly known as the Bresearch
designC. $ecisions regarding what, where, when, how much by what means concerning
an in-uiry or a research study constitute a research design. BA research design is the
arrangement of conditions for collection and analysis of data in manner that aims to
combine relevance to the research purpose with economy in procedure.C In fact, the
research design is the conceptual structure within which research is conductedD it
constitutes the blueprint for the collection, measurement and analysis of data. As such the
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design includes on outline of what the researcher will do from writing the hypothesis and
its operational implications to the final analysis of data. 0ore e;plicitly, the design
decisions happen to be in respect of&
[uestions Ans.
Concept "his study is all about B0arket Research
and Consumer 7ehavior Ef 7I<1RIC.
Importance "o know about 0arket Condition of the
7I<1RI
Area covered Noida
"ype of data /rimary data
"ools used 7y -uestionnaire and observation.
$uration JL days
ample design 6L3
"ypes of research 1;ploratory research
Table8 /
TOOLS ND INSTRU)!NTS US!D FOR T%! STUD$
It is necessary for a researcher to define conceptual structure which research would be
conducted. "he function of research design is to provide for the collection of relevant
evidence with minimal e;penditure of efforts, time and money.
"he means of obtaining the information is through &
a, /rimary data like -uestionnaire and mock interview.
b, econdary data like maga!ines, news paper and net etc.
PROC!DUR! OF DT COLL!CTION
$ata compilation is an intermediate stage between data collection and analysis. $ata
compilation involves classification and summari!ation in order to make data amenable to
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analysis.
In dealing with any problem, once the sample has been selected the data must be
collected from the sample population. "here are several ways of collecting appropriate
data which differ considerably in conte;t of money cost, time and other resources. "hey
can be broadly classified in to two categories.
"wo sources to collect data are namely&
6. /rimary ource
9. econdary ource
PRI)R$ SOURC! OF COLL!CTIN9 DT
"he /rimary $ata that I collected were the first hand information which I received
through personal interviews with the consumers and through -uestionnaires. "his data
gave the most vital information for making my analysis of the prevailing purchasing
behavior of the consumers.
:U!STIONNIR! T!C%NI:U!
"he method of collecting data mailing and personally distributing -uestionnaire to the
respondents is the most e;tensively employed techni-ue in various economical surveys.
"his method is -uit popular, particularly in case of big in-uiries. A typical -uestionnaire
consists of a number of -uestions arranged and printed in definite order on a form or a
set of forms. "he -uestionnaire is given to the respondents who are e;pected to read and
understand the -uestions and write the response in the given space meant for the purpose
in the -uestionnaire.
S!CONDR$ SOURC! OF DT COLL!CTION
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102
econdary $ata involved in my research were the information that I collected through
the various broachers and pamphlets of the company which were provided to me during
the analysis.
R!S!RC% D!SI9N8
"he research design which has been used in the pro'ect report is descriptive in nature.
S)PL! D!SI9N8
"he sample design which has been use in this pro'ect report is simple random
ampling.
S)PLIN9 UNIT 8
A decision has to be taken concerning a sample unit before selecting the number of
samples. It may be geographical as well as individual. %ere Noida region has been taken
as a geographical unit and retailers as an individual unit.
SIE! OF S)PL!8
"his refers the number of items +Eutlets, to be selected from the finite universe to
constitute a sample si!e. "he survey was conducted of 6L3 outlets.
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SWOT NL$SIS
Strength8
/FTr.st ,or &rand
7isleri is 9
nd
most trusted brand in beverage industry in India.
7isleri is J
th
trusted brand in 0umbai and M
th
in $elhi in beverage industry.
0ore than 6 crore people trust the 7I<1RI. .hen they go to the market
for purchasing the mineral water, most of them always ask for 7I<1RI, even they get
another mineral water.
9.9ro-ing Pop.larity8
"he popularity of 7I<1RI is growing day by day. .hen people come in market, they
ask for 7I<1RI as a first preference.
7I<1RI is seeing a growth of almost L34 per year. In last three months company has a
growth of almost 634 in Noida
5FDistrib.tion system o, &isleri8
7isleri has a better distribution system. "he company leverages its fleet of truck to
supply packaged water directly to retailers through a system called )Route elling
J. N.mber o, o.tlets8
7isleri has more than 9L3 outlets in Noida
7isleri has more than 6,33,333 outlets in India.
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L.Large Range o, prod.ct8
7I<1RI offers a large range of products which attracts consumer of all categories.
7isleri offers L liter, 9 liter, 6 liter, L33 ml, 9L3ml is available for individual buyers. 93
liter is useful for organi!ation. In this way it attracts large no. of customer. It also
introduced Fizzy Soda in the market.
Wea@ness8
/F)ethod o, Distrib.tion8
"%1 )RE="11<<INK* policy adopted by 7I<1RI for distribution is more e;pensive
than more commonly followed method of appointing distributors in different towns. "his
reduces the profit of company. "he dealer margin is reduced due to this .therefore not
many dealer keeps 7I<1RI in many areas. Indirectly this is reducing the coverage of
7I<1RI.
7FLate Response8
0any times company loss their sales because of late response to the customer. <ate
response affects the image of company and it*s service to the customer.
5F Less ,oc.s on Promotional cti<ities8
"oday M3-P3 4 of total income of 7I<1RI comes from its bulk segment # the
company is planning to increase it up to :34. o company is focusing on gaining new
customer # e;panding its market. 7ut company is focusing less on its old customer. It
should not be happened because of this many customer is going to close the selling of
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7I<1RI.
?FNo ttracti<e -ay o, Promotion8
/romotion and Advertisements and its service are the keys to success of any product. If
people is not aware the -uality and various feature of the product, people will not buy it
or will think before buy it. "he way in the company do the promotional activities is not
so attractive to fetch the attention of the customer.
6FCo2ordination o, shipping department -ith sales department8
"here is a problem of co-ordination # communication in shipping # transportation
department with sales department.
1FNo &ac@.p system8
"here is no backup system in the plant. uppose at any route supply vehicle is damaged
or not in the condition to move, then should be a e;tra vehicle in the company so that
supply of that particular area should not be affected. If there is a backup system in the
company, company will not loose their sell of that particular of that day.
GF%igher price than competitors8
"he rate of any product manufacturing by 7isleri is higher than any other competitors in
the market. @or e;ample& - Tingfisher is providing the 93 ltr. .ater 'ar at a rate of JL8- .
7ut 7isleri is providing this 'ar at a rate of P38-.
3F NOT )!!TIN9 T%! D!)ND OF T%! CUSTO)!R82
In certain parts of south in our country big bottles of 7I<1RI are in huge demand but
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110
the company is unable to meet the demand of the consumers. "his is affecting the
demand for the product. o /eople are forced to use other brands of mineral water.
Opport.nity8
/FFast gro-ing ,ield8
"he best beverage for India in the new 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 new entrants. "he bottled water market which worth Rs. J333 crore is e;pected to
be Rs. :333 crore by 936L. "his will increase a lot of scope for bottled water market.
7F9ro-th in demand o, -ater8
Now a day people are more conscious about their health. "hey prefer the mineral water
than simple water. o the demand of mineral water is increasing day by day.
5F&isleri can .tiliDe its distrib.tion channel8
.ith 7I<1RI 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 succeed in his gamble with water. @or this the
company can connect it with dealers and other distributors who will market the products
for them all around the world.
?FCompany sho.ld la.nch a ne- prod.ct8
"he company can launch a new product to gain the market share in mineral water
industry. It can launch flavored water in the market like BNimboo /aniC.
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6F C%N9! OF I)9!82
"he company has changed the colour of the product. It has changed from blue to green.
7y changing the colour, the company has provided a new product to the consumersD they
will be getting a new and a refreshing product.
Threat8
/F)ar@et is eyed by big players8
"he demand of water is increasing day by day. It means mineral water market is
e;panding day by day. Coke, /epsi, 7ritannia, Nestle ? are trying to raise the market
stake. o 7I<1RI has to do some work on it.
7F!ntering o, ne- competitors8
At one hand demand of mineral water is increasing day by day, new players are also
entering into the competition. <ike Coke, A-ua fresh, %imalayan etc.
5FLocal -ater man.,act.rer8
Company is facing a competition with local water manufacturer. "hey are providing the
water at a very cheaper rate than the branded water. "hey have captured a lots of
customer of mineral water.
?FStrong distrib.tion net-or@ o, other net-or@8
Ether players like ? A-uafina and Tinley are having a very strong distribution network
of Coke and /epsi. Nestle is having a strong network of its chocolate distribution.
1FCompetition by -ater p.ri,ier8
7isleri is getting the competition not only with the bottled mineral water but also with
57 113
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the water purifier manufacturer. .ith a strong marketing network .ater /urifiers
manufacturer like ? Tent, A-ua guard etc. has decreased the sell of bottled water and 'ar
supply to homely customers.
GFILL!9L )NUFCTUR!RS82
Company is facing a tough competition from illegal manufacturers in the rural areas. "he
illegal manufacturers provide water at a very cheaper rate then the branded
manufacturers. "here are 6333*s of illegal manufacturers which are providing the water
at a very cheaper rate. "his is a serious problem for branded manufacturers. "his
companies also use the fake name of branded bottled water i.e. 7I<1RI and supply
their products in the market.
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FINDIN9S H NL$SIS
59 117
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FINDIN9S H NL$SIS
"he following findings are obtained and are based on primary data&-
6. "he brand customer prefer moreV
FigF /
Interpretation8
J34 respondent prefer 7isleri, :4 prefer A-uafina # Tingfisher both, 694 prefer
Tinley and 594 prefer others company of water.
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120
9. .hich brand of bottle water do you sale moreV
FigF 7
Interpretation8
L24 respondent bottle water do you sale 7isleri, :4 bottle water do you sale A-uafina
# 664 bottle water do you sale Tingfisher both, 654 bottle water do you sale Tinley
and 24 bottle water do you sale others company of water.
61 121
122
5. .hy do you prefer to sell this particular 7randV
Ans& 0ost of the retailers has said that 7isleri is a brand name for mineral water. It is
easy to sell the 7isleri than any other.
62 123
124
J. En what basis customer prefer to purchaseV
Ans&
FigF 5
63 125
126
Interpretation8
5L4 respondent basis customer prefer -uality to purchase, 694 basis customer prefer
availability to purchase, JL4 basis customer prefer price to purchase and :4 basis
customer prefer to 7rand purchase.
L. $o you get any customer complaints for 7isleriV
Ans.
64 127
128
FigF ?
Interpretation8
5L4 customer complaints for 7isleri and ML4 customer no complaints for 7isleri.
M. Are your suggestions considered by 7isleriV
Ans&
65 129
130
FigF 6
Interpretation8
5L4 suggestions considered by 7isleri and ML4 are not suggestions considered by
7isleri.
M. En what basis you motivate a customer to purchase a particular 7randV
Ans&
66 131
132
FigF 1
Interpretation8
L34 say brand motivate a customer to purchase a particular 7rand, 5L4 say -uality
motivate a customer to purchase a particular 7rand, 634 say availability motivate a
customer to purchase a particular 7rand and L4 say price motivate a customer to
purchase a particular 7rand.
:. .hen a customer talk of mineral water which brand comes into his mindV
Ans&
67 133
134
FigF G
Interpretation8
P54 customer talk of mineral water of 7isleri comes into his mind, 24 customer talk of
mineral water of A-uafina # Tinley both comes into his mind,J4 customer talk of
mineral water of Tingfisher comes into his mind and L4 customer talk of mineral water
of other company comes into his mind.
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CONCLUSION
CONCLUSION
7isleri has developed : uni-ue pack si!es to suit the need of every individual. It is also
present in 9L3ml cups, 9L3ml bottles, L33ml, 6<, 6.L<, 9< which are the non-returnable
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138
packs # L<, 93< which are the returnable packs.
The so,t target
elling bottled water re-uires constantly e;panding the market. "he company should also
target the market for soft drinks. All the soft drinks addresses three issues& fun, thirst and
refreshment followed by status to some degree. "he thirst and the status value of the
mineral water are well accepted. "here is very little the mineral water brands can do to
add the fun element around the product. Again here, it becomes important for the
company to have a good distribution network. It should be understood that if the mineral
water is easily available everywhere then it can be said with confidence that it would be
able to replace the soft drinks as thirst -uencher. If we try and look at the reasons that
why consumers buy soft drinks as thirst -uenchers& we would find the answer as that
either water is not available or if it is available then safety is not assured. "herefore,
backed by a good distribution network mineral water industry can grow at a rapid rate.
7y this study Researcher came to know that the customer when goes to purchase the
mineral bottle he always asks for 7I<1RI.
"he retailers use the brand word for 7isleri to sell and to motivate the customer. 7ecause
customer prefer brand of mineral water as well as -uality of mineral water because
today*s customer is very health conscious.
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140
SU99!STIONS
SU99!STIONS
0ore focus on new customer as well as retaining old customer.
1ffective co- ordination and communication within the departments.
Competitive price.
"ry to make the 7I<1RI available in 0alls and retail stores.
0ore focus on promotional activities.
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142
7isleri should launch a new product to raise its market share like- flavored water.
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LI)ITTIONS
LI)ITTIONS
( A small segment of the market has been covered for the research purpose, so the
conclusion cannot be generali!ed.
( "he data collected cannot be free from errors, since some of the respondents failed to
give correct information.
73 145
146
( tudy accuracy totally based upon the respondents response.
( tipulated short span of time for doing research.
NN!>UR!
:U!STIONNIR!
6. .hich brand of water bottle you saleV
a. Tingfisher.
b. Tinley.
c. A-uafina.
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148
d. 7isleri.
e. Ethers.
9. "he brand customer prefer more&
a. Tingfisher.
b. Tinley.
c. A-uafina.
d. 7isleri.
e. Ethers.
5. .hy do you prefer to sell this particular brandV
a. Availability.
b. Cust. $emand.
c. [uality.
d. /rofit 0argin.
J. En what basis customer prefer to purchase mineral waterV
a. 7rand.
b. [uality.
c. /rice.
d. Availabilty.
L. $o you get any customer complaints for 7isleriV
a. yes
b. no.
M. Are your suggestions considered by the companyV
a. Ses
b. No.
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150
P. En what basis you motivate a customer to purchase a particular brandV
a. [uality.
b. /rice.
c. 7rand
d. Availabitliy.
:. .hen a customer talk of mineral water, which brand comes into his mindV
a. Tingfisher.
b. Tinley.
c. A-uafina.
d. 7isleri.
e. Ether.
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1
151
152