Bislery case study

Patel Piyush R.

Background

• Market leader in 1971• Increased selling in 250 towns in 1997 from 60

towns in 1993• In the early 1990s, Parle Bisleri became

synonymous with branded water and had a market share of 70%

• Faced competition from new entrants in late 1990’s

• In 1990’s focus was on pure and safe water

Background• In 2000-01, it faced another challenge from Cola

majors, Pepsi and Coca-Cola and the confectionery giant, Nestle

• Distibution network was a problem• In September 2000, Parle Bisleri launched its Play

Safe ad campaign• Added fun element to Bisleri to rejuvenate the

brand• The ultimate aim was to increase Bisleri's

turnover from Rs 4 billion in 2000 to Rs 10 billion by 2003

Need identification

Need identification

• Everyone positioned their products on the purity platform, so the need to differentiate arose

• Large shops and commercial complexes were fast emerging as attractive targets and Bisleri attracted them with bulk packs

• People were hygiene conscious so Bisleri started pure and safe campaign

Need identification

• Bisleri planned to target the soft drinks market by adding a fun element to the product

• Small packs to attract the market where there were no competitors

• Bisleri sensed that a strong distribution network would help in the long run.

• Bisleri identified that the 1 litre pack was not considered trendy

Segmentation,Positioning,Targeting

Segmentation,Positioning,Targeting

• The market was segmented into premium, popular and bulk

• They changed their segments as per market situation keeping the old intact

• They changed strategy and grew market share in Bulk segment

• Every new entrant in the mineral water market adopted the purity so shift necessited

• The ad campaign of play safe saw a shift in positioning from "pure and safe" to "play safe“

Packaging and pricing

Packaging and pricing

• Use of packaging to differentiate their products

• Introduction of tamper proof seals• In 2000 Bisleri's 5 and 20 litres packs

accounted for 20% of its sales• In 2000, Bisleri launched the 1.2 litre pack.

This added to the five pack sizes that Bisleri had (500 ml, one, two, five and 20 litres)

• The new pack was priced at Rs 12

Packaging and pricing• In 2000, Bisleri also launched smaller packs like

the 300 ml cup• The new design of 500ml and 5 lt bottle was

patented• The new pack allowed better brand display• Vertical labelling was easier on flat sleeved

packages • It made label information visible from all sides of

the bottle• In place of the round ringed bottles, Bisleri would

be available in hexagonal flat-sleeved bottles

Distribution

Distribution

• Kinley and Aquafina made huge investments in bottling plants and distribution

• Kinley and Aquafina got the advantage of their distribution network in the country through Coca Cola and Pepsi

• Coca-Cola India’s Kinley unit planned to double the number of water bottling plants to 16

• Pepsi’s Aquafina announced that it would add seven more plants to the existing five

Distribution

• Branded mineral water which sold in only 60 towns in 1993, was available in 250 towns in 1997

• In 1998, Bisleri's market share came down to 60%, while Parle Agro's Bailley had 20%

• The remaining 20% was shared by regional players

• In 1998, the branded mineral water market had grown to a 424 million litre business, valued at Rs 4 billion

Distribution

• In contrast, Bisleri had only 15 bottling plants and three franchisees

• Kinley had 500,000 outlets compared to Bisleri's 350,000

Advertisement

Advertisement

• Late 1990s • ad campaign brand image—'There is just one

Bisleri’• Print-and-TV campaign - "pure and safe." • Safety feature - tamper proof seals• Weakness of conventionally sealed bottles

-"breakaway" seal

Advertisement

• September 2000• Play Safe ad campaign to make its brand stand apart• Targeted the youth and hoped to convey a social

message• Shift in positioning from "pure and safe" to "play safe“• "Our observation is that people consume mineral

water not for the minerals, but for safety. Hence the word "safe" is critical." -Mr. Chauhan CEO of Parle Bisleri Ltd

Current Situation

Current Situation

• Tough competition from competitors to the aggressive marketing strategies of bisleri

• Kinley trying to build market on trust factor• Coca-Cola announced that it would enter the

bulk segment where Bisleri was a dominant player

• The 20 litre bulk water packs would be targeted at institutional and home segment

• Cola giants are shifting their focus to branded water in India

Learning

Learning

• Segmentation, targeting and positioning is very important

• Distribution network plays a very important role• Packaging and pricing play an important role in

brand building and brand recalling• Innovation is the key for success of a firm so it is

important to change with time • Advertisements help in promotion of the brand

Thank you