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Bisleri H2Q-
Mareketing Strategy
B
P r e s e n t e d B y :
T e j a s B a l d e v ( 4 0 5 )
H i t e s h D u d a n i ( 4 0 7 )
A a s h u t o s h G u p t a ( 4 1 0 )
N a t a s h a J i l l a ( 4 1 3 )
H a n u M i s h r a ( 5 1 3 )
R a h u l S r i d h a r ( 5 2 4 )
Marketing Management
Project report
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Table of Contents
1. Packaging Design………………………………………………………………………………………… ..…1
2. Executive Summary………………………………………………………………………………………….2
3. Product Description………………………………………………………………………………………… 44. Analysis of Bisleri………………………………………………………………………………………… .…4
5. SWOT Analysis…………………………………………………………………………………………………5
6. PESTLE Analysis…………………………………………………………………………………………… .…6
7. Market Segmentation…………………………………………………………………………………… ..7
8. Competitors………………………………………………………………………………………………….… 7
9. Positioning………………………………………………………………………………………………………8
10. Market Strategies for Bilseri H2Q………………………………………………………………….…8
11. 4 P marketing Mix……………………………………………………………………………………………9
12. Projected P&L Statement……………………………………………………………………………….11
13. Breakeven Analysis and Forecasting………………………………………………………………12
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1. Packaging design
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2. Executive Summary
This objective of this report is to give a briefing about the marketing plan that has to be adopted
for the promotion and sales of a new product variant of Bisleri. Bisleri is all set to enter a new
market with Quinine based carbonated tonic water namedBISLERI H2Q.
The product is to be
positioned on health by stating clearly the advantages of quinine as a preventive measure against
malaria, curing nocturnal cramps and aiding digestion. This product is to be launched in two
flavours namely ‘Lemon’ and ‘Peach’. This report describes the activities and the promotional
campaigns that will be undertaken to establish this product in the beverage market. We will be
promoting this product through various advertisement campaigns on media like television and
radio and also through public display using posters. The target segments are identified and
distinguished using a research methodological approach wherein by means of a survey form we
found out the preferences of the masses with respect to the concept of the product and the
flavours in which it is being launched. The flavours were finalised only on the basis of the
information gathered using this survey form. We will be promoting this product in upper and
upper middle class of the society. It is also directed more towards the young generation. The
packaging and the promotional campaigns have also been specifically designed keeping these
factors in mind. The idea is to initially keep the product exclusive, and it is intended to be a niche
product. The placement of the product will be typically across all metros in retail stores as well as
college canteens and nearby locations. Also, special attention will be given in order to place the
product along the tourism chain and in particular those involving foreign tourists. This is because
the concept of this product is widely accepted in the west.
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3. Product Description
Bisleri H2q is a quinine based carbonated tonic water and is being launched in two flavors namely
Lemon and Peach. The choice of these flavours is based on a survey conducted across various age
groups in Mumbai. Quinine, which forms the USP ingredient of the product has many medicinal
benefits including a preventive measure against malaria, relief from nocturnal cramps and alsoaids digestion. The quinine is mixed with carbonated water in appropriate proportions as specified
by the FDA of India. The flavours are added since quinine increases the bitterness of the water. It’s
is packaged in two SKU’s each of both flavours. The product specifications are mentioned below
o Quinine proportion 83mg/litre
o SKU’s 200ml and 500 ml
o Flavours- Lemon and Peach
o Packaging- Plastic bottles
4. Analysis of Bisleri
Mineral Water under the name 'Bisleri' was first introduced in Mumbai in glass bottles in two varieties -
bubbly & still in 1965 by Bisleri Ltd., a company of Italian origin. This company was started by Signor Felice
Bisleri who first brought the idea of selling bottled water in India. It currently comes under Parle agro Foods
and has a commanding market share of 60% in the packaged water segment.
Segmentation & Targeting
Bisleri has a multi-pack and a multi-price strategy. It offers 7 packaging options; a 250-ml cup and bottles in
500 ml, 1-litre, 2-litre, 5-litre, 12-litre and 20-litre packs.
Bisleri has targeted the household segment with the large pack sizes of 20 & 25 litres
Bisleri is priced to benefit volume purchase. The 1-litre bottle is priced at Rs 12, the 2-litre bottle is priced at
Rs 20 (Rs 10 per litre), the 5-litre pack at Rs 30 (Rs 6 per litre) and the 20-litre pack at 70 (Rs 3.50 per litre).
Positioning: From "Pure and Safe" to "Play Safe"
Sales Force Management
The distributor employs their own salesmen. The salesmen are divided among the territories defined by the
distributor. The distributor has 5 routes. Out of the 5 routes, one is the main route and the other four are
sub routes. The salesmen are divided amongst these routes
Flow of Cash and Credit:
The company doesn’t give any credit schemes to the Distributors. The Distributor either have to make
Advance Payment or else the day on which company delivers stock to them the company people collects
the payment. But the distributor offers credit of a maximum period of 3 days to the retailers.
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Critical Analysis:
After discussion with the Distributors it came out that the Distributors are not happy with the company’s
policy. Many distributors have left the distributorship of Bisleri due to this. Since the Distributors need to
bear the transportation cost of delivering the goods to the retailers, only big Distributors who have other
distributorship also are having the Bisleri distributorship
It seems that the market of Bisleri is entirely PULL driven. There is no effort from the company of any form
of PUSH to sell its product. This unique advantage of Bisleri is due to the fact that it was the earliest entrant
into this packaged drinking water segment so has almost converted its brand name as a generic name for
the product supported by its aggressive advertising. But the Distributors feel in terms of quality Aquafina
and Kinley are far better than Bisleri.
5. SWOT ANALYSYIS
SWOT
Quality standard:-
Trust for brand:-
Large range of products:-
Marketing:-
Distribution system
Bulk – segment is useful for households
Growing popularity:-
The break away seal:-
Strong distribution channel of the
other manufacturers like Coke
Illegal manufacturers
Water filter manufacturers
Market entry is very easy
Market eyes by foreign majors
Fast growing field
Bisleri can utilise its
distribution chain
Expansion in Europe
Launch of premium
pack
Change of image
Increase in
production Introduction of
variants in the
market
Method adopted for distribution
Reuse of bottle by local sellers and
illegal manufacturers
Faults in production
Pressure by government authority
Bisleri has become a generic brand
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• Government failure to provide safe drinking water• Laws encouraging ground water exploration
Political
• The bottled water segment is growing at 40% in India.
• The Indian economy is growing at around 9%
Economical
• Bisleri has an advance purification system in place which will be taken advantage of.
• The break off seal is most secure in the packaging offered by Bisleri, implyingabsolute guarantee of purity.
Social
• The concept of tonic water will be accepted across all classes of the society becauseof its preventive measures against malaria.
• Health consciousness is now becoming a huge market opportunity and Bisleri H2Q
clearly encourages the masses to do a bit for a very important health issue- Malaria• Since the product will be available in different flavours it is expected to be
enthusiastically accepted by the young generation typically in the age groups of 18-25.
Technological
• Like any other industry bottled water industry also affects the environment
• However using the right kind of materials forr packaging and ensuring quality
standards could help in efficently handling the environment parameters.• Recycling of the bottles is done on a braoder scale nowadays.
Environmetal
• Quinine proportions are closely monitored by FDA and can lead to seriousconsequences in case any misproption occurs.
• the government is also setting up more stringent laws to curb the rampant use of plastic in the country
Legal
6. PESTLE Analysis
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• Lifestyle: Targetconsumers are theupper middle class andthe high class society .
• Personality: Healthconscious people welleducated class andYoung generation.
• Occasions: regular.• Benefits: health
• User status: uppermiddle class and higherclass.
• Usage rate: light tomoderate.
• Age: in the range of 16
to 40 yrs.• Education: well
educated people.
• Social class: uppermiddle class and higherclass.
•Country : India
•Cities: Mumbai, Pune,Delhi , Calcutta ,Chennai ,Bangalore , Hyderabad etc.Cities with high standard of living.
•Regions / place: Airports,hotels, airline industry, Co-corporate offices, gyms,clubs, railways, railwaystations and hospitals.
7. Market Segmentation
8. Our competitors
Direct Competitors Indirect Competitors
Catch
Schwepps
JKS foods and flavours
Q-tonic water
Aerated drinks
Canned and un-canned fruit juices.
Energy drinks like Gatorade
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9. Positioning
Positioning by attributes
Quinine and flavour are the two main attributes that the product is focused on. Both are
directed towards attracting high end health conscious users. Positioning by benefits
Benefits of quinine are multirole including prevention against malaria, reduction of
nocturnal cramps and aiding digestion. These medicinal benefits are to be positioned
focusing on health issues.
Positioning by price
The price of the product will be initially anywhere between Rs 15 and Rs 30. The idea is to
keep the product exclusive initially and is not meant for everyone.
Positioning by users
The users are typically the upper middle class and the high class of the society since they
are more health conscious and can be targeted using the USP of the product
10. Marketing strategy for Tonic water
Market dominance: Bisleri Tonic Water H2Q would be niche product in the market considering its
market share. Tonic water in the introduction stage would be solely based to cater the upper class,
and upper middle class.
Porter’s strategy: We would be aiming at product differentiation. Bisleri’s H2Q is uniquely
positioned as a health product and target audience would clearly make out a difference in the
product from the current packaged water products
Innovation strategy: In India being the sole producer as other tonic water products are imported,
Bisleri’s can prove to be a pioneer considering the fact that its distribution and production would
be at the same place
Aggressiveness strategy: Bisleri is known for its aggressive marketing and should concentrate on
building up on the product and should be investing a lot on promotions and advertising.
Warfare based strategy: Bisleri’s H2Q would be following a defensive strategy, and continue to
enjoy the first mover advantage. Along with this it should also be vigilant and forecast other
variants in the same area before other companies try and introduce a competitive product
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Line stretching strategy: H2Q targets at a target audience who is ready to spend and along with
health benefits also aims at proving a lifestyle oriented drink. Once the product gains a good
amount of hold in the market the price can be reduced.
11. 4P marketing Mix
Product:
H2Q is a variant of packaged drinking water, that contains quinine and contains added
natural flavours. Positioning of the product is mainly on health along with it H2Q has been
strategically positioned as a high end packaged water mainly for the consumption of higher
and higher middle class. Care has been taken to make it an exclusive product and not to be
used by anyone and everyone. Highlights of the products are as follows
Peach and lemon flavour to be introduced initially
SKU’s of 200ml and 500ml to be introduced in two flavours being 2*2=4
(Product Line)
Positioned as a prime ingredient of cocktails
83 mg of quinine content per litre
The highest quality quinine comes from chinchona succirubra from Assam
Packaging is the main concern for this product. An attractive cover is designed exclusively
for H2Q, smart shape of the bottle, and attractive colours are used. Serving different needs
and by tracking the consumer behaviour bisleri’s H2Q would also be available in a pack of 4
at a 10% discount.
Price:
The market is not price sensitive as fast as tonic water is concerned. With hardly any
intervention of existing players and Bisleri’s strong network would make sure that the price
kept is feasible. 200ml of Bottle is priced at Rs15/- and 500ml is priced at Rs30/-.
The price is deliberately kept higher to maintain the exclusivity of the product in initial
stages and is strategically priced a above 500ml bottle of cold drink.
Place:
Bisleri is well known for its extensive distribution network. They even maintain the
punctuality and timeliness as a ritual. It is often said that you can set your watch by the
Bisleri Logistics truck that leaves in the morning. The plant directly provides to institutional
organizations as well as distributors and distributors in turn sell it to retailers.
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For maintaining the channel motivation the distributor would be given 5% margin and the
retailer would be given 25%. All the distributors making sales above 40 Lakhs per annum
only in the tonic water section would be given a free trip to one destination in India.
Bisleri would try to reduce the distributorship in the areas of reach to increase its market
share and only in areas like Alibaug which are out of reach from the main city,
distributorship would be implemented. We will be mainly concentrating on Tier 1 and tier 2 cities.
Promotion:
Being a question mark on BCG matrix, Bisleri’s H2Q would require extensive advertising
and promotions. Large amount of free samples to be introduced in the beginning and
launch of the product. Tapping the high end consumers and collaborating with airlines,
hotels, corporate, supermarkets and malls. Bisleri already has provided the retailers with the refrigerators and its widespread network
can be very useful for promotional purposes
Bisleri to continue with its brand advertising and there is no requirement of brand
ambassador, the tag line would be “Its Quinine, Its Unique”
Promotions would be very aggressive as we are aiming to capture a share of aerated drinks
also. Social Networking websites, prime slots in TV shows (pertaining to youth), official
sponsors of domestic cricket events are some of the major advertisement tools.
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12. Projected P&L
Particulars year 1 year 2 year 3 year 4 year 5
Market Share(Target)(In %) 0.2 0.5 1 1.5 2
Sales 10.08 26.08 56.37 91.26 131
Total Income 10.08 26.08 56.37 91.26 131
Raw Material Consumed 1.68 4.41 8.452 12.67 16.95
Power and Fuel Cost 0.8046 0.96 1.248 1.742 3.5
Employee Cost 0.643 1.84 3.51 5.694 8.17
Other Manufacturing Expenses 0.429 1.08 2.34 3.79 5.44
Selling and Admin Expenses 2.62 6.64 14.36 23.25 33.37
Miscellaneous Expenses 0.643 1.62 3.51 5.694 8.17
Maintenance 0.214 0.542 1.17 1.898 2.72
Total Expenses 7.045 17.092 34.59 54.738 78.32
Operating Profit 3.035 8.988 21.78 36.522 52.68
Depreciation 0.07 0.07 0.07 0.07 0.07
PBIT 2.965 8.918 21.71 36.452 52.61
Interest nil nil Nil nil nil
PBT 2.965 8.918 21.71 36.452 52.61
Tax 0.97845 2.94294 7.1643 12.02916 17.3613
Profit After Tax 1.98655 5.97506 14.5457 24.42284 35.2487
Remark value in Crore
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13. Breakeven analysis and Forecasting
The road ahead
The segment of aerated drinking water has a long way to go as far as the Indian
Subcontinent is concerned. With the advancement in living standards Bisleri’s H2Q needs
to make a unique stand in the market and is also planning to make its foothold in major
global cities in the neighbouring countries like Dhaka, Lahore, Colombo, Kathmandu etc.
With the internet penetration increasing day by day, a distribution partner would be
selected based upon the bids, which would be solely responsible for internet sales. Major
SKU tapped would be 4 pack bottles. It would be sales based incentive program Currently it has been following a defensive strategy, but if other international brands enter
India in the segment of aerated water, Bisleri can go for Offensive marketing schemes
Currently the market size of packaged drinking is increasing at 40%, but aerated drink
market is increasing only at 7-8%. By the end of 5 years Bisleri’s H2Q forecasts to make
sales of approximately 130 crores.
Introduction of new flavours is certainly a future plan of action once the product gets
reasonable amount of foothold in the market.
Keeping in mind the environmental factors Bisleri also plans to make an agreement with
rag pickers to sell the plastic bottles back directly to Bisleri which in turn can be recycled.
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