Transcript Bislery-case

Bislery case study
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
• Customer is the king
Thank you