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Case Study
This case study is about . The bottled water industry is one of the most thriving sectors in India. The market is presently worth Rs 1000 crore and is growing at around 40% annually. Packaged drinking Water is a necessity product and proper supply chain management is very essential since non-availability of stocks could easily lead to consumer shifting to different brand. In this case we will try to understand some strategies how the late entrants (Pepsico and Coca-cola) grabbed market-share from the monopoly leader (Bisleri).

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Competitive Strategies
Discussion point 1: What competitive strategies do Coke and Pepsi apply in the Water War?
1.Pepsico and Coca-cola utilize their already established cola distribution network also for the distribution of Packaged Water getting the product within arms-reach of the need. 2.Kenley and Aquafina, although in their nascent stage of growth have invested heavily in bottling plants and high decibel advertising, to get close to the customer. Using the BCG growth share matric, Kenley and Aquafina fall under quadrant Question Marks, which corresponds to high growth and large untapped market share. Proper thought and high investments could help them to move to Stars

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Analyzing using BCGs Growth/Share Matrix

High 4.0 High 1.5

Stars

Low 0.1

Question marks

Bisleri & Bailley {60% market share} Market Growth Rate

EARLIER

Remainder divested
Kinley & Aquafina {Earlier}

Harvested or liquidated Low

Cash cows

(net suppliers of resources)

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Dogs

Analyzing using BCGs Growth/Share Matrix

High 4.0 High 1.5 Low 0.1

Stars BISLERI Present Market Share 57%

NOW

Question marks
Remainder divested

BISLERI & Bailley {60% market share} Market Growth Rate

Kinley & Aquafina {current }

Kinley & Aquafin a {Earlier}

High Investment Req. to Hold or increase Market share

Very High Investment Req. to increase Market share

Harvested or liquidated Low

Cash cows

(net suppliers of resources) Dogs

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Competitive Strategies contd..

3. They were able to take an aggressive pricing policy to make profit by selling above break-even volume. They set the price to Rs 10-11 which is lower than that of Bisleri. They approached with good promotion and advertising. Kinley repositioning Boond Boond main vishwaasand repackaging took them closer to consumer. In a market where consumers are looking for pure sources of drinking water, these companies have taken effort to get the ISI certification from the BIS. They first created the impression of the purity brand and other competitors found it either difficult to emulate or were too late to get their certifications, thus driving them off.

4.

5.

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Bisleris Analysis
Bisleris Issues:
1.Despite being aware of such a big market and already have an established brand with huge customer base; they failed to capitalize on it and retain the market share. 2.Being the market leader they just have 18 manufacturing locations where Kinley and Aquafina are close. 3.They lacked proper sales promotion compared to competitors. 4.The pricing of a Bisleri unit is higher for the common man as compared to that of competitors. 5.Virtually every bottle in the market to be called Bisleri. This means that consumers arent exactly brand-conscious and will settle for any bottle thrust into their hands.

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Bisleris Analysis
Bisleris Issues:
6. The Route Selling policy adopted by Bisleri for distribution is more expensive than appointing distributors in different towns. 7. Re-use of bottles by local sellers spoils the brand image of Bisleri. 8. In certain parts of Southern India, demand for big bottles of Bisleri exceed the supply. Consumers switch to other brands in such scenarios. 9. Apart from the Packaged water competition, Bisleri also faces competition from various water filter manufacturers like Eureka Forbes. 10. Bisleris heavy concentration on the Bulk packaged water segment makes distribution difficult.

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Our Suggestions to Bisleri

Discussion point 2: What is your advice to Bisleri?
1.Can explore international markets specially developing markets. 2.Minimize the price per unit and gain by playing through volumes. 3.Spend more on sales promotion, could link more to the Indianess of the brand. It would also help expanding into rural areas where the market for this is yet nascent, but can grow with proper awareness. 4.Should be concerned about the intermediaries or the channel members. Should look into their needs. Should do some amount of PUSH. Claims settlement should be fast and efficient. If not done then the channel members can kill the product.

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Our Suggestions to Bisleri contd..

5. Increase bottling plants around the country, especially in Southern India, where due to Tropical climate and perennial shortage of water, demand is constantly increasing.

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Strategies for Danone and Nestle

Discussion point 3: What should be the Strategy for Danone and Nestle at the business level?
1.Danone and Nestle are in the premium segment of the water market. They need to build their distribution channel in urban areas (where most of their consumers are present), as well as catch the attention of the consumer towards their products. 2.They should capture most of their market share in hotels and clubs that cater to the higher price segment consumers. 3.If they want to enter the Packaged water market, it would also make sense to build a brand along with Bisleri or Britannia and appeal to the general masses.

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Thank You!!

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