Marketing group 4
Group Members:
Neha Mhatre Naimish shah Pratik Bajaj Ghanshyam Gupta
AN OVERVIEW OF PACKAGED DRINKING WATER INDUSTRY
India is the tenth largest bottled water consumer in the world. In 2012, the Industry had an estimated turnover of Rs.20billion (Rs.2000crores).Today it is one of India's fastest growing industrial sectors. the Indian bottled water market grew at a compound annual growth rate (CAGR) of 25 per cent -the highest in the world. With over a thousand bottled water producers, the Indian bottled water industry is big by even international standards. There are more than 200 brands, nearly 80 per cent of which are local. Most of the small-scale producers sell non-branded products and serve small markets. In fact, making bottled water is today a cottage industry in the country. Leave alone the metros, where a bottled-water manufacturer can be found even in a one-room shop, in every medium and small city and even some prosperous rural areas there are bottled water manufacturers. Despite the large number of small producers, this industry is dominated by the big players - Parle Bisleri, Coca-Cola, PepsiCo, Parle Agro, Mohan Meakins, SKN Breweries and so on. OVERVIEW OF MARKET SHARE: Before 2002 bisleri leaded the market with a market share over 50% but after that because of lot of new entrants and competitions by the MNC’s giants and their strategies to capture the market one side and local competition by the local brands in the market on another side created a situation that Market share will not be balanced it may turn on to any side because of the competition in the industry. So after the market became hot they cannot sustain in the market. Individual market share at 2002 was Bisleri - 40%. Kinley- 28%. Aquafina - 11%. Others - 21%. But now the trend has completely changed so the market share separation became a difficult to split because of more number of unregistered local competitors.
SWOT Analysis: ? Strength:
? ? ? ? ? ? ? ? ? Quality Standard Trust For Brand Large Range Of Products Marketing Distribution System. Bulk – Segment Is Useful For Households Also Growing Popularity The Break Away Seal Maximum market share 60%
? Weakness: ? ? ? ? ? Method Adopted For Distribution Reuse Of Bottle By Local Sellers And Illegal Manufacturers Faults In Production Pressure By Government Authority Not Meeting The Demand Of The Customer
? Opportunity:
? ? ? ? ? ? Fast Growing Field Bisleri Can Utilize Its Distribution Chain Expansion In Europe Launch Of Premium Pack Change Of Image Increase In Production
? Threat:
? ? ? ? ? ? Market Is Eyed By The Big Players Entering Of New Players Water Filter Manufacturers Illegal Manufacturers Strong Distribution Channel Of The Other Manufacturers New Government Policy
Pest Analysis Political Analysis ? Political:
? ? ? ? ? Government failure to provide safe drinking water. Laws encouraging ground water exploration. Environmental regulations. political parties protesting against the pricing of mineral water Government has imposed price ceiling on bottled water
? Economic Environment
? ? ? ? Developing Economy. Better infrastructure. Increase in per capita income Availability of cheap labor
? Social Environment
? ? ? ? Scarcity of water. Health conscious people. Population growth rate. Considered as the status symbol
? Technological Environment
? ? Having improved technology to protect from diseases Bottles made of PET. Helps in recycling and reducing environmental pollution
? Legal
? Governed by BIS standards
? Environmental
? ? Use of Plastic for bottled water increases environmental pollution. Increase in consumption of bottled water causes depletion of valuable fossil fuels.
Michael porters five force:
? Threat of entry:
? ? ? ? The entry barrier is low due to local low production cost, less amount of capital, easy to access government and legal law, local production law, less legal and government barrier and low switching cost. The existing brand in beverage industry is paying attention and moving into bottled packed water, as they have good brand image and the opportunity is very huge in this industry. E.g. PepsiCo, Coca Cola According to industry life cycle the bottled packed industry is at mature state and the most of the market is covered by the Bisleri, Aquafina, kinley and Ozone. So the pressure for new entrants to capture the market is very high.
? Bargaining power of suppliers:
? ? ? ? ? The bargaining power of supplier is low. As the suppliers include municipal water system, bottles and plastic cap, label printer filtration and deionization equipment, plastic grains and etc. Sometimes the bargaining power of suppliers is depends on geographical location and the technology adopted by the organization. The recyclable bottle used by the company needs advanced technology The large availability of suppliers leads to less bargaining power.
? Bargaining power of buyer:
? ? ? ? ? As the bottled packed water industry comes in oligopoly industry. The no of producer is less thus the bargaining power of suppliers is less. The bargaining power of buyer is depends on the price and product. As the competition is not much high, there are mainly five to ten producer like. The product differentiation is almost zero, so the bargaining power of customer is low.
? Substitute product:
? ? ? The availability of substitute is coffee, soft drink, juice and tea. The availability of various health drinks, juice, carbonic and no carbonic drinks and availability of taste changed the consumer preferences. Consumer is using various health drinks, carbonic and non carbonic drinks to quench the thirst.
? Rivalry:
? ? Market is almost in saturation state, and the industry refers the oligopoly competition so there is a high competition to increase the market share. The market is dominated by the very few players like bisleri (%), aquafina (%), kinley (%) and oxyrich, and they are trying to increase their market share by product introduction, price, packaging and volume of water. As there is no much difference among the product by different competitor, the rivalry is only in terms of service and of marketing strategy. The intensity of rivalry is low as there is limited player and the product is not price sensitive
?
Product life cycle
As per the above curve we can say that Bisleri is in the matured stage as it has acquired a 60% market share .it is the one of the oldest brand in market. The availability of the packed drinking water is very high.
Ecosystem
GOVERNMENT
BOTTLE SUPPLY FILTER AND RO SUPPLIER PACKAGING AND LABELLING QUALITY ASSURANCE TEAM
BISLERI
TRANSPORTATION
HOTEL AND CATERING INDSRY
PHARMA INDUSTRY INDIVIDUAL CARBONISED DRINK MFG MEDICAL INSTITUDE SUPPLIER OF MACHINES ANDTANKS
Value chain of Bisleri:
WATER HARVESTING
QUALITY ASSURANCE
PACKAGING AND LABELLING
STORING IN LARGE TANKS
LABORATORY TESTS
SUPPLY(TRANSPORTATION)
C&F PURIFICATION AND FILTERING distributer REVERS OSMOSIS PROCESS retailer & (PET)
doc_948976229.docx
Group Members:
Neha Mhatre Naimish shah Pratik Bajaj Ghanshyam Gupta
AN OVERVIEW OF PACKAGED DRINKING WATER INDUSTRY
India is the tenth largest bottled water consumer in the world. In 2012, the Industry had an estimated turnover of Rs.20billion (Rs.2000crores).Today it is one of India's fastest growing industrial sectors. the Indian bottled water market grew at a compound annual growth rate (CAGR) of 25 per cent -the highest in the world. With over a thousand bottled water producers, the Indian bottled water industry is big by even international standards. There are more than 200 brands, nearly 80 per cent of which are local. Most of the small-scale producers sell non-branded products and serve small markets. In fact, making bottled water is today a cottage industry in the country. Leave alone the metros, where a bottled-water manufacturer can be found even in a one-room shop, in every medium and small city and even some prosperous rural areas there are bottled water manufacturers. Despite the large number of small producers, this industry is dominated by the big players - Parle Bisleri, Coca-Cola, PepsiCo, Parle Agro, Mohan Meakins, SKN Breweries and so on. OVERVIEW OF MARKET SHARE: Before 2002 bisleri leaded the market with a market share over 50% but after that because of lot of new entrants and competitions by the MNC’s giants and their strategies to capture the market one side and local competition by the local brands in the market on another side created a situation that Market share will not be balanced it may turn on to any side because of the competition in the industry. So after the market became hot they cannot sustain in the market. Individual market share at 2002 was Bisleri - 40%. Kinley- 28%. Aquafina - 11%. Others - 21%. But now the trend has completely changed so the market share separation became a difficult to split because of more number of unregistered local competitors.
SWOT Analysis: ? Strength:
? ? ? ? ? ? ? ? ? Quality Standard Trust For Brand Large Range Of Products Marketing Distribution System. Bulk – Segment Is Useful For Households Also Growing Popularity The Break Away Seal Maximum market share 60%
? Weakness: ? ? ? ? ? Method Adopted For Distribution Reuse Of Bottle By Local Sellers And Illegal Manufacturers Faults In Production Pressure By Government Authority Not Meeting The Demand Of The Customer
? Opportunity:
? ? ? ? ? ? Fast Growing Field Bisleri Can Utilize Its Distribution Chain Expansion In Europe Launch Of Premium Pack Change Of Image Increase In Production
? Threat:
? ? ? ? ? ? Market Is Eyed By The Big Players Entering Of New Players Water Filter Manufacturers Illegal Manufacturers Strong Distribution Channel Of The Other Manufacturers New Government Policy
Pest Analysis Political Analysis ? Political:
? ? ? ? ? Government failure to provide safe drinking water. Laws encouraging ground water exploration. Environmental regulations. political parties protesting against the pricing of mineral water Government has imposed price ceiling on bottled water
? Economic Environment
? ? ? ? Developing Economy. Better infrastructure. Increase in per capita income Availability of cheap labor
? Social Environment
? ? ? ? Scarcity of water. Health conscious people. Population growth rate. Considered as the status symbol
? Technological Environment
? ? Having improved technology to protect from diseases Bottles made of PET. Helps in recycling and reducing environmental pollution
? Legal
? Governed by BIS standards
? Environmental
? ? Use of Plastic for bottled water increases environmental pollution. Increase in consumption of bottled water causes depletion of valuable fossil fuels.
Michael porters five force:
? Threat of entry:
? ? ? ? The entry barrier is low due to local low production cost, less amount of capital, easy to access government and legal law, local production law, less legal and government barrier and low switching cost. The existing brand in beverage industry is paying attention and moving into bottled packed water, as they have good brand image and the opportunity is very huge in this industry. E.g. PepsiCo, Coca Cola According to industry life cycle the bottled packed industry is at mature state and the most of the market is covered by the Bisleri, Aquafina, kinley and Ozone. So the pressure for new entrants to capture the market is very high.
? Bargaining power of suppliers:
? ? ? ? ? The bargaining power of supplier is low. As the suppliers include municipal water system, bottles and plastic cap, label printer filtration and deionization equipment, plastic grains and etc. Sometimes the bargaining power of suppliers is depends on geographical location and the technology adopted by the organization. The recyclable bottle used by the company needs advanced technology The large availability of suppliers leads to less bargaining power.
? Bargaining power of buyer:
? ? ? ? ? As the bottled packed water industry comes in oligopoly industry. The no of producer is less thus the bargaining power of suppliers is less. The bargaining power of buyer is depends on the price and product. As the competition is not much high, there are mainly five to ten producer like. The product differentiation is almost zero, so the bargaining power of customer is low.
? Substitute product:
? ? ? The availability of substitute is coffee, soft drink, juice and tea. The availability of various health drinks, juice, carbonic and no carbonic drinks and availability of taste changed the consumer preferences. Consumer is using various health drinks, carbonic and non carbonic drinks to quench the thirst.
? Rivalry:
? ? Market is almost in saturation state, and the industry refers the oligopoly competition so there is a high competition to increase the market share. The market is dominated by the very few players like bisleri (%), aquafina (%), kinley (%) and oxyrich, and they are trying to increase their market share by product introduction, price, packaging and volume of water. As there is no much difference among the product by different competitor, the rivalry is only in terms of service and of marketing strategy. The intensity of rivalry is low as there is limited player and the product is not price sensitive
?
Product life cycle
As per the above curve we can say that Bisleri is in the matured stage as it has acquired a 60% market share .it is the one of the oldest brand in market. The availability of the packed drinking water is very high.
Ecosystem
GOVERNMENT
BOTTLE SUPPLY FILTER AND RO SUPPLIER PACKAGING AND LABELLING QUALITY ASSURANCE TEAM
BISLERI
TRANSPORTATION
HOTEL AND CATERING INDSRY
PHARMA INDUSTRY INDIVIDUAL CARBONISED DRINK MFG MEDICAL INSTITUDE SUPPLIER OF MACHINES ANDTANKS
Value chain of Bisleri:
WATER HARVESTING
QUALITY ASSURANCE
PACKAGING AND LABELLING
STORING IN LARGE TANKS
LABORATORY TESTS
SUPPLY(TRANSPORTATION)
C&F PURIFICATION AND FILTERING distributer REVERS OSMOSIS PROCESS retailer & (PET)
doc_948976229.docx