A Comparative Study of B2B Marketing Strategies
Bisleri and Aquafina
(Industry: Packaged Drinking Water)
Shashwat Parth Gupta
The tradition of bottled water and mineral water is not very old. Even in western countries the practice of bottled drinking water started in 1950s. The trend of having mineral water gained grounds in the market. Now around 100 companies sell an estimated 424 million liters of bottled water valued at around Rs. 200 crores in the country annually. Since ancient time people have used water from mineral springs, especially hot springs, for bathing due to its supposed therapeutic value for rheumatism, arthritis, skin diseases, and various other ailments. This started the trend of using mineral water for drinking purpose to exploit the therapeutic value of the water. This trend started gaining momentum in mid 1970s and since then large quantities of bottled water from mineral springs in France and other European The concept of bottled has been quite prevalent in western countries due to greater health consciousness and higher awareness about health and hygiene countries are exported every year. In India, with exposure of media and international life styles, deteriorating levels of potable water, drastic increase in a number of water borne disease cases, increased in awareness about health and hygiene and other related factors led to acceptability of concept of mineral water. The market has not looked back ever since then and has grown leaps and bounds to such an extent that a number of genuine as well as fly-by -night operators have entered it to milk it. In 1967 Bisleri set up a bottling plant for manufacturing and marketing its mineral water but failed. The brand was later sold off to Parle in 1968-69. Mineral water market had its seeding as early as 1968-69 when Parle Group acquired the Bisleri brand from Bisleri of Italy for launching Soda water but later launched bottled water also. The launch at that time was a big flop as concept of buying water that too in bottled form was not accepted by the Indian public. The market remained dormant for quite long (for a period of 20 years or so). The market throughout this period was formed only by the premium products that too available through 5-star hotels. In early 1990s with onset of liberalization policy by the Indian government, coming in of cola majors, sell off of local soft drink brands of Campa, Thumps up, Gold Spot etc by Parle to Coke and other factors led Bisleri to test waters again. Bisleri re-launched its bottled water in 1994.
3. PESTLE ANALYSIS OF THE INDIAN BOTTLED WATER DRINKING INDUSTRY Political
* There are various political parties protesting against the pricing of mineral water. * There is stable government at the centre with liberal policies. * The government has imposed price ceiling on bottled water. Economical
* Increase in per capita income.
* Expansion of multinationals, IT and BPO companies in Tier 1 and 2 cities. * There is no licensing policy adopted in this sector.
* Availability of affordable labor.
* Bottled water was earlier considered as a status symbol. * Bottled water is now the only source of pure drinking water in areas where there is scarcity of water. * The bottled water is considered to be safe as compared to ordinary tap water. * There in increase in health consciousness of people.
* The bundling of technologies like distillation, reverse osmosis, activated carbon filter, etc helps in better quality of water. * There has been a shift in packaging from bottles made of glass to bottles made of PET. This helps in recycling and reducing environmental pollution. Legal
* Governed by PFA and BIS standard.
* BIS has provided standards for mineral and...