A PROJECT REPORT ON MARGINAL DECISION OF BISLERI MINERAL WATER

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR MASTER OF COMMERCE (M.COM) ACCOUNTANCY GROUP, SEM-2 IN COST ACCOUNTING TO UNIVERSITY OF MUMBAI

SUBMITTED BY ANSARI ABU SUFIYAN ROLL NO. 66

UNDER THE GUIDANCE OF MR.ASHFAQUE KARIM (C. A)

ACADEMIC YEAR 2012-2013

RIZVI COLLEGE OF ARTS, COMMERCE & SCIENCE. RIZVI COMPLEX, BANDRA (WEST), MUMBAI. 400050.

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EVALUATION SHEET
RIZVI COLLEGE OF ARTS, SCIENCE AND COMMERCE M.COM PART- I. (SEM II) 2012-2013

NAME OF THE STUDENT

: Ansari Abu Sufiyan.

ROLL NO

: 66

SUBJECT

: Cost Accounting.

SR.NO. 1 2 3 4

PARTICULARS EVALUATION BY INTERNAL PRESENTATION EVALUATION BY EXTERNAL VIVA TOTAL

MARKS

SIGNATURE

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ACKNOWLEDGEMENTS

It Would Not Have Been Possible To Write This Thesis Without The Help And Support Of The Kind People Around Me, To Only Some Of Whom It Is Possible To Give Particular Mention Here. I Would Like To Express My Deep And Sincere Gratitude To My Supervisor, Professor C. A ASHFAQUE KARIM, Associate Professor Of , Department Of Commerce, From Rizvi College Of Arts Science & Commerce, Affiliated To University Of Mumbai. He Has Taught Me, Both Consciously And Un-Consciously, I Appreciate All His Contributions Of Time, Ideas, And Funding To Make My Phd. Experience Productive And Stimulating. The Joy And Enthusiasm He Has For Her Research Was Contagious And Motivational For Me, Even During Tough Times In The Phd Pursuit. I Warmly Thank Mrs. Swati Madam For His Valuable Advice And Friendly Help. His Extensive Discussions Around My Work And Interesting Explorations In Operations Have Been Very Helpful For This Study. I Owe My Loving Thanks To My Parents. They Have Lost A Lot Due To My Research In Other Times. Without Their Encouragement And Understanding It Would Have Been Impossible For Me To Finish This Work. My Special Gratitude Is Due To My Brother Zaki, My Sister Cousin Sister And Her Son Imran Support. Perhaps, I Forgot Someone So, Just In Case: Thank You To Which It Concerns! And Their Families For Their Loving

Date:

Mr. Ansari Abu Sufiyan

Place : Mumbai

(Research student)

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CERTIFICATE
I, C. A ASHFAQUE KARIM, Hereby Certify That Mr. ANSARI ABU SUFIYAN MOHD. SALIM ANSARI, Of Rizvi College Of Arts Science & Commerce Of M. Com Part 1, Accountancy Semester 2. Completed His Project On MARGINAL DECISION OF
BISLERI MINERAL WATER

In The Academic Year 2012- 2013. The Information Submitted Is True To The Best Of Knowledge.

Signature Of Project Co- Coordinator

Signature Of M.COM Co- Coordinator

Prof.C. A Ashfaque Karim,

Mrs. Swati Vora

External Examiner

Principal

Dr. M. Z Farooque

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Executive Summary
Package drinking water: The fountain of all life. Even a toddler will tell you it is a prime need of the body. Sixty per cent of our body weight is made up of it. Water can also be the cause of much misery. Especially in India, where contaminated water continues to bring down millions with diseases such as diarrhea, dysentery, typhoid, jaundice and gastro-enteritis. Getting pure drinking water from municipal taps in cities and towns is now a luxury. At home most people are forced to either boil water or install purifiers. While traveling or eating out in restaurants, buying bottled water has become a necessity. This need has seen an explosion of companies marketing safe drinking water in bottles across the country. Now around 100 companies sell an estimated 424 million liters of bottled water valued at around Rs. 200 crore in the country annually. 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. 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. Depending on the temperature of the water, the location, the altitude, and the climate at the spring, it can be used to cure different 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 exposure to international life styles, deteriorating levels of potable water, increase in a number of water borne cases, increase 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
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Table of Content

Chp

PARTICULARS

Pg. No. 1-5

Title Page Certification Dedication Acknowledgement

Executive Summary 1 GENERAL INTRODUCTION 1.1 Objective 1.2 Research Methodology 1.3 Scope Of Study 1.4 Sample 2 PACKAGE DRINKING WATER 2.1 How is Bottle water different from Tap water 2.2 Competition 2.3 Types Of Bottle Water 2.4 Growth In Bottle water Industry 3 BISLERI 3.1 Introduction 3.2 Expansion 3.3 Bisleri Today
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9-13

14-19

20-25

BISLERI WORKING CAPITAL ANAYLSIS

26-33

MARKETING MIX
5.1 Product 5.2 Price 5.3 Place 5.4 Promotion 5.5 Segmentation 5.6 Marketing Practices

34-46

SWOT Analysis
6.1. STRENGTH 6.2. WEAKNESS 6.3. OPPORTUNITY 6.4. THREAT

47-53

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MASTER BUDGET
7.1.Budgeted Income Statement 7.2.Sales Budget 7.3.Cost Of Goods Sold Budget 7.4.Production Budget 7.5.Factory Overhead Cost Budget 7.6.Selling And Administrative Expenses Budget 7.7.Process Costing Flow

54-63

FUTURE Future Plans Bisleris plans Of Expansion

APPENDIX- Proposed Research Questionnaire Conclusion REFERENCES- Bibliography

54-72

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1
GENERAL INTRODUCTION

1.1. Objective 1.2. Research Methodology 1.3. Scope Of Study 1.4. Sample

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1.1.OBJECTIVE
Through this project my objective has been to understand the following: To know about the current scenario of bottle water market. The reasons for a stunted growth in the package drinking water brand To know how the brand BISLERI still rules the bottle water market To know the marketing strategies applied by BISLERI, its manufacturing process its 4 Ps etc and what is its impact on the consumers To understand and realize the needs and wants of consumers and how to fulfill them Finally I carried out a survey to find out which is the most preferred brand by the people & the survey was carried on in south Mumbai specially in areas like church gate and colaba.

1.2. Research Methodology

A Research Methodology defines the purpose of the research, how it proceeds, how to measure progress and what constitute success with respect to the objectives determined for carrying out the research study. The appropriate research design formulated is detailed below. Exploratory Research: This kind of research has the primary objective of development of insights into the problem. It studies the main area where the problem lies and also tries to evaluate some appropriate courses of action. The research methodology for the present study has been adopted to reflect these realties and help reach the logical conclusion in an objective and scientific manner. The present study contemplated an exploratory research 1.2.1. RESEARCH OBJECTIVES The following are the main objectives of my Research study:1. 2. To make a brand analysis of Bisleri as a brand. To conduct a market survey of Bisleri.
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3.

The affects on Bisleri sale, profit and market share after the launch of Acquafina by Pepsi and Kinley by Coca Cola.

4. 5. 6.

To find out the current position of Acquafina, Hello and Kinley mineral water. Threats caused by Aquafina, Kinley and Hello to Bisleri. Strategies and measures adopted by Bisleri to counter the competition by Hello & Kinley.

1.2.2. NATURE OF DATA

PRIMARY DATA: Data which is collected through direct interviews and by raising questionnaires to retailers. SECONDARY DATA: Secondary data that is already available and published. Various internet sites, newspaper, magazines like A&M were searched in order to find information useful for completion of this project. It could be internal and external source of data. Internal source: Which originates from the specific field or area where research is carried out e.g. publish broachers, official reports etc. External source: This originates outside the field of study like books, periodicals, journals, newspapers and the Internet. DATA COLLECTION Primary Data: The primary data has been collected by conducting a survey in the following areas. 1. 2. 3. 4. Rajendra place Naraina Industrial area Karolbagh market Janak puri district center

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1.3. Scope Of Study

Marketing strategy is typically seen as the task of creating promoting and delivering goods and services to consumers and businesses .marketing involved in 6 types of marketing and they are:

Goods:

Physically goods constitute the bulk of most countries production and Each year Us companies alone market billions of canned and

marketing effort.

frozen foods products and various other main stays of a modern economy. Not only companies market there product but it can be marketed through internet also

Services: As economies advance a growing proportion of their activities is focused

on production of service. Service includes the work of airlines hotels barbers and repair people .at the pure service end would be listening to a patient or a quarter performing at another level it would be telephone cal. It is supported by a huge investment by both product and a service.

Experience:

By orchestrating several service and goods it can create a stage and market experience. There is also a market for customized such as spending a week at a basketball camp with retired basketball greats for a few minutes and climbing Mount Everest. Marketers promote time base events such as Olympics company anniversaries major trade shows sports events. There is whole professional of meeting planners who work out the Details of the events and make sure it comes out properly Celebrity marketing is a major business. Today every major film has an

Events:

Persons:

agent, a personal manager and ties to public relation agency. People like Madonna and late Andy Warhol have done a masterful job of marketing themselves. Management consultant tom peter himself a master at self branding has advised each person to become a brand

Information:

Information can be produced and marketed as a product. This is

essentially what schools and universities produce and distributes at a price to parents, students and communities. The production packaging and distribution of information is one our society major industries

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 Packaging: Product need attractive and durable package. It must be attractive and agreeable to consumer periodical changes in the package design, colour combination, size etc. is necessary in order to maintain interest of consumers in the product. Packaging is within the scope of marketing.

1.4. SAMPLE DESIGN

Sampling unit: Sample size: Residents & Retailers in the above mentioned areas. 100 persons

SAMPLING PROCEDURE Simple Random Sampling to select the sample DATA COLLECTION Sources of data: 1) Primary Data which included the input received from directly the residents through Interview. 2) Secondary data from the Industry manual, policy manuals, books and internet etc. Method of collecting data: Interview method

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2
PACKAGE DRINKING WATER

2.1. How is Bottle water different from Tap water 2.2. Competition 2.3. Types Of Bottle Water 2.4. Growth In Bottle water Industry

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2.1.How is bottle water different from tap water?

Consistent quality and taste are two of the principal differences between bottled water and tap water. While bottled water originates from protected sources - largely from underground aquifers and springs - tap water comes mostly from rivers and lakes. Another factor to consider is the distance tap water must travel and what it goes through before it reaches the tap. In compliance with international regulations, bottled water is sealed and packaged in sanitary containers. If a bottled water product is found to be substandard, it can be recalled. This cant happen in case of tap water. According to regulations in the US, when bottled water is sourced from a community water system the product label must state so clearly. However, if the water is subject to distillation, de ionization or reverse osmosis, it can be categorized that way, and does not have to state on its label that it is from a community water system or from a municipal source. Processing methods such as reverse osmosis remove most chemical and microbiological contaminants

2.2.Competition
The bottled water industry has two other industries as its biggest competitors in from of Water purifiers industry and the soft drinks industry. Though the water purifier industry should be credited to have done the spadework, for setting up the foundation of bottled water industry but still it acts as competitors especially in the household and institutional consumption market. So the water purifier is a strong competitor in household and institutional market the soft drinks market is a strong rather very strong competitor in the retail consumption market. Bottled water became a product in the West during the 1920s a nd developed rapidly. Huge market size, numerous local brands and controlled price mechanism are some of the features of the market there. Consumers in the West are quality conscious and display brand loyalty. Indian consumers lack on both the counts.

In Asia, Indonesia is the largest and the oldest market for bottled water. In India, bottled water is still not perceived as a product for masses though; the scene is changing slowly thanks to low pricing and aggressive marketing strategy adopted by new entrants. Some
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surveys show that truck drivers on highways form a major chunk of bottled water drinkers. Penetration in rural areas is another significant factor that is likely to play a key role in the development of the bottled water trade. In comparison to global standards Indias bottled water segment is largely unregulated. Safe water is rated with a different yardstick in different countries. In India, the aspect has been overlooked for long. Indian consumers tend to believe that any bottled water is safe water. This may not be the case.

2.3.Types of Bottled Water

There are several different varieties of bottled water. The product may be labeled as bottled water, drinking water or any of the following terms. Artesian Well Water: Bottled water from a well that taps a confined aquifer (a water bearing underground layer of rock or sand) in which the water level stands at some height above the top of the aquifer. Drinking Water: Drinking water is another name for bottled water. Accordingly drinking water is water that is sold for human consumption in sanitary containers and contains no added sweeteners or chemical additives (other than flavors, extracts or essences). It must be calorie-free and sugar- free, Flavors, extracts or essences may be added to drinking water, but they must comprise less than one-percent- by weight of the final product or the product will be considered a soft drink. Mineral Water: Bottled water containing not less than 250 parts per million total dissolved solids may be labeled as mineral water. Mineral water is distinguished from other types of bottled water by its constant level and relative proportions of mineral and trace elements at the point of emergence from the source. No mineral can be added to this product. Purified Water: Water that has been produced by distillation, deionization, reverse osmosis or other suitable process can be labeled as purified bottled water. Other suitable product names for bottled water treated by one of the above processes may include distilled water if it is produced by distillation, de-ionized water if the

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water is produced by deionization, or reverse osmosis water if the process used is reverse osmosis. Sparkling Water: Water that after treatment and possible replacement with carbon dioxide contains the same amount of carbon dioxide that it had at emergence from the source. Spring Water: Bottled water derived from an underground formation from which water flows naturally to the surface of the earth. Spring water must be collected only at the spring or through a borehole tapping the underground formation finding the spring. Well Water: Bottled water from a hole bored drilled or otherwise constructed in the ground, which taps the water of an aquifer.

2.4.Growth in Bottle Water Industries:

It was in 1967 that BISLERI set up a bottling plant for manufacturing and marketing its mineral water, which failed badly. In 1968-69 the brand BISLERI was sold to the Parle group by the Italian company, Parle group launched BISLERI soda and mineral water, but again the concept failed as the Indian customer was not ready to buy water in bottled form. The market remained dormant for the next two decades (i.e. from 1970 to 1990) the market throughout this period was formed mainly by the premium segment like fivestar hotels. In the early 1990s was the onset of liberalization policy, and sell-off of major soft drinks brands, BISLERI was compelled to test the waters again. Today the demand of bottled water is increasing at a much higher rate that of carbonated soft drinks. The market size of bottled water too is expected to surpass the size of soft drinks market in near future. HLL, which too has identified the bottled water as a growth area of future, is presently looking or some suitable brand for acquisition. Britannia too evinced some initial interest in the market but now seems to have postponed its plans. The existing players too are set to expand their distribution network to have their presence across the country.
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 The market is also expected to undergo a major consolidation phase. As one of the major factors that are important for success in the market is the distribution network, the players with deep pockets are expected to go for acquisition of existing small regional players to spread their network across the country. Already Coke has tied up with Yes for manufacturing of its brands in areas where it doesnt have presence. Though Coke and Pepsi have both, well established distribution network as well as bottling & manufacturing plants, they seems to be at advantage but players like HLL and Nestle with strong financial muscle can easily turn the tables in their favor through acquisition route.

The following table shows the growth in the package drinking water industry

Year 1996-97 1997-00 2000-02 2002-04 2004-09

Growth rate 3-4 % 10 % 50 % 70 % 90%

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3
BISLERI

3.1. Introduction 3.2. Expansion 3.3. Bisleri Today

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3.1. Introduction of Bisleri

In 1967, Bisleri an Italian company, started by Signor Felice Bisleri, first brought the idea of selling bottled water in India. It started a company called Bisleri India. In 1969, Ramesh Chauhan, the Chairman of Parle Exports, bought over the brand. In those days, Bisleri packaged drinking water was available in glass bottles. Being a returnable package owing to various other problems such as breakage and weight, in 1972-73, Bisleri was made available in PVC (Poly Vinyl Chloride) bottles. After this plastic packaging was introduced, things started to change, and sales increased rapidly. The upsurge in the sales of Bisleri started in 1993 as Ramesh Chauhan sold off the Parle stable of brands, including Thums Up, Limca and Gold Spot. Recognising the potential of the packaged drinking water market, he then went on to concentrate on making Bisleri a top selling brand in India.Marketing and Brands Blog Bisleri a brand name synonymous to mineral water in India. It has approximately 60% market share in packaged drinking water in country. Brand is owned by Parle Company, which bought over Bisleri in 1969 from Italian company. Initially, Bisleri faced the problems of acceptance from consumers. It was difficult to advertise for a company something as a bottled water, which is colourless, tasteless and odourless. In mid eighties company changed its packaging to PET bottles which shows transparency and clear water to consumers. This gave mineral water market a boost. In India, water is scarce and quality is poor so initially the consumers were only foreigners and NRIs. Therefore, to increase its customers base, company came up with comfortable and affordable price bottle which was a great success and showed 400% growth. India bottled water market is appox is worth Rs 1,000-1,200 crore (Rs 10-12billion). Seeing this growth over the years, many new players have entered the market. Amongst them Kinely from Coke, Aquafine from Pepsi, kingfisher and now Himalayan from Tata are main players of industry. There are many ups and down in last couple of years but brand recall of Bisleri is amazing which helped company. In order to differentiate form other players company tries to come up with different and new campaigns on regular intervals In case of food and water, whenever people are suspicious of the quality of product they dont eat unhygienic food and instead of having non purified water they prefer to stay thirsty. Bisleri itself seems to play on this need for safety, coining the popular tag-line Play it safe. The advertising helped differentiate the product from its competitors who, more or less, communicated nothing. Bisleris seal was also breakaway (hence irreplaceable), even though this manufacturing process of sealing seems to be slow and could clog up the assembly line. Somewhere along the now that space was occupied by Aquafina and Kinley. The safe breakaway seal was replaced by a regular seal, but the change wasnt communicated and more variants (packaging) emerged. Some of these variants were sold simultaneously. They
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were manufactured in different parts of Delhi, and one had the website www.bisleri.com printed on it, while the other had www.bisleri.co.in printed. So, the mistake was a complete lack of communication on Bisleris part. Now they have a new product out - a mineral water brand (as opposed to a packaged drinking water brand), and they are advertising it. Still, there are three types of Bisleri bottles in the market in Delhi right now. Now again Bisleri changed its packaging and came up with a new bottle. It has been general feeling that Kinleys new packaging is more acceptable by the people as it is easy to grip it. In a packaged water market, where the product is not so differentiated, the company has to constantly innovate new branding techniques, distribution channels, advertising and in fact new packaging techniques. According to the Bureau of India [ Images ]n Standards there are 1,200 bottled water factories all over India (of which 600 are in one state -- Tamil Nadu). Over 100 brands are vying for the Rs 1,000-crore (Rs 10 billion) bottled water market and are hard selling their products in every way possible -- better margins to dealers, aggressive advertising, catchy taglines.... In such a scenario, The Strategist takes a look at how it all started -- with Bisleri -and how Ramesh Chauhan, chairman, Parle Bisleri created a market out of pure water. Excerpts from a conversation with Prerna Raturi: Western Express Highway in Mumbai has been the route to success for two well-known men. One was the make-believe super biker cum thief Kabir aka John Abraham in the Bollywood flick Dhoom; and the other is the crafty Ramesh Chauhan, who has masterminded the runaway success of the Rs.500 crore bottled water brand, BISLERI in the country, from his 1st floor office in the sparkling green aqua fill BISLERI building.

BISLERI was originally an Italian Company created by Signor Felice BISLERI who first brought the idea of selling bottled water in India. BISLERI then was introduced in Mumbai in glass bottles in two varieties bubbly & still in 1965. Parle bought over BISLERI (India) Ltd. in 1969 & started bottling Mineral water in glass bottles under the brand name BISLERI. Later Parle switched over to PVC non-returnable bottles & finally advanced to PET containers. Since 1995 Mr. Ramesh. J. Chauhan has started expanding BISLERI operations. In 2003 BISLERI announced its venture to Europe. For over 30 years, BISLERI has been the pioneer in the bottled water industry with its innovations and an eye for perfection. And ever since it was established in 1969, BISLERI has constantly searched for inspiration in nature.

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The journey till now

1969: Buys Bisleri bottled water from an Italian company, Felice Bisleri. It was bottled in glass bottles then. Early-1980s: Shifts to PVC bottles. Sales surge Mid-1980s: Switches to PET bottles, which meant more transparency and life for water. 1993: Sells carbonated drink brands like Thums Up, Gold Spot and Limca to Coca-Cola for Rs 400 crore. 1995: Bisleri launches a 500 ml bottle and sales shoot up by 400 per cent. 2000: Introduces the 20-litre container to bring prices down from Rs 10 a litre to Rs 2 a litre. 1998: Introduces a tamper-proof and tamper-evident seal. 2000: BIS cancels Bisleri's licence of a water bottling in Delhi [ Images ] since some of the bottles did not carry ISI label; the licence is restored one-and-a-half months later. 2002: Kinley overtakes Bisleri. The national retail stores audit by ORG-MARG show Kinley's marketshare at 35.1 per cent compared to Bisleri's 34.4 per cent.

3.2.EXPANSION
Chauhan may be short, stocky and nearing 70, but his enthusiasm and vibrancy over the years has not diminished an iota. After all, despite the entry of a slew of MNCs (including CocaCola with KINLEY and PepsiCo with AQUAFINA and their cutting edge marketing gimmicks, Chauhan has not lost his first mover advantage in the segment. He has been able to sustain and grow his market share in the over Rs.2000 crore Indian bottled water mart. We have no competitor. Our biggest competition is our own incompetence, he grins, describing how it is the unorganized sector, which is presently walking away with the largest chunk of their potential consumers. BISLERI claims 66% market share of the organized segment. If we were present where the unorganized players are selling, they would not be there at all, Chauhan.

Parle Bisleri Limited: Expansion plans Parle Bisleri Limited is undertaking a major expansion to increase its manufacturing facility as also to widen the distribution network. The total project cost is estimated around Rs 260 crore. Of this, Rs 60 crore will be utilised to expand the existing manufacturing facilities wherein the bottling capacity would be doubled to 200 million cases per day. Around Rs 200 crore will be spent on increasing its distribution network five-fold over the next two years. As a result, the company will have 10-lakh retail outlets backed by a fleet over 5,000 vehicles.

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Parle Bisleri also plans to procure recycling plants from Japan, for its PET bottles, and set up at least two such plants in Chennai and Delhi at a cost of Rs five crore each by this year-end. Crushed and compacted bottles from other parts of the country will be transported to the two plants and a better part of the compacted PET will go into manufacturing polyester yarn. Though the company plans to come out with an IPO, two years down the line, the present capital expenditure plan will be financed entirely through internal accruals. Under the leadership and vision of Mr. Ramesh J. Chauhan, BISLERI has undergone significant expansion in their operations. The company has witnessed an exponential growth with their turnover multiplying more than twenty times in a short span of 10 years. The average growth rate over this period has been around 40% with BISLERI enjoying more than 60% of the market share. Currently BISLERI has 11 franchisees and 8 plants across India; with plans of setting up 4 new plants on water industry in India which has made it Synonymous to Mineral water and a household name. So naturally 'When you think of bottled water, you think BISLERI'.

3.3. BISLERI TODAY

BISLERI values its customers & therefore has developed 8 unique pack sizes to suit the need of every individual. We are present in 250ml cups, 250ml bottles, 500ml, 1L, 1.5L, 2L which are the non-returnable packs & 5L, 20L which are the returnable packs. Till date the Indian consumer has been offered BISLERI water, however in our effort to bring to you something refreshingly new, we have introduced BISLERI Natural Mountain Water - water brought to you from the foothills of the mountains situated in Himachal Pradesh. Hence our product range now comprises of two variants: BISLERI with added minerals & BISLERI Mountain water It is capturing its market in India as well as other continents. BISLERI has been no 1 and is capturing Indian market by providing best quality over a period of long time. None of the water products in line are able to compete with BISLERI and thus BISLERI stand unique in the market. Bisleris commitment is to offer every Indian pure & clean drinking water. BISLER water i s put through multiple stages of purification, ozonised & finally packed for consumption. . Rigorous R&D & stringent quality controls has made BISLERI a market leader in the bottled watersegment. BISLERIS endeavor to maintain strict quality controls each unit purchases performs & caps
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only from approved vendors. BISLERI produces their own bottles in-house; & have recently procured the latest world class state of the art machineries that puts them at par with International standards. This has not only helped them improve packaging quality but has also reduced raw material wastage & doubled production capacity. You can be rest assured that you are drinking safe & pure water when you consume BISLERI. BISLERI is free of impurities & 100% safe. Enjoy the Sweet taste of Purity !

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4
WORKING CAPITAL ANAYLSIS

1. WORKING CAPITAL. 2. INVENTORY CONVERSION PERIOD. 3. WORK-IN-PROGRESS INVENTORY CONVERSION PERIOD.

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1. Working capital cycle, also known as the asset conversion cycle, net operating cycle, cash conversion cycle or just cash cycle, is used in the financial analysis of a business. The higher the number, the longer a firm's money is tied up in business operations and unavailable for other activities such as investing. The cash conversion cycle is the number of days between paying for raw materials and receiving cash from selling goods made from that raw material. The operating cycle consists of three phases. In phase I, cash gets converted into inventory. This includes purchase of raw material, conversion of raw materials into work-inprogress, finished goods and finally the transfer of goods to stock at the end of the manufacturing process. In phase II of the cycle, the inventory is converted into receivables

as credit sales are made to customers. In phase III, when receivables are collected complete the operating cycle. The length of the operating cycle of a manufacturing firm is the sum of: i. ii. inventory conversion period debtors conversion period, total of these called Gross operating cycle.

The difference between operating cycle and payables deferral period is net operating cycle, also represents the cash conversion cycle. 4. INVENTORY CONVERSION PERIOD. Raw material conversion period: RMCP = Raw material inventory * 365
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Raw material consumption = 1375.00 * 365 15169.72 (Rs.in crores)

33.08 days

5. Work-in-progress inventory conversion period: WIPCP = work-in-progress inventory * 365 Cost of production = 52.50 * 365 21496.75 = 6. 2.58 days

Finished goods conversion period: FGCP = finished goods inventory * 365 Cost of goods sold = 449.34 * 365 31496.75 = 5.21 days

7. DEBTORS CONVERSION PERIOD DCP = Average debtors * 365 Net sales

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410.495 * 365 7387.70

(Rs. In Crore)

= 20.28 days.

8. CREDITORS DEFERRAL PERIOD: CDP = Average creditors * 365 purchase = 1664.225 * 365 14539.23 = 9. 41.78 days

WORKING CAPITAL CYCLE

Net operating cycle = = = =

Gross operating cycle Creditors deferral period (RMCP + WIPCP + FGCP + DCP) CDP (55.81 41.78) days 14 days

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4. WORKING CAPITAL CYCLE

Companys working capital cycle completes in 14 days. In case of inventory conversion period, raw materials mainly are Gas, Ammonia and Urea. Raw Material conversion Period is 29.83 days and Work In Progress Inventory Conversion Period is 0.49 Days and Finished goods Conversion Period is 5.21 days. So total inventory conversion period is 35.53 days while Debtors Conversion period is 20.28 days which is quite good. So IFFCOs gross operating cycle is 55.81 days. But Creditors Deferral Period is 41.78 days. It is better in comparison with the Debtors Conversion period. So Net Working Capital Cycle is 14.03 days. So this is short working capital cycle and it indicates that IFFCO is well managing its working capital. As stated above a business should not over invest in working capital. The key point to note here is that a longer cash cycle ties up a bigger investment in working capital. It is therefore useful to monitor the length of cash cycle, and changes in it, to judge whether a business has an excessive working capital level or perhaps whether working capital is inadequate which may lead to liquidity problems.

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WORKING CAPITAL ANAYLSIS

The two components of working capital are current assets and current liabilities. They have a bearing on the cash operating cycle. In order to calculate the working capital needs, what is required is the holding period of various types of various inventories, the credit collection period and the credit payment period. Working capital also depends on the budgeted level of activity in terms of production/sales. As the working capital requirement is related to the cost excluding depreciation and not to the sale price, working capital is computed with reference to cash cost.

Working capital: excess of current assets compared to current liabilities, and indicates amount of excess current assets relative to current liabilities available to conduct revenue generating operations.

Total current assets minus current liabilities are value of working capital.

1. Current Assets: cash, marketable securities, notes receivable, accounts receivable, inventories, supplies, and prepaid expenses 2. Consumed in production of sales revenue

3. Current Liabilities: accounts payable, accrued expenses,(e.g. wages payable, interest payable, taxes payable) 4. Operating cost incurred on credit

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Inflows- Sources of Working Capital: Income from operations a) Accrued income is sales revenue less all expense incurred in producing sales revenue inflow b) Sales revenue generated by cash sales or on credit through receivables c) Expenses incurred by immediate payment of cash or credit through Payable Accrual net income a) Determined after deducting noncash expenses b) To convert net income to increase working capital, capitalized added to net income expenses

Sale of long term assets a) Land, building, furniture, equipment, investment b) Sale treated as flow which increases working capital

Increase in long term liability a) Create or increase loan, mortgage, or bond achieves this b) Inflow that increases working capital c) Borrowing long tern debt create increase in cash, current assets, or current receivable with no effect to current liability

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Outflows - Uses of Working Capital:

Loss from operations a) When loss occurs, expenses have exceeded sales revenue b) Decreases working capital

Purchase of long term asset a) Land, building, furniture, equipment, investment b) Outflow that decreases working capital

Payment of Long term liabilities a) Payment reducing principal amount owed on long term liability

Payment of cash dividends a) Payable obligations b) In partnership, current asset withdrawals by owner are reductions to capital investments.

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5
MARKETING MIX

5.1.Product 5.2. Price 5.3. Place 5.4. Promotion 5.5. Segmentation 5.6. Marketing Practices

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Marketing Mix
According to Philip kotler marketing mix is the mixture of controllable marketing variables that the firm uses to pursue the sought level of sales in the targeted market In simple words marketing mix is the combination of four basic elements / ingredients under one head. The 4Ps ie Product, Place, Price, and Promotion.

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5.1.PRODUCT
Types of products BISLERI values their customers & therefore have developed 8 unique pack sizes to suit the need of every individual. They presently have 250ml cups, 250ml bottles, 500ml, 1L, 1.5L and 2L which are the non-returnable packs & 5L, 20L which are the returnable packs.

Products Produced by BISLERI

BISLERI with added Minerals BISLERI Mineral Water contains minerals such as magnesium sulphate and potassium bicarbonate which are essential minerals for healthy living. They not only maintain the pH balance of the body but also help in keeping you fit and energetic at all times.
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Bisleri Mountain Water:BISLERI Natural Mountain emanates from a natural spring, located in Uttaranchal and Himachal nestled in the vast Shivalik Mountain ranges. Lauded as today's 'fountain of youth', BISLERI Natural Mountain Water resonates with the energy and vibrancy capable of taking you back to nature. BISLERI Natural Water is bottled in its two plants in Uttaranchal and Himachal Pradesh and is available in six different pack sizes of 250ml, 500ml, 1 litre, 1.5 litre, 2 litre and 5 litres. Himalayan Water The water that almost descends from the Gods: The Himalayas, the abode of the Gods, where the earth meets the heavens and where in lies nature's untouched bounty. White glaciers, snow-capped mountains and a plethora of exotic herbs and other flora that have therapeutic properties. This is where you'll find a treasure trove of hidden natural spring water that flows through natural purifying filters, mineral rich rocks and herbs from which it absorbs many healing properties. We bottle this pristine spring water directly at source, at the foothills of the Himalayas.

And now the customers, will get every drop of purity, right here, in this bottle. BISLERI Mountain Water is available in 500ml. bottles & 1 litre bottles.

Quality:In endeavor to maintain strict quality controls each unit purchases pre-forms & caps only from approved vendors. BISLERI produces its own bottles in-house; they have recently procured the latest world class state of the art machineries that put them at par with International standards. This has not only helped BISLERI improve its packaging quality but has also reduced raw material wastage & doubled production capacity. You can be rest assured that you are drinking safe & pure water when you consume BISLERI. BISLERI is free of impurities & 100% safe. Enjoy the Sweet taste of Purity! Rigorous Research and Development and stringent quality controls have made BISLERI market leaders in the bottled water segment. BISLERI has always been committed to offering every Indian pure and clean drinking water. Hence BISLERI water is put through multiple stages of purification, Ozonisation and is hygienically packed for final consumption.

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The machines which are used for the blowing and filling of the bottles are also cleaned twice a month. All the tanks are also cleaned by the use of chemicals. There is an online monitoring system where the batches of bottles are shown and once the batch crosses a certain limit, an alarm is heard. Everyday almost one lakh bottles are passed through the monitoring system. Moreover, in case there is a problem regarding the batch for example, the cap seal of a particular bottle is not there or labeling is not done properly, the system records that and immediately the production is halted. This is followed as per the Bureau Standards and if any mistake occurs then the whole batch is discarded. This shows that the whole batch is replaced and stopped which indicates high quality control. Even practically every 2 days testing and sampling of the water and its bottles are done in the market and in their Quality Department to check in case anything is wrong or not. In fact there is a quality checker under the quality department for the final checking done of the water before it is entered the market. There is also a warehouse where the 20 litre bottles are kept for 48 hours to allow the ozone to settle in it. This helps in prevention of any germs or harmful chemicals and also purifies the water. The cost of quality undoubtedly is very efficiently taken care of in BISLERI, there are times when the cost of quality increases i.e. in the rainy seasons the cost increases because the water is purified twice than the normal seasons as sometimes the water might be dirty due to the rains, bisleri doesnt take any risks and does not compromise with their quality.

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Online Monitoring System

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Design
Creativity: BISLERI has a separate creative department which promotes the different sizes of the bottles. They have introduced new mountain water which is in hexagon shaped bottle and is a new up gradation done by them. This helps in attracting new customers and creates a new sensation in the market. Also 2 years ago a new soda bottle was introduced which was named as BISLERI Fizzy bringing a huge demand among customers. Moreover, the creative department has an expansion scheme which was introduced in October 2008 which was a compact and ideal gift for the customer. This includes a 20litre bottle, 2 fridge bottles, 1.5 litre bottle and a 250 ml bottle with a fridge stand .This was experimented for a month and which resulted in the lot of demand. Value Engineering is redesigning the product already existing. The redesigning of the bottle has definitely taken place in BISLERI. Earlier they had a blue coloured bottle and then to bring in a different change, BISLERI decided to redesign the bottle to green colour.

Old Bottle

New Bottle

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 Labeling Labeling plays a very important role BISLERI takes good care about the labeling as it tries to create and come up with an exciting and attractive label as it will attract the customers; also labeling plays an important role as it gives a lot of information about the product ; like what are the contents of a bottle how is it made what does it consist etc. Also labeling gives a lot of information about the product ie the price of the product; manufacturing date; expiry date etc.

5.2. PRICE
Price plays as very important role as it is the only P which helps in getting revenue: Firstly one can explain the factors which affect the pricing decision ie. - Price is directly related to

1. Demand 2. Competition 3. Break-even Point. Secondly, if there is a novel product or almost no competition, one can Go for higher price in the beginning, make good profits to face Competition and innovations at a later date.

- However if you are entering a competitive market your entry price should be low to ensure big volumes to earn reasonable profits.

In the beginning BISLERI had no competition, so the price of BISLERI was high, gradually the promoters dropped the price.

- Buy Huge quantity at cheap rate, after confirming demand and sell at cheap price, make them addictive, then gradually increase price)

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BRAND

PACKAGINGS

PRICE (in Rs.) Per bottle

BISLERI BISLERI BISLERI BISLERI BISLERI BISLERI BISLERI

20 litre 5 litre 1.5 litre 1 litre 500 ml 330ml 250 ml cup

70 50 22 18 10 8 5

Customer Delight BISLERI is in the business to serve the customer. It deserves the best quality and presentation at a worth of the price. They have world class quality, at the lowest production & distribution cost. This makes them unbeatable leaders, and helps them in having satisfied loyal customers. BISLERI values its customers & therefore have developed 8 unique pack sizes to suit the need of every individual. At present they provide 250ml cups, 250ml bottles, 500ml, 1L, 1.5L, 2L which are the non-returnable packs & 5L, 20L which are the returnable packs. For the customers bisleri has come up with a new scheme called the REDUMTION scheme designed specially for the customers. In the Redumtion scheme BISLERI provides for Rs 300 a 20lt BISLERI bottle, 2 fridge bottles, a 1.5l bottle, a 250ml bottle and a fridge stand.

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5.3.PLACE
BISLERI has a specific distribution channel which they follow: Distribution Channel

From the manufacturing plant the bottles will come directly to the stockiest. Taking out the C&F agent from the distribution channel, so as to increase the margin to other elements in the chain. The whole MUMBAI area is been divided into 4 zones: SOUTH , WEST , CENTRAL and NORTH. The total number of stockiest would be 12.

In the area of SOUTH MUMBAI there would be 2 stockists, one in the area of FORT and other in the area of MUMBAI CENTRAL. In the case of FORT it will require 5 distributors covering the area from DADAR to C.S.T and WADALA to C.S.T. The other stockiest at MUMBAI CENTRAL will require 2 distributors to cover the area from DADAR to CHURCHGATE.

In the area of west MUMBAI there would be 3 stockists in the area of ANDHERI, BORIVALI & VIRAR, Covering the area from MAHIM to DHANU road. In the area of
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Mahim to Andheri 5 distributor would be there, In the area of Jogeshwari to Dahisar 5 distributor would be there, in the area of DAHISAR to DAHANU road 4 distributor would be there. In the area of CENTRAL MUMBAI 4 stockists would be needed. The stockist would be in GHATKOPAR, KALYAN, AMBERNATH, and TITWALA. The stockist in the GHATKOPAR would cover the area between MATUNGA to MULUND. The stockiest in KALYAN would cover the area between THANA to KALYAN and it would require 3 distributors. The stockist in AMBERNATH would cover the area from KALYAN to KARJAT. A stockiest in TITWALA would cover the area from KALYAN to KASARA and would require 3 distributors. In the case of NORTH MUMBAI there would be 3 stockists. It would cover area of PANVEL, URAN, ALIBAUG, PENN, MAHAD, and VASHI. In the area of PANVEL stockiest 3 distributor would be needed and in the area of MAHAD stockist it would require 3 distributor and same is the case with Vashi. In the case of KHOPOLI and ALIBAUG direct water would be supplied to the distributors.

5.4.Promotion
Positioning Target audience Personality Punch Line : : : : Playing Safe Health and hygiene conscious people Guardian, Authoritative, Reliable Play Safe

To keep your company humming with profitable work, its vital to advertise your services. Your company is going to require the maximum exposure you can afford. This constant exposure will alert potential customers who you are and where you are when they need a sign. By positioning YOUR name at their fingertips and even literally displaying it in front of their eyes, theyll call YOU for identification products and services.

There are all types of promotion. They range from direct mail, word of mouth, advertising in newspapers and telephone directories to radio and T.V. spots, cold calls and telemarketing. Whatever the medium, consider the cost. Advertising will usually is an expense that remains in your budget.
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Bisleri follows different promotion strategies and uses different ways to promote their product like

Advertisements
Advertisements are paid and and electronic way of communication ie to convey the message to the customers, bisleri comes up with different and attractive advertisements on televisions and cinema halls to attract customers today advertisements really attract the customers and by looking at the attractive advertisement people buy the product more.

Direct Mail
Direct mail is an avenue of promotion that targets a definite audience with a specific letter, brochure, or offer. Different potential customer groups have various needs that can be bulls-eyed with a distinct service or product. For instance, we can draft a personalized letter to hotels, gyms, canteens and a different message to offices. In hotels where consumption of water is more as compare to the office so we can give them additional discount and better services compare to the office. In the case of the office where we there is less consumption of water and less availability of space we can promote our 5-litre jar, 10 litres jar and 20 litre jars.

The brochure or letter should contain information about our product, which we want to target and which is different and better than other product. In case of bottled water we can differentiate our product than other through the quality of water, price, packaging, service that is very important. In a country like India where religion and festival play an important role in ones life, we can send post cards or greeting cards to not only our own customer but also to the prospective customer.

Building and Vehicle Identification

Our OWN signs are an advertisement in them. For example a van or a tempo which is green in color, than all know that it is BISLERI cargo services van or tempo, same in the case of coca- cola it is red color and blue in case of Pepsi.
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 Price packs
A banded pack is two related products banded together for example: toothpaste and toothbrush. In the case of summer where in India the climate is very humid and hot, and consumption of water is also high, so in that case with the purchase of every one 1 litre bottle a free cold tissue paper can be provided. Tie-in-promotions In this case where two or more brands or companies team up to increase pulling power. Nowadays there is a craze of Sikkim super lotto so with a purchase of every 20 litre jar the ticket will be available at RS.5. But today frankly bisleri is recognized by the punch line PURE N SAFE it has established itself so well that there is no need of any promotion as whenever a person goes to buy a bottle of mineral water he says GIVE ME A BISLERI and does not say give me a bottle or mineral water

5.5. SEGMENTATION
The mineral water market is segmented according to the type of consumers:

Foreign Tourists: Foreign tourists have been the main consumers of the mineral water as
they face a lot of digestion problems due to different food habits.

Domestic Tourists: Domestic tourists have switched to mineral water mainly because of
safety and hygiene factors.

Fashion Conscious: Like soft drinks, drinking mineral water is also considered
fashionable by some people.

The mineral water consumer is mainly in the age group of 20-35 years and is an educated middle class person. This is also the segment of fruit drinks, which have usually been positioned as fun and health drink for young adults. The mineral water market is also segmented along pack sizes:
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One litre bottle : This is meant to spell safety and security for consumers. It is positioned
on a prestige platform for the achiever segment - who like to make a fashion statement by drinking mineral water. This segment gets the maximum sales.

500ml bottle: This size has been introduced in the market to target the individual and local
travelers.

PET bottles: The size of the PET bottles varies from 10 to 20 litres. These are mainly for
institutional sales (Wedding parties, Hotels, Corporate, etc.)

5.6. CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their drinking habits. Brand loyalty is very low as all the products taste the same so they can buy just any product which is on the shelf, same as that of soft drinks and fruit beverages. Availability in the chilled form and brand awareness plays a crucial role in purchase decisions.

While there is no aversion to consumption of mineral water by any age group, this
product is mainly consumed by the people in the age group of 20-35 years who have less attraction of soft drinks or other synthetic drinks whereas youngsters look in for soft drinks and fruit beverages to quench their thirst. Visibility is another factor that should be taken care of by the companies as consumers are not very brand loyal and consume whatever is in front of them.

Consumers often drink bottled water as an alternative to tap water. They think it tastes better (no chlorine taste) and perceive it to be safer and of better quality. They also look for security: food scandals in industrialized countries and water-borne diseases in developing countries greatly influence consumers attitudes. Consumers buy bottled water to feel well and to lose weight. Bottled water is perceived as a healthy alternative to other beverages. Thus, for the aerated beverages bottled water offers a potential threat.
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Moreover, increasing urbanization, causing declines in tap-water quality, can also explain the popularity. Because it is untreated, natural mineral water is perceived as natural by city dwellers looking for genuine products. Higher living standards and auto usage enable people to easily bring home more and heavier bottles of water. At the office, a bottle of water is now a common sight on the desk, next to the computer and the telephone. Drinking bottled water is a sign of a rise in the social scale. Above all, bottled water has become a huge marketing success.

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6
SWOT ANALYSIS

6.1. STRENGTH 6.2. WEAKNESS 6.3. OPPORTUNITY 6.4. THREAT

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6.1. STRENGTH
1. QUALITY STANDARD:Every bottle of BISLERI is put through a rigorous Multi stage purification processes which includes micron filtration and ozonisation. It acquires 6 stages of purification processes which ensure quality water which is pure and safe for drinking purpose. Good manufacturing are the strength all the time processing in religiously monitored at every stage. 2. TRUST FOR BRAND:More than 50 lakhs people trust the BISLERI. They buy only BISLERI water because it has became generic name for mineral water. For example: - When people go to buy the mineral water many of them ask for BISLERI, even though they get other brand. 3. LARGE RANGE OF PRODUCTS:BISLERI offers a large range of products which attracts consumer of all categories. For example: - 1 litre or 500 ml pack is useful for individual buyers, 12 litres or 20 litres is useful for organization. Therefore it attracts large number of customer. 4. MARKETING:BISLERI is promoted by an aggressive print & TV. TV is backed by a Hoarding & point of sale material. Every interface with customer is used as an opportunity to reinforce. For example: - All vehicles used for supply have been painted in light green, bears the BISLERI logo & sport catchy baseline likes drink and drive. 5. DISTRIBUTION SYSTEM:With little belief in the distributor system, the company leverage its large fleet of truck to supply bottled water directly to retailers through a system called Route Selling where the driver of truck is trained to be a service person. This ensures that water supplied is fresh and bottles are in good shape. BISLERI has more than 80,000 outlets in the country.

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6. EXPERIENCE OF MR.CHAUHAN (M.D OF BISLERI):From the vast experience of marketing Gold Spot and Thums Up, Mr. Chauhan knows that distribution plays a crucial role in the successful marketing of bottled drinks. He knows that making fresh water available within a particular period of time is crucial for its success. He is pursuing a multi- pack and multi- price strategy. 7. BULK SEGMENT IS USEFUL FOR HOUSEHOLDS ALSO:Households in certain parts of the country spend a huge amount of money on fuel in order to purify the water. They are supposed to buy the impure water and then they have to spend money to purify it.For instance the water scarce south people spend large some of money to buy water and still more to purify it. The 12 litre product is hit in various cities of south. 8. GROWING POPULARITY:The popularity of BISLERI is increasing rapidly day by day. People in the market when it comes to mineral water a person goes to any shop and asks for BISLERI as his/her first preference. BISLERI is seeing a growth of almost 50% per year. With the small pack being popular among individuals user its bulk pack is also generating the huge demand which is capturing the market for BISLERI. Today 60-70 % of total income of BISLERI comes from its bulk segment and the company is planning to increase it up to 80%. 9. THE BREAK AWAY SEAL:Keeping in mind the consumers need to recognize a genuine product that cannot be tempered with. The unique cap has been patented and cannot be duplicated. This technical strength ensures that the consumer will only get a high safe product when they will drink BISLERI.

6.2. WEAKNESS
1. METHOD ADOPTED FOR DISTRIBUTION:THE ROUTESELLING policy adopted by BISLERI for distribution is more expensive than more commonly followed method of appointing distributors in different towns. This reduces the profit of company. The dealer margin is reduced due to this .therefore not many dealer keeps BISLERI in many areas. Indirectly this is reducing the coverage of BISLERI.
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2. REUSE OF BOTTLE BY LOCAL SELLERS AND ILLEGA MANUFACTURERS:Market research conducted by BISLERI revealed that the other overriding concern for this set of buyers is the tampering of seal and the reuse of bottles. Many have witnessed used bottles being refilled at railway stations. This deteriorates the brand image of BISLERI. For example: - local sellers fill the bottle of BISLERI with impure water and the bottles are purchased by illiterate customers as BISLERI water but they buy water of low quality. In this way brand of BISLERI gets affected. 3. FAULTS IN PRODUCTION:Tests conducted by various authorities shows that it contains pesticides. In 2002 the 2cm long insect was found in the bottle of BISLERI. This has affected its sales and reputation. The license of its two factories one at Noida and other at Bangalore has been cancelled because of fault in production. 4. PRESSURE BY GOVERNMENT AUTHORITY:After insect was found in the bottles, FDA (Food & Drug Adulteration) has cancelled the production of BISLERI. Afterwards it was allowed to resume it but in this period its customer were moved towards other products. It is constantly under check by various authorities. 5. NOT MEETING THE DEMAND OF THE CUSTOMER:In certain parts of south in our country big bottles of BISLERI are in huge demand but the company is unable to meet the demand of the consumers. This is affecting the demand for the product. So People are forced to use other brands of mineral water

6.3. OPPORTUNITY
1. FAST GROWING FIELD:The best beverage for India in the new millennium seems to be water. In recent years, the bottled drinking water market has been witnessing high decibel level of activity, with a host of new entrants. The bottled water market which worth Rs. 1000 crore is expected to be Rs. 5000 crore by 2010. This will increase a lot of scope for bottled water market.
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2. BISLERI CAN UTILISE ITS DISTRIBUTION CHAIN:With BISLERI becoming a generic name for bottled drinking water. If company can manage the distribution chain of the product to make it available where the consumer needs it the most, the company may well succeed in his gamble with water. For this the company can connect it with dealers and other distributors who will market the products for them all around the world. 3. EXPANSION IN EUROPE:The launch of BISLERI in the European market on 4 th September, 2003 has created a lot of scope for BISLERI in the field. This will also compensate the deterioration of image; BISLERI has suffered after insect was found in the bottle. It will silence the critics and it will also increase the faith of the customer for the brand. It will create an international brand image and the quality will increase. 4. LAUNCH OF PREMIUM PACK:The company also has its premium product range. This is prepared keeping 5-star hotels and other premium customer. This pack will be sold at Rs. 20 per litre. This will give a tough competition to the EVIAN, the biggest player in the premium water range which sells its 1 litre water at a hefty of Rs.85 per litre. 5. CHANGE OF IMAGE:The company has changed the colour of the product. It has changed from blue to green. By changing the colour, the company has provided a new product to the consumers; they will be getting a new and a refreshing product. 6. INCREASE IN PRODUCTION:BISLERI is eyeing the Market and is in the process of increasing the production by setting 4 new plants adding to its 23plants. This will increase the production capacity of the company.

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6.4. THREAT
1. MARKET IS EYED BY THE BIG PLAYERS:The growth of the market indicates the need for the mineral water. Due to this the heavy weights are eyeing the market. Coke, Pepsi, Britannia, Nestle, Auswater is keen on raising their stakes in this market. With the cut throat competition between Coke and Pepsi, BISLERI is not safe. 2. ENTERING OF NEW PLAYERS:To get some share in the market many new players are entering in the market. Among them major names are Godrej, which is launching its product AQUA-PURE and Tata-Tea is looking forward to but Himalayan, this will increase the competition. Also Britannia which is distributing EVIAN is planning to launch its own brand. There are also new entrants ATCO with BRILLIANT water, DS FOODS with CATCH are also coming. Even Hindustan lever is planning to enter into the market. This is give a tough competition to the current water brands including BISLERI. 3. WATER FILTER MANUFACTURERS:BISLERI is not only getting competition from mineral water maker but is also facing a tough competition from various water filter manufacturers such as Eureka Forbes (Aqua guard). They have been marketing there purifiers in the market which has decreased the sales of bottled water supply to homely customers. 4. ILLEGAL MANUFACTURERS:Company is facing a tough competition from illegal manufacturers in the rural areas. The illegal manufacturers provide water at a very cheaper rate then the branded manufacturers. There are 1000s of illegal manufacturers which are providing the wate r at a very cheaper rate. This is a serious problem for branded manufacturers. This companies also use the fake name of branded bottled water i.e. BISLERI and supply their products in the market.

5. STRONG DISTRIBUTION CHANNEL OF THE OTHER MANUFACTURERS:Analysts feel that BISLERIS break away seal will not at all be effective the company having strong distribution channel will only survive. This rings the warning bell for BISLERI because among other players Kinley and Aquafina are having a strong distribution network of Coke and Pepsi. Nestle will be banking on its chocolate distribution network.

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Even though the BISLERI has a strong networks but its concentration on bulk segment can lead to improper network. For example: - A chemist who is selling the 1 liter pack may not sell the 20 litre pack. This could disturb the network. 6. NEW GOVERNMENT POLICY:For preparing 1 liter of mineral water 3 liter of ground water is required. Government was not charging tax on the extraction of the ground water. Now by introducing the new policy government is going to impose tax on the extraction of the ground water, this will increase the production cost because of which the companies will be forced to increase the price which all consumers of all categories cannot afford. The companies can compensate the high production cost by reducing their marketing expenses but this will keep the consumer unaware about the product. This is also affect the quality of the bottled water.

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7
MASTER BUDGET

7.1.Budgeted Income Statement 7.2.Sales Budget 7.3.Cost Of Goods Sold Budget 7.4.Production Budget 7.5.Factory Overhead Cost Budget 7.6.Selling And Administrative Expenses Budget 7.7.Process Costing Flow

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Introduction
The following exhibit shows the relationship among the income statement budgets. The budget process begins by estimating sales. The sales information is then provided to the different units to estimate the production and selling and administrative budgets. The production budgets are used to prepare the direct materials purchases, direct labor cost, and factory overhead cost budget. These three budgets are used to develop the cost of goods sold budget. Once these budgets together with the budget for administrative and selling expenses have been developed, the budget income statement can be prepared.

After the budgeted income statement has been developed, the budgeted balance sheet can be prepared. Two major budgets comprising the budgeted balance sheet are the cash budget and the capital expenditures budget

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7.1.Budgeted Income Statement

The budgets for sales, cost of goods sold, and selling and administrative expenses, combined with the data on other income, other expense, and other income tax, are used to prepare the budgeted income statement. The next table shows a budgeted income statement for the company Bisleri Manufacturing Inc

Bisleri Manufacturing, Inc. Budgeted income Statement For the Year Ending December 31, 2011
Particulars . Revenue from sales (from Sales budget) Cost of goods sold (from Cost of Goods Sold budget) Gross profit Selling and administrative expenses: Selling expenses (from Selling and Adm. Expenses budget) Administrative expenses (from Selling and Adm. Expenses budget) Total selling and administrative expenses Income from operations Other income: Interes revenue: Other expense: Interest expense: Income before income tax Income tax $ $ $13,336,000 9,047,780 $4,288,220 1,190,000 695,000 1,885,000 2,403,220 98,000 90,000 8,000 $2,241,220 600,000

Net income

$1,811,220

7.2.Sales Budget
The sales budget normally indicates for each product, 1) the quantity of estimated sales and 2) the expected unit selling price. These information is frequently reported by region or by sales representatives. In estimating the amount of sales for each product, past sales volumes are often used as a starting point. These amounts are revised for factors that are expected to affect future sales, such as the factors listed below: - Backlog of unfilled sales orders - Planned advertising and promotion - Expected industry and general economic conditions - Productive Capacity
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- Projected pricing policy - Findings of market research studies Once an estimate of the sales volume is obtained, the expected sales revenue can be determined by multiplying the volume by the expected unit sales price. The example below shows the budget sales for the company Colt Manufacturing, Inc.

Bisleri Manufacturing, Inc. Sales Budget For the Year Ending December 31, 2011
Product and Region Wallet: East West Total Handbag: East West Total Total revenue from sales Unit Sales Volume Unit Selling Price $12.00 12.00 Total Sales

287,000 241,000 528,000 156,400 123,600 280,000

$3,444,000 2,892,000 $6,336,000 $3,910,000 3,090,000 $7,000,000 $13,336,000

$25.00 25.00

For control purposes, management can compare actual sales and budgeted sales by product, region or sales representative. Management would investigate any significant differences and take possible corrective actions.

7.3.cost of goods sold budget

The direct materials purchases budget, direct labor cost budget, and factory overhead cost budget are the starting point for preparing the cost of goods sold budget. The desired ending inventory and the estimated beggining inventory data are combined with these data to determine the budgeted cost of goods sold. To illustrate, an example of a cost of goods sold for the company Bisleri Manufacturing, Inc. is shown in the following table and is based on the following work in process and finished goods inventories:

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Estimated inventories on January 1, 2008: December 31, 20011 Finished goods $1,095,600 $1,565,000 Work in process $214,400 $220,000

Desired inventories on Finished goods Work in process

Bisleri Manufacturing, Inc. Cost of Goods Sold Budget For the Year Ending December 31, 2011
Particulars . Finished goods inventory, January 1, 2011 Work in process inventory, January 1, 211. Direct materials: Direct materials inventory, January 1, 2011 Direct materials purchases (from Direct Materials budget) Cost of direct materials available for use Less direct materials inventory December 31, 20011 Cost of direct materials placed in production Direct labor (from Direct Labor budet) Factory overhead (from Overhead budget) Total manufacturing costs Total work in process during period Less work in process inventory, December 31, 2011 Cost of goods manufactured Cost of finished goods available for sale Less finished goods inventory, December 31, 2011 104,400 2,582,100 4,851,600 2,089,080 9,522,780 9,737,180 220,000 9,517,180 10,612,780 1,565,000 99,000 2,587,500 2,686,500 214,200 $ $ $ 1,095,600

Cost of goods sold

$9,047,780

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7.4. Production Budget

The production budget should be carefully coordinated with the sales budget to ensure that production and sales are kept in balance during the period. The number of units to be manufactured to meet budgeted sales and inventory requirements for each product is established in the production budget. The budgeted volume of production is determined as follows: Expected units to sell + Desired unit is ending inventory - Estimated units in beggining inventory Total units to be produced The following table shows the production budget for the company Colt Manufacturing, Inc.

Bisleri Manufacturing, Inc. Production Budget For the Year Ending December 31, 2011
UNITS Water Bottle Sales (Sales budget) Plus desired ending inventory, December 31, 2011 Total Less estimated beggining inventory, January 1, 2011 Total Production 528,000 80,000 608,000 88,000 520,000 280,000 60,000 340,000 48,000 292,000

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7.5.Factory overhead cost budget

The estimated factory overhead costs necessary for production make up the factory overhead cost budget. This budget usually includes the total estimated cost for each item of factory overhead, as shown in the table below:

Bisleri Manufacturing, Inc. Factory Overhead Cost Budget For the Year Ending December 31, 2011
. Indirect factory wages .. 732,800 Supervisor salaries .360,000 Power and light ..306,000 Depreciation of plant and equipment 288,000 Indirect materials ..182,000 Maintenance .....................................................................................140,280 Insurance and property taxes ...............................................................79,200 Total factory overhead cost .......................................................$2,089,080 A business may prepare supporting departmental schedules, in which the factory overhead costs are separated into their fixed and variable cost elements. Such schedules enable department managers to direct their attention to those costs for which they are responsible and to evaluate performance.

7.6. Selling and Administrative Expenses Budget

The sales budget is often used as the starting point for estimating the selling and administrative expenses. For example, a budgeted increase in sales may require more advertising. Detailed supporting schedules are often prepared for major items in the selling and administrative expenses budget. For example, an advertising expense schedule for the marketing department should include the advertising media to be used (newspaper, direct mail, television) quantities (column inches, number of pieces, minutes) and the cost per unit. Attention to such details results in realistic budgets. The following table shows a selling and administrative expenses budget for the company Colt Manufacturing, Inc.:

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Bisleri Manufacturing, Inc. Selling and Administrative Expenses Budget For the Year Ending December 31, 2008
. Selling expenses: Sales Salaries expense Advertising expense Travel expense Total selling expenses Administrative expenses: Officers' salaries expense Office salaries expense Office rent expense Office supplies expense Miscellaneous administrative expenses Total administrative expenses Total selling and administrative expenses $360,000 258,000 34,500 17,500 25,000 695,000 $1,885,000 $715,000 360,000 115,000 $1,190,000

7.6. PROCESS COSTING FLOW

5 STEPS TO ACHIEVE A PROCESS COSTING

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1.- Summarize the physical flow of the units to produce 2.- Calculate production in terms of equivalent units 3.- Calculate equivalent unit costs 4.- Summarize total costs to account for 5.- Assign total costs to the units already completed and to units in ending work in process inventory (WIP).

PROCESS COSTING EXAMPLE

Step 1. Physical units PRODUCTION FLOW Work in process, 0 units Beggining Inventory Units started in the current 35.000 period units 35.000 Total Units units Completed and transferred 30.000 units in the current period units Work in process, 5.000 Ending Inventory units 35.000 Total Units units

Step 2. Equivalent units Production Flow Completed and transferred units Work in Process, Ending Inventory Equivalent units Direct Materials 30,000 5,000 35,000 Progress % 100% 100% Conversion Costs 30,000 1,000 31,000 Progress % 100% 20%

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Step 3. Equivalent unit cost TOTAL PRODUCTION COSTS: $146,050 Direct Conversion Materials Costs $84,050 $62,000 Equivalent 35,000 31,000 Units Cost per equivalent $2.4014 $2.0000 unit

Step 4 and 5. SUMMARIZE AND ASSIGN TOTAL COSTS

TOTAL PRODUCTION COSTS: $146,050 ASSIGNATION Completed and transferred units Work in process, Ending Inventory Direct Materials Conversion costs Total 30,000 X $132,043 $4.4014

5,000 units

5,000 X 2.4014 1,000 X 2.0000

$12,007 $2,000 $146,050

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Future Plans
Mumbai: After dominating the Indian mass packaged drinking water market with a 60 per cent share, BISLERI is all set to make a splash abroad. In the next few months, it will start exporting BISLERI Mountain Water to take on the likes of French brand Evian in the premium packaged drinking water space. Now that we have launched BISLERI in a new hexagonal bottle, it is getting a lot of appreciation. Well soon be launching it in Europe and America in 2 -3 months time, says Chairman, BISLERI International, Ramesh Chauhan. Chauhan says BISLERI is aiming for at least $ 3 - 4 million of sales in the first year. However, BISLERI isn't eyeing the lucrative foreign market alone. The Tatas, too, want to go abroad with the revamped Himalayan mountain water brand. The company plans to introduce new products like flavored and sparkling water, both in the domestic and the international markets. We would be looking at the entire consumer pyramid which straddles every kind o f product offering, but that has to be on the plank of wellness. So that's the platform we are creating, CEO, Mount Everest Mineral Water, Pradeep Poddar says. BISLERI, too, plans to launch its own brand of flavored water by the end of the year. And certainly, for the Indian companies that have so far been restricted to India's $ 500million market, quenching the thirst of billions of more customers makes great business sense.

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BISLERIs Plans of Expansion

BISLERI International Private Limited, Indias largest selling mineral water company, has announced plans to establish 25 new bottling plants across India to meet growing consumer demand. The company is aiming to achieve a 40% growth rate in the current fiscal year. Speaking in Mumbai, BISLERI International Chairman and Managing Director Ramesh Chauhan said, "With the additional plants it will now be easier to reach every corner of the country. Besides, with every new plant, there would be would be increased capacity." The company, which already has 52 bottling plants, is planning to invest Rs 500 million ($10.4million) in setting up these new bottling plants in Maharashtra, Kerala, Jammu and Kashmir, Himachal Pradesh, Tamil Nadu, Karnataka, UP, Orissa, Jharkhand and north Bengal states. With a 60% share in the Rs12billion ($250 million) mineral water category, BISLERI is also venturing into flavored water later this year, having already launched BISLERI Fizzy Soda and BISLERI Mountain mineral water. The company has outlined an aggressive market penetration strategy; a dual-distribution plan, reaching newer markets, including townships and rural India. The company is also setting up dedicated channels for its 20 litre jars to ensure that every household and company gets service at their door step.Anjana Ghosh, Director, BISLERI International Private Limited, said, "The unavailability of clean drinking water, increase in water contamination and health awareness among consumers has led to the growth of mineral water segment "BISLERI has become a strong consumer brand over the years and today we have a longstanding relationship with our distributors and consumers, she added.The companys distribution network is being expanded to meet the increasing retail and consumer demands. On a national level, there are 2,000 trucks on call for BISLERI, while the number of trucks averages 300 and 250 in the Mumbai and Delhi market alone. Every day, some 5,000 delivery vans drive out of the 52 strategically located BISLERI bottling plants carrying over 1 million units of pure drinking water to replenish the stocks of 2,500 distributors and nearly 600,000 retail outlets
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DATA ANALYSIS
Packaged drinking water BISLERI One significant observation made from the study was that the number of players in the market are increasing at a very fast pace, especially the entry of multinationals. Thus it is believed that a research to find out the awareness level and recall level of the brand BISLERI vis--vis other major brands will give an idea about where does the brand exists in the mind of the consumers. This might help the brand to identify the reason for the decreasing market share. Survey objective The Primary objective of the survey is to find out how does BISLERI fair in the Awareness and recall level as compared to the major competitor. The Secondary objective is to

find out the advertising medium by which the Bottled water consumers are most influenced with. Scope of Survey The survey intended to target consumers in South Mumbai region specially Church Gate and Colaba and the survey was done only in south Mumbai specially in areas like Church Gate and Colaba.

Survey was done in three parts

1. Survey of college going students and people, the brand of package drinking water preferred by most of the students and the people 2. Survey of shopkeepers ---- asking them which is the most selling package water brand at their shop. 3. Survey of different hotels as different hotels sells different water brands

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ANEXURES Questionnaire. Dear respondent, I am a student, doing my TYBMS. This Questionnaire is a part of an academic project on Bottled water Industry. A few minutes of yours to fill the questionnaire will be of immense help. Thank you.

1. Which Brands of Mineral water are you aware of? ________________ ________________ ________________ ________________ ________________

2. Which Brand/s do you prefer? ________________ 3. Why do you prefer this particular Brand? ________________________________________________________ 4. What influences your decision to buy a particular Brand?

Brand Image Advertising Price Availability Size / Package

5. From which media did you come to know about the various brands?
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Television Magazines Newspapers Retail outlets Others

6. Are you aware of the brand BISLERI?

Yes No

7. Have seen any advertisements of BISLERI?

Yes No

8. If yes, where?

9. How do you rate the following brands: G for Good ----------------A for Average ---------------- P for Poor

BRANDS BISLERI BAILEY AQUAFINA KINLEY

Price

Availability

Convenience

Quality (Purity)

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CONCLUSION

The important increase in India can be easily explained through the growth of the population and problems of water quality and water supplies. Until 1992, the demand for bottled water in India was mostly limited to foreign tourists, corporate meetings, conferences, etc. The introduction of bulk packaging extended the market to new and numerous consumers.

Bottled water is a particularly competitive market, hence companies need to develop diverse marketing strategies, such as accessing new markets by owning or developing partnership with regional brands, developing new products (such as flavored water) or by-products (such as cosmetics) and developing services (home and office delivery of water)

Today more and more companies are coming up in the package drinking water market as there is a lot of scope in bottle water market as seeing the increase in Indian population. Today the people of India are very hygienic and only prefer bottle water which increases in the scope of bottle water market. By looking at the increasing demand of bottle water companies have to see that they use modern marketing strategies and also come up with trendy bottles and satisfy the wants of the consumer.

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Bibliography
While working on this project I did a lot of surveys by asking people personally about the brand of package drinking water they prefer; as well as caring on survey by questionnaires. Most of the project was made on the basis of Primary data. I personally visited the BISLERI plant at Western Express Highway Andheri East, visiting the plan was an experience of a life time I say the whole manufacturing process and how the water is purified and then packed. Most of the project was done by myself by my observation as I had visited the BISLERI plant an the certificate is attached above I personally visited the Marketing Manager of BISLERI where he told me about their marketing strategies and how they carried on their distribution and how BISLERI is able to maintain its standard at the top. All the information collected was my own where I did lot of surveys of students, people etc I even personally visited different theaters and shops and hotels in the areas of south Mumbai specifically colaba and church gate as different theaters, hotels and shops sell different brands of water. Also a questioners survey was done to find out the most preferred brand by the people. Apart from this I visited sites like www.bisleri.com www.managementcases.com www.icri.com I referred a few news papers like economic times etc But most of the survey was done by me as I personally visited the BISLERI plant at Western Express Highway Andheri East and met the marketing manager personally.

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