In this article, we discuss the SWOT analysis of Bisleri which is owned by Bisleri International Pvt Ltd. and is an Indian beverage company that was established in the year 1984 by Jayantilal Chauhan. It is a popular brand of mineral water. In the year 1965, it was introduced as a soda brand by Felice Bisleri and then later acquired by Chauhan in the year 1969. Bisleri sells soft drinks and bottled water.
Most of Bisleri’s business is in India, having about 135 operational plants with 3000 distribution networks. The company also distributes its packaged drinking water using online retailers. Bisleri water bottles are of three types:
- 20 liter bottled mineral water used in offices across the country.
- 1 liter bottled water that is sold across stores.
- 500 ml bottled water used in events or parties.
Owing to the company’s reachability and its excellent business description in the beverage sector, let us discuss the SWOT analysis of Bisleri.
SWOT analysis of Bisleri helps the company to identify its strengths, weaknesses, opportunities, and threats. This finding will help the company to move forward and generate more profits.
Strengths in SWOT Analysis of Bisleri
Strengths in Bisleri SWOT analysis highlight the main strengths of the brand that has been bought to this level.
1. Brand Image
Bisleri is a go-to water bottle for many people and it is a popular brand across the country. It has achieved high brand value in the minds of customers. Bisleri water is so popular that when people go to purchase water, they pick up Bisleri bottles. This is a key strength of the brand and its brand names is a big success. It has also earned the customer’s trust over many years by providing pure water.
The company has always tried for many innovations with their products like improving packing, tamper proof seals, etc. The brand had moved from glass bottles to PET bottles to ensure that there is quality. Its PET bottles are recyclable, hence taking care of its ecosystem. Few of the innovations that Bisleri introduced are:
- Breakaway seal to keep up purity.
- Hexagonal bottles to handle the bottle better, use it properly, and for balancing.
- Big family bottles to use in homes and offices.
3. Quality Standard
The brand has always focused on the quality of its products and has not compromised on it. To differentiate from its competitors, the company claims that its bottled water is 100% safe. Bisleri introduced the breakaway seal to ensure that they always deliver what they promised.
Bisleri bottled drinking water market is the top in the country and has a market share of about 24.6%. Its top market share is the main strength of the brand.
5. No Close Competitors
Bisleri stands in a comfortable position in the market and has not many competitors. It faces competition only from Kinley and Aquafina.
6. Wide Network and Plants
Bisleri has a major strength in its number of plants and wide network that helps them to increase its production. Having more production units will help them with more products and increase its sales. The company has about 135 plants and 3000 distributors. It has more than 5000 trucks for purpose of distribution.
Bisleri has strong and aggressive advertising and its point of purchase marketing is a unique strategy. Bisleri brands its dealers and distributors shops across the country. Also, the color is unique and is noticed even on highways when driving fast. Due to this, the branding results in a good turnover.
Bisleri makes use of the digital mode of selling and has ventured into e-commerce platforms. Its products are available on its website and available in other e-commerce platforms like Big Basket, Flipkart, Amazon, Grofers, etc.
9. Strong Distribution Network
Bisleri has a huge distribution system and hence it is available in many places.
Weaknesses in SWOT Analysis of Bisleri
Weaknesses in Bisleri SWOT analysis highlight the various internal factors that the brand sees some low performance and has to improve to get more sales.
1. Distribution Method
Bisleri uses a routeselling method that is more expensive than the usual method of placing distributors in various towns. This increases cost and many retailers hesitate to keep the products. This situation attacks its distribution, market share, and revenue which is a weakness for the brand.
2. Bottle Reuse
Many local people gather Bisleri used bottles and refill it using local unclean water and mix these bottles along with the original batch. People purchase them and this impacts the brand’s image, making the water harmful for consumption. It might contain so much harmful chemical and is of low quality water.
3. Human Error in Testing Water
As water is tested by humans, there can be human errors in the manufacturing process. Any human error causes harm to human life and it impacts the brand. Bisleri has lost permission due to production errors in Noida manufacturing unit.
4. Production Faults
Most of the time Bisleri comes under some quality issues. This issue impacts the brand’s reputation and value. There was also an instance about losing its license for its Noida production unit due to quality issues. Also, BIS cancels the license of water bottle in Delhi as they did not carry ISI label.
5. Unmet Market Potential
Bisleri is unable to meet the market potential in certain parts of India in mineral water. Production capacity is low and not meeting the demand of high consumption. Also, there are many other limiting factors to production like the government norms. So, to match the market potential, it has to increase its production.
Opportunities in SWOT Analysis of Bisleri
Opportunities in Bisleri SWOT analysis highlight the various external factors that the brand can take up to see more business growth.
1. Market Expansion
Bisleri can expand to various locations across the global markets to sell bottled water. This will help the company to increase its market revenue and profits. The Middle East and Europe are possible options to expand. It will create an international brand image for the company.
2. Growth Rate
Packaged drinking water grows at a steady rate every year and it grows more than the growth rate of other carbonated drinks, like coca cola. Hence, there is more opportunity for the brand to increase its sales.
3. Premium Segment
To increase bottled water market, Bisleri can start packaged water for 5-star hotels along with upper middle class people. The brand can diversify its target audience to increase its sales.
4. Match Demand and Supply
One main issue with any retailer is to get the Bisleri supply when it gets over. Sometimes, retail outlets have a delay in getting bottled water and hence they tend to shift to other brands. So, Bisleri sees more opportunities on increasing its production capacity. It can conquer more markets and will be able to match the demand and supply of packaged water. It will also increase its revenue.
Threats in SWOT Analysis of Bisleri
Threats in Bisleri SWOT analysis highlight the various external factors that affect the brand’s reputation and impact its growth.
Indian markets has many product categories. Many beverage companies like Pepsi, Coca-cola, etc. have launched packaged drinking water across the country. This affects Bisleri’s market share and hence is a threat. It can cut down its revenues and profits with tough competition.
2. New Big Players
Apart from the regular competitors, many other giants has an eye on the mineral water bottling business in India. Many companies that have an eye on this packaged drinking water segment are HUL, Tata, Nestle, and DS group. When they enter this segment, Bisleri will see more competitors and this is a serious threat to the brand.
3. Local Players
One major threat to the brand is the many local players in this packaged drinking water segment. There are many competitors for Bisleri who have come up from various places. As their operations are smaller than Bisleri, they provide higher margins to retailers and will capture the market in due course. This impacts Bisleri as there are many local players in the urban areas.
Many illegal manufacturers packages their products like Bisleri and sell them across various local destinations. This harms Bisleri’s market share which is a threat to the brand’s revenue.
5. RO and Filters
There is an increase in RO and water purifier sales in the country which is also a threat to the brand. As more and more people prefer to install these at homes and carry these while traveling. Hence, they do not purchase bottled water from any retailer. Also, such filters rates are feasible and the threat to the company is increasing.
6. Fluctuating Government Policies
For every packaged water, there should be some need given to the earth and a create sustainable environment. Bisleri should keep updating its production style to suit the government norms. This would increase the production cost and it would reflect in the product cost. This is a threat as it might lead to less profit.
7. Decreasing Ground Water Level
Every year there is a decrease in ground water level that is a threat to the brand. Bilsleri requires approximately three liters of ground water to produce one liter of its mineral water.
Table of Contents
- Strengths in SWOT Analysis of Bisleri
- Weaknesses in SWOT Analysis of Bisleri
- Opportunities in SWOT Analysis of Bisleri
- Threats in SWOT Analysis of Bisleri