Bottled water has become an essential commodity for people worldwide, and India is no exception. The Indian bottled water market has seen exponential growth over the years, with an estimated worth of around Rs. 14,000 crores and a growth rate of around 20% per annum. However, Bisleri, a company that has been in business for over five decades, has been the market leader with a market share of over 40%. Despite the entry of many new players, the market share of Bisleri has remained relatively stable. However, Parle Agro's Bailley, a relatively new entrant in the market, has managed to challenge Bisleri's monopoly and become one of the leading brands in the country. In this case study, we will analyze how Bailley managed to break Bisleri's monopoly and establish itself as a leading player in the Indian bottled water market.
Parle Agro, the company behind Bailley, is one of the leading beverage manufacturers in India, with a portfolio of popular brands such as Frooti, Appy Fizz, and Bailley. The company entered the bottled water market with Bailley in 2011. However, Bisleri's dominant market share posed a significant challenge to Bailley. Despite being a new entrant, Bailley aimed to capture a significant market share in the Indian bottled water market.
Strategies Adopted by Parle Agro:
Parle Agro adopted a two-pronged strategy to break Bisleri's monopoly. Firstly, they invested heavily in advertising and promotions to build brand awareness and create a strong brand image. Bailley's advertising campaigns were focused on highlighting the brand's purity and naturalness, which resonated well with Indian consumers. Parle Agro also utilized various media channels, such as television, radio, print, and social media, to reach a wider audience. They ran an advertisement campaign highlighting the purity of the water, making it the main USP of Bailley.
Secondly, Parle Agro focused on distribution and pricing strategies to make Bailley accessible to consumers across India. They established a vast distribution network comprising over 2,500 distributors and 3,00,000 retail outlets, ensuring that Bailley was available in even the remotest parts of the country. Parle Agro also priced Bailley competitively, making it more affordable than Bisleri, which helped them attract price-sensitive consumers. The company was able to keep the pricing in check due to the large scale of operations and production.
The strategies adopted by Parle Agro proved to be successful, and Bailley managed to break Bisleri's monopoly and capture a significant share of the Indian bottled water market. In 2019, Bailley had a market share of over 20%, which was a significant increase from the 1% market share it had in 2012. Bailley also managed to win several awards for its marketing campaigns and brand-building efforts.
Moreover, Parle Agro's innovative approach towards the Indian market and its changing trends helped it to position Bailley well. Unlike many of its competitors, Bailley was not positioned as a health drink but rather as a natural drink with a lower TDS level than that Bisleri. This appealed to many consumers who had started valuing natural products over artificial ones. Parle Agro had not only managed to capture the market share, but it had also altered the perception of what constitutes the perfect water, making it taste better and healthier.
Parle Agro's success with Bailley highlights the importance of branding, distribution, and pricing strategies in breaking monopolies and gaining market share in a competitive industry. By investing in advertising, building a strong distribution network, and pricing their product competitively, Parle Agro managed to establish Bailley as a formidable competitor in the Indian bottled water market. Additionally, the company's focus on naturalness and purity helped it connect with Indian consumers who were increasingly looking for healthier and natural products.
Parle Agro's success with Bailley also highlights the changing trends and preferences of Indian consumers. As more and more consumers become health-conscious, companies that offer natural and healthier products are likely to gain an advantage in the market. Additionally, the success of Bailley also shows that breaking monopolies in the market is possible with the right strategies and approach.
However, Bisleri continues to be the market leader in the Indian bottled water market, with a market share of over 40%. The company has also been investing heavily in advertising and promotions to maintain its position in the market. Bisleri has also introduced new products and variants to cater to changing consumer preferences, such as mineral water and flavoured water.
In conclusion, the case study of Parle Agro's success with Bailley highlights the importance of branding, distribution, and pricing strategies in breaking monopolies and gaining market share in a competitive industry. By adopting a two-pronged strategy and focusing on naturalness and purity, Parle Agro managed to establish Bailley as a leading brand in the Indian bottled water market. However, as the market continues to evolve, companies must continue to innovate and adapt to changing consumer preferences to stay ahead of the competition.