I would like to add my 2 ml to the points already mentioned:
1. From a historical cost perspective, this industry is not about water but about transportation. The majority of the costs involved are related to transportation and not purification or bottling. To avoid this, water is just purified locally as close to point of sale as possible. This means a lot of local operators proliferate, but cannot brand well because large branding spends are predicated on a national presence. If you are local-only, you cannot justify advertising on national media.
2. Bisleri was an Italian-origin luxury brand from the 19th century, that was introduced in India around '65 and later purchased by the Parle family. This is a family who created multiple iconic Indian brands themselves including Thums Up, but still realised the value of paying for foreign luxury branding when it came to selling water.
3. Even with their marketing budget, these iconic water brands come from organisations with a stable of other related brands, and they can mitigate shared costs like the cost of marketing teams, distribution channels and even infra like coolers. Matching this is difficult for a firm with a single brand.
4. The desirability and sell-ability of water is a function of, among other things
- Availability (during travel, water is purchased based on what's available easlily)
- Tie-ups (with cinemas, airlines, spas, any place associated with luxury whose sheen will rub off)
- Packaging (Good label design shows. Great fonts and layout, good quality label, correct grammar create an impression)
- Bottle quality (A flimsy bottle from a rail journey is very different than a thick unique bottle from Qua which people take home. But custom molds are expensive)
- Brand recall (a function of marketing spend, frequency and channels)
5. In terms of recommendations, I would suggest:
- Invest in good design: a custom desirable luxury brand, well designed unique bottle which people would like to take home, custom mold for the bottle, good quality stickers.
- Associate only luxury marketing and distribution channels with your brand - don't put your brand in cheap places
- Build up the brand to sell it to a larger company, this will help justify investments in the brand rather than just looking at short term sales ROI.
6. This is a dirty space with lots of bad tricks from competitors. Keep eyes open.