projencr on r m

7/23/2019 projencr on r m

1/43

Chapter - 11.1 INTRODUCTION

Marketing strategy is the goal of increasing sales and achieving a

sustainable competitive advantage. Marketing strategy includes all basic

and long-term activities in the eld of marketing that deal with the

analysis of the strategic initial situation of a company and the

formulation, evaluation and selection of market-oriented strategies and

therefore contributes to the goals of the company and its marketing

objectives.

Marketing strategies serve as the fundamental underpinning of

marketing plansdesigned to ll market needs and reach marketing

objectives. Plans and objectives are generally tested for measurable

results. Commonly, marketing strategies are developed as multi-year

plans, with a tactical plan detailing specic actions to be accomplished in

the current year. ime hori!ons covered by the marketing planvary by

company, by industry, and by nation, however, time hori!ons arebecoming shorter as the speed of change in the environment increases.

Marketing strategies are dynamic and interactive. hey are partially

planned and partially unplanned. "ee strategy dynamics. Marketing

strategy needs to take a long-term view, and tools such as customer

lifetime valuemodels can be very powerful in helping to simulate the

e#ects of strategy on ac$uisition, revenue per customer and churn rate.

Marketing strategy involves careful and precise scanning of the

internal and e%ternal environments. &nternal environmental factors

include the marketing mi%and marketing mi% modeling, plus

performance analysis and strategic constraints. '%ternal environmental

factors include customer analysis, competitor analysis, target market

analysis, as well as evaluation of any elements of the technological,

economic, cultural or political(legal environment likely to impact success.

1
http://en.wikipedia.org/wiki/Competitive_advantagehttp://en.wikipedia.org/wiki/Marketing_planhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Marketing_planhttp://en.wikipedia.org/wiki/Strategy_dynamicshttp://en.wikipedia.org/wiki/Customer_lifetime_valuehttp://en.wikipedia.org/wiki/Customer_lifetime_valuehttp://en.wikipedia.org/wiki/Churn_ratehttp://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Marketing_mix_modelinghttp://en.wikipedia.org/wiki/Competitor_analysishttp://en.wikipedia.org/wiki/Target_markethttp://en.wikipedia.org/wiki/Marketing_planhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Marketing_planhttp://en.wikipedia.org/wiki/Strategy_dynamicshttp://en.wikipedia.org/wiki/Customer_lifetime_valuehttp://en.wikipedia.org/wiki/Customer_lifetime_valuehttp://en.wikipedia.org/wiki/Churn_ratehttp://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Marketing_mix_modelinghttp://en.wikipedia.org/wiki/Competitor_analysishttp://en.wikipedia.org/wiki/Target_markethttp://en.wikipedia.org/wiki/Competitive_advantage


2/43

) key component of marketing strategy is often to keep marketing in line

with a company*s overarching mission statement.

+nce a thorough environmental scan is complete, a strategic plancan

be constructed to identify business alternatives, establish challenging

goals, determine the optimal marketing mi% to attain these goals, and

detail implementation. ) nal step in developing a marketing strategy is

to create a plan to monitor progress and a set of contingencies if

problems arise in the implementation of the plan.

Marketing Mi% Modelingis often used to help determine the optimal

marketing budget and how to allocate across the marketing mi% to

achieve these strategic goals. Moreover, such models can help allocate

spend across a portfolio of brands and manage brands to create value.

Marketing Strategies

Marketing strategies may di#er depending on the uni$ue situation of the

individual business. owever, there are a number of ways of categori!ingsome generic strategies. ) brief description of the most common

categori!ing schemes is presented below

Strategies based on market dominance- &n this scheme, rms are

classied based on their market share or dominance of an industry.

ypically there are four types of market dominance strategies

eader

Challenger

/ollower

0icher

)ccording to "haw, 'ric 123425. 6Marketing "trategy /rom the +rigin ofthe Concept to the 7evelopment of a Conceptual /ramework6.Journal of

2
http://en.wikipedia.org/wiki/Mission_statementhttp://en.wikipedia.org/wiki/Strategic_planninghttp://en.wikipedia.org/wiki/Marketing_Mix_Modelinghttp://en.wikipedia.org/wiki/Market_dominancehttp://en.wikipedia.org/wiki/Mission_statementhttp://en.wikipedia.org/wiki/Strategic_planninghttp://en.wikipedia.org/wiki/Marketing_Mix_Modelinghttp://en.wikipedia.org/wiki/Market_dominance


3/43

Historical Research in Marketing., there is a framework for marketing

strategies.

Market introduction strategies

6)t introduction, the marketing strategist has two principle strategies to

choose from penetration or niche6

Market growth strategies

6&n the early growth stage, the marketing manager may choose from two

additional strategic alternatives segment e%pansion 1"mith, )nso#5 or

brand e%pansion 18orden, )nso#, 9erin and Peterson, 4:; as

9otler 14:?@, p. 43:5 observed *0o nancial accounting can ade$uately

convey all the hidden costs.* )t some point, with declining sales and

rising costs, a harvesting strategy becomes unprotable and a divesting

strategy necessary6.

3


4/43

1.2 OBJECTIVE

o analy!e the marketing strategies of the company with

o determine the market share of 8isleri 8rand of 8ottle

Aater.

o nd out the preference level of respondents regarding

8isleri 8rand of 8ottle.

o assess the brand awareness of the 8isleriin the

Mineral Aater "egment.

o "tudy the brand positioning of 8isleri.

4


5/43

1.3 PROCEDURE OF DATA COLLECTION

7ata compilation is an intermediate stage between data collection and

analysis. 7ata compilation involves classication and summari!ation inorder to make data amenable to analysis.

&n dealing with any problem, once the sample has been selected the data

must be collected from the sample population. here are several ways of

collecting appropriate data which di#er considerably in conte%t of money

cost, time and other resources. hey can be broadly classied in to two

categories.

sources to collect data are namely:

4."econdary "ource

SECONDARY SOURCE OF DATA COLLECTION

5


6/43

"econdary 7ata involved in my research were the information that &

collected through the various broachers and pamphlets of the company

which were provided to me during the analysis.

RESEARCH DESIGN :

MEANIN OF RESEARC! DESIN

he formidable problem that follows the task of dening the research

problem is the preparation of the design of the research project, popularly

known as the Bresearch design. 7ecisions regarding what, where, when,

how much by what means concerning an in$uiry or a research study

constitute a research design. B) research design is the arrangement of

conditions for collection and analysis of data in manner that aims to

combine relevance to the research purpose with economy in procedure.

&n fact, the research design is the conceptual structure within which

research is conducted> it constitutes the blueprint for the collection,

measurement and analysis of data. )s such the design includes on

outline of what the researcher will do from witing the hypothesis and its

operational implications to the nal analysis of data.

he research design which has been used in the project report is

descriptive in nature.

SAMPE DESIGN:

he sample design which has been use in this project report is simple

random sampling.

SAMPING !NI" :

) decision has to be taken concerning a sample unit before selecting the

number of samples. &t may be geographical as well as individual. ere all

0CD region has been taken as a geographical unit and retailers as an

individual unit.

6


7/43

SI#E $% SAMPE:

his refers the number of items 1+utlets5 to be selected from the nite

universe to constitute a sample si!e. he survey was conducted of 233

outlets.

TOOLS AND INSTRUMENTS USED FOR T!E STUDY

&t is necessary for a researcher to dene conceptual structure

which research would be conducted. he function of research design is

to provide for the collection of relevant evidence with minimal

e%penditure of e#orts, time and money. &n this research the research

design was as follows-

45 ime available for the research is every day in the week.

25 he means of obtaining the information is through

Primary data like $uestionnaire

"econdary data like mag!ines, net and Pumplets etc.

7


8/43

here is cost factor related to researcher.

1." S#OT ANALYSIS

S"RENG"HS

+ld and famous brand name

8etter packaging

'#ective distribution network

/amous as pure E safe among consumer

=ood product mi%

8


9/43

/re$uent $uality checking

Much used by corporate world

8etter management

=ive regular follow up to distributor

&ndian image

8etter sales force

"ponsoring various cultural program

8etter visibility

=ood intensives to dealer

&EA'NESS(:&EA'NESS(:

one liter packs which accounted for @3 per cent of the companyFs

turnover has come down to G3 per cent. he two-liter packs, which

have practically disappeared from the shelves, have come down

from 23 per cent to ve per cent. he growth has come from the

@33 ml and the ve-liter category, which account for 4@ per cent

and G? per cent of turnover respectively.

'arlier, 8isleri was selling at a premium of Ds.42 for the same si!e.

8ut beginning last year, it has been selling its one- liter bottles at

Ds.4@ each. )$ua Minerals attributes the Price slashing to retailer

margins being on the higher side earlier.

he competitive Ds.4@ price tag has been working well for the

brand.

9


10/43

&n what could be a masterstroke, )$ua Minerals is testing out the

possibility of mass marketing 23-litre 8isleri bottles for an MDP of

Ds.H3. hat works out to Ds.2 a liter. &f the logistics, manufacturing

and distribution do fall in place, it could change the face of the

puried water market for keeps.

$PP$R"!NI"IES$PP$R"!NI"IES

"o far, Chauhan has not used the franchising route very

aggressively unlike Parle )groFs 8ailley which has grown very fast

using this route. e has around si% franchisees in Mumbai, 7elhi,

Chennai, 8angalore, =oa and Dajasthan. BAe shunned this route so

far because in most areas where we had no presence, it was

imperative that we did it ourselves. 0ow for further e%pansion we

can a#ord to use the franchisee route.

"HREA"S"HREA"S

8isleri will be taking the packs back and relling them. 8ut the

packs cannot be sterili!ed since the material used is P' and cannot

withstand high temperature. "o how can he ensure purityI

Strategy to counter threats and others?

Ae subject the bottles to chlorine washes, hot water washes and

o!one washes before we rell the bottles.

he company is betting on the home segment. he reason being

that lters and water puriers also need to be cleaned periodically

and still do not guarantee absolutely clean water. &n order to service

this segment, the ve liter packs are being pushed through the

route of fat dealers 1wholesale dealers5 who are retailers as well as

10


11/43

stockiest and serve as supply points from where customers can pick

up the re$uired $uota. &n future, consumers will be able to call the

fat dealer and place orders for home delivery of the ve-liter pack.

he company has so far appointed 4


12/43

")e origins o* +isleri in Italy, and the brand owes its name to

founder /elice 8isleri, an &talian entrepreneur. &n 4:?;, 8isleri set up

a plant in Mumbai for bottling and marketing mineral water, which

was rst of its kind in &ndia. owever, it didnFt work well. )mongother reasons, the fact that the &ndian consumer was unprepared to

accept bottled mineral water was responsible for its failure.

Consumer mindsets were more geared towards boiling water at

home.

&n 4:?:, Parle bought over the 8isleri brand. &n those days 8isleri

water was available in glass bottles. Parle*s taking charge of 8isleri

did not make a dramatic di#erence to the brand*s fortunes

immediately. Ahile it did gain in terms of visibility and reach

1 Parle*s e%isting distribution network5, e#orts to e%pand the bottled

water market were not e%actly painstaking. Parle at that particular

time was interested in making soda water and not mineral water.

here were just minor initiatives on part of the company for making

mineral water, as it was not considered to be a very protable

business at that time as people still considered boiling water to be a

safer and better than mineral water. Moreover they were not ready

to pay for a commodity like water, which was so abundantly available.

&n 4:;2-;G Parle changed the packaging of its bottled water to plastic

bottles and that signicantly made a di#erence in the sales. he

buyers, then, were mainly the upper class - the trendy people.

&n 4::G, Coca-Cola bought ParleFs soft drink brands- humps-up, limca

etc. Ahile Coca-Cola actually bought over Parle*s beverages, it agreed

to a settlement that allowed the multinational to bottle and distribute

8isleri soda for a time frame of ve years. he charge of 8isleri water,

however, remained with Parle. he upsurge in the sales of 8isleri

started from this point as Parle sold o# its stable of brands to Coca-

Cola. his was the time when it started concentrating on making

8isleri a success in the domestic mineral water market. he reason

why Parle chose to retain the 8isleri name was that Parle saw a fairly

lucrative business of mineral water in 8isleri*s e$uity.

12


13/43

he real shift in companyFs policy towards mineral water industry

came in 4::


14/43

2.2 MAR$ETIN STRATEY

It is complete and an unbeatable plan designed specifically for attaining te

mar!eting ob"ecti#e of a firm. $e mar!eting ob"ecti#e indicate %at te firm %ant to

acie#e. $e mar!eting strategy pro#ides te design for acie#ing tem te

lin!age bet%een mar!eting strategies and o#er all corporate success is indeed

direct and #ital. &eali'ing te mar!eting ob"ecti#es is te purpose of t%o generic

categories .

1. pr%&e 'a(e)

2. D%**ere+t%at%,+ 'a(e)

pr%&e 'a(e) aret%+/ (trate/0

a business tat opts for te price route in its competiti#e battle %ill en"oy certain

fle(ibilities in matter of its product and use prices as main competiti#e le#el . it %ill

price its product to suit te #arying competiti#e demands . it %ill be en"oying certain

inerent cost ad#antages ) %ic permits it to resort a price based figt . te

ma"or forms %ere suc cost ad#antage can occurs are economies of sale )

absolute cost ad#antages ). *enefits of early entry a large mar!et sare build o#er

a time . it pro#ides freedom in te matter of pricing but after producing a particular

product and getting stuc! in te face of te competition ) one can not successfully

opt for a price led strategy .

14


15/43

The )%**ere+t%at%,+ 'a(e) (trate/0

mar!eting strategy based on differentiation %or!s on te principle tat any aspect

of te offer and any acti#ity of te firm can be made distincti#e compared %it te

competiting offers. &igt from tecnology) plant location to post sale and ser#ice a

company can perceptibly differentiate and many buyer #alues. +ompanies usually

coose tose functions ) ,ic gi#e tem te greatest relati#e ad#antage.

-ifferent firms adopts different strategy stances as teir situational design differ

*roadly strategy stances can be classified under tree eads

1- O**e+(%e Strate/0

/ffensi#e trategy also !no%n as confrontation

strategy ) is a strategy of aggression. firm tat is not presently te leader

usually employs it) but it aspires to leadersip position in te Industry.

2- De*e+(%e Strate/0

$e leader %o as te compulsion to defend is

position against te confrontation of po%erful e(isting competitors or to dislodge

te leader from is topmost position usually employs it.

3- N%&he Strate/0-

firm pactising te nice strategy neiter confronts oter

nor defends itself. It culti#ates a small mar!et segment for itself %it uniue

products ser#ices supported by a uniue mar!eting mi(.

15


16/43

F,rat%+/ the Maret%+/ Strate/0

ormulating te mar!eting strategy consists of t%o main steps

1 See&t%+/ the tar/et aret

It does not fully bring out import of te

inseparable lin!age bet%een te t%o. ,en te selection of te target mar!et is

o#er an important part of te mar!eting strategy of te firm is already

determined) defined and e(pressed.

2- A((e'%+/ the aret%+/ %4-

ssembling te mar!eting mi( means

assembling te four ps of mar!eting in te rigt combination.

$e firm as to find out o% it can generate te best sales and profit. It plans

different mar!eting mi(es %it #arying le#els of e(penditure on eac element

and tries to figure out te effecti#eness of eac combination in terms of te

possible sales and profit.

16


17/43

2.3 ADVERTISIN CAMPAIN OF BISLERI

'very brand needs a good ad campaign to establish itself in the

market. "o it becomes very imperative to look at various ad

campaigns that 8isleri undertook to build itself as a brand. 8isleri

started its game plan with the punch line of ,Pure and Sa*e- and

used the same catch-line for advertising. 8ut with the advent of

many new players, all claiming the purity, it became very

imperative for 8isleri to di#erentiate its product so as to stand out

in the market. 8isleri found the answer in Jsealed cap bottlesF. &t

claimed 433K purity. Ahile the bottles of the other brands, it

claimed, could be relled with ordinary, or even germinated water,

8isleriFs seal capped bottles ensured the consumer of purity of

water and single-used ness of the bottles. he ad showed a milk-

man and a child showering their bu#aloes and lling the Jso-calledF

mineral water bottles with the same water and packing them with

the simple polythene seal and the consumer not knowing about the

JpurityF of the water he is drinking. 0e%t clip shows the 8isleri

bottles being sealed with plastic caps and ensuring the purity of

water. he ad did work for 8isleri and it got its much needed

product di#erentiation.

&n 2333, some giant brands like Pepsi and coca-cola entered the

mineral water industry with a big bang. 8isleri now had a big threat

of maintaining its market cap. Ahile Coca-cola introducing its brand

J9inleyF as a health care product, Pepsi projected J)$uanaF as

something as pure as JLour own bodyF. Pepsi targeted the young

generation and introduced )$uana as a fancy product to carry.

he ad campaign of )$uana emphasi!ed as J;3K of your body is

waterF and thus give your body the purest water. he ad showed

young vibrant models and created the atmosphere of youthfulness.

Aater, Pepsi claimed, was no longer a simple beverage, but was

something highly fashionable. hey complimented it by giving their

17


18/43

bottles an attractive look. his soon caught the eye of the

consumer. )ll these factors made Pepsi the biggest upcoming

competitor of 8isleri 1whereas 9inley lagged behind the race,

showing a doctor advising a family to take 9inley for pure water not a very attractive ad campaign5.

8isleri, to counter-attack the new J/eel-LoungF fever had to even bolder

steps. hey rst changed their base line from ,Pure and Sa*e- to ,Play

Sa*e-. hey tried a brand new ad campaign to catch the fancy of

consumer. he new ad showed a young romantic couple on a marooned

island, when the girl seductively attracts the guy and he follows her in

trance. he moment he gets hold of her, she whispers something in his

ears. he ne%t few shots show the guy looking for something in fren!yN

can not nd itN.rushes towards the chemistFs shopN.buys JsomethingF

1keeping the audience in suspenseNor rather implicitly pointing for

JNNF5. he girl opens it andN.P++/N.takes out a bottle of 8isleri and

$uenches her thirst. Ca.tion: /Play Sa*e01his campaign was to catch

the attention of youth and a new &ndian society which is supposed to be

Jnot-so-prudishF. hus 8isleri has taken a very bold step. he .O. ads

have been complimented by print ads also. he company has to focus on

the marketing management of the product. &n light of the challenge in

front of the company and its current strengths and position, we have

incorporated the marketing mi% to counter the marketing strategies of

the competitors by developing its own marketing.

18


19/43

A5UAFINA ADVERTISEMENTS AND BISLERI

) drop-dead gorgeous body e%es its muscles on the screen. his starkly

arresting black and white image is then splashed with water. ) voice-over

informs you that ;3 per cent of your body is water. Ahy not give it the

purestN. )$uana 8ottled water from Pepsi.

his kind of advertisement campaign used by the competitors is giving

the company a tough time. he competitor, Pepsi, is utili!ing the brand

image built by it and is again targeting the B=eneration Q maintaining

the company image. &tFs an unusual ad for this category. ill now, most

marketers have focused on educating the consumer on how bottled water

is a safer option, with the lead of course, taken by the popular national

brand 8isleri.

8ut Pepsi chose to junk this approach and it could well a#ord to. 8isleri,

after all, had already done most of the hard work needed to build the

bottled water category. Ahat Pepsi needed was to establish its brand in

this crowded, fragmented market. +ur task was made easier because was

made easier because 8isleri had concentrated on educating the

consumer, instead of building its own brand values,6 says Dohit +hri, vice

president and client services director, industan hompson )ssociates

imited 1)5. Ae wanted the imagery to positRon )$uana as a

youthful, premium and fun brand,6 says Oibha Dishi, e%ecutive director,

Pepsi. he idea, she says, was not to objectify bodies so that one could

drool over them. 6&nstead, we are talking about your body and the need

for each one to take care of his or her body.6 he ad copy, which spoke of

the water content in our bodies, was actually trying to establish how

important water was to our well- being and how we need to continuously

replenish it.

19


20/43

Ahile the thinking was clear that the imagery had to be built in and

around purity, ) did toy with a couple of other ideas and situations.

&nitially, the idea was to focus more strongly on the fun aspect and create

a story line complete with a smart idea and a twist at the end. 68ut wegave it up because we felt that the story might take the mind away from

the purity aspect that was a must to highlight,6 says +hri.

"o ) adopted a minimalist approach and created a lm with little

clutter and no props, which tried to capture the emotion of 6feeling good

about yourself*. Ahile the lm and the imagery are completely the work

of ), the strategic thinking comes from the Mother Company in the

S".

)$uana, in fact, is the largest-selling bottled water brand in the S" with

a 42 per cent market share, and &ndia is the rst country outside of the

S" where )$uana is being bottled. 'ven in the S", the ad talks of the

percentage of water in our bodies, but the handling is a little more

serious. /or e%ample, the lm will show an emotional moment where

someone starts crying, and then you will hear the voice-over, 6


21/43

Pepsi*s role in the communication is that it is the source of credibility for

the product and, of course, establishes the youthfulness of the brand. 8ut

)$uana is a brand in its own right and with each piece of

communication, its personality will emerge,6 feels +hri. 8ut while)$uana is being given a distinct identity, it is also being targeted at the

Pepsi consumer and is addressing their need for safe and reliable drinking

water. Aill this not cannibali!e Pepsi salesI 6Aater does eat into the cola

market,6 agrees Dishi, 6but we can*t build a business for Pepsi based on

people*s lack of access to safe drinking water.

ow can any business be built on deprivationI6 8oth will have to co-e%ist

and carve a market out for themselves, )ndR while Pepsi targets the 4


22/43

Pepsi, obviously, is looking for a big slice of this burgeoning market, but

as "ubroto Chattopadhyay, e%ecutive vice president, marketing, Pepsi,

says, 6Ae have a building blocks approach, rst we have to build the

brand, and then the volumes.

8isleri is tackling the situation by building the brand on the purity plan.

)kin to brand building in soft drinks, an aggressive print-and-O campaign

is being backed by hoarding, point-of-sale material, and every interface

with the consumer is being used as an opportunity to reinforce the

message. /or instance, all the vehicles used for supply have been painted

in bright blue, bear the 8isleri logo and sport catchy baselines like. 6Play

"afe6.

2." Pa&a/%+/

Oariety is spices of life. oday for any business organi!ation to be

successful it has to provide its customer with the di#erentiated product

that is a value buy for them. &n order to cater to changing needs of the

customer the business has to continuously come out with the variants of

the products so that it can target the ma%imum segments.

oday 8isleri Minerals o#ers a variety of packaging options 4 lit, 2 lit, @

lit, 23 lit. he @ litre bottles account for G@ K of sales showing a growing

health concern among the &ndian society. 4 litre bottles account for G3K

of the share . he 2 litres bottle introduced to slowly and steadily replace

22


23/43

the conventional 4 litre bottle. he @ litre packs, launched in dec 4:::

now available everywhere.

D%(tr%'t%,+

&tFs obvious that availability holds the key to the market ./or any product

to be successful distribution system has to be really good. arge tracts of

the country have not been e%plored by the national brands, which

e%plains the proliferation of smaller brands.

8isleriFs strategy is to build a direct distribution system at an all &ndia

level that means serious investment &n company owned trucks and carts,

this would make it the largest eet owner in the country. 8isleri has

around


24/43

The "P(

Product

he main product of the company is the mineral water by the name

of 8isleri Mineral water. +ther than mineral water the company has

also the soda water under its brand name called the 8isleri "oda

Aater. he concept of bottled mineral water was introduced in &ndia,

rst by 8isleri, and that is the reason, it has become a generic

name for the mineral water. 8isleri has become a perfect synonym

of the mineral water for the &ndian consumers.

he main challenge facing the company or any other player in this

mineral water industry is that there is no scope of invention and

innovation in the product, which can be added as the additional

benets of the product.

&t is just water after all. his is what the &ndian customers think of

the bottled water. &f we are talking about a product like television

we can think that the innovations could provide e%tra benets

derived from the product. /or e%ample other than its core usage the

product can provide for &nternet facilities using conversion.

Place

Place stands for the company activities that make the product

available to the target customers. o make the product available to

the target consumers a good distribution network has to be there to

support the good $uality of the product. ere in the case of the

24


25/43

mineral water industry the distribution network is the important

factor in being competitive and the catch lies in making water

available to ma%imum number of places in the country.

DIS"RI+!"I$N NE"&$R':

he small-scale players built their sales by piggybacking on the

generic category built up by 8isleri. &tFs a battle that 8isleri can win

by sheer distribution muscle. +ne of the reasons why 8isleri is

running strong in this industry is its strong distribution network built

over the years since its inception. /urther, 8isleri plans to increase

its distribution network over the southern and eastern region, where

it is behind popular brands like eam in amil 0adu and in )ndhra

Pradesh.

Pr%&e( *,r *,,8%+/ pa&a/%+/ ar%a+t(

1)0 'C+0+M&C /)C+D )//'C&0= ' 8SL'DF" 8')O&+D5

Price is the sum of values that consumer e%change for the benets

of having or using the product or service. Price is the only element

in the marketing mi% that produces revenue. )ll other elements

represent costs.

&n &ndia, where the majority of the population comprise of the

middle-income group and lower income groups it is not hard to

understand that pricing is one of the most important factor in the

buying decisions.

25


26/43

8isleri has met the e%pectations of the consumers in terms of

pricing the product and also making the product available in

variations of litres, making 8isleri both convenient and a#ordable.

he company is following a very aggressive pricing. &ts product is

available at a very reasonable price.

4 trs Ds. 4GE4@(-

2 trs Ds. 22(-

@ trs Ds. H3(-

23trs Ds ;3(-

Promotion

Modern marketing calls for more than just developing a good

product, pricing it attractively, and making it available to the target

customers, companies must also communicate with their customers,

and what they communicate should not be left to chance.

) CompanyFs total marketing communications program- called its

Promotion Mi% consists of specic blend of advertising, personal

selling, sales promotion, and public relations tools that the company

uses to pursue its advertising and marketing objectives.

AD2ER"ISING CAMPAIGN:

Ahile designing the advertisement campaign, it is necessary to

keep in mind the opinion leaders. Louth are the opinion leaders of

the present time. )nd thus it becomes necessary to design the

campaign keeping the youth in mind. he opinion leaders would

26


27/43

further trickle down the message to the less active members of the

society.

his is e%actly what 8isleri is doing. 8isleri has started an

advertisement campaign stressing the point of purity and aunting

the patent right the company has over the breakaway seal. he

company has tried to put the message across louder, by using the

ad campaign that catches the eye of everyone, specially the

youth. U

C$N"EN" $% "HE CAMPAIGN:

8isleri that was looking for a di#erentiator decided to make the

breakaway seal the symbol of purity. he tamper-proof seal was

developed, around which the communication was woven. he

campaign stresses the safety provided by the breakaway seal by

illustrating the ease with which conventionally sealed bottles can be

relled and recycled.

he objective with the campaign would have been to highlight the

tamper-proof seal and create doubt in the consumerFs mind of the

purity of the other brands. hat is, 8isleri is the only one that

guarantees purity and keeps you Sa*e1

"o conclude: Ae nd that new advertisement campaign of 8isleri is

eye catching. his is what the company should do. )nd also the

company should make the message clearer to the customers that it

has the patent right over the breakaway seal. &n the survey we found

that the consumers are aware of the breakaway seal but are not

aware that the company has the patent right.

27


28/43

)part from a high dose of investments on e%panding bottling

capacities and an ad budget thatFs risen si%-fold over last year, if

8isleri wants to penetrate every possible segment of the market, it

can do that by introducing more pack si!es and establishing thebrand strongly with trendy new packaging.

)part from creating consumer pull with campaign, the company, to

increase its sales would have to do the sales push as well. /or that it

would have to give the retailers and other stockiest high trade

margins and incentives for keeping the product. his is very

important in case of this product because consumers would take up

what is available to them at ease and whatever retailer is giving.

28


29/43

C)a.ter ( 3

314 C$MPE"I"I$N IN MAR'E"

he mineral water market is set to e%plode and hit the Ds.2,333-

crore mark in the ne%t couple of years. his is drawing the big guns

attention. /irst 8ritannia launched 'vian. )nd recently, soft drinks

giant Pepsi entered the fray with )$uana. 0ow, 0estle too is

reportedly planning a foray. Meanwhile, Parle )groFs 8ailey has been

growing steadily. "mall local players too are breathing down

8isleriFs neck riding on better trade margins and intensive

distribution 1in their respective areas of operation5.

he competition facing 8isleri can be categori!ed into a few brand

names like

Parle Bailey

Pepsi Aquafna

Coca Cola Kinley

Aith ParleFs 8ailey being the main competitor and second in market

share in the organi!ed market, 8isleri faces tremendous competition

from the unorgani!ed sector.

29


30/43

Aquafna

he advantage for )$uana is that though there are over G33 labels

of bottled water in the &ndian market, few can be called brands. &t is

necessary to remember that every product with a name is not a

brand> even 8isleri has become generic to this category.

&t does not have any emotional values attached to it. "o there was

no diVculty for Pepsi in creating space in such a market, which is

completely di#erent from the soft drinks market, where it will be

very diVcult for any new player to nd a slot. "o the creative team

at ) virtually had an empty canvas to work on. )nd it came up

with a campaign that did have people talking. /irst, a series of

teasers, followed by a lm that showed healthy bodies and youthful

people and, of course, lots of water.

)lthough )$uana is only available in a ;@3 ml pet bottle, the

pricing, at Ds.43, is competitive. )nd it is safe. &n addition to the

tamper proof seal, there is a reliable method of checking whether

the bottle has been relled. he date of manufacturing has been

written on the cap as well as on the bottle. hus a person who is

relling it would have to nd a matching cap and bottle, the

probability of which is very low.

Coca Cola- Kinley

Coca-Cola joined the race by announcing the imminent launch of its

own brand of water and, in the process, putting to rest rumors of its

so-called takeover of 8isleri. 9inley is targeting institutions.

30


31/43

Parle Agros- Bailley

8ailley the brand that is owned by Damesh ChauhanFs brother

Prakash Chauhan is very popular in the southern part of &ndia.

"outhern part of &ndia accounts for 23K of the sale of the whole

water market industry. 8isleri would have a tough competition from

8ailley since the company plans to spread its presence in that part

of the country. )nother thing that makes the competition diVcult

for the company is the price at which itFs competitor is o#ering the

product. ike 8isleri it also gives the 4 lt. /or Ds.43. he only

strength point of the company, which it can capitali!e, is itFs generic

name. )nd also the company would have to enter that market with

a strong distribution base. Ae know the fact that 8ailley has grown

at a rapid pace using the route of franchising, which 8isleri has not

adopted as yet. his is another point, which the company would

have to take care of to face the competition.

31


32/43

3.2 PRODUCT PROFILE

i. e%e

/It-s a com.liment being generic to t)e category5 but its not 6ery

good 7)en consumers t)ink any mineral 7ater brand is +isleri0

8isleri, a product established in &ndia by Damesh Chauhan, Chairman of

Parle )$ua Minerals has become a generic brand. 8isleri was the rst

marketed bottled water in a totally virgin market. he brand has

become synonymous with mineral water> consumers accept any brand

o#ered by the retailer when they ask for 8isleri.

"o far Damesh ChauhanFs 8isleri enjoys the largest market share of

@?K in the Ds4433 crores mineral water markets and is growing at the

rate of 4


33/43

3.3 MANUFACTURIN

) $uick look at 8isleri*s manufacturing reach indicates that it is

represented across the country 0orth accounts for G@K of sales for the

industry, Aest accounts for G3K, "outh 23K and the 'ast 4@K.

&n order to be available in untapped areas 8isleri has setup 4?

plants located all over the country - three-fourths of which are

company owned. he balance is run by franchisees. 8isleri has @

plants in the 0orth, @ in the Aest- two of which were setup in the

last year at )hmedabad and "urat, H in the "outh and 2 in the 'ast.

he company has bottling units located in Chennai, 8angalore,

Calcutta, Mumbai, 7elhi, Waipur, Sttar Pradesh, Punjab, &ndore and

0epal. he new plants are being set up in states like 9erala, +rissa,

8ihar and 0orth 'astern "tates, which have been une%plored by the

company.

&t is also changing its production strategy and shifting to a 43-hr

production schedule with sudden increase in demand planned to be

met by additional production.

8isleri has planned to e%pand its operations by investing Ds.?3

crores in the upgradation of facilities. he 423-bottles per minute

33


34/43

18PM5 capacity of the 4? units across the country will be increased

to 2H3 8PM.

Conscious of the environmental implications of its P' bottles, the

company is to set up recycling plants at 7elhi and Chennai, each

with an outlay of Ds.@3m. hese will process @33 kg of P' per hour.

he processed material will be an input for polyester yarn

manufacturers. &n centers other than 7elhi and Chennai, the

company will set up crushing units to crush the used P' bottles.

he company*s e%pansion plans will see its water bottling capacity

go up from the present H33 million liters to @33 million liters. Parle

8isleri imited 1P85 is planning to invest Ds 233 crores to increase

its bottling capacity and double its turnover. he e%pansion will also

increase the number of company*s bottling plants from 4? at

present, to 2@. he company will set up all the new plants as green

eld plants. &t doesnFt have any intentions to ac$uire any e%isting

plants.

PURE BOTTLED DRIN$IN-#ATER

I( Da+/er,(

")e Sa*ety o* +ottled Drinking(7ater

8ecause of the large number of possible ha!ards in drinking-water, the

development of standards for drinking-water re$uires signicant

resources and e%pertise, which many countries are unable to a#ord.

/ortunately, guidance is available at the international level.

34


35/43

he Aorld ealth +rgani!ation 1A+5 publishes Guidelines for Drinking-

water Qualitywhich many countries use as the basis to establish their

own national standards.

International Standards *or +ottled Drinking87ater

he intergovernmental body for the development of internationally

recogni!ed standards for food is the Code% )limentarius Commission

1C)C5. A+, one of the co-sponsors of the C)C, has advocated the use of

theGuidelines for Drinking-water Qualityas the basis for derivation of

standards for all bottled waters.

CSE Re.ort on .esticide residues in bottled 7ater

he Centre for "cience and 'nvironment, a non-governmental

organi!ation based in 0ew 7elhi, has set up the Pollution Monitoring

aboratory to monitor environmental pollution. &ts main aim is to

undertake scientic studies to generate public awareness about food,

7aterand air contamination.

he bottled 7atermarket share of major brands is +isleri1@4K5, 8ailley

14;K5, Les 144K5 followed by 9inley 143K5, )$uana 1HK5.

7rinking 7ater lled in hermetically sealed containers of various

compositions, form, and capacities that is suitable for direct consumption

without further treatment

FACTS

8ottled drinking 7ater samples of some top brands +isleri 1Parle

+isleriPvt. td.5, 8ailley 1Parle )gro Pvt. td.5, )$uana 1Pepsico &ndia

olding Pvt. td.5, 9inley 1industan Coca Cola 8everage Pvt.

td.5 and of other less popular brands like 8est, Doyal )$ua, "eagull etc.,

which were being sold and manufactured in Mumbai and nearby areas

35


36/43

like Pune and 7aman, were purchased randomly. )ll the samples were

purchased from retail outlets in the market and from railway station and

were checked for proper seal, date of manufacture and batch number.

'ven the top brands, which claim to use treatment methods like

purication ltration, activated carbon ltration, deminerali!ation and

reverse osmosis were found to contain residues of pesticides. &t might be

due to the reason that the manufacturers may be by-passing the raw

7ater after partial treatment and remi%ing it with the fully treated

stream so as to cut down the cost of treatment. +n the basis of the

results di#erent brands can be rated in terms of total organ chlorine and

organ phosphorus pesticides from least to most contaminated as-

)$uana Macblue 8ailley 9inley "eagull "heetal +isleri 8rilliant 8ally

)purva

Chapter - "".1 FINDIN

4. )ccording to market share gure, 8isleri is the leading brand which

@@.H@K market share. Ahile 9inley 2G.GGK, 9ingsher G.:;K,

)$uana 4G.:@K and others ?.G3K.

9.99:

19.99:

29.99:

39.99:

"9.99:

69.99:

;9.99:

B%(er% %+e0 $%+/*%(her

A


37/43

2.


38/43

?. here is discrimination in the prices of distributor or the prices at

which retailers directly purchase from the market.

;. Most of the customers rst ask for 8isleri bottle water just because

of its =eneric name not because of brand loyalty.

".2 CONCLUSION

he players who will endure will be those who have a strong

regional presence. ake the case of eam, which enjoys immense

popularity in amil0adu. "imilar brands with a regional presence are

"iruvani, and 9oday. hus, new players will be looking for a distinct

positioning. +ne such brand is PepsiFs )$uana, the largest selling

bottled water brand in the S". )fter its successful test launch in

Mumbai and 8angalore, )$uana was released in Chennai,

)hmedabad, Oadodara, and Pune. Pepsi has invested over Ds.@ crore

in the new )$uana water project in Maharashtra, which is the only

)$uana plant outside the S".

38


39/43

)ccording to 7eepak Wolly, e%ecutive vice president, corporate

communications, Pepsi /oods td. B)$uana will be helped by

PepsiFs network. Moreover, )$uana will be served absolutely

chilled. hat makes sense too, since surveys have indicated that

an overwhelming majority of the bottled water that is consumed in

&ndia is by people who are traveling.

Aith the big players, who have the support of the nancial muscle

and a large consumer base in other categories with them, like Pepsi,

8ritannia, 0estle and Coke X the battle is the tougher arena of

brand building. )ll the multinationals are looking at high-octane

advertising targeting specic consumer segments. "ensing troubled

waters ahead, 8isleri is busy working on a strategy to soak up the

competition and protect his water kingdom.

Strategy 7)ic) t)e com.any could ado.t5 are as *ollo7s:

1.The sot target

"elling bottled water re$uires constantly e%panding the market. he

company should also target the market for soft drinks. )ll the soft

drinks addresses three issues fun, thirst and refreshment followed

by status to some degree. he thirst and the status value of the

mineral water are well accepted. here is very little the mineral

water brands can do to add the fun element around the product.

)gain here, it becomes important for the company to have a good

39


40/43

distribution network. &t should be understood that if the mineral

water is easily available everywhere then it can be said with

condence that it would be able to replace the soft drinks as thirst

$uencher. &f we try and look at the reasons that why consumers buy

soft drinks as thirst $uenchers we would nd the answer as that

either water is not available or if it is available then safety is not

assured. herefore, backed by a good distribution network mineral

water industry can grow at a rapid rate.

".3 RECOMMENDATIONS

)dvertisement to build the brand image that will provide the

re$uired ground to establish the authenticity to the product.

40


41/43

P+P 1Point of Purchase5 displaying the cost of water at Rs1 3

per liter, as the perception of the people is that mineral water

cost Rs1 49per t.

)wareness programs at health club, schools E 0ursing homes.

o win over the consumer belief and faith over the genuity of

the product.

7isplay of hot and cold dispensers and bottles at places like

hotels, clubs and airports where upper class group visits, as

they are the potential customers. Place like departmental

stores, petrol pumps and super ba!aars can also be considered.

he company should organi!e camps at various part of the city

also road show to bring about the di#erence between mineral

water and lter(puried water and to tell the people how

mineral water is more hygienic than ltered water(puried

water.

o aware people the cost benet analysis to the customer of

how the mineral water would cot less and benet more,

because people using purier system cost too much.

"." LIMITATIONS

41


42/43

) small segment of the market has been covered

only, so the conclusion cannot be generali!ed.

he data collected cannot be free from errors, since

some of the respondents failed to give correct

information.

"tudy accuracy totally based upon the respondents

response.

"tipulated short span of time for survey.

42


43/43

Chapter - 6

6.1BIBLIORAP!Y

ar!eting anagement ilip otlar

nnual &eport) *isleri 2012

*usiness aga'ines India $oday nnual ddition

2012 *usiness $oday) *usiness ,orld ugust 2012

,ebsites

%%%.bisleri.com

%%%.disco#ery.com

%%%.google.com

projencr on r m

Documents

Transcript of projencr on r m