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1.1 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 field 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 plans designed to fill 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 specific actions to be accomplished in
the current year. Time horizons covered by the marketing plan vary by
company, by industry, and by nation, however, time horizons are
becoming shorter as the speed of change in the environment increases.
Marketing strategies are dynamic and interactive. They are partially
planned and partially unplanned. See strategy dynamics. Marketing
strategy needs to take a long-term view, and tools such as customer
lifetime value models can be very powerful in helping to simulate the
effects of strategy on acquisition, revenue per customer and churn rate.
Marketing strategy involves careful and precise scanning of the
internal and external environments. Internal environmental factors
include the marketing mix and marketing mix modeling, plus
performance analysis and strategic constraints. External 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.
Marketing Strategies
Marketing strategies may differ depending on the unique situation of the
individual business. However, there are a number of ways of categorizing
some generic strategies. A brief description of the most common
categorizing schemes is presented below:
Strategies based on market dominance - In this scheme, firms are
classified based on their market share or dominance of an industry.
Typically there are four types of market dominance strategies:
Leader
Challenger
Follower
Nicher
"In the early growth stage, the marketing manager may choose from two
additional strategic alternatives: segment expansion (Smith, Ansoff) or
brand expansion (Borden, Ansoff, Kerin and Peterson, 1978)".
"In maturity, sales growth slows, stabilizes and starts to decline. In early
maturity, it is common to employ a maintenance strategy (BCG), where
the firm maintains or holds a stable marketing mix".
At some point the decline in sales approaches and then begins to exceed
costs. And not just accounting costs, there are hidden costs as well; as
Kotler (1965, p. 109) observed: 'No financial accounting can adequately
convey all the hidden costs.' At some point, with declining sales and
rising costs, a harvesting strategy becomes unprofitable and a divesting
strategy necessary".
1.2 OBJECTIVE
RESEARCH DESIGN :
MEANING OF RESEARCH DESIGN
The formidable problem that follows the task of defining the research
problem is the preparation of the design of the research project, popularly
known as the research design. Decisions regarding what, where, when,
how much by what means concerning an inquiry or a research study
constitute a research design. A 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.
In fact, the research design is the conceptual structure within which
research is conducted; it constitutes the blueprint for the collection,
measurement
outline of what the researcher will do from witing the hypothesis and its
operational implications to the final analysis of data.
The research design which has been used in the project report is
descriptive in nature.
SAMPLE DESIGN:
The sample design which has been use in this project report is simple
random sampling.
SAMPLING UNIT :
A decision has to be taken concerning a sample unit before selecting the
number of samples. It may be geographical as well as individual. Here all
NCR region has been taken as a geographical unit and retailers as an
individual unit.
SIZE OF SAMPLE:
This refers the number of items (Outlets) to be selected from the finite
universe to constitute a sample size. The survey was conducted of 200
outlets.
STRENGTHS
Old and famous brand name
Better packaging
Effective distribution network
Famous as pure & safe among consumer
Good product mix
WEAKNESS-:
one liter packs which accounted for 50 per cent of the companys
turnover has come down to 30 per cent. The two-liter packs, which
have practically disappeared from the shelves, have come down
from 20 per cent to five per cent. The growth has come from the
500 ml and the five-liter category, which account for 15 per cent
and 36 per cent of turnover respectively.
Earlier, Bisleri was selling at a premium of Rs.12 for the same size.
But beginning last year, it has been selling its one- liter bottles at
Rs.15 each. Aqua Minerals attributes the Price slashing to retailer
margins being on the higher side earlier.
The competitive Rs.15 price tag has been working well for the
brand.
far,
Chauhan
has
not
used
the
franchising
route
very
aggressively unlike Parle Agros Bailley which has grown very fast
using this route. He has around six franchisees in Mumbai, Delhi,
Chennai, Bangalore, Goa and Rajasthan. We shunned this route so
far because in most areas where we had no presence, it was
imperative that we did it ourselves. Now for further expansion we
can afford to use the franchisee route.
THREATS
Bisleri will be taking the packs back and refilling them. But the
packs cannot be sterilized since the material used is PET and cannot
withstand high temperature. So how can he ensure purity?
Strategy to counter threats and others?
We subject the bottles to chlorine washes, hot water washes and
ozone washes before we refill the bottles.
The company is betting on the home segment. The reason being
that filters and water purifiers also need to be cleaned periodically
and still do not guarantee absolutely clean water. In order to service
this segment, the five liter packs are being pushed through the
route of fat dealers (wholesale dealers) who are retailers as well as
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stockiest and serve as supply points from where customers can pick
up the required quota. In future, consumers will be able to call the
fat dealer and place orders for home delivery of the five-liter pack.
The company has so far appointed 180 such dealers. This is a high
turnover, low-margin retailer who does not keep a store but serves
a similar purpose with other items such as rice or atta.
Chapter - 2
2.1 COMPANY PROFILE
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bottled
mineral
water
was
responsible
for
its
failure.
not
make a
dramatic difference
to the
brand's
fortunes
The reason
why Parle chose to retain the Bisleri name was that Parle saw a fairly
lucrative business of mineral water in Bisleri's equity.
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13
linkage between marketing strategies and over all corporate success is indeed
direct and vital. Realizing the marketing objectives is the purpose of two generic
categories .
1. price based
2. Differentiation based
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Different firms adopts different strategy stances as their situational design differBroadly strategy stances can be classified under three heads1- Offensive StrategyOffensive Strategy also known as confrontation
strategy , is a strategy of aggression. A firm that is not presently the leader
usually employs it, but it aspires to leadership position in the Industry.
3- Niche StrategyA firm pactising the niche strategy neither confronts other
nor defends itself. It cultivates a small market segment for itself with unique
products / services supported by a unique marketing mix.
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Formulating the Marketing StrategyFormulating the marketing strategy consists of two main steps1- Selecting the target marketIt does not fully bring out import of the
inseparable linkage between the two. When the selection of the target market is
over an important part of the marketing strategy of the firm is already
determined, defined and expressed.
2- Assembling the marketing mixAssembling the marketing mix means
assembling the four ps of marketing in the right combination.
The firm has to find out how it can generate the best sales and profit. It plans
different marketing mixes with varying levels of expenditure on each element
and tries to figure out the effectiveness of each combination in terms of the
possible sales and profit.
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players,
all
claiming
the
purity,
it
became
very
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18
19
While the thinking was clear that the imagery had to be built in and
around purity, HTA did toy with a couple of other ideas and situations.
Initially, 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. "But we
gave it up because we felt that the story might take the mind away from
the purity aspect that was a must to highlight," says Ohri.
So HTA adopted a minimalist approach and created a film with little
clutter and no props, which tried to capture the emotion of "feeling good
about yourself'. While the film and the imagery are completely the work
of HT A, the strategic thinking comes from the Mother Company in the
US.
Aquafina, in fact, is the largest-selling bottled water brand in the US with
a 12 per cent market share, and India is the first country outside of the
US where Aquafina is being bottled. Even in the US, the ad talks of the
percentage of water in our bodies, but the handling is a little more
serious. For example, the film will show an emotional moment where
someone starts crying, and then you will hear the voice-over, "85 per
cent of your eyes are water.
"There is no internal law that forces us to follow the international
positioning. But seeing the quality of thinking that has gone into this, we
decided to stay with this positioning, though the statements here are
quite different," explains Rishi.
Aquafina, like all offeFings that come from the Pepsi stable, also imbibes
the core values of the mother brand. It addresses the Pepsi-user base,
largely the youth, and like Pepsi ,it is also being positioned as a hip
brand. But Aquafina is a lot that Pepsi is not. It is a little bit older, mature
and affluent, and not as mass based as Pepsi.
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21
Pepsi, obviously, is looking for a big slice of this burgeoning market, but
as Subroto Chattopadhyay, executive vice president, marketing, Pepsi,
says, "We have a building blocks approach, first we have to build the
brand, and then the volumes.
Bisleri is tackling the situation by building the brand on the purity plan.
Akin to brand building in soft drinks, an aggressive print-and-TV 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. For instance, all the vehicles used for supply have been painted
in bright blue, bear the Bisleri logo and sport catchy baselines like. "Play
Safe".
2.4 Packaging
Variety is spices of life. Today for any business organization to be
successful it has to provide its customer with the differentiated product
that is a value buy for them. In 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 maximum segments.
Today Bisleri Minerals offers a variety of packaging options: 1 lit, 2 lit, 5
lit, 20 lit. The 5 litre bottles account for 35 % of sales showing a growing
health concern among the Indian society. 1 litre bottles account for 30%
of the share . The 2 litres bottle introduced to slowly and steadily replace
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the conventional 1 litre bottle. The 5 litre packs, launched in dec 1999
now available everywhere.
Distribution
Its obvious that availability holds the key to the market .For any product
to be successful distribution system has to be really good. Large tracts of
the country have not been explored by the national brands, which
explains the proliferation of smaller brands.
Bisleris strategy is to build a direct distribution system at an all India
level that means serious investment In company owned trucks and carts,
this would make it the largest fleet owner in the country. Bisleri has
around 80,000 retail outlets in the country with about 12,000 each in the
Delhi and Mumbai. It is intended to be increased this no. to 10,00,000 in
order to expand brands reach. The company will invest approximately
Rs.200 cr. to procure 2000 trucks and hire same no. of sales people. The
company plans to have its own distribution network in places where it has
its own plant
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The 4Ps
Product
The main product of the company is the mineral water by the name
of Bisleri Mineral water. Other than mineral water the company has
also the soda water under its brand name called the Bisleri Soda
Water. The concept of bottled mineral water was introduced in India,
first by Bisleri, and that is the reason, it has become a generic
name for the mineral water. Bisleri has become a perfect synonym
of the mineral water for the Indian consumers.
The 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
benefits of the product.
It is just water after all. This is what the Indian customers think of
the bottled water. If we are talking about a product like television
we can think that the innovations could provide extra benefits
derived from the product. For example other than its core usage the
product can provide for Internet facilities using conversion.
Place
Place stands for the company activities that make the product
available to the target customers. To make the product available to
the target consumers a good distribution network has to be there to
support the good quality of the product. Here in the case of the
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DISTRIBUTION NETWORK:
The small-scale players built their sales by piggybacking on the
generic category built up by Bisleri. Its a battle that Bisleri can win
by sheer distribution muscle. One of the reasons why Bisleri is
running strong in this industry is its strong distribution network built
over the years since its inception. Further, Bisleri plans to increase
its distribution network over the southern and eastern region, where
it is behind popular brands like Team in Tamil Nadu and in Andhra
Pradesh.
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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.
A Companys total marketing communications program- called its
Promotion Mix consists of specific blend of advertising, personal
selling, sales promotion, and public relations tools that the company
uses to pursue its advertising and marketing objectives.
ADVERTISING CAMPAIGN:
While designing the advertisement campaign, it is necessary to
keep in mind the opinion leaders. Youth are the opinion leaders of
the present time. And thus it becomes necessary to design the
campaign keeping the youth in mind. The opinion leaders would
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further trickle down the message to the less active members of the
society.
This
is
is
doing.
Bisleri has
started an
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Chapter - 3
3.1 COMPETITION IN MARKET
The mineral water market is set to explode and hit the Rs.2,000crore mark in the next couple of years. This is drawing the big guns
attention. First Britannia launched Evian. And recently, soft drinks
giant Pepsi entered the fray with Aquafina. Now, Nestle too is
reportedly planning a foray. Meanwhile, Parle Agros Bailey has been
growing steadily. Small local players too are breathing down
Bisleris
neck
riding
on
better
trade
margins
and
intensive
Parle Bailey
Pepsi Aquafina
Coca Cola Kinley
With Parles Bailey being the main competitor and second in market
share in the organized market, Bisleri faces tremendous competition
from the unorganized sector.
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Aquafina
The advantage for Aquafina is that though there are over 300 labels
of bottled water in the Indian market, few can be called brands. It is
necessary to remember that every product with a name is not a
brand; even Bisleri has become generic to this category.
It does not have any emotional values attached to it. So there was
no diffi culty for Pepsi in creating space in such a market, which is
completely different from the soft drinks market, where it will be
very diffi cult for any new player to find a slot. So the creative team
at HTA virtually had an empty canvas to work on. And it came up
with a campaign that did have people talking. First, a series of
teasers, followed by a film that showed healthy bodies and youthful
people and, of course, lots of water.
Although Aquafina is only available in a 750 ml pet bottle, the
pricing, at Rs.10, is competitive. And it is safe. In addition to the
tamper proof seal, there is a reliable method of checking whether
the bottle has been refilled. The date of manufacturing has been
written on the cap as well as on the bottle. Thus a person who is
refilling it would have to find 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 Bisleri. Kinley is targeting institutions.
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31
i . exe
Its a compliment being generic to the category, but its not very
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3.3 MANUFACTURING
33
processed
material
will
be
an
input
for
polyester
yarn
of
standards
for
drinking-water
requires
significant
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The World Health Organization (WHO) publishes Guidelines for Drinkingwater Quality which many countries use as the basis to establish their
own national standards.
International Standards for Bottled Drinkingwater
The intergovernmental body for the development of internationally
recognized standards for food is the Codex Alimentarius Commission
(CAC). WHO, one of the co-sponsors of the CAC, has advocated the use of
the Guidelines for Drinking-water Quality as the basis for derivation of
standards for all bottled waters.
Centre
for
Science
and
Environment,
non-governmental
various
FACTS
Bottled drinking water samples of some top brands Bisleri (Parle
Bisleri Pvt. Ltd.), Bailley (Parle Agro Pvt. Ltd.), Aquafina (Pepsico India
Holding Pvt. Ltd.), Kinley (Hindustan Coca Cola Beverage Pvt.
Ltd.) and of other less popular brands like Best, Royal Aqua, Seagull etc.,
which were being sold and manufactured in Mumbai and nearby areas
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like Pune and Daman, were purchased randomly. All 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.
Even the top brands, which claim to use treatment methods like
purification filtration, activated carbon filtration, demineralization and
reverse osmosis were found to contain residues of pesticides. It might be
due to the reason that the manufacturers may be by-passing the raw
water after partial treatment and remixing it with the fully treated
stream so as to cut down the cost of treatment. On the basis of the
results different brands can be rated in terms of total organ chlorine and
organ phosphorus pesticides from least to most contaminated asAquafina Macblue Bailley Kinley Seagull Sheetal Bisleri Brilliant Bally
Apurva
Chapter - 4
4.1 FINDING
1.
60.00%
50.00%
Bisleri
40.00%
kinley
Kingfisher
30.00%
20.00%
Aquafina
Others
10.00%
0.00%
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80%
Bisleri
60%
40%
20%
0%
50%
40%
Bisleri
Kinley
Aquafina
30%
20%
Kingfisher
10%
Others
0%
4. Retailers those are selling Bisleri brand of bottle water is 50%.
5. The company has recently launched Bada Bisleri, Same Price at
Rs. 10/- for 1.2 Ltrs means 2% extra.
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4.2 CONCLUSION
The players who will endure will be those who have a strong
regional presence. Take the case of Team, which enjoys immense
popularity in TamilNadu. Similar brands with a regional presence are
Siruvani, and Koday. Thus, new players will be looking for a distinct
positioning. One such brand is Pepsis Aquafina, the largest selling
bottled water brand in the US. After its successful test launch in
Mumbai
and
Bangalore,
Aquafina
was
released
in
Chennai,
Ahmedabad, Vadodara, and Pune. Pepsi has invested over Rs.5 crore
in the new Aquafina water project in Maharashtra, which is the only
Aquafina plant outside the US.
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With the big players, who have the support of the financial muscle
and a large consumer base in other categories with them, like Pepsi,
Britannia, Nestle and Coke the battle is the tougher arena of
brand building. All the multinationals are looking at high-octane
advertising targeting specific consumer segments. Sensing troubled
waters ahead, Bisleri is busy working on a strategy to soak up the
competition and protect his water kingdom.
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4.3 RECOMMENDATIONS
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To win over the consumer belief and faith over the genuity of
the product.
4.4 LIMITATIONS
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Chapter - 5
5.1BIBLIOGRAPHY
Marketing Management
Philip Kotlar
Business Magazines
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