1

2
3
4 CHAPTER - 1
5 INTRODUCTION

1. INTRODUCTION
6 1.1 Overview
7

Water is the most important liquid in the world. Without water, there would be no
life, at least not the way we know it. In today's living condition, the need for Pure
Drinking Water is becoming the issue for the common Man.

Eighty percent of the human metabolism consists of water. This is the reason why
90% of human diseases are water borne. There are 3 types of water impurities, which
are root cause of water borne diseases.

1. Microbiological-Bacteria / virus.

10 2. Dissolved impurities - chemical.

11 3. Imbalance of Mineral Content.
12 There are rapid changes that are taking place in our environment since long and the
air and the water pollution is on an increase. The main source of drinking water is
river and downstream which also have not been able to escape the pollution.
13 When a consumer became aware of the problems caused by water pollution the
market saw an advent of ceramic water filters, which filters the dust and suspended
particles but dissolved impurities and microbiological impurities are not cleared out.
The mineral balance is also not maintained.
14 1980's witnessed more changes by a tap attachment wherein Iodine resin is used to
filter the water. It deactivates microbiological impurities to an extent but has side
effects due to iodine and it does not take care of dissolved impurities mineral
balance.
15 Late 1980's witnessed Ultra Violent based purifier, which filters dust and deactivates
bacteria to a great extent. It maintains the odor and color of water but does not clear
out the dissolved impurities and mineral particles. Thus came advent of mineral
water.
16

Historically, the need for purified water within Indian homes had been kept down to a

minimum. Essentially, there were three types of water that was used for different purposes. The
first type was used for rinsing. The second type, which was used for cooking, was cleaner and

kept covered. The third type was the cleanest drinking water and was very often boiled
before use.
17

Since an average family needed a small quantity, not more than five or six liters a day,

boiled and filtered water had been a convenient solution for some time .The fallouts were
obvious. It was very difficult to convince the people that purification system was worth the price.
There was no visible way to demonstrate the benefit. The otherwise somnolent market began to
change once companies like Eureka Forbes targeted the office segment, while the mineral water
players went after travelers. Ion Exchange was the only company, which had any measure of
success in entering homes with Zero-B. But clean drinking water returned on the national agenda
a little later.
18

Around 1989, drinking water became an issue again.

19 Around early 1990s,Time did a story on India as a key emerging market and that
was the trigger for all the players eyeing this market.
20
21
22
23
24

25 1.2 PROFILE OF THE ORGANISATION

26 BISLERI was bought from the Italian company, Felice Bisleri, in 1969 and then the
journey began. But the company had been unable to market bottled water and wanted to exit
the market they did not see any potential for the product at that time.
27 As a soft drinks company, it had Thumps Up, Gold Spot and Limca (cola, orange drink and
lemonade) but no soft drink company was complete without a soda. So it merely used the
name and launched Bisleri soda with two variants -- carbonated and non-carbonated mineral
water.
28 But three decades ago, what could one say about a category that had no market? They didn't
know their target group. Then, since bottled water is colorless, tasteless and odourless, it was
not an easy product to advertise.

29 Thus, the earlier brand building efforts focused on Bisleri being healthy with adequate
minerals. The Italian name added a dash of class to it. The first print ad campaign captured
the international and showed a butler with a bow tie, holding two bottles of Bisleri.
30 The punch line was, "Bisleri is very very extraordinary" (the spelling of the punch line was
designed to capture the consumer's attention). The campaign was successful and bisleri was
being noticed as someone who catered to the need for safe, healthy drinking water.
31 However, the real boost to mineral water came in the early-to-mid-1980s when it switched to
PVC packaging and later to PET bottles. The PET packaging did not just ensure better
transparency it could now show sparkling clear water to the consumers. It also meant better
life for the water.
32 Meanwhile, Bisleri soda was doing well but it had to discontinue production as it sold its soft
drink brands to Coca-Cola in 1993. But Mr. Chuahans interest was in building brands and
not in bottling soft drinks. That's when he started to concentrate on developing the Bisleri
water brand.
33 There was a clear opportunity of building a market for bottled water. The quality of water
available in the country was bad. It was similar to what Europe faced before World War II.
The quality of water in Europe was extremely poor, which created the bottled water industry
there. In India, too, not only was water scarce, whatever was available was of bad quality.
34 Initially, though bottled water was something only foreigners and non-resident Indians
consumed, it still had to increase the distribution, which meant the dealer margins reduced.
And because of limited sales, the dealer margin had to be kept high to compensate low sales.
Now it had to push sales.
35 Though the brand building of Bisleri started in a small way in 1994-1995, it was only in the
years 1999-2000 that the efforts really bore fruit. Mr.Chauhan claimed that Bisleri grew by
80 per cent in 1998 -1999 and by 150 % in 2005. "After 2006, we hope to do 400 per cent".
Mr. Chauhan never anticipated that Bisleri would be this big a success. He feels that the
launch of the half-litre (500ml) bottle was the beginning of a dramatic rise in volumes and
business prospects. . The introduction of a comfortable-to-carry 500-m

36 bottle for just Rs. 5 not only answered the need, but also meant doing away with carrying the
excess water or throwing it away if you were to buy a one-litre bottle.
37 The idea was a success and gave the company a growth of 400 per cent. They also introduced
the 1.2 litre bottle in 2000, which was aimed at those who share their water. This also gave
bisleri the advantage of higher margins that a crate (12 bottles) generated.
38 With other brands joining the fray, things were hotting up -- the bottled-water market was
estimated at Rs 300 crore (Rs 3 billion) and was growing at 50 per cent a year. Bisleri had
captured 40 per cent of the market.
39 Bisleri realized it was time to move to the next level -- the bulk segment. Several commercial
establishments had no access to piped water. It tapped into this segment by introducing the
12-litre container, followed by the 20-litre can. The bulk segment also helped bring down the
price per litre from Rs 10-12 a litre to about Rs 3 a litre.
40 At present, the bulk segment constitutes 60 to 70 % of our sales and we intend to increase it
to 80 % in the next two years. With water scarcity in several cities, even households are
demanding bottled water now.
41 The home pack was made more user-friendly by introducing pouring spouts and jars with
dispensers. At the same time, it was constantly looking for new ways to tap the market. They
noticed that during wedding receptions, the older guests (above 50 years of age) generally
stayed away from ice cream, soft drinks and so on.
42 Hence, they introduced free sampling of Bisleri at the tables where the elderly guests would
sit. Soon customers were ordering bottled water on special occasions. Currently, the
consumption of bottled water is far in excess of soft drinks on such occasions.
43 The other major challenge was distribution. It still has the mindset of a soft drink seller. Soft
drink sales are in glass bottles and the distribution model is built around picking up empty
bottles and getting them back to the factory. That's not the case with the retail bottled water
packs (below 2 litre). But a product that's not available where it's needed is useless.
44 The number of outlets where Bisleri is available has increased from 50,000 in 1995 to
2,00,000 at present. But that is not enough -- we need to keep looking for different avenues.
Take stationery shops and chemists, for instance. They don't keep soft drinks but sell Bisleri.

That is the kind of exclusivity Bisleri look for to get ahead of the distribution network that
soft drink companies talk of
45 1.2.1 The journey till now (History of the Company)
46

1969: Buys Bisleri bottled water from an Italian company, Felice Bisleri. It was
bottled in glass bottles then.

47 Early-1980s: Shifts to PVC bottles. Sales surge

48 Mid-1980s: Switches to PET bottles, which meant more transparency and life for water.
49 1993: Sells carbonated drink brands like Thums Up, Gold Spot and Limca to

Coca-

Cola for Rs 400 crore.

50 1995: Bisleri launches a 500 ml bottle and sales shoot up by 400 per cent.
51 2000: Introduces the 20-litre container to bring prices down from Rs 10 a litre to Rs 2 a
litre.
52 2000: Introduces a tamper-proof and tamper-evident seal.
53 2005: BIS cancels Bisleri's license of water bottling in Delhi since some of the bottles
did not carry ISI label; the license is restored one-and-a-half months later.
54 2008: Kinley overtakes Bisleri. The national retail stores audit by ORG-MARG show
Kin leys market share at 35.1 per cent compared to Bisleri's 34.4 per cent.
55 2010: Bisleri says it plans to venture out into Europe and America to sell bottled water
56
57 2011-2012: Bisleri kept aside its plan to venture out into Europe and America rather
decided to focus only on its 20 litre pack.
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1.3Problems of the organization

1.3.1 BISLERIS MARKETING AUDIT QUESTIONS :
63

Marketing environment audit:

1. Microenvironment: what major demographic, economic, natural, technological, political,

and cultural trends pose threats and opportunities for this co.?
2. Task environment :

Markets and customers: what is happening to market size, growth, geographic distribution,
and profits? What are the major market segments? How do customers make their buying
decisions? How do they rate the co. on product, quality, value, and service?

Other factors in the marketing system: Who are the Cos. Major competitors and what are
their strategies, strengths, and weakness? How are the cos. Channel performing? What
trends are affecting suppliers? What key publics provide problems or opportunities?
64

Marketing strategy audit:

1. Business mission and marketing objectives: Is the mission clearly defined and market
oriented? Has the co. set clear objectives to guide marketing planning and performance?
2. Marketing strategy: Does the co. have a strong marketing strategy for achieving its
objectives?
3. Budgets: Has the co. budgeted sufficient resources to segments, products, territories, and
marketing mix elements?
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66

Marketing organization audit

Formal structure:

Are marketing activities optimally structured along

functional, product, market, and territory lines?

67

Functional efficiency:

Do marketing and sales communicate effectively? Is

marketing staff well trained, supervised, motivated, and evaluated?

68

Cross functional efficiency: Do marketing people work well with people in

operations, R&D, purchasing, human resources, IT, and other non marketing areas?

69
70 1.4 S.W.O.T ANALYSIS OF THE ORGANISATION

71

72

EXTERNAL
ENVIRONMENT
(OPPORTUNITI
ES & THREATS)

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INTERNAL
ENVIRONMENT
(STRENTHS &
WEAKNESSES)

81 Fig. 5
82
1.4.1

STRENGTHS

Bisleri was the first entrant in this virgin industry.

Highest market share.

Bisleri is a name for portable water, Bisleri is a generic brand.

Bisleri has a brand image.

It has a strong distribution network.

83
84

1.4.2

WEAKNESS
85

Bisleri is not promoting its brand i.e. since last year we have not seen any advertisement.

As we know that customer is price sensitive but Bisleri is following skimming price strategy.

86
1.4.3

OPPORTUNITIES

87

As Indian bottled water industry is still progressing & the consumption level is
increasing. This is an opportunity to capture markets where quality is top priority.

As Bisleri knows market trends, than its competitors like kinley, Aquafina, etc. who
have just joined the race so Bisleri has competitive edge over other players.

Every now and then there are opening of malls. So, bisleri should try and grab this
opportunity and have tieups.

88
1.4.4

THREATS

89

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Bisleri faces tough competition from local brands.

Entry of new players who have low pricing strategies.

102

1.5 Competition Information

1.5.1

AQUAFINA

103

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105
106

Aquafina is a non- carborated bottled waterproduced by PepsiCo.It was first

distributed in Wichita, Kansas in 1994, was distributed across the United States by 1997,
and as of 2006, had become the United States' top-selling bottled water brand in
measured retail channels. The water is mainly driven from municipal tap water that goes
through an extensive purification process that includes charcoal filtration, reverse
osmosis and ozonation. Aquafina touts their water is "Pure" because of their "state-of-theart" HydRO-7 purification system used to remove substances that most otherbottled
water leave in.
107

In India, Aquafina, manufactured by PepsiCo. India Holdings Private Ltd, is the

most popular bottled water brand. PepsiCo produces several other products under the
Aquafina label:
108

Aquafina Esentials, bottled water with various vitamins added, available in five
different flavors: Tangerine Pineapple,etc.

109
1

Aqua fina Sparkling, carbonated flavoured water , avialable in Berry Blast and Citrus
Twist.

1.5.2

KINLEY

110
111

Kinley water comes with the assurance of safety from the Coca-Cola Company.

That is why they introduced Kinley with reverse-osmosis along with the latest technology
to ensure the purity of our product. They go through rigorous testing procedures at each
and every location where Kinley is produced .Kinley is being manufactured in 15 bottling
plants across the country and according to Coca-Cola India President and CEO Alex von
Behr, Coke had invested Rs. 4,000 crore in India before entering the market in 1993 and
December 2006.
112
1.5.3

113
114

Hello

115

Hello is marketed by hallo marketing pvt. Ltd.It claims that its India's only Triple

Sterilized & Ozonized 100% Chlorine Free Premium Mineral Water. With Hello, Say
Goodbye to your drinking water problems. The pricing strategy of hello is good they
follow the penetration pricing.
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Fig 2

121

Bottled water is sold in a variety of packages: pouches and glasses, 330 ml

bottles, 500 ml bottles, one-litre bottles and even 20- to 50-litre bulk water packs. The
formal bottled water business in India can be divided broadly into three segments in
terms of cost: premium natural mineral water, natural mineral water and packaged
drinking water.
122

Premium natural mineral water includes brands such as Evian, San Pelligrino and

Perrier, which are imported and priced between Rs.80 and Rs.110 a litre. Natural mineral
water, with brands such as Himalayan and Catch, is priced around Rs.20 a litre. Packaged
drinking water, which is nothing but treated water, is the biggest segment and includes
brands such as Parle Bisleri, Coca-Cola's Kinley and PepsiCo's Aquafina. They are priced
in the range of Rs.10-12 a litre.
123

Attracted by the huge potential that India's vast middle class offers, multinational

players such as Coca-Cola and PepsiCo have been trying for the past decade to capture
the Indian bottled water market.
124

Today they have captured a significant portion of it. However, Parle Bisleri

continues to hold 40 per cent of the market share. Kinley and Aquafina are fast catching
up, with Kinley holding 20-25 per cent of the market and Aquafina approximately 10 per
cent. The rest, including the smaller players, have 20-25 per cent of the market share.
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145 Chapter-2
146 Objectives and Methodology
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2 Objectives and Methodology
153

2.1 Significance

154

For any business venture, Marketing Strategy go hand in hand. Opportunities

come and go but business comes from the ones, which are handled properly in terms of
leads. Leads for any new opportunity are very important for it to turn out a profitable
venture.

2.2Objectives

To study the market share of Bisleri in corporate sector

To study the factors that can lead to change in brand preference like quality, price,

service, etc.
Knowing brand equity of Bisleri in the corporate sector.
To study marketing strategies adopted by Bisleris.
To study the level of customer satisfaction in Bisleris.
To study the impact of Bisleris promotional schemes.
To Assess brand loyalty of consumers.

2.3Scope of the study

Deep insights would give me the clear knowledge of strategies adopted and which
would make me a better marketing professional.

Important from a consultant prospective finding loopholes in marketing strategy

of the company if any.

Contribution to the institute and my fellow colleagues and a unique piece of work.

2.4Methodology
155

The research is descriptive research as it includes a questionnaire survey and it is

a fact finding enquiry through retailers scheme card. And I am focusing on retailers
viewpoint towards packaged drinking water and problems associated
156

The Project is descriptive research due to the following factor:

It describes the characteristics of retailers in Delhi city.

It is carried out to estimate the approximate percentage of units in a specified

population exhibiting certain behavior.
It helps in determining the perception of product characteristics.

It helps in making certain predictions related to packaged drinking water.

157

SAMPLE DESIGN

158

Regardless of the method or the design of the research that is used to obtain the

primary data, the decision for this very research activity in the field of FMCG and about
surveying the entire population of retailers or only a representative portion of the
population of the market had to be made.
159

SAMPLE UNIT

160

As the project was being done for the Delhi branch of the Bisleri the sample unit

taken was retailers of Delhi city.

161

SAMPLE SIZE

162

The sample size selected was 50 respondents. This was due to the time and

resource constraint faced by the researcher during the project.

163

SAMPLE SELECTION

164

Respondents were selected on the bases of assigned markets by the company; all

retailers in those markets were covered. Criteria for selection were

All retailers selling packaged drinking water.

Retailers who were not into packaged drinking water but can be a future prospect
for a company.

165
166

DATA COLLECTION TOOLS

167

PRIMARY DATA

168

Primary data was collected through questionnaire method and also through

retailers scheme card. The Questionnaire and Retailers card are attached to the annexure
of this report. It contained 12 questions and covered the necessary areas needed to
complete the research.
169

SECONDARY DATA

170

Secondary Data was collected from sources at the office, magazines, newspapers

and websites.

171

VARIABLES INVOLVED

Type of retailers.

Features of product offered.

Retailers perception on packaged drinking water.

Retailers expectations from company.

172

Limitations and challenges while under going the research

First, it was not a consumers survey but retailers survey; it was really hard to find a
free sitting shopkeeper in peek hours of a day when survey was carried out.

Biggest limitation of this report is that in all the markets covered there were 4
distributers and they all have there own way of working. That is the reason there were
totally opposite response from some markets to the others with different distributers.
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Chapter-3

Conceptual Discussion

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3. Conceptual Discussion
198
199

3.1 MARKETING STRATEGIES

Bisleris marketing concept holds that the company should determine the needs,

wants, and interests of target markets. It should then deliver superior value to customers
in a way that maintains or improves the societys well being.
200
201

The societal marketing concept is the newest of the marketing management

philosophies and it has now been adopted by the company.

202

203

The societal marketing concept questions whether the pure marketing concept is

adequate in an age of environmental problems, resource shortages, rapid population

growth, worldwide economic problems, and neglected social services. It asks if the firm
that senses, serves, and satisfies individual wants is always doing whats best for
consumers and society in the long run. Acc to the societal marketing concept, the pure
marketing concept overlooks possible conflicts b/w consumer short run wants and
consumer long run welfare.
204

Such concerns and conflicts led to the societal marketing concept which calls on

marketers to balance three considerations in setting their marketing policies: company

profits, consumer wants and societys interests. Originally, Bisleri based their marketing
decisions largely on short run co. profit. Eventually, they began to recognize the long
run importance of satisfying consumer wants and had adopted this marketing concept.
1

CONNECTIONS WITH MARKETING PARTNERS :

1. Connecting inside the company

205

Traditionally, marketers have played the role of intermediary, charged with

understanding consumer needs and representing the customer to different co.

departments, which then acted upon these needs.

The old thinking was that

marketing is done only by marketing sales, and customer support people.

However, in todays connected world, every functional area can interact with
customers, especially electronically. Marketing no longer has sole ownership of
customer interactions.

The new thinking is that every employee must be

customer focused.
206

Today Bisleri recognize its operations to align them better with customer

needs. Rather than letting each department pursue its own objectives, firms are
linking all departments in the cause of creating customer value. Rather than
assigning only sales and marketing people to customers, they are forming cross
functional customers teams.

For ex, Bisleri New Delhi assigns customer

development teams to each of its major retailer accounts.

These teams-

consisting of sales and marketing people, operations and logistics specialists,

market and financial analysts, and others- coordinate the efforts of many Bisleri
departments towards serving the retailer and helping it to be more successful.

207

2.

Connecting

with

outside

partners

through

supply

chain

management
208

As we know that marketing channels consists of distributors, retailers, and

others who connect the company to its buyers.

However, the supply chain

describes a longer channel, stretching from raw materials to components to final

products that are carried to final buyers. For example the supply chain for Bisleri
consists of suppliers of plastics, computers and other components, the product
manufacturer, and the distributors, retailers and others who sell the mineral water
to businesses and final customers. Each member of the supply chain creates and
captures only a portion of the total value generated by the supply chain.
209
210

Through supply chain management, Bisleri ltd. Today are strengthening

their connections with partners all along the supply chain. They know that their
fortunes rest not only on how well their entire supply chain performs against
competitors supply chains.

Rather than treating suppliers as vendors and

distributors as customers, it treats both as partners in delivering value to

consumers.

In this direction Bisleri works with its suppliers to streamline

logistics and reduce joint distribution costs, resulting in lower prices to.
211

1 BISLERIS NEW MARKETING THINKING INCLUDES

be market and customer centered

Target selected market segments or individuals

Focus on customer satisfaction and value

Develop customer relationships

Keep old customers

Grow share of customer

Serve profitable customers, fire losing ones

Connect with customers directly or through retailers or distributors

Develop customized products

Enlist all departments in the cause of customer satisfaction and value

Partners with other firms

Market locally and globally

Assume social and environmental responsibility

2

PLANNING:
212

The process of planning may be as important as the plans that emerge.

Planning encourages management to think systematically about what has happened,

what is happening, and what might happen. It forces the co. to sharpen its objectives
and policies, leads to better coordination of co. efforts, and provides clearer
performance standards for control. The argument that planning is less useful in a fast
changing environment makes little sense.

In fact, the opposite is true: sound

planning helps the co. to anticipate and respond quickly to changes, and to prepare
better for sudden developments. Thus planning turns out to be an essential part of
good management.
213

Bisleri, usually prepare annual plans, long range plans, and strategic plans.

The annual and long- range plans deal with the cos. Current businesses and how to
keep them going.Their marketing plan including following sections for different
purposes.
214

3.5 BISLERIS MARKETING ENVIRONMENT:

215

A companys marketing environment consists of the actors and forces outside

marketing managements ability to develop and maintain successful relationships with

its target customers. The marketing environment offers both opportunities and threats
successful companies like Bisleri know the vital importance of constantly watching and
adapting to the changing environment.
216

Changing pictures of future give marketers of Bisleri, plenty to think about. Here

marketers take the major responsibility for identifying and predicting significant changes
in the environment. More than any other group in the co, marketers are trend trackers
and opportunity seekers. Although every manager in the company observes the outside
environment, marketers have two important aptitudes. They have disciplined methodsmarketing intelligence and marketing research-for-collecting information about the
marketing environment. They also spend more time in the customer and competitor
environment. By conducting systematic environmental scanning, marketers are able to
revise and adapt marketing strategies to meet new challenges and opportunities in the
market place.
217
218

Bisleris marketing environment is made up of a microenvironment and a macro

environment.
219

MICRO ENVIRONMENT:

220

Consists of the forces close to the co. that affect its ability to serve its customers

The company, suppliers, marketing channel firms, customer markets, competitors, and
publics.
221
1. COMPANY: In designing marketing plans, marketing management takes other co. groups
into a/cgroups such as top management, finance, research and development (R&D),
purchasing, manufacturing, and accounting. All these interrelated groups form the internal
environment.

Together, all of these departments have an impact on the marketing

departments plans and actions. Under the cos. Concept, all of these functions must think
customer, and they should work in harmony to provide superior customer value and
satisfaction.

222
2. SUPPLIERS: Suppliers are an important link in the company. Overall customer value
delivery system. They provide the resources needed by the co. to produce its goods and
services.
223
3. MARKETING INTERMEDIARIES: They help the co. to promote, sell and distribute its
goods to final buyers.

They include resellers, physical distribution firms, marketing

services agencies, and financial intermediaries.

224
4. CUSTOMERS: The co. needs to study its customer markets closely. In Bisleri, there are 5
types of customer markets. Consumer markets consists of individuals and households that
buy goods and services for further processing or for use in their production process, whereas
reseller markets buy goods and services to resell at a profit. Government markets are made
up of government agencies that buy goods and services to produce public services or
transfer the goods and services to others who need them.

Finally, international markets

consist of these buyers in other countries including consumers, producers, resellers and
governments. Each market type has special characteristics that call for careful study by the
seller.
225
5. COMPETITORS:

Bisleris marketing concept States that to be successful, they must

provide greater customer value and satisfaction than their competitors do. Thus, marketers
must do more than simply adapt to the needs of target consumers. They also must gain
strategic advantage by positioning their offering strongly against competitor offerings in the
minds of consumers.
226
6. PUBLICS: A public is any group that has an actual or potential interest in or impact on an
organization ability to achieve its objectives. Bisleri has seven types of publics.

Financial publics- it influences the cos. Ability to obtain funds. Banks, investment house,
and stockholders are the major financial publics.

Media publics carry news, features, and editorial opinion. They include newspapers,
magazines, and radio& television Stations.

Government publics- management must take government developments into A/C. Marketers
must consult the cos. Lawyer on issues of product safety, truth in advertising and other
matters.

Citizen action publics- here cos. Marketing decisions may be questioned by consumer
organizations, environmental groups, and others. Its public relations department can help it
stay in touch with consumer and citizen groups.

Local publics include neighborhood residents and community organizations.

General public- Bisleri always take into consideration the general publics attitude toward its
products and activities because the publics image of the co. affects its buying.

Internal publics- include workers, managers, volunteers, and the board of directors.

227
228

MACRO ENVIRONMENT:

229

Consists of the larger societal forces that affect the microenvironment

demographic, economic, natural, technological, political, and cultural forces.

230

Major forces in the companies macro environment:

1. Demographic environment:

Is the study of human populations in terms of size, density,

location, age, gender, race, occupation and other statics. The demographic environment is
of major interest to Bisleris marketers because it involves people, and people make up
markets.
2. Economic environment: Consists of factors that affect consumer purchasing power and
spending patterns.
3. Natural environment: Involves the natural resources that are needed as inputs like water by
marketers or that are affected by marketing activities.
4. Technological environment: Consists of the forces that create new technologies, creating
new and better products and market opportunities.
5. Political environment: Consists of laws, government agencies, and pressure groups that
influence and limit various organizations and individuals in a given society.
6. Cultural environment: Is made up of institutions and other forces that affect a societys
basic values, perceptions, preferences, and behaviors. Culture, indeed, is a very important
factor for marketers because people grow up in a particular society that shapes their basic
beliefs and values and defines their relationships with the co. In order to produce superior

value and satisfaction for customers, companies need information at almost every turn. As
the new Bisleris story highlights good products and marketing programs begin with a
thorough understanding of consumer needs and wants. Companies also need an abundance
of information on competitors, resellers, and other actors and forces in the market place
because for a co. information is not just input for making better decisions but also as an
important strategic aspect and marketing tool.
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DISTRIBUTION CHANNEL OF BISLERI

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Distribution' is one of the four aspects of marketing. A distribution business is the
middleman between the manufacturer and retailer or (usually) in commercial or
industrial the business customer. After a product is manufactured by a supplier/factory,
it is typically stored in a distribution company's warehouse. The product is then sold to
retailers or customers.
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Frequently there may be a chain of intermediaries, each passing the product down the chain
to the next organization, before it finally reaches the consumer or end-user. This process
is known as the 'distribution chain' or, rather more exotically, as the 'channel'. Each of
the elements in these chains will have their own specific needs; which the producer
must take into account, along with those of the all-important end-user.
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Channel members
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Distribution channels can thus have a number of levels. Kotler defined the simplest level,
that of direct contact with no intermediaries involved, as the 'zero-level' channel.
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The next level, the 'one-level' channel, features just one intermediary; in consumer goods a
retailer, for industrial goods a distributor, say. In recent years this has been the level
which, together with the zero-level, has accounted for the greatest percentage of the
overall volumes distributed

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Channel management
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The channel decision is very important. In theory at least, there is a form of trade-

off: the cost of using intermediaries to achieve wider distribution is supposedly lower.
Indeed, most consumer goods manufacturers could never justify the cost of selling
direct to their consumers, except by mail order. In practice, if the producer is large
enough, the use of intermediaries (particularly at the agent and wholesaler level) can
sometimes cost more than going direct.
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However, many suppliers seem to assume that once their product has been sold into

the channel, into the beginning of the distribution chain, their job is finished. Yet that
distribution chain is merely assuming a part of the supplier's responsibility; and, if he
has any aspirations to be market-oriented, his job should really be extended to
managing, albeit very indirectly, all the processes involved in that chain, until the
product or service arrives with the end-user. This may involve a number of decisions on
the part of the supplier:

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Channel membership

Channel motivation

Monitoring and managing channels

Channel membership

1. Intensive distribution - Where the majority of resellers stock the `product' (with
convenience products, for example, and particularly the brand leaders in consumer goods
markets) price competition may be evident.
2. Selective distribution - This is the normal pattern (in both consumer and industrial
markets) where `suitable' resellers stock the product.

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3. Exclusive distribution - Only specially selected resellers (typically only one

per geographical area) are allowed to sell the `product'.

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