A REPORT ON ANALYTICAL STUDY OF PROMOTIONAL STRATEGIES OF BISLERI

BY SUNILKUMAR.T

ICFAI NATIONAL COLLEGE

BISLERI, WATER BOTTLES

A THESIS ON ANALYTICAL STUDY OF PROMOTIONAL STRATEGIES OF BISLERI

BY SUNILKUMAR.T 6ND10055

A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS OF THE MBA PROGRAM (CLASS OF 2008) ICFAI NATIONAL COLLEGE

ICFAI NATIONAL COLLEGE

DECLARATION

I here by declare that the project work entitled ANALYTICAL STUDY OF PROMOTIONAL STRATEGIES OF BISLERI is my own effort done under the guidance of Mr. Vivek Kanchan IT & QM faculty. This report is submitted in partial fulfilment of the requirement for the award of MBA 2006-08.

Date: Place: Davangere (Sunilkumar.T)

ICFAI NATIONAL COLLEGE

(Certificate from Faculty Supervisor)

CERTIFICATE

This is to certify that the Management Thesis-II titled Analytical study of promotional strategies of Bisleri submitted by Sunilkumar.T Enrol No: 6ND10055 during Semester-IV of the MBA Program (Class of 2008) embodies original work done by his.

Signature of the Faculty Supervisor Name (in Capitals) :____________________ Designation Center : _____________________ : _____________________

ICFAI NATIONAL COLLEGE

TABLE OF CONTENTS:

ICFAI NATIONAL COLLEGE

AKNOWLEDGEMENT Completing a task is never one mans effort. It is often the result of invaluable contribution of number of individuals in direct or indirect way in shaping success and achieving it. I express my deep gratitude and thanks to my beloved principal Mr. Chandan Chavadi INC Davangere for his kind co-operation and to faculty supervisor Mr. Vivek Kanchan for his support during the course of my project. I am also thankful to all the faculty members INC Davangere for their co-operation. And last but not least I would like express my gratitude to my parents, friends and to all those who have directly or indirectly helped and contributed best for the progress of this project.

Yours truly, Sunilkumar.T

ICFAI NATIONAL COLLEGE

. ABBREVIATIONS:

B.M: Beverage marketing. B.W. Bottler water. WAN: wide area network B.S.E. Bombay stock exchange

ICFAI NATIONAL COLLEGE

SUMMARY: The objective of the thesis is To know promotional strategies of Bisleri identify areas of excellence and areas needing improvement; and provide suggestions for such improvement. The aim of this Thesis is to successfully promotional strategies. Sales promotion activity as an activity taken up to boost the sales of a product. It can include a host of activities like running advertising campaigns, handling public relation activities, distribution of free samples, offering temporary price discount, launching door-to-door selling and telemarketing etc. Compared to any other element of the promotional mix, sales promotion is more action oriented. It helps in stimulating the customers to buy a product. Increasing concern for value of money among customers has brought sales promotion to the centre stge, as customers have become more expensive to promotional offers, discount/gift coupons and point of purchase displays. Rapid growth in the industry has been achieved because:

Product managers are facing more pressure to increase their current sales, Companies face more competition, Advertising efficiency has declined, Consumers have become more deal oriented.

ICFAI NATIONAL COLLEGE

1. INTRODUCTION:

INDUSTRY PROFILE

In most countries, drinking water is provided by the public sector, since it is usually considered as a typical public good1. Traditionally, the public utility takes charge of the overall cycle of water production, distribution and management through a vertically integrated monopoly. Recently, we observe a movement of reform mostly in developing countries, where these functions are partially or fully assigned to a private Operator through a franchise bidding process (Coing et al. 1989; Silva et al. 1998). There are various degrees of involvement of the private operator in terms of contract duration and investment that determine the level of risk. Full privatization like in England and Wales is still an exception, while the spectrum of delegation contracts is large (from operation and management contracts to concession). In these cases, one should note that the ownership of the assets remains public and it explains why governments largely prefer to delegate rather than to privatize, as water is a highly politicised matter. Then, this new trend toward private sector participation in the developing world raises the question of its ability to improve effectively the level of Water services.

In India, Mehta (1999) highlights the fact that most projects with private sector participation purely aim atan increase in production capacity and do not ICFAI NATIONAL COLLEGE 9

address the main factors of inefficiency of Indian water supply networks that are described in the first section of the article. Various factors explain the failures of projects with large international private operators, the main one being lack of good project preparation, lack of knowledge on how to conduct the transaction process,

Absence of credible political commitment and unwillingness to reform tariffs (Zrah and Lorene 1999; Zrah 2001). Therefore, many actors of the sector (academics, decision makers and mostly international organizations) consider the role of the small-scale Independent providers as a potential to compensate partly the lacunae of the public sector provision. This question also emerges from some successful stories in Africa and South America where small operators The national retail stores audit by ORG-Marg for the year ended 31 July 2002 put Kinleys marketshare at 35.1 per cent compared to Bisleris 34.4 per cent. According to the market research agency, Bisleri lost 0.7 per cent share of the retail market to Kinley.

BOTTLED WATER - INDUSTRY PROFILE

This profile is designed to be a reference resource for existing and prospective small business owners, particularly as they assess how their businesses are operating and developing plans for the future. These examples illustrate various ways in which small businesses are actually operating but are not meant to be instructions that small businesses should follow.

ICFAI NATIONAL COLLEGE

10

State of the Industry Millions more Americans are choosing to drink bottled water in the last decade than ever before. Sales of domestic water in small bottles has increased from 4.4 million gallons in 1984 to 750 million gallons in 1997, according to a report in The New York Times, which draws data from Beverage Marketing magazine and individual water bottling companies. Much of the gain has come since 1992 when half-liter bottles, which can fit into vending machines, became the bottle of choice. According to Jane Lazgin, a spokeswoman for the Perrier Group, bottled water is still in its infancy. Market

The states representing the top five markets in the U.S. in rank order are California, Texas, New York, Florida, and Illinois. California accounts for almost half of the total bottled water consumed in the U.S. According to the Baltimore Sun, Americans bought bottled water in Grocery Stores 44.7%, Home/Office delivery 39.0%, and Vending machines/restaurants 16.3% of the time in 1996. Pricing The expanding market has produced its own price war, with prices falling from about $1.09 for one and half-liter to as low as 69 cents. Currently, in Arkansas, the price of a five-gallon delivered bottle of water ranges from $2.50 to $9.00. A cooler rental per month ranges from $6.00 to $9.75.

ICFAI NATIONAL COLLEGE

11

Distribution Channels

The distribution channels in the State of Arkansas are divided geographically. The distributors buy into a franchise type of arrangement with the bottler who puts certain restrictions on the contract in terms of service and selling of competitive products. In recent year, consumption of sparkling waters has increased substantially in bars, restaurants, and vending machines. Operations Demand for still drinking waters appears to be growing faster than the demand for sparkling (carbonated) waters, although continued growth in sales will depend on criticism of the purity and origin of the water. Proper labeling has become a major issue. Water sources must be licensed and monitored regularly by Federal inspectors. Current operations information related to regulations, equipment, and labeling can be obtained from the trade journal, Bottled Water Reporter, and the International Bottled Water Association, IBWA. Competition The value of bottled water sales was expected to grow only by 10 percent in 1990, or $2.4 billion, because competition had driven prices down. There are approximately 475 bottling plants in the U.S. with $3.375 billion revenues in 1995 producing more than 600 labels. There are over 75 brands imported, accounting for 3% of the water sold in the U.S. According to Michael Bellas, chairman and chief executive of Beverage Marketing, "The key factor is going to be the low-cost producer that is regionally

ICFAI NATIONAL COLLEGE

12

diversified, and the one that can put some marketing muscle behind this water." There are so many new entrants; the bottled water industry is highly competitive.

WATER BOTTLE MANUFACTURERS: BISLERI OXYRICH OMKAR BINDU KINLEY AQUAFIAN FLAIR

ICFAI NATIONAL COLLEGE

13

CREATIVE CONCEPTS Was formed in 1997, with a vision on the Ozone technology by a group of competent and experienced professionals. The Company has State-of-the-art Design, Engineering, Manufacturing and Service Strength. The Company was re-organized, shifted into its own premises and renamed as CREATIVE OZ-AIR (I) PVT. LTD. to expand its wings in diversified Products and Exports. We offer the widest range of Ozone Systems for any Ozone Application in the world today, having technical tie-ups with M/s. Ozonia Ltd., Switzerland for Large size Ozonators and with M/s. Anseros GmbH, Germany for Ozone Monitors and Monitoring Systems, the Company finds itself in a higher platform to offer world class Products in the field. The Company represents more than 20 years of combined experience in the design and manufacture of most modern Ozone Treatment Systems for Water, Air & Food Disinfection, Industrial Ozone Systems, Ozone Monitoring Equipment, Ozone Test Chambers and Ozone Destructor etc. etc. The Company also specializes in Oxygen Concentrators and Nitrogen Plants of any size and the Feed Gas Preparation Systems. With more than 2500 installations worldwide in number of prestigious Companies, it makes CREATIVE OZ-AIR (I) PVT. LTD., a preferred choice for Ozone Applications either as a Standard or Tailor-made Systems to suit the Customers requirements. ICFAI NATIONAL COLLEGE 14

Quality Standards CREATIVE OZ-AIR (I) PVT. LTD. earlier known as CREATIVE CONCEPTS strives to improve upon high quality standards continually. Patented technology and decades of manufacturing experience enable us to deliver the highest quality, most reliable and efficient Ozone Treatment Systems. Rigorous Factory Testing and System Pre-Assembly make the Integration and Start-up of our Ozone Systems simple and trouble-free.

Committed To Research & Development We believe strongly on Applications Research and Products Development. The Company invests considerable resources annually in on-going initiatives aimed at improving existing Products, developing new technologies and upgrading the Customers Processes through new techniques. Focussed On Our Customers We have a motto of Customers Satisfaction, the Company specializes in developing a business model with Customer concern and their profitability in mind. By a network of Service Support Installations at Clients Site, are not only kept in working conditions but upgraded from time to time for improved performance by regular up-keep and AMCs.

Our Clients In about eight years of operation, we have significant progress by installing more than 2500 Ozone Treatment Units for Sterilization of Air, Water and Food Items. Britannia, Switz Foods, Monginis, Bisleri, Coca-Cola, Pepsi, PVR Cinema, Dabur, Pan Foods, Eastern Bakeries, Delta Foods (Franchise of Britannia), Nestle, IFFCO, ICFAI NATIONAL COLLEGE 15

Arachem (Malaysia), Texcyle (Malaysia), Maharishi Airbed Products, Mahaveda Ayurveda & Research Center etc. are our some of the prestigious clients. We also cater to the disinfection requirements of Milk Processing Plants like Amul Dairies (at Himmatnagar, Mehsana, Vihar), Mahan Proteins at Kosikalan, NDDB (New Delhi), Indo-Nippon Foods etc and number of Food Processing, Bulk Drug Manufacturers like Ranbaxy, Dishman Pharmaceuticals, Regent Drugs etc, Pharmaceuticals Companies, Hospitals and Industrial Set-ups etc.

Sr. No. 1 2 3 4 5 6

Director's Name Surendra T Shah Sanjay S Shah Shilaben S Shah Ritaben S Shah Kashyap R Mehta Sanjay V Karkare

Designation Chairman / Chair Person Managing Director Director Director Director Director

BSE: 531671

NSE:

Reuters:

ICFAI NATIONAL COLLEGE

16

2. FORMULATION OF OBJECTIVE: Research Objective must be clearly defined (what the study is about and why it is being done) then only, it can be achieved in a best way.

2.1. OBJECTIVE OF STUDY:

To understand the promotional activities of Bisleri. To understand the best among the promotional mix. To understand the effectiveness of Promotional strategies adopted by Bisleri.

ICFAI NATIONAL COLLEGE

17

LIMITATIONS:

The study is restricted to Bisleri outlet in Davangere Branch. The retailers were too busy in their work, so detail information could not be obtained. In the survey retailers hesitate to give the details.

2.2. HYPOTHESIS OF STUDY: There is no significant difference in after sales services provided by the two automobile showrooms (TVS and VANI HONDA) ICFAI NATIONAL COLLEGE 18

There is a significant difference in the value for money which the customers are getting from the two showrooms. 3. RESEARCH METHODOLOGY: Research design depends on type of research studies that we are going to make. My research study is DESCRIPTIVE TYPE.

3.1. DESCRIPTIVE RESEARCH STUDY: This is a conclusive type of research, it is used where hypothesis testing is to be made or alternative choice is to be done or where the description of situation has to be made. In this type of research study the researcher must able to define clearly, what he wants to measure and must find adequate methods measuring it along with the clear cut definition of population he wants to study. Since the aim of study is to obtain complete and accurate information, the procedure must be carefully planned. 3.2. PURPOSE OF STUDY: Bislre is the top water bottle manufacturer and dealers in India by making this studying we can find out the level of customer value and satisfaction they are providing and also the area where they are lagging in the field of promotional activities. 3.3. DATA SOURCES:

ICFAI NATIONAL COLLEGE

19

The second stage is the collection of data is the data sources Primary Data Sources and Secondary Data Sources. Primary Data Sources are collected specifically for the purpose of research study, which is to be done, and secondary data source are already collected data, with some other objective.

ICFAI NATIONAL COLLEGE

20

3.31. PRIMARY DATA SOURCE: For the purpose of this study, I prepared two research tools, both questionnaire, to find out the relevant primary data

The data was collected based on information provided by: 1. The management of the outlet. 2. Outlet worker Besides the primary data collected with the help of the questionnaire, I have also collected the relevant secondary data from various sources like magazines, books and Internet and newspapers. Based on the relevant primary and secondary data, a comparative analysis has been done so as to find out the areas of excellence and areas of improvement of both organizations. The areas of excellence and improvement have been identified based on factual information, in light of which recommendations and suggestions have been provided for the overall improvement of the organizations in the future. A formal list of Questions is formulated and asking the questions from the people who are having the related information. Here the Questionnaire is Structured and Non Disguised Type. Close end Questionnaire with Dichotomous and Multiple Choice Questions.

ICFAI NATIONAL COLLEGE

21

3.32. SECONDARY DATA SOURCE: Internal sources: On-Line Information, , Price of the product, Services provided by the companies. External data sources: Magazines like Business Standard, Books and journals related to Marketing strategy. 3.4. SAMPLING PLAN Sampling Unit (Who Is Being Surveyed) Main target is Company manager. Company employees for Expert Opinion Sampling Size (How Many People Should Be Surveyed) 8 customers outlet. Sampling Procedure (How Should the Respondent Be Chosen) Probability Sampling (Simple Random Sampling) Contact Method (How the Subject Should Be Contacted) Personal Interviewing, Expert Interview, Through Mail 3.5. PROCESSING AND ANALYZING THE DATA Score aggregation method is used for analyzing the data and pictorial representation of analysis is done through graphs. 3.6. FINDINGS ARE GIVEN

ICFAI NATIONAL COLLEGE

22

Company profile Bisleri was originally an Italian Company created by Signor Felice Bisleri

who first brought the idea of selling bottled water in India. Bisleri then was introduced in Bought over Bisleri (India) Ltd. in 1969 & started bottling Mineral water in glass bottles under the brand name Bisleri. Later Parle switched over to PVC nonreturnable bottles & finally advanced to PET containers. Since 1995 Mr. Ramesh J. Chauhan has started expanding Bisleri operations. In 2003 Bisleri announced it's venture to Europe. The brand name Bisleri is so popular in India that it's used as generic name for bottled mineral water. [In India, Bisleri is to mineral water what Xerox is to photocopying.] We at Bisleri value our customers & therefore have developed 8 unique pack sizes to suit the need of every individual. We are present in 250ml cups, 250ml bottles, 500ml, 1L, 1.5L, and 2L which are the non-returnable packs & 5L, 20L which are the returnable packs. Bisleri with added Minerals: Bisleri Mineral Water contains minerals such as magnesium sulphate and potassium bicarbonate which are essential minerals for healthy living. They not only maintain the pH balance of the body but also help in keeping you fit and energetic at all times.

ICFAI NATIONAL COLLEGE

23

Bisleri Mountain Water: Bisleri Natural Mountain emanates from a natural spring, located in Uttaranchal and Himachal nestled in the vast Shivalik Mountain ranges. Lauded as today's 'fountain of youth', Bisleri Natural Mountain Water resonates with the energy and vibrancy capable of taking you back to nature. Bisleri Natural Water is bottled in its two plants in Uttaranchal and Himachal Pradesh and is available in six different pack sizes of 250ml, 500ml, 1 litre, 1.5 litre, 2 litre and 5 litres. Different products of Bisleri The water that almost descends from the Gods: The Himalayas, the abode of the Gods, where the earth meets the heavens and where in lies nature's untouched bounty. White glaciers, snow-capped mountains and a plethora of exotic herbs and other flora that have therapeutic properties. This is where you'll find a treasure trove of hidden natural spring water that flows through natural purifying filters, mineral rich rocks and herbs from which it absorbs many healing properties. We bottle this pristine spring water directly at source, at the foothills of the Himalayas. And now you, our dearest customers, will get every drop of purity, right here, in this bottle. Bisleri Mountain Water is available in 500ml. bottles & 1 litre bottles. Bisleri with Added Minerals: This product is bottled drinking water at its best. Bisleri with added minerals has a TDS count (total dissolved solids count) of approximately 100. It contains minerals such as magnesium sulphate and potassium bicarbonate which are essential minerals for healthy living. They not only maintain the pH balance of the body but also help in keeping you fit and energetic at all times.

ICFAI NATIONAL COLLEGE

24

Bisleri with added minerals is also put through multiple stages of purification to ensure the elimination of all forms of bacteria. This makes the water you drink completely safe to consume. Bisleri with added minerals is available in 250ml cups, 250ml bottles, 500ml bottles, 1 litre bottles, 1.5 litre bottles, 2 litre bottles and 5 and 20 litre cans. Product Range Mineral Water under the name 'Bisleri' was first introduced in Mumbai in glass bottles in two varieties - bubbly & still in 1965 by Bisleri Ltd., a company of Italian origin. This company was started by Signor Felice Bisleri who first brought the idea of selling bottled water in India. Parle bought over Bisleri (India) Ltd. In 1969 & started bottling Mineral water in glass bottles under the brand name 'Bisleri'. Later Parle switched over to PVC nonreturnable bottles & finally advanced to PET containers. Since 1995 Mr. Ramesh J. Chauhan has started expanding Bisleri operations substantially and the turn over has multiplied more than 20 times over a period of 10 years and the average growth rate has been around 40% over this period. Presently we have 8 plants & 11 franchisees all over India. We have our presence covering the entire span of India. In our future ventures we look to put up four more plants in 0607. We command a 60% market share of the organized market. Overwhelming popularity of 'Bisleri' & the fact that we pioneered bottled water in India, has made us synonymous to Mineral water & a household name. When you think of bottled water, you think Bisleri. We at Bisleri value our customers & therefore have developed 8 unique pack sizes to suit the need of every individual. We are present in 250ml cups, 250ml bottles, 500ml, 1L, 1.5L, 2L which are the non-returnable packs & 5L, 20L which are the returnable packs. Till date the Indian consumer has been offered Bisleri water, ICFAI NATIONAL COLLEGE 25

however in our effort to bring to you something refreshingly new, we have introduced Bisleri Natural Mountain Water - water brought to you from the foothills of the mountains situated in Himachal Pradesh. Hence our product range now comprises of two variants: Bisleri with added minerals & Bisleri Mountain Water. It is our commitment to offer every Indian pure & clean drinking water. Bisleri Water is put through multiple stages of purification, ozonised & finally packed for consumption. . Rigorous R&D & stringent quality controls has made us a market leader in the bottled water segment. Strict hygiene conditions are maintained in all plants. In our endeavour to maintain strict quality controls each unit purchases performs & caps only from approved vendors. We produce our own bottles in-house. We have recently procured the latest world class state of the art machineries that puts us at par with International standards. This has not only helped us improve packaging quality but has also reduced raw material wastage & doubled production capacity. You can be rest assured that you are drinking safe & pure water when you consume Bisleri. Bisleri is free of impurities & 100% safe. Enjoy the Sweet taste of Purity!

ICFAI NATIONAL COLLEGE

26

Treat your family to pure Bisleri, in economical, tamper-proof 20L packs: Insist on using Bisleri with the 'specially-developed faucet'. The new faucet ensures that Bisleri is dispensed directly from the jar, leaving no chance for contamination. Also avoid using hot and cold machines or any dispensers, since they could be a source of contamination. Max Retail Price: Rs. 70/Deposit Rs. 150/- (refundable) Stand : Rs. 60/Faucet : Rs. 15/-

ICFAI NATIONAL COLLEGE

27

Treat your family to pure Bisleri, in economical, tamper-proof 5L packs: Insist on using Bisleri with the 'specially-developed faucet'. The new faucet ensures that Bisleri is dispensed directly from the jar, leaving no chance for contamination. Also avoid using hot and cold machines or any dispensers, since they could be a source of contamination. Max Retail Price : Rs. 70/Deposit Rs. 150/- (refundable) Stand : Rs. 60/Faucet : Rs. 15/-

ICFAI NATIONAL COLLEGE

28

New faucet ensures that Bisleri is dispensed directly from the jar, leaving no chance for contamination. Also avoid using hot and cold machines or any dispensers, since they could be a source ofcontamination. Max Retail Price : Rs. 70/Deposit Rs. 150/- (refundable) Stand : Rs. 60/Faucet : Rs. 15/-

This water bottle consist 3 liter water Insist on using Bisleri with the 'specially-developed faucet'. The new faucet ensures that Bisleri is dispensed directly from the jar, leaving no chance for contamination. Also avoid using hot and cold machines or any dispensers, since they could be a source of contamination. Max Retail Price: Rs. 70/Deposit Rs. 150/- (refundable) Stand : Rs. 60/Faucet : Rs. 15/-

ICFAI NATIONAL COLLEGE

29

This water bottle consist two and half liter Insist on using Bisleri with the 'specially-developed faucet'. The new faucet ensures that Bisleri is dispensed directly from the jar, leaving no chance for contamination. Also avoid using hot and cold machines or any dispensers, since they could be a source of contamination. Max Retail Price: Rs. 70/Deposit Rs. 150/- (refundable) Stand : Rs. 60/Faucet : Rs. 15/-

This water bottle consist one liter water Insist on using Bisleri with the 'specially-developed faucet'. The new faucet ensures that Bisleri is dispensed directly from the jar, leaving no chance for contamination. Also avoid using hot and cold machines or any dispensers, since they could be a source of contamination. Max Retail Price: Rs. 70/Deposit Rs. 150/- (refundable) Stand : Rs. 60/Faucet : Rs. 15/-

ICFAI NATIONAL COLLEGE

30

This bottle consist half liter Insist on using Bisleri with the 'specially-developed faucet'. The new faucet ensures that Bisleri is dispensed directly from the jar, leaving no chance for contamination. Also avoid using hot and cold machines or any dispensers, since they could be a source ofcontamination. Max Retail Price: Rs. 70/Deposit Rs. 150/- (refundable) Stand : Rs. 60/Faucet : Rs. 15/These are the most common promotional strategies used by organizations.

To know the most effective strategies to the organizations: Advertising campaigns Handling public relations activities Distribution of free samples Offering free gifts Conducting trade fairs Exhibitions Competitions ICFAI NATIONAL COLLEGE 31

Offering temporary price discounts Launching door to door selling Telemarketing

There are two types of sale promotional activities; Consumer sales promotion method. Trade sales promotion method.

Consumer sales promotional method Marketer use sales promotion to introduce a new product or brand or promote the existing brand. On the other hand retailers use sales promotion to attract customers their stores. They can use a number of sales promotion tools to boost their sales. Price promotions; Price promotions are also commonly known as price discounting they offer either a discount on the normal selling price of the product or more of the product at the same price. This type of promotion must be used with care as the increase in sales is gained at the cost of a loss in the profit. Coupons: 32

ICFAI NATIONAL COLLEGE

Offering coupons is the most widely used customer sales promotion technique; coupon is a certificate that offers a price reduction for some specified items to the holder. Coupons are distributed with magazines, newspapers.etc. Free gift/samples: Free samples of a new product are usually given to customers, when it is launched in the market. Gift with purchase is a very common promotional technique. It is also know as a premium promotion as the customer gets something in addition to the main purchase. Money refunds and rebates:

The customer receives a specific amount of money (refund) after he submits a proof of purchase to the manufacturer. Manufactures devise the strategy such that the customer qualifies for a refund only when he makes multiple purchase. Point of purchase displays: POP displays are believed to serve as a silent sales force. They include window displays, wall displays, display racks, danglers, balloons, outside signs, counter pieces and innovations such as sniff teasers that spread a products aroma in the store, etc. Instalment offers: Manufacturers as well as retailers offer products at a down payment and allow the customers to pay the remaining amount on an instalment basis.

Consumer contest: In this sales promotion activity customers take part in small competitions on

the basis of their creative and analytical skills. Such contest as customers attention. Consumer sweepstakes:

ICFAI NATIONAL COLLEGE

33

In this type of sales promotion, customers are required to submit their names to be included in a draw for prizes. Trade shows: A group of retailers of manufacturers conduct exhibitions and trade shows to make the customer aware of the products offered by various firms. Industrial shows and annual industrial exhibition exhibition of home appliances, consumer goods or gym equipment. Etc

Trade sales promotion methods. Buying allowance: Buying allowance is a temporary price reduction offered to the retailer for purchasing a specific quantity unit of the product. Such an offer acts as an incentive to stimulate short-term profit of the retailer and promote new products for the company. Buyback allowance: In this kind of sales promotion, the channel members are offered a monetary incentive for each additional unit purchased after the initial deal. This methods aims at stimulating the channel members to purchase additional quantities of stock that is over and above the normal stock, as the monetary incentive they receive is proportional to the amount of additional stock they purchase. Merchandise allowance: In this form of trade promotion, a manufacturer agrees to pay the reseller certain amount of money for promoting the companys product through advertising or display. Middlemen are usually required to show the proof of the advertisement carried out of them. ICFAI NATIONAL COLLEGE 34

Free merchandise: Free merchandise is a sale promotion technique in which an additional

amount of the product is offered without any additional cost, as an incentive to purchase a minimum quantity. The incentive is typical offered for a limited period of time. Dealer loader: A dealer loader is a reward of gift, which is usually a part of the display kit given to the retailer, to encourage him to display the merchandise. Retailers obtain gift only when they buy specific quantities of goods and retain the gift when the promotion is over. Marketers use this technique when they use new distributors or they want to push products to retailers. For example. A silver tray to display a product. When the event is over, is allowed to keep this silver tray.

Dealer listing: Dealer listing is a technique in which the advertisement of a company

identifies and acknowledges its retailer/retailers. Dealer listing help in persuading the retailer to carry the product and also encourage the customer to buy the product at a particular dealers outlet. Scan back allowance: A scan back allowance program is aimed specifically at retail outlets. Retailers are rewarded on the basis of the number of units that moved through their scanners or hand-held wands during a specific time. In order to participate in scan back programs, retailers indulge in reducing the retail price

There is one more promotional strategy Promotion- push and pull strategies ICFAI NATIONAL COLLEGE 35

"Push or Pull" Marketing theory distinguishes between two main kinds of promotional strategy - "push" and "pull". Push A push promotional strategy makes use of a company's sales force and trade promotion activities to create consumer demand for a product. The producer promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers. . A "push" strategy tries to sell directly to the consumer, bypassing other distribution channels (e.g. selling insurance or holidays directly). With this type of strategy, consumer promotions and advertising are the most likely promotional tools.

Pull A pull selling strategy is one that requires high spending on advertising and

consumer promotion to build up consumer demand for a product. If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers. A good example of a pull is the heavy advertising and promotion of children's toys mainly on television. Consider the recent BBC promotional campaign for its new pre-school programme the Fumbles. Aimed at two to fouryear-olds, 130 episodes of Fumbles have been made and are featured everyday on digital children's channel CBeebies and BBC2. As part of the promotional campaign, the BBC has agreed a deal with toy maker Fisher-Price to market products based on the show, which it hopes will emulate the popularity of the Tweenies. Under the terms of the deal, Fisher-Price will develop, manufacture and

ICFAI NATIONAL COLLEGE

36

Distribute a range of Fumbles products including soft, plastic and electronic learning toys for the UK and Ireland. In 2001, BBC Worldwide (the commercial division of the BBC) achieved sales of 90m from its children's brands and properties last year. The demand created from broadcasting of the Fumbles and a major advertising campaign is likely to pull demand from children and encourage retailers to stock Fumbles toys in the stores for Christmas 2002.

As we discussed in above pull and push sales promotion strategy. Bisleri organization is used push strategy because of promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers. Then distributor, wholesalers, retailers, and all Channel members have to hold stock while offer given by manufacturers that time sales of products sold very huge.

ANALYSIS AND INTERPRETATION Table I The below table show that the number of respondents according to their wholesaler And retailer. Custo mer wholes aler Retaile
80 70 60 50 40 30 20 ICFAI NATIONAL COLLEGE 10 0 No of Respondents

Respon dent 67 Classification of33 Gender

67

Percen tage 67 33

r.

33

Series1

37
Male Female

Interpretation: The above chart shows that the wholesaler and retailer classification of respondent.

ICFAI NATIONAL COLLEGE

38

Table-2 The below table show that the number of respondents they know through this media.

Television News papers Magazines Pomp lets & banners

22 32 18 28

Television 28% 22% News papers Magazines 18% 32% Pomp lets & banners

Interpretation: In the above chart 32% of the people know through news papers.

ICFAI NATIONAL COLLEGE

39

Table 3 Do you like the Bisleri Promotional activities?

yes no

78 22

80 70 60 50 40 30 20 10 0 yes no no yes

Series1

Interpretation: .most of retailers know the

are advertisement of bisleri

ICFAI NATIONAL COLLEGE

40

Table-4 Purchasing decision made by you is due to Promotions and marketing

yes no

68 32

no 32% yes no yes 68%

Interpretation: If company give more advertisement then retailers and wholesalers are like to stock more in their stock house

ICFAI NATIONAL COLLEGE

41

Table-5 How do you rate the Promotional activities of Bisleri

Excellent Good Fair Poor

32 42 16 10

Rating given by respondants

45 40 35 32 30 no of respondent 25 20 s 15 10 5 0 Excellent

42

16 10

Series1

Fair

Interpretation:

Company gave good promotional activities

ICFAI NATIONAL COLLEGE

42

Table 6 How did you decide to purchase products and services in Bisleri. Satisfaction Level Fully Satisfied Satisfied Fully dissatisfied Respondent 85 15 0

Satisfaction level of the customers

85

90 80 70 60 No of 50 customers 40 30 20 10 0

Series1 15 0 Fully Satisfied Satisfied Fully dissatisfied

Interpretation In the above chart represent that people are fully satisfied, if Bisleri promotes the products through advertisement because most of the people preferred that fully satisfied is 85%, satisfied is 15% and there is no vote for dissatisfaction which represent the people in need of advertisement.

Table-7 The table shows retailer and wholesalers have interested to stock of Bisleri water botter

ICFAI NATIONAL COLLEGE

43

No of Response Yes No respondents 55 45

No 45%

Yes Yes 55% No

Interpretation: The chart show that the 55% percentage of wholesalers and retailers are interested to have the hold or stock water bottler

ICFAI NATIONAL COLLEGE

44

Table-8 The table shows that the factors, which kinds of plan do you prefer Factors 20. L 5.L 1.5.L 1.L Respondent 27 37 26 10

Respondent Pension plan Life insurance plan Unit linked investment Children endownment
Interpretation: This chart shows that the factors, which kinds of plan do, you prefer Pension plan 27%, Life insurance plan 37%, Unit linked investment 20%, Children endowment 10%

ICFAI NATIONAL COLLEGE

45

Table.9 The table shows that reason for preferring policies of Bisleri Factors Instalment offer Buying allowance Buyback allowance Dealer loader 26 16 20 Respondent 38

Tax saving, 20% Flexibility, 16%

Security, 38%

Security H return igh Flexibility Tax saving

H return, igh 26%

Interpretation From the above we come to know that customers 38% of the investors are investing their money in insurance for safety and the second preference is to return. It shows they want security with high return. ICFAI NATIONAL COLLEGE 46

ICFAI NATIONAL COLLEGE

47

Findings: I found that 45% of the share in this industry is filled by kindly and Bisleri. This is only because of the brand name and popularity; through word of mouth it reaches the people easily. The communication media i.e. 83% of audience are aware only through this marketing channel about the products of water bottle. 78% of the people are expecting marketing from this water bottle; it shows the expectation of people and availability of business and to promote the products through the marketing channel. Finally I find out that manufacturers are taken promotional tool like Dealer loader, buying allowance, merchandise allowance.

ICFAI NATIONAL COLLEGE

48

Suggestions The company has to create the brand awareness as well as the popularity in this industry to promote their products in a competitive environment. The communication media place a vital role in this industry, without this media we cannot have a great market share compared with the private players in this industry.

83% of the customers are expecting trade sales for water bottle products; the company can utilize these areas to increase the market share of company in this industry.

ICFAI NATIONAL COLLEGE

49

Conclusion Even though the marketing is cost effective to the industry but it reaches the huge volume of customers, it promotes the growth of business for the company in the industry. The Bisleri is having a growth rate of 34.5 in this industry, to capture the whole market share and to continue the market leader in this industry the company has to create the brand awareness and popularity through an effective communication media the solution for the entire problem is to make marketing ".

ICFAI NATIONAL COLLEGE

50

Dear Sir/ Madam, I am Sunilkumar.T pursuing MBA. As part of completion of my MBA, I am doing Survey on A Study on Promotional Strategies Adopted by Bisleri water bottle in Davangere with respect to this in need of some information. I request your kind co-operation to fill this questionnaire suitably. The information you give shall be used for educational purpose only.

Name Occupation Do you know about Bisler? 1) Yes 2) No Male:

Age Female:

How did you come to know about Bisler? 1) Television 3) Pomp lets & banners Do you like the Bisleri Promotional activities? 1) YES 2) NO 2) Magazines 4) News papers

Purchasing decision made by you is due to Promotions and marketing? 1) YES 2) NO

How do you rate the Promotions of Bisleri? 1) Excellent 3) Fair 2) Good 4) Poor

How did you decide to purchase products and services in Bisler? 1) To secure our life with policy ICFAI NATIONAL COLLEGE 2) Good products and services 51

3) Well known company

4) Repetitive advertisements.

Do you think the advertisement given by Bisleri is effective? 1) YES 2) NO

Will you able to remember to Bisleri promotions while purchasing policy? 1) Always 2) Sometime 3) No

Which is most attractive information you got from the promotions given by Bisleri? 1) Benefits of offer 2) Return is guaranteed 2) More security 4) All of the above

How often you have watched Bisleri advertisement? 1) Every day 2) Weekend 2) In festival season 4) Not seen

If you ant to give any suggestion to improve Bisleri and its advertisement? --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Signature

ICFAI NATIONAL COLLEGE

52

REFERENCES: Marketing management Page No. 23 and 407 ICFAI Publications

www.nifty.com www.nse India .com www.indianinsurance.com Www.irda.com

ICFAI NATIONAL COLLEGE

53