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    C H I R A N J I T M A N D A L ( 1 1 )

    D E B A S H I S M I S H R A ( 1 2 )

    R A H U L M E N O N ( 4 1 )

    S H I R S H E N D U C H A T T E R J E E

    ( 5 0 )

    X A V I E R I N S T I T U T E O F

    M A N A G E M E N T ,

    B H U B A N E S W A R

    Sales & Distribution

    Management

    This paper studies the Marketing and Selling activities of three

    brands of Packaged Drinking Water (Bisleri, Kinley and Dazzle).

    It also identifies the gap between the Marketing and Selling of

    the three brands and suggests certain recommendations to

    bridge those gaps.

    Packaged Drinking

    Water

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    ACKNOWLEDGEMENT

    We are grateful to all those people who with their valuable inputs have helped us in completing this

    paper. We are thankful to Mr. S. K. Goel of Balaji Traders, Mr. Bijay Kumar Agarwal of Jay Maa Tara

    Enterprise who with their valuable inputs have guided us in getting a thorough understanding of the entire

    distribution of Kinley and Bisleri.

    We are also thankful to Mr. Jagmohan Panda of Trushna who have given us information about the local

    brand Dazzle.

    We are also thankful to all the different retailers who have spared from their valuable time and helped us

    in giving as much information as possible as per their capacity.

    We thank all for their valuable supports in making this project a success.

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    Packaged Drinking water market in India

    An introductionIn India, the per capita bottled water consumption is low - less than five litres a year as compared to the

    global average of 24 litres. However, the total annual bottled water consumption has risen rapidly in

    recent times - it has tripled between 1999 and 2004 - from about 1.5 billion litres to five billion litres.

    These are boom times for the Indian bottled water industry because the economics are sound, the bottom

    line is fat and Indian government shies away from conserving the nations water resources.

    The industrys phenomenal growth in recent years can be attributed to rising incidence of water-borne

    diseases, improper municipal supplies, evolved health consciousness of people & globalisation, which has

    brought in tremendous tourist inflow. India is the tenth largest bottled water consumer in the world. In2002, the industry had an estimated turnover of Rs.10 billion (Rs.1,000 crores). Today it is one of India's

    fastest growing industrial sectors. Between 1999 and 2004, the Indian bottled water market grew at a

    compound annual growth rate (CAGR) of 25 per cent which was the highest in the world.

    In the Indian bottled water industry there are more than 200 brands, nearly 80% of which are local brands.

    Making bottled water is today a cottage industry in India. There are bottled water manufacturers in

    every medium & small city & in even some prosperous rural areas. The industry being dominated by over

    a thousand bottled water producers makes the Indian bottled water industry big by even the international

    standards.

    Despite the large number of small producers, this industry is dominated by the big players - Parle Bisleri,Coca-Cola, PepsiCo, Parle Agro, Mohan Meakins, SKN Breweries and so on. Parle was the first major

    Indian company to enter the bottled water market in the country when it introduced Bisleri in India 25

    years ago.

    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.

    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.

    In the retail consumer market, pack sizes of packaged drinking water are a) 500 ml, b) one litre, c)

    1.2/1.5/2-litre d) five-litre & and the household and institutional market, the pack sizes comprises of 20 or

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    25-litre. The total Indian market for small segments, such as 0.5-2 litre stands at 12-15 million cases a

    year. Bulk water sale of 25-litre bubbletops stands at 16.8 million bottles a month

    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

    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.

    Cost of producing 1 litre branded bottled drinking water

    Cap cost Rs 0.25

    Bottle cost Rs 1.5 - Rs 2.5

    Treatment cost Rs 0.1 - Rs 0.25

    Label cost Rs 1.5 - Rs 0.25

    Carton cost Rs 0.50

    Transportation cost Rs 1.0 - 0.25

    Others Rs 0.50

    Total cost (excluding labour, marketing &tax)

    Rs 2.85 - 4.25

    Selling cost Rs 10 - 12

    For our study of the Marketing and Selling activities we have identified one brand each in the packaged

    drinking water segment of Multinational, National and Local origin. This paper intends to find out the

    Marketing and Selling activities of the three brands and identify the gap between the marketing and

    selling activities.

    BRANDS CONSIDERED

    FO

    R

    ST

    UDY

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    Coca Colas: Kinsley

    Kinley was launched in India in the year 2000. Kinley was able to garner a market share of 24 per cent in

    the packaged drinking water segment in a little more than a year from its launch. Instead of setting up

    manufacturing facilities for Kinley, there were tie ups with existing plants and the route of contract

    manufacturing was taken for Kinleys expansion. This strategy allowed the company to save on both time

    and resources in India. By tying up with existing facilities, CCI (Coca Cola India) managed to score on

    the distribution aspect by making its brand, Kinley available throughout the country which gave credence

    to its rising market share in India.

    The below diagram represents a typical chain of manufacture to distribution of Kinley, the brand for

    packaged drinking water of Coca Cola India. The company follows the same chain for all its product.

    Because of the presence of its strong brand like Coca Cola, Thums Up, Sprite, Limca, etc. it makes it easy

    for the company to market as well as distribute Kinley through the same channel.

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    FIGURE: CHAIN FOLLOWED FROM MANUFACTURE TO DISTRIBUTION

    DISTRIBUTION NETWORK

    CCI has a wide and well managed network of salesmen appointed for taking up the responsibility of

    distribution of products to diverse parts of the cities. The distribution channels are constructed in such a

    way that the demand of customers is fulfilled at the right place and the right time when it is needed by

    them.

    Manufacturing Plant

    Sales and Distribution

    Operations

    Distributors

    Outlets

    Outlets

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    A typical distribution chain at CCI would be

    The customers of the Company are divided into different categories and different routes, and every

    salesman is assigned to one particular route, which is to be followed by him on a daily basis. A detailed

    and well organized distribution system contributes to the efficiency of the salesmen. It also leads to lowcosts, higher sales and higher efficiency thereby leading to higher profits to the firm.

    DISTRIBUTION ROUTES

    The various routes formulated by CCI for distribution of products are as follows:

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    Key Accounts: The customers in this category collectively contribute a large chunk of the total

    sales of the Company. It basically consists of organizations that buy large quantities of a

    product in one single transaction. The Company provides goods to these customers on credit,

    payments being made by them after a certain period of time i.e. either a month or half a month.

    Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.

    Future Consumption: This route consists of outlets of Coca-Cola products, wherein a

    considerable amount of stock is kept in order to use for future consumption. The stock does not

    exhaust within a day or two, instead as and when required stocks are stacked up by them so as

    to avoid shortage or non-availability of the product.

    Examples: Departmental stores, Super markets etc.

    Immediate Consumption: The outlets in this route are those which require stocks on a daily

    basis. The stocks of products in these outlets are not stored for future use instead, are exhausted

    on the same day and might run a little into the next day i.e. the products are consumed at a fast

    pace.

    Examples: Small sized bars and restaurants, educational institutions etc.

    General: Under this route, all the outlets that come in a particular area or an area along with its

    neighboring areas are catered to. The consumption period is not taken into consideration in this

    particular route.

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    DISTRIBUTION SYSTEM

    Direct distribution: In direct distribution, the bottling unit or the bottler partner has direct

    control over the activities of sales, delivery, and merchandising and local account management at

    the store level.

    Indirect distribution: In indirect distribution, an organization which is not part of the Coca-Cola

    system has control on one or more of the distribution elements (Sales, delivery, merchandising

    and local account management)

    Merchandising: Merchandising means communication with the consumer at the point of

    purchase to convey product benefit, value and Quality. Sales people and delivery personnel both

    have this responsibility. In certain locations special teams who go into business locations to

    specifically merchandise our products.

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    MARKETING

    Segmentation & Targeting

    The 1 litre Kinley bottle is priced at Rs 12, 500 ml pack is priced at Rs 8 & the 20 25 litre bulk packs

    are priced at Rs 75. Kinley finds a special appeal amongst consumers who have an on the Go lifestyle,

    looking for hygienic and trustworthy drinking water while being on the move. Coca-Cola India has also

    introduced its premium mineral-enriched product 'Schweppes Water' in 45 select locations across

    Mumbai. It was the first company to launch 'enhanced water' brand in India. It's priced at Rs 30 for 250

    ml bottle. It is aimed at consumers who prefer drinking good quality water & are brand conscious.

    Repositioning: Boond Boond main vishwaas

    Kinleys initial television commercial was built on the trust & safety platform. It depicted doctors

    endorsement which forced CCI to pull out the commercial off air after the notification by The Health

    Ministry of India that made doctors endorsement illegal.

    The new and slickly presented set of four television commercials was built on the platform of trust -

    Boond boond mein vishwas and was aired on national television. The

    communication strategy was a montage of a slice of Indian life and emotions

    depicted by the boy scouts, the football match and the family celebrating Holi.

    The new and slickly presented set of four television commercials builds on theplatform of trust - Boond boond mein vishwas and is in the process of being aired

    on national television. The ads took the communication to a different emotional

    level by depicting trust in the context of the largeness of water.

    The Commercial is in the form of a travelogue, where a young boy keeps the faith

    by going through a long journey to meet his grandmother. The film opens on the boy, who is en route to

    his ancestral home. The background score says, 'Mann Kaanch jaisa, Aar Paar Aisa, Aasman Sa Khula

    Saaf Dil Hai Tera'. Somewhere along the journey, he is looking for drinking water, and is skeptical about

    finding pure water. A shopkeeper, on sensing his dilemma, calls him and gives him the new bottle of

    Kinley. The boy, onseeing the trusted quality seal on the bottle, is happy that he has found his trustedKinley. All along the journeyon the bus, at a roadside dhaba, he uses Kinley to quench his thirst. At his

    grandmothers home, he is welcomed with lot of love and affection. His grandmother asks him to wash

    his hands (a symbol of purification) with Kinley. The commercial closes on the shot of the old lady and

    the grandson catching up with each other, with the super'Boond Boond Mein Vishwas'.

    As part of its new re-branding campaign, Coca-Cola has changed the packaging design on Kinley

    water bottle which would be available in 500 ml and 1 litre packages and 20 and 25 litre bulk jars in

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    the price range of Rs 8 to Rs 75. The bottle now comes in a new 'easy to hold' shape; and the label has

    changed from the previous blue to a transparent one. Apart from television, outdoor and on-truck

    advertising is also being used as part of its communication strategy. Kinley has around 19.5 per cent

    market share followed by Aquafina (18 per cent), in the packaged drinking water segment.

    SELLING

    Sales Force Management

    The distributor appoints their own salesmen for the distribution of goods to the retailers. Its salesmen also

    do door to door supply. The distributors have fixed different routes and every salesmen is assigned to one

    particular route to avoid any conflict. For the Distributor interviewed he had 5 different routes. Out of the

    5 routes he had one route was the major route whereas the rest 4 were subsidiary routes. Targets are fixed

    basis the routes. The target for the main route is 1000 crates per month whereas for the rest 4 routes the

    target fixed is 500 crates per month. The sales people are given lumpsum incentives basis the target either

    at the end of the month or as bonus during any point of year. The salary for each sales person varies

    within the range of Rs 2000 to Rs 2500. The entire strategy of evaluating a sales person is decided by theDistributor. The company sales person visits once a month for record checking. The Distributor reports to

    the Sales Executive looking after the area.

    Selection Criteria for Salesmen:

    The distributor has set certain criteria for the selection of salesmen. These criteria become even more

    important as the attrition level has to be taken care of and the importance of salesmen in bringing more

    business.

    1) The candidate must be at least a higher secondary pass.

    2) The candidate must have knowledge of local language.

    3) Candidates with prior relevant work experience are preferred.

    4) The candidate if from the territory is preferred.

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    Incentives for the salesmen:

    A basic salary of around Rs 2000 to Rs 2500 is given irrespective of the performance of the salesman.

    Incentives are given in total as a lump sum either at the end of the month or as bonus at any point of year.

    Thus the incentive for the sales people is Fixed Salary plus Bonus.

    Price Margins for the products:

    Based on the primary data from the distributor; following are the margins which the distributor gets from

    the company for various capacities:

    Capacity (Liters) Cost Price (Rs)/Crate Selling Price

    (Rs)/Crate

    Margin (Rs) Schemes to

    Retailers

    Liter (24pc per

    crate)

    170 180 10 2 bottles of

    500ml are given

    free to retailers

    1 (12pc per crate) 114 124 10 2bottles of 1L

    are given free to

    retailers

    2 (9pc per crate) 148 158 6 1 bottle of 2L is

    given free

    20 54 58 4 Retailers prefer

    local brands for

    this pack size

    Special discounts and schemes are given during festivals like Durga Puja and seasons like the

    marriage season just to boost up the sales volume. The rest schemes round the year remains almost

    constant with only minimal changes.

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    Flow of Cash and Credit

    The distributor gets a credit period of 10 days from the company. The distributor gives a credit period

    of 7 to 10 days to the retailers depending upon the personal relationship with the retailers. For the

    various schemes that the distributor gives to the retailers like the free samples depends on the CreditNote given to them by the company. The Credit Note is the limit of amount to which a distributor can

    give a retailer free sample. This Credit Note is settled in the claims.

    Critical Analysis

    One of the major things plaguing the brand Kinley is its different pricing for the same pack

    size. For example for the 1 liter pack size there are two prices existing in the market, Rs 12

    and Rs 15. This difference in price is because of the fact that the different portion of the state

    gets their product from different plants. The area in the state which receives products from

    the plant located at a larger distance has the prices of their product marked as Rs 15. This

    difference in price with respect to its competitor is affecting the market share of the brand.

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    BISLERI

    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 non-returnable bottles & finally advanced to PETcontainers.

    Since 1995, Bisleris operations have expanded substantially; its turnover has multiplied more than 20

    times since its inception & the average growth rate has been around 40 % over a period of 10 years.

    The general distribution channel of Bisleri looks like this:

    MANUFACTURING PLANT

    COMPANY WAREHOUSE

    RETAILERS

    INSTITUTIONAL

    BUYERS/ORDERS OVER

    INTERNET

    DISTRIBUTORSINSTITUTIONAL

    BUYERS/SEASONAL PARTY

    ORDERS

    TRUCKS

    ROUTE

    SELLING

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    MARKETING

    Segmentation & Targeting

    Bisleri has a multi-pack and a multi-price strategy. It offers 7 packaging options; a 250-ml cup and bottles

    in 500 ml, 1-litre, 2-litre, 5-litre, 12-litre and 20-litre packs. The 1-litre bottle accounts for nearly 50 per

    cent of the sales, with the 2-litre bottle taking up 20 per cent of the sales. The remaining sizes share the

    balance.

    Bisleri has targeted the household segment with the large pack sizes of 20 & 25 litres. In India, certain

    households spend a huge amount of money on fuel in order to purify water. Households, in certain parts

    of India spend a huge amount of money on fuel in order to purify water. This was lapped up by Bisleri as

    a business opportunity in the water-scarce places in south India.

    Bisleri is priced to benefit volume purchase. The 1-litre bottle is priced at Rs 12, the 2-litre bottle is priced

    at Rs 20 (Rs 10 per litre), the 5-litre pack at Rs 30 (Rs 6 per litre) and the 20-litre pack at 70 (Rs 3.50 per

    litre).

    Positioning: From "Pure and Safe" to "Play Safe"

    The earlier brand building efforts Of Bisleri focused on being healthy with adequate minerals. The Italian

    name added a dash of class to it. The first print ad campaign captured the international essence and

    showed a butler with a bow tie, holding two bottles of Bisleri. The punchline was, "Bisleri is veri veri

    extraordinari" (the spelling of the punchline was designed to capture the consumer's attention). The

    campaign was successful and we were being noticed as someone who catered to the need for safe, healthy

    drinking water.

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    SELLING

    Sales Force Management

    The distributor employs their own salesmen. The salesmen are divided among the territories defined by

    the distributor. The distributor has 5 routes. Out of the 5 routes, one is the main route and the other four

    are sub routes. The salesmen are divided amongst these routes. This helps in avoiding horizontal conflict

    and leads to better focus and evaluation of sales performance of the salesmen. The company sales person

    makes a visit once every month. Rest of the month every communication regarding stock replenishment,

    etc. takes place over phone. The person of the company whom the distributors communicate with is the

    Sales Executive. At times the company deploys its own men to do the distribution job for the Distributor

    also.

    Selection Criteria for Salesmen:

    The distributor has set certain criteria for the selection of salesmen. These criteria become even more

    important as the attrition level has to be taken care of and the importance of salesmen in bringing more

    business.

    1) The candidate must be at least a high school pass.

    2) The candidate must have knowledge of local language.

    3) Candidates with prior relevant work experience are preferred.

    4) The candidate if from the territory itself is preferred.

    Incentives for the salesmen:

    A basic salary of around Rs 2000 to Rs 2500 is given irrespective of the performance of the salesman. No

    incentives are given to the salesmen for distributing Bisleri as no such support is received from the

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    company. So no targets are also fixed for the salesmen as company doesnot give them any target. The

    entire distribution runs on the general demand of the market i.e. on the market pull only.

    Price Margins for the products:

    Based on the primary data from the distributor; following are the margins which the distributor gets from

    the company for various capacities:

    Capacity (Liters) Cost Price (Rs)/Crate Selling Price

    (Rs)/Crate

    Margin (Rs) Schemes to

    Retailers

    Liter (24pc per

    crate)

    158 168 10 3 bottles of

    500ml are given

    free to retailers

    1 (12pc per crate) 114 124 10 3 and sometimes

    4 bottles of 1l

    are given free to

    retailers

    2 (9pc per crate) 148 158 6 2 bottles of 2 l

    are given free

    20 54 58 4 Two MRP, Rs 60

    & Rs 70, for both

    Retailer pays the

    same.

    The schemes given to retailers are usually dependent on company policy. As per the company policythe various schemes are given to the retailers and the amount for the same is claimed from the

    company. But as per the experience of the Distributor the company doesnt settle the claims soon and

    takes much longer time for which many distributors have left the distributorship of Bisleri. Special

    discounts and schemes are given during festivals like Durga Puja and seasons like the marriage

    season just to boost up the sales volume.

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    Flow of Cash and Credit:

    The company doesnt give any credit schemes to the Distributors. The Distributor either have to make

    Advance Payment or else the day on which company delivers stock to them the company people

    collects the payment. But the distributor offers credit of a maximum period of 3 days to the retailers.

    Critical Analysis:

    After discussion with the Distributors it came out that the Distributors are not happy with the

    companys policy. Many distributors have left the distributorship of Bisleri due to this. Since the

    Distributors need to bear the transportation cost of delivering the goods to the retailers, only big

    Distributors who have other distributorship also are having the Bisleri distributorship. For example,

    Mr. Bijay Agarwal, Proprietor, Jay Maa Tara Enterprise, have Coca Cola Distributorship. He sends

    the Bisleri products along with the Coca Cola products to the market. It seems that the market of

    Bisleri is entirely PULL driven. There is no effort from the company of any form of PUSH to sell its

    product. This unique advantage of Bisleri is due to the fact that it was the earliest entrant into this

    packaged drinking water segment so has almost converted its brand name as a generic name for the

    product supported by its aggressive advertising. But the Distributors feel in terms of quality Aquafina

    and Kinley are far better than Bisleri.

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    DAZZLE

    Dazzle is a local brand of packaged drinking water manufactured and marketed by Dazzle Mineral Water

    Company. The company was established in 1992 and has operation all over the Orissa and especially in

    its capital city of Bhubaneswar. The company follows a three tier distribution channel for selling its

    packaged drinking water which is available in 1L, 2L, 5L, and 20L. The company appoints distributors in

    each district who in turn store, and transport its packaged drinking water to various retailers throughout

    the city. In Bhubaneswar they have one distributor who looks after the storage and transport of theproducts to various retailers who are at the 3rd tier. It is from these retailers these water bottles are sold to

    individual consumers. The distributor has institutional buyers for its products which are sold to various

    offices and hotels etc. Transportation charges for transporting the water bottles from company to the

    distributor is covered by the company whereas transportation charges for transporting the water bottles

    from the distributor to the retailers is taken care of by the distributor.

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    Dazzles Distribution Channel in Bhubaneswar

    Diagrammatic representation of the various levels of the channel.

    MARKETING

    Segmentation and Targeting

    Dazzle being a local brand has more focus on extensive distribution rather than targeting a particular

    segment like Bisleri or Kinley. Dazzle targets both individual consumers and institutional buyers without

    focusing them separately. But like its competing brands it offers multiple products with varying price and

    capacity.

    Companys

    Manufacturing

    Unit

    Distributor

    Retailers Institutional

    Buyers (Hotels,Corporate Offices of

    Various Companies)

    Consumers Consumers

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    Positioning

    Dazzle has positioned itself as a provider of core product i.e. quenching thirst and gives value for money

    as it is priced lower than its national and international competitors. That is why there is no major ad

    campaign visible in and around the city. Although in a few cinema halls in Bhubaneswar they show theads of Dazzle during the intervals. Also in one of the local Oriya television serial, it is advertised during

    breaks.

    Pricing Strategy

    Dazzles pricing strategy is quite simple as it provides an inexpensive solution to packaged drinking water

    both for individual and institutional consumption. Throughout the product range it is charged around 20%

    lower than its national and local competitors. Al the same time they give higher margins to the channel

    members like the distributor and retailers vis--vis its competitors as a part of its push strategy.

    SELLING

    Sales Force Management:

    The distributor has deployed five salesmen in the whole of Bhubaneswar. The distributor has also dividedthe whole city region into five sub regions for each salesman to operate in that particular area. This helps

    in avoiding horizontal conflict and leads to better focus and evaluation of sales performance of the

    salesmen.

    Selection Criteria for Salesmen:

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    The distributor has set certain criteria for the selection of salesmen. These criteria become even more

    important as the attrition level has to be taken care of and the importance of salesmen in bringing more

    business.

    1) The candidate must be at least a high school pass.

    2) The candidate must have own vehicle.

    3) The candidate must have knowledge of local language.

    4) Candidates with prior relevant work experience are preferred.

    Incentives for the salesmen:

    A basic salary of Rs 2500 is given irrespective of the performance of the salesman. Apart from this travel

    and food expenses incurred for business purposes are reimbursed. A commission of 1% on total sales per

    day is given.

    Price Margins for the products:

    Based on the primary data from the distributor; following are the margins which the distributor gets from

    the company for various capacities:

    Capacity (Liters) Cost Price (Rs) Selling Price (Rs) Margin (Rs)

    1/2 4.5 6 1.5

    1 6 10 4

    2 12 18 6

    5 32 40 8

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    Price margin goes on increasing as the quantity increases. This can be explained by the fact that the

    companies gives more margin for low sales product as this will act as an incentive for the company to

    push it through various channel members.

    Flow of Cash and Credit:

    The credit for purchasing goods by the distributor from the company is about a week. For the

    distributor to the retailers the credit period is a maximum of three days. Also the distributor charges

    security amount from the first time retailers.

    Trade Schemes:

    There are occasional trade schemes offered by the company to the distributor. This includes with

    every 12 cases of 12 bottles (of all capacities), the company gives one case free during the Durga Puja

    and Jagganath Yatra times.

    COMPARITIVE ANALYSIS

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    Different Brands of Packaged Drinking water on the Selling Matrix

    1. Picking Behavior

    PUSH

    4. Habit

    PULL (Credence)

    2.HEURISTIC

    Search Attributes

    3.PROBLEM SOLVING

    Experience Attribute

    Uncertainty of untried brands

    Bisleri has placed itself on the 4th quadrant of the selling matrix with credence attribute where it is entirely

    now pull driven. Kinley at present is in the 2nd quadrant and is moving from the search attribute to the

    experience attribute. Dazzle is still in the 1st quadrant where consumers show picking behavior and the

    market is entirely dependent on push.

    LOW

    HIGH

    LOW HIGH

    Differencebetweenbrands

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    Margins earned by the retailers

    Name of the

    brands

    Cost Price Selling price Profit margin

    Dazzle Rs 8 Rs 10 Rs 2

    Kinley Rs 12.25 Rs 14/15 Rs 1.75/2.75

    Aquafina Rs 10.50 Rs 12 Rs 1.50

    Bisleri Rs 10 Rs 12 Rs 2

    Dazzle Rs 1 pouch* Rs 50 Rs 100 Rs 50

    Retailer purchases 1 box of 100 Dazzle pouches for Rs 50 & sells the pouches at Rs 1 each, earning a

    margin of Rs 50 per box.

    From the above table, its quite evident that the sales of Rs 1 pouch of local brands like Dazzle, Bubbles,

    Tribeni, etc is profitable for the retailers, especially those who have their shops near a bus stop or near

    the railway station, where they find people in transit.

    In retail stores & chemist shops there is a shortage of space, the retailers order stock as per the shelf space

    & the brands keep rolling off the shelves. Since the 1L pack size of Dazzle is priced at Rs 10 whereas the

    others are either Rs 12 or Rs 14 so the customers often end up in buying the local brands due to lack ofchange. Only very few customers intend on having the brand of their choice. Because the product is a

    high need (thirst) satisfying product and if not got at the right time its utility decreases. For instant use

    customers pick up any brand that is available at that point of time. If the brand of their choice is available

    at that moment they take that brand otherwise they settle with slight hesitation for any other brand which

    is there even if it is not in their consideration set.

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    COMPARISON OF MARKETING AND SELLING ACTIVITIES

    KINLEY BISLERI DAZZLE

    MARKETINGWith aggressive promotional

    campaign, point of purchase

    promotion and encasing on the

    brand value of other power

    brands of CCI, Kinley is

    creating a PULL in the market

    Mass media

    advertisement, hoardings,

    etc. are used for

    promotional campaign.

    Change in packaging to

    reposition its brand.

    Already having credence

    attribute and positioned

    itself as safe in the minds

    of consumers. Has become

    a generic brand for mineral

    water and creating PULL

    entirely.

    Minimal advertising,

    restricted to only Cinema

    halls and few local

    television without any

    hoarding or bill board. Not

    much reinvention in

    packaging too over the

    years. Only the price is

    kept lower than their

    national and international

    competitors. Hence almost

    no PULL creation in the

    market.

    SELLINGTrade schemes, retailers

    incentive, distributor incentives

    are meant for PUSH of the

    product in the market.

    No much selling effort.

    Only minimal retailers

    scheme. No credit for

    distributor. Hence almost

    no PUSH. Markets entirely

    PULL driven.

    High margin for retailers,

    distributors. Round the

    clock service. Trade

    incentives, high credit

    period, etc. are entirely

    meant for total PUSH of

    the product in the market.

    GAP

    Entire strategy is a combination

    of PUSH and PULL. Hence nosuch gap exists between

    marketing and selling activities.

    Therefore the market share of

    Kinley has been increasing over

    the years. The only

    consideration is the different

    price for same product as

    discussed earlier which is

    killing the market share of it.

    Entirely PULL driven

    market with no or minimalPUSH. Though Bisleri has

    turned out to be generic

    name for mineral water but

    without any PUSH it

    might lose its market share

    to brands like Kinley or

    Aquafina. So Selling

    activities must be taken

    more seriously.

    Entirely PUSH driven

    market. For sustainabilityof the product it is

    necessary that the

    company takes up

    Marketing activities to

    generate PULL in the

    market.

    RECOMMENDATION

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    KINLEY BISLERI DAZZLE

    Should look into the matter of

    different pricing of the same pack

    size in the same state. This if

    continued for long might kill the

    brand.

    Should be concerned about the

    intermediaries or the channel

    members. Should look into their

    needs. Should do some amount of

    PUSH. Claims settlement should be

    fast and efficient. If not done then

    the channel members can kill the

    product.

    Should go in for some amount of

    advertising in mass media to

    position its brand in the minds of the

    consumers. Should focus on moving

    up the selling matrix.

    CONCLUSION

    It is thus evident from the above study that marketing as well as selling activities both are needed to

    make a brand successful. In this cut throat competitive world it is very necessary to do both PULL and

    PUSH activity otherwise the sustainability of the brand comes into question. An efficient combination of

    marketing (PULL) and selling (PUSH) would help a brand to remain in the consideration set for long.

    Further in the product category we studied there lies ample scope for companies to earn profit as still

    this water business sector is in its nascent stage. The sector since growing provides huge opportunity to

    the players to reap in the benefit. Good strategic decisions will help the companies achieve their goals in

    this respect.

    REFERENCES

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    1) Reinventing Bisleri

    Url: http://www.icmrindia.org/free%20resources/casestudies/reinventing-bisleri2.htm

    2) Bottled loot: By Chandra Bushan

    URL: http://www.hinduonnet.com/fline/fl2307/stories/20060421006702300.htm

    3) Coke's plans hold water : By Neha Kaushik

    URL:http://www.hinduonnet.com/businessline/catalyst/2001/11/29/stories/1929f05b.htm

    4) Business: Kinleys packaging revamp

    URL: http://spoonfeedin.blogspot.com/2008/07/business-kinleys-packaging-revamp.html

    5) Managing your salesforce: A Motivational Approach, by P.Venugopal

    http://www.hinduonnet.com/fline/fl2307/stories/20060421006702300.htmhttp://www.hinduonnet.com/businessline/catalyst/2001/11/29/stories/1929f05b.htmhttp://spoonfeedin.blogspot.com/2008/07/business-kinleys-packaging-revamp.htmlhttp://spoonfeedin.blogspot.com/2008/07/business-kinleys-packaging-revamp.htmlhttp://www.hinduonnet.com/businessline/catalyst/2001/11/29/stories/1929f05b.htmhttp://www.hinduonnet.com/fline/fl2307/stories/20060421006702300.htm