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A REPORT ON
“ANALYTICAL STUDY OF PROMOTIONAL STRATEGIES OF
BISLERI”
BY
SUNILKUMAR.T
BISLERI, WATER BOTTLES
ICFAI NATIONAL COLLEGE 1
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 2
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 3
(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 4
TABLE OF CONTENTS:
AKNOWLEDGEMENT.............................................................................6
ABBREVIATIONS:.................................................................................7
DECLARATION......................................................................................3
CERTIFICATE........................................................................................4
SUMMARY:.............................................................................................8
1. INTRODUCTION:..............................................................................9
1.1 INDUSTRY PROFILE:............................................................................10
1.2. COMPANY PROFILE:...........................................................................11
2. FORMULATION OF OBJECTIVE:................................................12
2.1. OBJECTIVE OF STUDY:......................................................................13
4.63. PRODUCTS:...............................................................................................
4.7. PROMOTIONS:...........................................................................................4.71. SPONSORSHIPS:...................................................................................................
4.72. ADVERTISEMENT:..............................................................................................
5. EMPIRICAL ANALYSIS & FINDINGS.............................................
6. SUGGESTIONS.................................................................................46
7. CONCLUSION / RECOMMENDATIONS:.....................................47
8.1 QUESTIONNAIRE:............................................................................48-49
9. REFERENCES:................................................................................50
ICFAI NATIONAL COLLEGE 5
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 6
.
ABBREVIATIONS:
B.M: Beverage marketing.
B.W. Bottler water.
WAN: wide area network
B.S.E. Bombay stock exchange
ICFAI NATIONAL COLLEGE 7
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.
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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
address the main factors of inefficiency of Indian water supply networks that are
ICFAI NATIONAL COLLEGE 9
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 (Zérah and Lorene 1999; Zérah 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.
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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
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.
ICFAI NATIONAL COLLEGE 12
WATER BOTTLE MANUFACTURERS:
BISLERI
OXYRICH
OMKAR
BINDU
KINLEY
AQUAFIAN
FLAIR
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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.
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
ICFAI NATIONAL COLLEGE 14
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
Customer’s Processes through new techniques.
Focussed On Our Customers
We have a motto of “Customer’s 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 Client’s Site, are not only kept in
working conditions but upgraded from time to time for improved performance by
regular up-keep and AMC’s.
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,
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.
ICFAI NATIONAL COLLEGE 15
Sr. No. Director's Name Designation
1 Surendra T Shah Chairman / Chair Person
2 Sanjay S Shah Managing Director
3 Shilaben S Shah Director
4 Ritaben S Shah Director
5 Kashyap R Mehta Director
6 Sanjay V Karkare 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.
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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)
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.
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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:
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 19
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.
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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 customer’s 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
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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 non-
returnable 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 22
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 23
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 non-
returnable 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 06-07. 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 24
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 25
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 26
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 27
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 28
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 29
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
Offering temporary price discounts
Launching door to door selling
Telemarketing
ICFAI NATIONAL COLLEGE 30
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:
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:
ICFAI NATIONAL COLLEGE 31
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 product’s 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 customer’s attention.
Consumer sweepstakes:
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
ICFAI NATIONAL COLLEGE 32
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 company’s product through advertising
or display. Middlemen are usually required to show the proof of the advertisement
carried out of them.
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.
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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 dealer’s 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
P r o m o t i o n - p u s h a n d p u l l s t r a t e g i e s
"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
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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 four-
year-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
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.
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Classification of Gender
67
33
01020304050607080
Male Female
No o
f Res
pond
ents
Series1
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
Respon
dent
Percen
tage
wholes
aler 67 67
Retaile
r.
33 33
Interpretation:
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The above chart shows that the wholesaler and retailer classification of
respondent.
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22%
32%18%
28%
Television
News papers
Magazines
Pomp lets &banners
Table-2
The below table show that the number of respondents they know
through this media.
Television 22
News
papers 32
Magazines 18
Pomp lets
& banners 28
Interpretation: In the above chart 32% of the people know through news
papers.
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yes
no
0
10
20
30
40
50
60
70
80
yes no
Series1
Table 3
Do you like the Bisleri Promotional activities?
yes 78
no 22
Interpretation:
.most of retailers
are know the
advertisement of bisleri
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yes68%
no 32%
yesno
Table-4
Purchasing decision made by you is due to Promotions and marketing
yes 68
no 32
Interpretation:
If company give more advertisement then retailers and wholesalers are like
to stock more in their stock house
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32
42
1610
05
1015202530354045
no of respondent
s
Excellent Fair
Rating given by respondants
Series1
Table-5
How do you rate the Promotional activities of Bisleri
Interpretation:
Company gave good promotional activities
ICFAI NATIONAL COLLEGE
Excellent 32
Good 42
Fair 16
Poor 10
41
85
15
00
102030405060708090
No of customers
FullySatisfied
Satisfied Fullydissatisfied
Satisfaction level of the customers
Series1
Table – 6
How did you decide to purchase products and services in Bisleri.
Satisfaction
Level Respondent
Fully Satisfied 85
Satisfied 15
Fully dissatisfied 0
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
Response No of
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respondents
Yes 55
No 45
Yes55%
No45% Yes
No
Interpretation:
The chart show that the 55% percentage of wholesalers and retailers are
interested to have the hold or stock water bottler
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Table-8
The table shows that the factors, which kinds of plan do you prefer
Factors Respondent
20. L 27
5.L 37
1.5.L 26
1.L 10
Respondent
Pension plan
Life insuranceplan
Unit linkedinvestment
Childrenendownment
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%
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Security, 38%
High return, 26%
Flexibility, 16%
Tax saving, 20% Security
High return
Flexibility
Tax saving
Table.9
The table shows that reason for preferring policies of Bisleri
Factors Respondent
Instalment
offer 38
Buying
allowance 26
Buyback
allowance 16
Dealer
loader 20
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.
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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.
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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.
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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 ".
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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… …… Age…
Occupation… Male: Female:
Do you know about Bisler?
1) Yes 2) No
How did you come to know about Bisler?
1) Television 2) Magazines
3) Pomp lets & banners 4) News papers
Do you like the Bisleri Promotional activities?
1) YES 2) NO
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 2) Good
3) Fair 4) Poor
How did you decide to purchase products and services in Bisler?
1) To secure our life with policy 2) Good products and services
3) Well known company 4) Repetitive advertisements.
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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) More security
2) Return is guaranteed 4) All of the above
How often you have watched Bisleri advertisement?
1) Every day 2) In festival season
2) Weekend 4) Not seen
If you ant to give any suggestion to improve Bisleri and its advertisement?
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-Signature
ICFAI NATIONAL COLLEGE 51
REFERENCES:
Marketing management
Page No. 23 and 407
ICFAI Publications
www.nifty.com
www.nse – India .com
www.indianinsurance.com
Www.irda.com
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