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MANAGEMENT
TO
M.S.RAMAIAH INSTITUTE OF MANAGEMENT
BY
BIKASH PRASAD
(Reg.no. 092114)
HISTORY OF COCA-COLA
The world has changed in many ways since pharmacist; John Smyth Pemberton first
introduced the refreshing tasteof Coca-Cola in Atlanta, Georgia. The name and the product
mean so many things to hundreds of Millions of consumers around the globe. Coca-
Colaproducts are served more than 705 million times every day, quenching the thirsts of
consumers in more than 195 countries in every climate. That is a long way to come after such
a modest beginning...
May - Pemberton concocted caramel-colored syrup in a three-legged brass kettle in his
1886 backyard. He first "distributed" the new product by carrying Coca-Cola in a jug down
the street to Jacobs Pharmacy. For five cents, consumers could enjoy a glass of Coca-
Cola at the soda fountain. Whether by design or accident, carbonated water was
teamed with the new syrup, producing a drink that was proclaimed "Delicious and
Refreshing." Dr. Pemberton's partner and bookkeeper, Frank M. Robinson, suggested
the name and penned, in the unique flowing script that is famous worldwide today, "
1886 - Sales of Coca-Cola averaged nine drinks per day. That first year, Dr. Pemberton sold
25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive
color associated with the No. 1 soft drink brand ever since.
1891 - Atlanta entrepreneur Mr. Candler had acquired complete ownership of the Coca-Cola
business for $2,300. Pemberton was forced to sell because he was in a state of poor
health and was in debt. Within four years, Candler's merchandising flair helped
expand consumption of Coca-Cola to every state and territory.
The Coca-Cola company's eight hundred number received eighteen thousand calls of
gratitude. The comeback of old Coke drove stock prices to the highest level in twelve
years. This was said to be the only way to regain the lead on the cola wars.
1993 - Coca-Cola exceeds 10 Billion cases sold worldwide.
1996 - The Summer Olympics will be held in Atlanta, Georgia, the home of Coca-Cola. For
more than 65 years, Coca-Cola has been a sponsor of the Olympics.
CSR (COMPANY SOCIAL RESPONSBILITY)
One great earmark that the Coca-Cola Company has is helping the people of Atlanta. They
accomplish this through scholarships, hotlines, donations and contributions.
Another large accomplishment that the Coca-Cola has, is being the first company to make
and use recycled plastic bottles.
JOHN PEMBERTON
COKE IN INDIA
Despite the formidable track of its parent, $18 billion giant in Atlanta USA.Coke India record
1800 crore soft drink makers is prominent. Coca-Cola entered in India market after 16 years
from Hathras Dec 1993.Cocacola became the undisputed leader of the Indian soft drink
market because of their acquiring rights of Ramesh Chauhan aerated Parle drinks with one
stroke of pen and a bill of 140 crore, coke picked by five brands Thums up, limca, Gold spot,
Citra, Maaza with a combined rate of 65% with Thums up alone accounting for 56% then 650
crore segment.
BENCHMARK
Coca-Cola ranks no.1 brand in the world by the business world survey followed by
companies like Microsoft and IBM.
Coca-Cola is the market leader in the whole world in beverage industry.
Business week magazine ranks Coca-Cola on 4th position in Indian FMCG industry.
Coca-Cola enjoys approx. 60% market share in Indian beverage industry.
INDUSTRIAL PROFILE
Since the early 1990’s Coca-Cola Corporation and PepsiCo have been combating on
what is known as the “Beverage Battlefield” in India. Today India is one of the most sought
after countries for foreign investments because of their continually growing market
opportunities. However, during Coca-Cola and Pepsi’s attempts to broaden their global
INTIAL DIFFICULTIES
From a historical standpoint, Coca-Cola and Pepsi were facing obstructions even
before entering the market in the late 1980’s. Coca Cola’s past venture in India had ended on
bad terms with the Indian government when they refused to offer up their trade secrets.
During the absence of foreign investment in the soft drink industry in India a local company,
Parle, became the market leader. Parle invested a great deal into their leading brand, Thums
Up, and played a dominant role in the soft drink industry until the liberalization of the Indian
economy in 1991. After this time many of the political and legal obstacles facing Coca-Cola
Other political challenges hindered the success of Coca-Cola and Pepsi in India as
well. In 2003, when the United States and Britain invaded Iraq, the All-India Anti-Imperialist
Forum called a boycott on goods from America and India. Indian has protested American
companies for the war and specifically targeted Coca-Cola and Pepsi products. While the war
was beyond control for these two companies, management perhaps could have done more to
not only attempt to predict the backlash from Indian consumers due to the war, but also could
While political and legal factors produced problems for Coca-Cola and Pepsi, both
Coca-Cola and Pepsi did many things to prevent that situation from happening.
in western India to promote their products and create brand awareness in a culturally
traditional setting. The companies also produced television and print advertisements that
“Building a connect using the relevant local idioms” Coca-Cola and Pepsi both
utilized popular Indian sporting events, athletes, and celebrities to endorse their products.
Both companies could’ve made the mistake of using American celebrities or already made
American commercials to advertise their products in India, but instead made the right move
Coca-Cola and Pepsi also made the right moves by adapting to cultural barriers in
India. One such barrier was the affordability of products for Indians. Because India is a
country where people are known to live on very little a day, the idea of getting people to
spend what little they have on a soft drink could be quite a stretch. However, Coca-Cola India
went with an aggressive pricing policy and reduced the price of their soft drinks in 2003 from
15% to 25% nationwide. To compete competitively in the market, Pepsi reduced their prices
as well. This move allowed both companies to offer products that were affordable to the
target market in India but also encouraged more Indians to consume Pepsi and Coca-Cola
products.
Both companies also created smaller sized bottles to allow for lower prices for Indian
consumers. Coca-Cola and Pepsi created bottles ranging in size from 200 ml to 500 ml to
adapt to cultural needs and increase their sales. By offering smaller sized bottles, many
consumers also increased the frequency in which they were purchasing the soft drinks.
its formula to the government and reduces its equity stake as required under the Foreign
Exchange Regulation Act (FERA), which governed the operations of foreign companies in
India. After a 16-year absence, Coca-Cola returned to India in 1993, cementing its presence
with a deal that gave Coca-Cola ownership of the nation's top soft-drink brands and bottling
network. Coke’s acquisition of local popular Indian brands including Thums Up (the most
trusted brand in India21), Limca, Maaza, Citra and Gold Spot provided not only physical
manufacturing, bottling, and distribution assets but also strong consumer preference. This
combination of local and global brands enabled Coca-Cola to exploit the benefits of global
branding and global trends in tastes while also tapping into traditional domestic markets.
Leading Indian brands joined the Company's international family of brands, including Coca-
Cola, diet Coke, Sprite and Fanta, plus the Schweppes product range. In 2000, the company
launched the Kinley water brand and in 2001, Shock energy drink and the powdered
international investors.22 by 2003, Coca-Cola India had won the prestigious Woodruf Cup
from among 22 divisions of the Company based on three broad parameters of volume,
profitability, and quality. Coca-Cola India achieved 39% volume growth in 2002 while the
industry grew 23% nationally and the Company reached breakeven profitability in the region
Coca-Cola India announced plans to double its capacity at an investment of $125 million (Rs.
Coca-Cola India produced its beverages with 7,000 local employees at its twenty-seven
for the company. The complete manufacturing process had a documented quality control and
assurance program including over 400 tests performed throughout the process.
The complexity of the consumer soft drink market demanded a distribution process to support
700,000 retail outlets serviced by a fleet that includes 10-ton trucks, open-bay three wheelers,
and trademarked tricycles and pushcarts that were used to navigate the narrow alleyways of
the cities.25 In addition to its own employees, Coke indirectly created employment for
another 125,000 Indians through its procurement, supply, and distribution networks.
COCA-COLA :VISION
PEOPLE: Being a great place to work where people are inspired to be the best
they can be.
Create consumer products services and communications customers service and bottling
system strategy process and tools in order to create competitive advantage and deliver
improvement.
With a portfolio of more than 3,300 beverages, from diet and regular sparkling beverages to still beverages such as 100 percent fruit
juices and fruit drinks, waters, sports and energy drinks, teas and coffees, and milk-and soy-based beverages, our variety spans the
globe.
PRODUCT LIST
• SOFT DRINK
• ENERGY DRINK
• SPORT DRINK
• JUICES
• WATER
• OTHER DRINK
500ML 5.00
1.2I 12.00
550ML 5.00
1L 11.00
NESTLE 1L 85.00
the packaged water is bubbling with action. Leading players are busy
laying down innovative strategies to promote their brands. What makes
the proposition attractive is fact that the market is still recognised by low
brand loyalty. So the players see immense opportunity in positioning their
brands differently and building long-term loyalty for their product even as
the category evolves.
But pure drinking water is water after all. So how different can you get in
selling it? Take a look at the communications strategy of some of the
players and you’ll be surprised. Coca Cola India’s water brand Kinley,
launched in August last year, released its new campaign recently,
developed by McCann-Erickson. The new “boond boond mein vishwas”
campaign is a clear departure from its earlier one in execution and
strategy.
Through TV and radio ads, Kinley is targeting the adult consumer. In fact, the
campaign tries to make Kinley generic to drinking water.
Meanwhile, PepsiCo. India’s new Aquafina campaign has been made by HTA.
”
“The younger target group will be the future target users of the brand and it was
important that they are addressed directly and in a manner they appreciate.” But
as competition increases, Bisleri is switching to a new positioning. Sarita
Periera, general manager, client servicing at Ambience D’Arcy, admits that the
new Bisleri campaign will be launched soon. However, she is tightlipped about
the new positioning the brand will adopt.
Meanwhile, Parle Agro’s Bailley’s (27 per cent market share) feels that, the
water market in India is still commodity and not brand driven. “Currently, there
are no plans to reposition the brand. Bailley’s target audience is adult males in
the upper and upper middle bracket looking for pure and safe water.
Coca cola continues its efforts at increasing the per capta consumption of its
beveragesin the country. The company had also decided to expand its retail
network by 18% during the financial year 2004-05 taking the total number of
retailers to 1.3 million across the country. Company has extensive rural& urban
distribution network to increase the sale of kinley water.
The company has increased in its village penetration from 9% in 2000 to 28% in 2004
&covers app. 175000 villages.the company contiues to build on its foundations in india while
its contiues to maximise mineral water potential through various pack,pricing, occasions
based stategies across town classes in india it is exploring other categories like juice, water,
tea&coffee.
IN the setting the prices of kinley water company must considers competitors, costs& prices
and possible competitor reactions to the company’s owns pricing moves. A consumer who is
considering to purchase kinley water will evaluate the price of kinley water& values against
the prices & values of comparable product bisleri.so if the price of kinley will less than other
product then the consumer will purchase that product.company should set price less than
other company’s product.coca cola company pricing stategies affect on the nature of
competition,if the company set low price, low margin stategy may stop competitors or drive
them out of the market.
Positioning of kinley
Coca Cola India has rolled out a new campaign for its packaged drinking water brand, Kinley. The new
campaign, called 'Vishwas Karo', has been conceptualised by O&M. It aims to build on the brand's core value of
trust and takes forward its original 'Boond boond mein vishwas' positioning.
Speaking about the latest campaign, Avinash Pant, director - Still Beverages, Coca-Cola India said, “Kinley has
over the years established a strong consumer connect by communicating the core benefit of trust through the
‘Boond Boond Mein Vishwas’ campaign. The latest communication ‘Vishwas Karo’ takes forward the same
conversation of trust to a higher platform and touches life at large. It brings forward Kinley’s belief that a little bit
of trust can restore faith between people, within oneself and in the basic goodness of life at large. We are looking
forward to greater heights in the Kinley Journey."
Speaking to Campaign India about the latest communication, Ajay Gahlaut, group creative director, O&M said,
"The brief that we were given was to place Kinley far above any other water brand in the consumer's eyes by
leveraging the trust it has built up over a decade."
Elaborating on the idea behind the campaign, Gahlaut says, "There comes a tipping point in a brand's life cycle
that allows it to bear a larger mantle. Not every brand reaches that point as few maintain the kind of consistency
in vision and expression that makes them synonymous with the message they put out. Kinley is one such brand
and we felt that it today can be synonymous with trust."
He further adds, "The new communication from Kinley thus urges people to rediscover trust in each other. The
kind of trust that's only possible when we get past our own insecurities. Because ultimately trust must start within.
The objective is to propogate trust that is one of the foundations of our society and assume a larger role in social
consciousness."
Brand Kinley has stood for trust in every drop (Boon Boond Mein Vishwas). The roots of anything new had to be
Vishwas and as such we set out to build on the strength of the brand rather than reinvent it. So any reminder of
the brand's heritage is intentional, he says.
The latest communication ‘Vishwas Karo’ is a montage of slice of life situations where one is forced to choose
between trust and mistrust, and where the decision to “trust a little” helps restores self-belief and faith between
people. At a hunger strike demonstration, a man offers a woman a bottle of Kinley and encourages her to accept.
Next, a boy who is about to sit alone and friendless in a canteen is suddenly joined by a group of boys that
befriend him. At the end, the film showcases an old man who manages to finish the marathon purely because
chooses to believe that he can finish the marathon. The TVC hence urges viewers to trust and believe.
Gahlaut says, that the campaign taps the inherent need in us to trust. "As people we are warm and welcoming,
mistrust is unnatural to us. So we urge people to let go of suspicion and disbelief and go back to being as we
were before we got cynical and mistrusting."
When asked about how this campaign will help differentiate Kinley from its competitors, Gahlaut says, "While
other water brands remain about the physical purity of water, Kinley already occupies a position of trust in the
consumer's head. With this communication we're looking to secure a place in people's hearts by being a socially
aware brand which is responding to something that society desperately seeks."
The media mix for the campaign includes TV and outdoor. The creative team includes Gahlaut, Mayur Hola and
Preeti Koul. The film has been directed by Vinil Mathew of Footcandles Films.
Hot water -- Kinley readies for war with 500ml pack for
Rs 4
Pummy Kaul
New Delhi: A price war is set to erupt in the Rs 400-crore packaged water market
with Coca Cola India (CCI) readying to launch its first aggressive salvo, this
season: the company is going to launch its packaged water brand Kinley in a 500-
ml PET bottle, priced at Rs 4.
A change in the positioning of Coke's water brand is also on the cards. ``While
we'll continue to be positioned on the health plank, we'll drop our earlier
endorsement campaign to comply with the laws,'' a Coke spokesperson told The
Financial Express. The next campaign with a ``new endorsement strategy'' is likely
to break in March 2001.
Kinley's initiative comes close on the heels of the launch of Chotu Bailey, a 350-ml
bottle launched by Parle Bailey at Rs 3.50, two months ago. By pricing Kinley-500
ml bottle at Rs 4, Coke seems to have gone a step ahead and undercut the market
leader Parle Bisleri whose 500-ml bottle is priced at Rs 5.
Coke, however, says that the Rs 4 price is an introductory offer and that the
company would be revising its prices shortly. Pepsi's Aquafina is currently
available in just one pack-750 ml and is priced at Rs 10. Pepsi's Aquafina is priced
at a slight premium in comparison to the leading mineral water brand Bisleri which
is priced at Rs 10 for a 1 litre bottle.
New positioning
Meanwhile, CCI is also readying for a new positioning of Kinley water in order to
adhere to the amendment to the PFA Rules 1955 issued on September 29, 2000,
which besides making ISI certification mandatory also prohibits companies from
making claims on packaged water's medicinal benefits. The deadline to abide by
these rules is March 29, 2001.
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.
Kinley’s initial television commercial was built on the trust & safety platform. It
depicted doctor’s endorsement which forced CCI to pull out the commercial off air
after the notification by The Health Ministry of India that made doctor’s
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 the platform 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, on seeing the trusted quality seal on the bottle, is happy that he has found his trusted
Kinley. All along the journey – on the bus, at a roadside dhaba, he uses Kinley to quench his thirst. At
his grandmother’s 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 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.
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 the Distributor. The company sales person visits
once a month for record checking. The Distributor reports to the Sales Executive looking after the
area.
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.
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 lumpsum 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.
Based on the primary data from the distributor; following are the margins which the distributor gets
from the company for various capacities:
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 Credit Note 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.
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 PET containers.
Since 1995, Bisleri’s 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.
COMPANY
WAREHOUSE INSTITUTIONAL
BUYERS/ORDERS
OVER INTERNET
DISTRIBUTORS
TRUCKS INSTITUTIONAL
BUYERS/SEASONAL
PARTY ORDERS
RETAILERS
G
SELLIN
ROUTE
CUSTOMERS
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).
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.
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.
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.
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
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.
Based on the primary data from the distributor; following are the margins which the distributor gets
from the company for various capacities:
The schemes given to retailers are usually dependent on company policy. As per the company
policy the 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 doesn’t 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.
The company doesn’t 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
company’s 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.
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 the products 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.
Distributo
r
Institution
al Buyers
Retailers (Hotels,
Corporate
Offices of
Various
Companies)
Consume Consumer
rs s
Diagrammatic representation of the various levels of the
channel.
MARKETING
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 the ads of Dazzle during the intervals. Also in one of the local Oriya television serial, it is
advertised during breaks.
Pricing Strategy
Dazzle’s 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-à-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
divided the 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:
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.
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.
Based on the primary data from the distributor; following are the margins which the distributor gets
from the company for various capacities:
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
Different Brands of Packaged Drinking water on
the Selling Matrix
1. Picking 4. Habit
LOW
Behavior
PULL (Credence)
PUSH
Difference between
brands
3.PROBLEM
2.HEURISTIC
SOLVING
HIGH
Experience
Attribute
Search Attributes
LOW HIGH
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 1 st quadrant where consumers show picking
behavior and the market is entirely dependent on push.
Bisleri Rs 10 Rs 12 Rs 2
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, it’s 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 of change. 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.