Advance Sales Management Project On: Amity Business School

Amity Business School
Advance Sales Management

Project
on
Introduction
Packaged drinking water ensures safe, clean, potable water for

human consumption.
Bottled water represents the fastest growing segment of the global
beverage market with a market share of around 38%.
World bottled water market is expected to reach $65.9bn by 2012,
stimulated by rising population.
The market is expected to grow rapidly in the coming years due to
growing consumer concerns about fitness, water quality and health .
Growth Reasons
Higher Disposable Income

Affordable Price
Increased On The
Go Behaviour
Importance of Hygiene
Increased Avalability
Major Players In
Packaged Water IndustryAmity Business School
Parle's Bisleri
Coca Cola Kinley
PepsiCo Aqua Fina
Manikchand Oxyrich
Parle Agro Bailley
Rail Neer
Himalaya
Introduction to Bisleri
A Italian origin company by Signor Felice who first bought the

idea of selling bottle water in india.
Mineral water under the name Bisleri was first introduced in
Mumbai in glass bottles in two varieties bubbly & still in
1965.
Parle bought over Bisleri in India In 1969.
Currently 54 bottling plants , 9 plants are company owned &
rest are franchisee or contract packers.
Company put through multiple stages of purification,

ozonised & finally packed for consumption.
Company commitment to offer every Indian pure & clean
drinking water from office desk to home kitchen
The company is growing at rate of 36% & is targeting a
growth rate of 40% by 2012.
Bisleri Today
The consumer today enjoys the sweet and pure taste of Bisleri mineral water.
However in an effort to offer something special to its loyal consumers it has recently
introduced Bisleri Natural Mountain Water - water brought to you from the foothills
of the mountains situated in Himachal Pradesh. This newly launched offering has
widened its product range to two variants: Bisleri with added minerals and Bisleri
Mountain Water.
Bisleris Vision
Its vision is to be the dominant player in the branded water business where the second
player is less than 20% of its business.
Mission Statement
To provide the highest quality product, keeping in mind all aspect including freshness
purity and safety and making it easy available to the consumer at very affordable
price.
Product Variations
Promotion
Print-and-TV campaign
PLAY SAFE
The Sweet taste of Purity
Bisleri The Mountain Water
Bisleri bottle falling from mountain
Safety feature - tamper proof seals.
Weakness of conventionally sealed bottles -"breakaway"

seal
Shelf space at retail stores.
Segmentation
The branding and segmentation of Bisleri is very strong as it cover

household to big hotels.
Geographic
City Size: Mostly Major Cities & Sub Metros
Climate:Hot & Humid
Psychographic
Lifestyle:Travel Freak
Personality:Health Conscious
Demographic
Family Size: Mostly Individual & also Families
Corporate
Targeting
To target the customer Bisleri launched different product line with

different prices and different size of bottles.
Price of the Bottle is such that can be affordable to the all segments
Company planning to target more towards lower segment with the
introduction of small pet glasses.
Different target segments

Retail
Bisleri
Bulk
Market Segments
SEGMENT
COMPANY
BRAND
Popular
Parle Bisleri
Bulk
Bisleri
PACKS
PRICE (Rs)
250 ml
500 ml
1 litre
10
Parle Bisleri
Bisleri
5 litres
25
Parle Bisleri
Bisleri
20 litres
60
Positioning
Bislere position their product on the purity

platform
Launch an ad campaign Pure And Safe
Sept 2000 shift in positioning from Pure
and safe to Play safe
People consume mineral water not for
mineral but for safety said by chauhan
Positioning
Where is the Product in the

Customers Mind
Mineral
Water
BISLERI
Bisleri
Aquafina
Kinley
Oxyrich
Himalaya
Brilliant
Best
Brain Cells
SWOT Analysis
STRENGHTS
Nearly 60% share in market..
Well established distribution channel.
Initiaters advantage.
Brand recognisation.
Only company in 1.5ltr segment.
Best quality product accepted.
Number Of Variants- Bisleri is available in a large
number of variants which makes it consumer friendly
as per their requirement.
WEAKNESSES
Highly priced products.
High costs of production.
Distributers reluctant to change.
Awareness-The customer are not aware of the 7
stage purifying process of Bisleri and the added
minerals which are available.
OPPORTUNITIES
Growing Indian packaged drinking water market.
Expected to cross 1100 crore mark.
Scarcity-The metropolitans and big cities have a
scarcity of pure drinking water which Bisleri can
cater.
Increase in production.
THREATS
Nearly 200 brands in this sector.
Many new players entering market.
Competitors ability to invest. Eg-Pepsi and coke.
Price sensitive customer-People focus more on low
price.
Increasing Duplicity-The duplicity in the market is
rising inspiteof steps taken by the management.
Porter's 5 Forces
Bargaining Power of Suppliers

Increase in the cost of Raw Material (cap cost , labeling cost, bottle cost,
carton cost)
Suppliers supply raw material to local players
As plastic bottle banned another substitute will be glass bottle
Threat of Substitutes
Substitute are Fruit Juices, Health Drinks ,Soft Drinks
Juices like Real , Slice Mangola , Priya gold Treat, Coca Cola
Intensity of Rivalry Firms

Local brands are major contributing 80% of market share
Around 200 registered brands in India
Bargaining Power of Buyers
Local brands are available in the market in the cheap price
Buyers have choice from wide variety of suppliers
Demand is more in the market but branded suppliers is less compare to
local suppliers
Barriers to Entry / New Product
New entrants in the market like Amul Narmada Neer
Market is growing which attracts new entrants
Competitors Analysis Amity Business School

The company has maintained its position over the years and still
remains a market leader with a market share of 38.5% whereas
Kinley has a market share of 21% only and Aquafina covers only
14%
Kinley has a cost price of manufacturing a bottle up to Rs 12.25 and
it sells the bottles for Rs. 14/15 which gives it a profit margin of Rs
1.75/2.75. Whereas, Bisleri has a profit margin of Rs 2 as its cost
price is Rs 10 and the selling price is Rs 12. Aquafina on the other
hand earns a profit margin of Rs 2 with cost price as Rs 8 and selling
price as Rs 10.
Bisleri has total 55 plants, while competitors Kinley having 16
plants and Aquafina with 11 plants.
Market Potential
Market potential of Bisleri :

The number of customers purchasing the product.
Amount purchased.
Frequency of purchase.
Market Potential = (how many * how much * how often)
Though there are large number of manufacturers yet there exists a wide gap
between demand and supply.
A number of units can be set up in North Eastern Region to meet the local
demand in institutions, hotels, restaurants, offices, tourist
and household.
Market Sizing Strategies

Bisleri uses competitor price strategy to get the market. As Bisleri has the
first mover advantage and the market is full of competition so they decide to
increase the advertising expenses for ad campaign.
The present strategy of Bisleri involves targeting the bulk water segment,
pricing competitively, strengthen distribution, innovate on packaging and
product line extension.
Bottom Up Approach
Knowing customers profile.
How much & how often they purchase Bisleri?
How many potential customers do you have in the market based on
your customer profiles? How can you reach them?
Cluster Analysis
Bisleri identifies key segments in the population that are more likely
to purchase their products than the average consumers. Knowing in
which clusters people reside provides a reasonable means of
understanding and predicting how they will behave
Understanding which clusters are more likely than others to
purchase allows better targeting
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
Recruitment
The distributor has set certain criteria for the

selection of salesmen
The candidate must be at least a high school
pass.
ii. The candidate must have knowledge of local
language.
iii. Candidates with prior relevant work experience
are preferred.
iv. The candidate if from the territory itself is
preferred.
i.
Incentives for the salesmen

A basic salary of around Rs 2500 to Rs 3500 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.
No targets are also fixed for the salesmen as company
does not give them any target. The entire distribution
runs on the general demand of the market i.e. on the
market pull only.
Distribution Levels
Bisleri has a very strong distribution network, which makes it reach out
to almost all the region in the country, company has about 350000
outlets across the country.
The Bisleri uses three level of distribution channel as it consists of

wholesalers, dealers and retail shops.
Bisleri has 52 bottling plants across India and works on its dualdistribution strategy to gain competitive advantage.
On a national level, there are 2,000 trucks on call for Bisleri, while the
number of trucks averages 300 and 250 in the Mumbai and Delhi market
alone.
Everyday, nearly 5,000 delivery vans drive out of these 52

strategically located Bisleri bottling plants carrying over 1 million
units of pure, sweet drinking water to replenish the stocks of 2,500
distributors and nearly 600,000 retail outlets
Through distributors it also goes to the institutional buyers or orders
over internet.
The company has used its own fleet of about 2000 trucks to manage
the distribution network.
Diversity in channel
Distribution Chhanel
MANUFACTURING
PLANT
COMPANY
WAREHOUSE
INSTITUTIONAL
BUYERS/ORDERS
OVER INTERNET
TRUCKS
DISTRIBUTORS
ROUTE
SELLING
RETAILERS
CUSTOMERS
INSTITUTIONAL
BUYERS/SEASONAL
PARTY ORDERS
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)
Liter
(24pc
Cost Price (Rs)/Crate

per 158
Selling
(Rs)/Crate
168
Price Margin (Rs)

10
crate)
1 (12pc per crate)
Schemes
to
Retailers
3 bottles of 500ml
are given free to
114
124
10
retailers
3 and sometimes
4 bottles of 1l are
given
2 (9pc per crate)

20
148
54
158
58
free
to
retailers
2 bottles of 2 l
are given free

Two MRP, Rs 60 &
Rs
70,
for
both
Retailer pays the

same.
Core Competency
The brand of Bisleri itself is the core competency for

Bisleri.
The seal of Bisleri bottles help the consumers clear their
doubts on the purity of water.
Bisleri has a very strong distribution network, which
makes it reach out to almost all the region in the country.
TRADE PROMOTION TOOLS
Price off (off- invoice)

A straight discount off the list price on each case purchased
during a stated time period.
Sales contests
It aims at inducing the sales force or dealers to increases
their sales results over stated period with prizes going to
those who succeed.
Specialty advertising
This type of advertising consist of useful, low-cost items
bearing the companys name or brand name with their contact
number this items are ball- pens , calendars, memo pads,
which are used by dealers and sales people very often.
SURVEY
When you talk of packaged drinking water, what brands

come to your mind?
Which brand of packaged drinking water are most

asked/wanted by customers ?
1)Bisleri 2)Aquafina 3)Kingfisher 4)Kinley 5)Others
How much is your monthly sale of various brands?
Are you satisfied with the current margin that Bisleri offers you?
a)Yes
b)No
When you talk of mineral water, what brands

come to your mind?

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