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Submitted By:-
Subhakaran Bishnoi
M. B. A. SEM. – III
MAHARAJA COLLEGE OF MANAGEMENT
Udaipur [Raj.]
Kingfisher Beverages
Presented by:-
SUBHAKARAN BISHNOI
DECLARATION
Barring price wars among the leaders, nothing marked the FMCG
sector.
“The King of Good Times” is India’s best-selling beer, and from Mumbai to Delhi,
the locals guzzle through millions of bottles annually. But although the brand
commands up to 25% of its domestic market, unless you’ve visited India or are a
part-time connoisseur of curries, you may not have recognized Kingfisher’s qualities
as the perfect accompaniment to a chicken Vindaloo.
So that I can understand and learn the marketing skills in FMCG sector
I have tried my best to make this report a reader friendly & also did my level best to
fulfill the objective of the summer training.
ACKNOWLEDGEMENT
Some Says “Managers are born and some says managers are made”. I
was also in some dilemma before commencing my summer internship.
But after the successful completion of my summer internship I came
to know that managers are made if they are guided properly and are
motivated to work willingly towards fulfillment of specific goal.
It is with a sage sense of gratitude, I acknowledge the efforts of whole hosts of well -
wishers who have in some way or other contributed in their own special ways to the
success and completion of this project.
First of all, I would like to thank Mr. Mayur Tiwari (RSM JAIPUR) Jaipur, from
the bottom of my heart, without his help it would have been a dream only to carry
out the project work. He is the only person who takes all decisions by considering
everyone’s view. He is the person who takes care of the sales of Kingfisher of
Rajasthan state and always motivates people to increase sales. He also makes new
strategies time and again to give Kingfisher some edge over competitors. One can
say he is the one-man army of Kingfisher, Jaipur branch.
My profound sense of obligation goes to Mr. Pushkar Dwivedi (ASM Jaipur) who
takes care of the supply of 20 litres jar of packaged drinking water. He also gives
proper guidance to all management trainees and staff.
All the sales officers of ICE BERG FOODS LTD. JAIPUR who have helped me a
lot during the course of my project. They were of great help to me in every aspect
and enlivened us to win the problem head that I faced during this project.
At last I convey my sincere thanks to KINGFISHER, JAIPUR for their helping hand
that I always found extended to me whenever I needed.
SUBHAKARAN BISHNOI
TABELS OF CONTENTS
Project Title
“Designing & Implementing the market strategy plan for retail sales
& bulk pack of ‘Kingfisher’ in Jaipur market.”
KINGFISHER LIMITED
Project Duration
HISTORY
The UB Group was founded by a Scotsman, Thomas Leishman in 1857. The Group
took its initial lessons in manufacturing beer from South Indian based British
breweries. At the age of 29, Vittal Mallya was elected as the company's first Indian
director in 1947. After a year, he replaced R G N Price as the chairman of the
company.
United Breweries made its initial impact by manufacturing bulk beer for the British
troops, which was transported in huge barrels or "Hogsheads". Kingfisher, the
Group's most visible and profitable brand, made a modest entry in the sixties.During
the 1950's and 60's, the company expanded greatly by acquiring other breweries.
First was the addition of McDowell as one of the Group subsidiaries, a move which
helped United Breweries to extend its portfolio to wines and spirits business.
Strategically, the Group moved into agro-based industries and medicines when
Mallya acquired Kissan Products and formed a long-term relationship with Hoechst
AG of Germany to create the Indian pharmaceutical company now known as Aventis
Pharma , the Indian subsidiary of the global Pharma major Sanofi-Aventis.
The Logo
The Pegasus, which is the symbol of the United Breweries, first found its place as
the Group logo in 1940. Then, the Helladic horse – associated with beer and nectar
in Greek mythology- carried a beer cask between the wings, ostensibly because beer
formed the core operations of the Group. Later, the beer cask was removed to
represent the Group’s multifaceted operations. Now, it is just the Pegasus.
History
Sales of the United Spirits Ltd. are expected to exceed 60 million cases during the
fiscal year 2005-06 making the Group the third largest manufacturer of Spirits
products in the world. In addition, USL is one of only three in the world to own
seven millionaire brands and at least five brands rated by Drinks International, UK,
to be amongst the ten fastest growing brands in the world in their respective
categories. The market share of the Spirits Division in India is currently 60% and
exports to the Middle East, Africa and Asian countries are growing rapidly.
The UB Group’s Brewing Entity - called United Breweries Limited (UBL) - has also
assumed undisputed market leadership with a national market share in excess of
50%. Through a process of aggressive acquisition and market penetration, The UB
Group today controls 60% of the total manufacturing capacity for Beer in India. The
flagship brand, Kingfisher is now sold in over 52 countries worldwide having
received many accolades for its quality.
With plans to becoming a global player United Spirits Ltd. (USL), the flagship of the
UB group, purchased the Scottish distiller Whyte and Mackay in May 2007 for £595
million (Rs. 4,800 crore)[1]. This would bring the brands of W&M like The
Dalmore, Isle of Jura, Glayva, Fetter cairn, Vladivar Vodka, and Whyte & Mackay
Scotch under its portfolio.
The UB group is also into manufacture of Fertilizers. The group company
Mangalore Chemicals and Fertilizers Limited ( MCF )has factory at Panambur in
Dakshina Kannada district of Karnataka.
KINGFISHER LIMITED
“The King of Good Times” is India’s best-selling beer, and from Mumbai to Delhi,
the locals guzzle through millions of bottles annually. But although the brand
commands up to 25% of its domestic market, unless you’ve visited India or are a
part-time connoisseur of curries, you may not have recognized Kingfisher’s qualities
as the perfect accompaniment to a chicken Vindaloo.
However, all that could change in the future as Kingfisher’s owners, United
Breweries, have delivered their premium brand to the web in an effort to increase
global awareness of their coveted flagship product.
The Kingfisher homepage is everything you would expect from the Indian-based
brand. It is colorful and noisy (although the score sounds more Caribbean than
Indian) and there’s plenty of animation to enhance the viewing experience. Areas of
the site that are well worth a visit include the Fun n Beer section, where you can
send E-cards to your friends or have a chuckle at the Beer Jokes; the Food section,
which is a must for lovers of Indian cuisine; and the World section, which contains
information about the history of United Breweries and the Kingfisher brand itself.
Unfortunately, the facility to order Kingfisher beer and apparel online only exists for
residents of Bangalore at present, so from an E-tail perspective, the site is limited to
a fraction of its own indigenous market.
This feeling of constraint is also extended to other site areas and there are several
sections within Kingfisher.com that are weak in terms of content and will need
substantial embellishment if United Breweries are to make full use of the web as a
marketing tool. The Sports pages are a good example of this as they simply contain a
handful of paragraphs on Kingfisher’s sponsorship of past sporting events, rather
than evangelizing what associates the emotional aspects of the Kingfisher brand with
its chosen recreational partners.
About Us
We are quality pet performs manufacturers in India with state of the art technology
husky injection molding system. We can offer performs in 28 mm pco in
24,27.7,42& 48 GM. All performs are approved by Pepsi. We use 100 % virgin
material(Pepsi approved).
We can sign long term contract and have a manufacturing facility at present of
300,000 performs/day.
Section I.1Company Profile
Company Name: Iceberg Foods Pvt. Ltd.,
Country/Territory: India
1006, Raheja Centre, Nariman Point,, Mumbai,
Address:
Maharashtra, India
We offer international quality(Pepsi approved)
pet preforms in 28 mm pco neck in 24,27.7,42&
Products/Services We Offer:
48 GM processed on husky injection molding
system. Can manufacture 300,000 preforms/day
Business Type: Manufacturer
Packaging Product Stocks , Packaging Related
Industry Focus:
Machinery , Packaging, Printing Projects ,
Geographic Markets: Worldwide
No. of Employees: 11 - 50 People
Annual Sales Range (USD): US$1 Million - US$2.5 Million
Year Established: 1998
Legal Representative/CEO: Bharat Shah
Iceberg Foods Ltd. is a seven years old company in this industry and we are one of
the leading company having all India rights for manufacturing & marketing
packaged Drinking water with a brand name “Kingfisher” trademark owned by
famous “UB”group & “RC Cola” trademark owned by “Royal Crown Cola” which
third largest selling soft drink brand in the world with a presence in almost all the
countries of the world.
Our clients are spread all over the country. We are one of those few brands that have
got ISI certification in Rajasthan and we are committed to supply pure and hygienic
water. Our packaged drinking water is manufactured under perfect hygienic
conditions as per ISI Standards and we have been consistent in supplying Quality
product to all our customers.
We have one of the best distribution infrastructures in the business to provide timely
services to all our vendors. We have around 110 distributors all over the Rajasthan
who are further supplying our stocks to thousands of retailers than to our end users.
Our product comes in a wide range of packages like 200ml, 250ml, 500 ml, 1ltr, 2
ltr, 5 liters, 20 liters & 600ml & 1.5 ltr Soda.
Our packaged drinking water is bottled in fully automatic plant with reverse
osmosis, organization & ultra filtration process. Along with latest pesticides removal
system through activated carbon filtration process as per EU norms.
It is understood that throughout India 90% of the stress related diseases are caused
due to consumption of contaminated food & water. We process water at our plant
with the most modern, high tech equipment sodium filtration resulting in not only
healthy but also sweeter packaged drinking water.
i. Distribution network
Plant supplies directly to the C&F and then to the distributors from where it
generated its primary sales.
In each zone all cities of that area are covered. In each city at least one
distributor is present.
Zone wise distributors are given below (Each city name signifies one distributor)
SALES DEPARTMENT
Our Sales department along with the names and duties of each staff member is
given below
MANAGER-SALES
Mr. Mayur Tiwari
ASM
Mr. R.S.Rathore
ASM
Mr.Pushkar Dwivedi
Sales Officer
Mr. R.K.Sharma
Sales Officer Sales Officer Sales Officer Sales Officer Sales Officer Sales Officer
Mr.Kamal Mr.Prashant T Mr.Kirti Bhatt Mr.Vinod Mr.Arvind Mr.Bhagwan
The study has to be made to improve the Kingfisher’s market potential in the Jaipur
market in retail segment, and for this you have to undertake the project title:
“Designing &Implementing the marketing strategy plan for Retail sales & bulk
pack of Kingfisher in Jaipur Market”
The project will be carried on in Jaipur city and will try to assess sales of different
brands and at the same time promote sales of” Kingfisher” packaged drinking water
& soda sales in retail & bulk pack segment in Jaipur region.
COMPANY- A PROFILE
It all began with 5 breweries in South India. The oldest of which, Castle Breweries,
dated back to 1857. United Breweries, as these breweries were named in 1915 has
come a very long way.
Soon afterwards, the sight of bullock carts carrying huge barrels or 'hogsheads'
containing beer became a household sight. These carts wheeled their way to the
customers, including British troops, living in and around Madras, Bangalore and the
Nilgiris.
Almost immediately, the brew from UB became a favorite, especially with the
British troops. So began the history of Beer in India. And the history of Beer
Division of United Breweries!
The company was brought over by late Mr. Vijay Malaya in 1947, and since than has
never looked back. Today every one of the 32,000 Beer outlets in India sells one
brand or the other from United Breweries.
Mission
To assess the company’s image in view of retails, booking counter agent, and
consumer.
- To list competitors operating in the market.
- To be the preferred employer wherever we operate.
- To recognize the value of our human assets.
- To be the partner of choice for customers, suppliers, and other creators of
innovative concepts
- To greater information about competing company’s performance and marketing
Efforts in Jaipur city.
- Make recommendation about marketing efforts for promoting sales “Kingfisher”
Packaged drinking water & soda in retail & bulk segment in Jaipur city.
MANUFACTURING PROCESS
Purification Process
Purity and safety are two major factors taken care in sourcing and processing of
Kingfisher water. Underground spring is carefully selected based on its portability
and pathogen free water. Great care goes in tapping this source. Only water below 25
meters is tapped. This is to avoid any surface contamination to percolate and mix
with underground water source. Area surrounding the water collection tube at the
surface is protected and kept clean.
The casing tube itself is protected with stainless steel mesh to give a preliminary
filtration to the water. Ultra filtration gives water reduction in turbidity and adds
sparkle activated carbon purifier to remove color and odour in water
Reverse osmosis membrane has porosity of less than 0.01 micron the process
renders water free o microorganisms and also reduces dissolved solids
To ensure Kingfisher packaged drinking water is held safe free from contaminations,
ultraviolet treatment and ozonisation process is carried out. Ozone is unstable
trivalent oxygen, a very powerful bactericide with no side effect, as it disintegrates
into oxygen within couple of hours.
Sterilization effect of ozonised water continues even after water is packaged, thereby
ensuring safety of Kingfisher up to its final packing. To ensure high quality of
packing materials, components like caps and bottles are manufactured in-house from
resins of quality suppliers.
During the dark days of the depression Royal Crown Cola, shortened by the consumer to
RC Cola was selling in the 12 ounce bottle for just 5c a bottle. In 1940, Mott moved to
Chairman of the Board and the title of President was passed to C.C. Colbert.
For the collector of Royal Crown cities bottles, two basic label variations are noted.
The first variation is the "pyramid" bottle, one of the most dynamic and colorful bottle
labels. This label was produced from the mid 1930's to the mid 1950's. All bottles
contained 12 ounces and were either aqua or clear glass. The value range for cities
collectors is from $12.00 to $18.00.
The second group of bottles has the same red/yellow color combination but without the
pyramids. All of these bottles were produced from the early to late 1950's. The size range
was 8, 10, and 12 ounces, and only aqua glass color has been noted. The value range is
from $4.00 to $8.00 to brand and cities collectors.
MARKETING PROGRAMS
TECHNICAL SERVICES
At Royal Crown Cola International, product quality is our top priority. Whether
we're helping you build a new facility from the ground up or working to ensure that
your existing plant has the latest state-of-the-art technology, our team of
manufacturing experts is on call to assist you through the entire bottling process. In
addition, our experienced engineers, chemists and food technologists are available to
help you safeguard the quality of the finished product.
RESEARCH METHODOLOGY
Research Approach
Research instrument
Contact method
Data source
Primary data
Secondary data
Research plan
Area
Sample size
Respondents
Method of collection
METHODOLOGY
The advanced learner’s dictionary of current English lays down the meaning of
research as a “careful investigation or inquiry specially through search for new facts
in any branch of knowledge.”
The project was to involve a detail study of the market based on the
consumers. The markets available for the study were the retail shops, hotels and
clubs. For estimating the market potential and our own brand’s market share
different methods of primary data collection were employed in the form of
questionnaire, structured and unstructured interviews and methods for establishing
facts about building marketing insights for packaging margins etc, were used.
Further to accommodate the additional factors such as competitor presence in the
market, seasonal factors, and promotional costs etc while calculating market
potential were taken care of. An inter – brand comparison as well as a brand
awareness study to limited extends was also carried away. When sorted and used
properly, the data collected in the field can form the backbone of later marketing
campaigns.
RESEARCH APPROACH:
There are different research approaches and the research instruments that were
employed during the research work. The common research approach for collecting
the primary data are observations, focus group, surveys and experiments.
In this case, a general survey to gain knowledge about the market, commonly known
as the pilot survey was and undertaken where particularly information was gathered
RESEARCH INSTRUMENTS:
In this case too, questionnaire method was followed to collect primary date with
respect to the project which was finally implemented after pre testing closed end,
multiple choice questions were followed after pre testing and two different type of
questionnaires were used (for details see appendix) closed end multiple choice
questions were used so that minimum time of consumers / respondents is consumed.
CONTACT METHODS:
Once the sampling plan has been determined, the marketing researcher must decide
how the subject should be contacted. The choices are mail, telephone, or personal
interviews. Telephone could not be an effective medium for getting the first hand
responses pertaining to the study.
For the purpose of the market survey, I design the research based on primary data.
For the collection of primary data, I designed the structured questionnaire for two
levels first, for hotel industry/ restaurants and secondly, for retail shops package
drinking water, for filling the questionnaire. I will use method of direct interview.
Secondary data will be used to supplement the primary research and in terms of
capacity and profile of package drinking water industry. Method was adopted to
collect the data related to the study.
Analyzing the market of kingfisher package drinking water and soda and royal
crown cola in Jaipur city.
The research plan is designed for gathering the needed information. Designing
research plan calls for definitions on the information (data) sources, research
approach, research instruments, sampling plan and contact method.
3. Data Source
The plan calls for gathering both the secondary and primary data. Secondary data
already exists, having been collected for some other purpose, while primary data
consists of original information collected for the specific purpose.\
Primary data: In order to have first hand information to know the perception,
preference and liking of the customers / consumers visiting various retail shops.
All these persons are also interviewed to know their feelings and attitudes about
the facilities (margins, discount) and the services ( promotional and other
benefits) that the company people provide them.
Ethically sound research considers the interests of the general public, the
respondents, the clients, and the research profession as well as those of the
researcher.
Research plan:
1. Area: since my research was pertaining to package drinking water and soda
and royal crown cola in retail counters, malls, multiplexes & hotels of Jaipur
markets. Therefore all the composite shops were included in the area of my
research.
2. Sample size: there are about 70 shops, 4 multiplexes, 40 hotels in the different
areas. On an average 350, 170 & 45 carats of water, soda & royal crown cola
respectively. My sample size was about 70 composite shops.
Others
19%
Bislery
47%
Kingfisher
15%
Acquafine
19%
Pink city area is the situated in the heart of the city. Here Bislery is the market leader
with 47% market share. After that Acquafine with 19% and after that Kingfisher
with15%. Other occupied 19% market share.
Market Summary
M.I. Road
Market Share
Others
18% Bislery
32%
Kingfisher
21%
Acquafine
29%
In M.I road Besilery capture 32% market, Acquafine 29% and with 21% market
share Kingfisher stand on third position. Others witch include like Kinely.McDonald
and local player capture 18% market share.
Market Summary
Others
Bislery
10%
18%
Acquafine
12%
Kingfisher
60%
It is one of the busy place of Jaipur, and Kingfisher is market leader with 60%
market share folled by Bislery and Acquafine with 18% and12% market share.
Others with 10% market share.
Market Summary
Others
16%
Bislery
31%
Acquafine
Kingfisher
10%
43%
Kingfisher is market leader in Rambag with 43% market. Bislery capturing with
31% market. Acquafine and others are taken 10% and 16% market.
Market Summary
Others
19%
Bislery
37%
Kingfisher
14%
Acquafine
30%
According to our survey Bislery is the market leader with 37% market share,
Acquafine with 30% and Kingfisher is with 14% market. Others players occupied
19% market.
Market Summary
Market Share
Others
19%
Bislery
34%
Kingfisher
22%
Acquafine
25%
In this area Bislery taking 34% market. After that close fight between Acquafine and
Kingfisher with 25% and 22% respectively. Others are taking remaining 19% market
of PDW.
Market Summary
Others
18%
Bislery
36%
Kingfisher
19%
Acquafine
27%
From the above graph it is clear that Bislery is leading in the market with 36% share.
Acquafine and kingfisher are on 2nd and 3rd place with 27% and 19% market share
respectively.
Market Summary
Adharshnagar
Market Share
Others
16%
Kingfisher Bislery
15% 46%
Acquafine
23%
In the area of Adharshnagar- Bislery is the market leader with 46% market share
after that Acquafine with 23% and then Kingfisher with 15% and finally Others
capture 16% market in PDW.
Market Share
Sodala
Market Share
Others
21%
Bislery
38%
Kingfisher
14%
Acquafine
27%
As the graph clearly show that Bislery is again the market leader with 38% market
after that Acquafine with 27% market. Than others capturing 21% and finally
Kingfisher with 14 % market share.
Market Summary
Vaishaly
Market Share
Others
19%
Bislery
34%
Kingfisher
22%
Acquafine
25%
Here the competition is tuff. Bislery share is 34%, Acquafine with 25% and very
close to 2nd, Kingfisher with 22% share in market. Other take 19% market share.
Market Summary
Sikar Road
Market Share
Others
27%
Bislery
42%
Kingfisher
12%
Acquafine
19%
In this area Bislery is leading the market with 42%, share. In second place others
come with 27% share and third and fourth place is captured by Acquafine and
Kingfisher with 19% and 12% market share.
Market Summary
Gopalpura
Market Share
Others
30% Bislery
36%
Kingfisher
8%
Acquafine
26%
According to our survey in Gopalura, Bislery is the market leader having 36% share.
Others eating 30% 0f pie. Acquafine is on 3rd place with 26%. With 8% share
Kingfisher is on 4th place.
Market Summary
Chandpol
Market Share
Others
26%
Bislery
36%
Kingfisher
18%
Acquafine
20%
In Chandpol area Bislery capture 36% market. Others again doing well with 26%
market. Acquafine with 20% market share. Kingfisher taking 18% market of
Chandpol.
Market Summary
• People are getting more health conscious serving packaged drinking water in all over
India. Competition from other companies
• Municipalities are supplying impure water.
and well-established brands operating in the
• Strong brand image of Kingfisher also market.
become USP for shops, offices, & institutes • Consumers are becoming more brand loyal
&
SUGGESTIONS
RECOMMENDATIONS & SUGGESTIONS
• One week credit facility or one bill due system should be introduced.
• Sales promotion tools such as key chains, pens, banners, racks, note pads,
stickers should be given to the retailers.
• Counters outside hospitals, cinema halls, at bus stands & at the tourists areas
should be given special consideration.
We suggest you to organize some small camps like medical camps or some
awareness camps to explain rural people that “KINGFISHER” is also a health caring
stuff with mineral water under their belt.
There are four major segments selected for the jar and dispenser business:
• Hospitality industries: Hotels, restaurant, Bakers & confectioneries Ice cream
parlors, bars, and catering services.
• Institutional sales: Factories, Export house, Scholl& Education institution
and hospitals.
• Offices & Households: Commercial complexes, main market, residential
flats & housings colonies.
• Retail segment: All Pan walas, general store, and Juice & Ice cream parlors.
PLANNING MARKETING PROGRAMS:
Second, the company also has to decide how to divide the total marketing budget
among the various tools in the marketing mix. Marketing is one of the key concepts
in modern marketing theory.
MARKETING MIX
It is the set of marketing tools that the firm uses to pursue its marketing objectives in
the target market.
4 P’s OF MARKETING:
This is a major concept in traditional marketing. It consists of Product, Price, Place
and Promotion. This is known as 4 P’s of marketing mix. It represents the seller’s
views of marketing tools available for influencing the buyers to opt for their
products.
MARKETING MIX.
Not all marketing-mix variables can be adjusted in the short run. Typically, the firm
can changes its price, sales force size, and advertising expenditures in the short run.
It can develop new products and modify its distribution channels only in the long
run. Thus the firm typically makes fewer period-to-period marketing-mix changes in
the short run than the number of marketing- mix variables might suggest. Finally, the
marketers must decide on the allocation of the marketing budget to the various
products, channels, promotion media, and sales areas.
PRODUCT
The most basic marketing-mix tool is product – the firm’s tangible offer to the
market, which includes the product quality, design, features, branding, and
packaging. Product can be defined as follows:
A) Core benefit-
It is the fundamental service or benefit that the customer is really buying. The
customer purchase PDW to satisfy his thrust.
B) Basic Product-
The second level the marketers turn the core benefit into a basic generic product.
You need basic infrastructure to satisfy your particular need. The basic thing that
customer want from any PDW is that the water is pure and good for the health at the
same time they are conscious about the price.
C) Expected Product-
At the third level the basic product is turned into expected product, a set of attributes
and conditions that buyers normally expect and agree to when they purchase this
product. Buyer expected that water that he purchase is cold and out of fresh stock.
D) Augmented Product-
At the fourth level the marketers prepare an augmented product that meets the
customer’s desire beyond their expectations. The bottle is of good quality and must
be long life. It helps the customer to recall the product and that help in Next Time
Purchase.
E) Potential Product-
BASIC PRODUCT
EXPECTED PRODUCT
AUGUNANT PRODUCT
POTENTIAL PRODUCT
PRICE
A Critical marketing-mix tool is price, the amount of money that customer pay for
the product.
Price is the only element in the marketing mix that produces revenue; the other
element produce costs. Price is also one of the most flexible elements of the
marketing mix, in that it can be changed quickly, unlike product features and channel
commitments. At the same time, pricing and price competition are the number one
problems facing many marketing executives. Yet, many companies do not handle
pricing well. The most common mistake is these: Pricing is too cost oriented; price is
not revised often enough to capitalize on market changes; price is set independent of
the rest of the marketing mix.
Companies handle pricing in a variety of ways. In small companies, Prices are often
set by top management rather by marketing or salespeople. In large companies,
pricing is typically handled by division and product-line managers. Even here, top
management sets the general pricing objectives and policies and often approves the
prices proposed by lower levels of management. In industries where pricing is a key
factor (aerospace, railroads, oil companies), companies will often establish a pricing
department to set prices of assist others in determining appropriate prices.
This department reports to the marketing department, the finance department, or top
management. Others who exert an influence on pricing include sales managers,
production managers, finance managers, and accountants.
PLACE
Place, another key marketing- mix tool, includes the various activities they company
undertakes to make the product accessible and available to target customers. One
must identify, recruit, and link various marketing facilitators to supply its products
and services efficiently to the target market. A businessman must understand the
various types of retailers, wholesalers, and physical distribution firms and how they
make their decision.
PROMOTION
“SELL VALE NOT PRICE”
Promotion, the fourth marketing- mix tool, includes all the activities the company
undertakes to communicate and promote its product to the target market. In today
world where every one ready to cut the throat of every one else, it is important to
prepare form the starting because TODAY YOU HAVE RUN FASTER TO STAY IN
THE SAME PLACE. Modern marketing calls for more than a developing a good
product, pricing it attractively, and making it accessible to target customers.
Companies must also communicate with their present and potential customers,
retailers, suppliers, other stakeholders, and the general public. The marketing
communications mix consists of five major modes of communication: advertising,
sales promotion, public relations and publicity personal selling, and direct
marketing.
PACE
THEY ARE CALLING IT THE FIFTH P. As plans based on the four fundamental Ps
of marketing – Product, Price, Promotion, and Place-prove increasingly insufficient
to survive in an intensely competitive and overcrowded brand bazaar, smart
corporate are discovering that pace is another stratagem by which they can steal a
competitive advantage over their rivals.
WHAT IS PACE?
Increasing the speed of new product launches.
Cutting the gap between one launch and the next.
Responding quickly to changing customer needs.
Stepping up the frequency of promotions.
PACKAGING
The container or wrapper is called the package. The package might include up to
three levels of material. Thus, Old spice After-Shave Lotion is in a bottle (Primary
package) that is in a cardboard box (Secondary package) that is in a corrugated
boxing (shipping package) containing six dozens boxes of Old Spice.
In recent times, packaging has become a potent marketing tool. Well designed
packages can create convenience value for the consumer and promotional value for
the producer. Various factors have contributed to packaging growing use as a
marketing tool:
Developing an effective package for a new product requires several decisions. The
first task is to establish the packaging concept. The packaging concept defines what
the package should basically be or do for particular product. Should the package
main function (s) be to offer superior product protection, introduce a novel
dispensing method, suggest certain qualities about the product of the company, or
something else?
Therefore, once the packaging concept has been determined, decision must be made
on additional packaging elements- size, shape, materials, color, text, and brand mark.
Decision must be made on how much or little text, cello phone or other transparent
films, a plastic or a laminated tray, and so on. Where a product safety issue is
involved, decision must be made on “tamperproof” devices. The various packaging
elements must be harmonized. Size interacts with materials, colors, and so on. The
packaging elements must also be harmonized with decisions on pricing, advertising,
and other marketing elements.
After the packaging is designed, it must be tested. Engineering tests are conducted to
ensure that the package stands up under normal condition; visual tests, to ensure that
the script is legible and the colors harmonious; dealer tests, to ensure that the dealers
find the packages attractive and easy to handle; and consumer testes, to ensure
favorable consumer response.
Developing effective packaging may cost several hundred thousand rupees and take
from a few months to a year. The importance of packaging cannot be
overemphasized, considering the functions it performs in attracting and satisfying
customers. Companies may pay attention, however, to growing environmental and
safety concerns about packaging. Shortages of paper, aluminum, and other material
suggest that marketers should try to reduce their packaging. The growth of non-
returnable glass containers has resulted in using up to 17 times as much glass as with
returnable containers. Many packages end up as broken bottles and crumpled cans
littering the streets and countryside. All of this packaging creates a major problem in
solid waste disposal, requiring huge amount of labor and energy. Fortunately, many
companies have gone “green” in their packaging. Companies must take decisions
that serve society’s interests as well as immediate customer and company objectives.
LABELING
Labeling is a subset of packaging. Sellers must label their products. The label may
be a simple tag attached to the product or an elaborately designed graphic that is a
part of the package. The label might carry only the brand name or a great deal of
information. Even if the seller prefers a simple label, the law may require additional
information.
Labels perform several functions. First, the label identifies the product or brand- for
instance, the name Maggi stamped on packet of noodles. The label might also grade
the product; thus the Dabur honey small glass containers are grade labeled A. The
label might describe the product: who made it, where it was made, when it was
made, what it contains, how it is to be used, and how to use it safely. Finally, the
label might promote the product through its attractive graphics.
Labels eventually become outmode and need freshening up. The label on Orange
Crush soft drinks was substantially changed when its competitor labels began to
picture fresh fruits, thereby pulling in more sales. Orange Crush developed a label
with new symbols to suggest freshness and with much stronger and deeper colors.
Note that the 4Ps represent the sellers’ view of the marketing tools available for
influencing buyers. From a buyer’s point of view, each marketing tool is designed to
deliver a customer benefit. Robert Lauterborn suggested that the sellers’ 4Ps
correspond to the customer’s 4Cs.
4Ps 4Cs
Product Customer needs and wants
Price Cost to the customer
Place Convenience
Promotion Communication
Thus, winning companies will be those who can meet customer needs economically
and conveniently and with effective communication.
Potential entrants
Big target population
High profitability
Very few players
High growth prospect of
industry due to increase in
awareness related to
health.
Conventional methods to
save cost
Local player providing
solution with unhygienic
water
Other drinks like Cola,
Juice etc.
MARKET POTENTIAL is the limit approached by the market demand as industry
marketing expenditures approach infinity; for a given environment.
The phrase “for a given environment” has great significance in the concept of
market potential. Consider the export market potential for the steel industry in India
in a period of recession when there was South Asian economic breakdown versus a
period of prosperity when earlier to that, the market was all the time bullish. Even
for that matter the market potential of automobiles in a period of recession can be
compared with the period when a most of foreign automobile majors invested in
Indian automobile industry. Companies cannot do anything about the position of the
market demand function, which is determined by the prevailing conditions and
environment in the market, for example, the cultural political, economic, natural,
technological and demographic features that affect the maximum market demand.
Now let us get ourselves aware of the practical methods of estimating market
potential. The two approaches generally applied (as followed in this case also) are
total market potential and Area market potential.
T = nxqxp (F1)
Where:
Thus if 100 million people buy books each year, and the average book buyers buy
three books a year, and the average price of a book is Rs. 50, then the total market
potential for books in Rs. 15 billion (= 100,000,000 x 3 x 50). The most difficult
component to estimate in formula (F1) is n, the number of buyers in specific product
/ market. One can always start with the total population in the nation, say 261
million people. The next step is to eliminate groups that obviously would not buy the
product. Let us assume that illiterate people and children under 12 do not buy books
and they constitute 20% of the population. This means that only 80% of the
population, or approximately 20% million people would in the suspect pool. We
might do further research and find that people of low income and low education do
not read books and they constitute over 30% of the suspect pool. Eliminating them,
we arrive at a prospect pool of approximately 146,300,000 book buyers. We would
use this number of potential buyers in the formula (F1) to calculate the total market
4 potential.
A variation on formula (Fi) in the ratio method. This method involves multiplying a
base number a base number by several adjusting percentages. Suppose brewery ids
interested in estimating the market potential for a new light beer.
Population x personal
discretionary income per capita x
average percentage spent on food x
Demand average percentage of amount spend
For on beverages x average percentage of
The amount spend on beverages that is
New spend on alcoholic beverages x
light beer average percentage of amount spent on
alcoholic beverages that is spend on
beer x expected percentage of amount
spent on beer that will be spent on
light beer.
AREA MARKET POTENTIAL:
Companies face the problem of selecting the best territories and allocating their
market budgets optimally among these territories. Therefore, they need to estimate
the methods of assessing the market of different cities, states, and nations. Two
major methods of assessing the area market potential are available: The market
buildup method, which is primarily used by the business marketers, and the multiple
factor index method, which is primarily used by consumer marketers.
Market Buildup Method: The market buildup methods call for identifying all the
potential buyers in each market and estimating their potential purchases. This
method produces accurate results if we have a list of all potential buyers and a good
estimate of what each will buy. Unfortunately, this information is not always easy to
gather.
Multiple-Factor Index Method: Like business marketers, consumer companies also
have to estimate area market potentials. But the customer of consumer companies is
too numerous to be listed. Thus the method more commonly used in consumer
markets is a straightforward index method. A drug manufacturer, for example, might
assume that the market potential for drugs is directly related to population size. If the
city of Jaipur has 3.25% of the state of Rajas than population, the company might
assume that Jaipur City would be a market for 3.25% of the total drugs sold.
A single factor, however, is rarely a complete indicator of sales opportunity.
Regional drug sales are also influenced by per capita income and the number of
physicians per 10,000 people. Thus if make sense to develop a multi-factor index
with each factor assigned a specific weight. Consider the following buying- power
index used in the “Annual Survey of Buying Power” published by Sales and
Marketing Management:
Where:
Advertisement 10%
More margins 3%
Others 2%
Mostly the demand by the customer is the main reason for selling of particular brand
of Package Drinking Water and then it comes to schemes, advertisements and
margins. In other reason it includes availability, replacement of leaked bottles etc.
QUESTIONNAIRE
What strategies or steps are you taking to establish a distinguished image of your
product?
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Inspite of such well recognized brands in beverages industry like pepsi ,coca-cola do
you think launching a new product RC cola would let you survive in this cutthroat
competition?
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What sort of problems company faces during the launch of a new product?
_______________________________________________________________________________
_______________________________________________________________________________
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What strategies a company can formulate to explore the local untapped market?
_______________________________________________________________________________
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TO DEALER-:
Are you satisfied with the supply facility of C&F with regard to final delivery ?
_______________________________________________________________________________
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_______________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
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TO CUSTOMER-:
_______________________________________________________________________________________________
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EXHIBIT
EXIBIT-I
RATE LIST
EXIBIT-02
SCHEMES
KINGFISHER
KINLEY
AQUAFINA
LEHAR
BISLERI
BIBLIOGRAPHY
1. Philip Kotler, Marketing Management, 11th Edition.
2. www.kingfisherworld.com
3. www.goolge.com
4. RC cola
6. www.rccolainternational.com