Ketan rathod mba


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Ketan rathod mba

  1. 1. A PROJECT REPORT ON “A COMPREHENSIVE STUDY ON CHANNEL PARTNERSSATISFACTION LEVEL OF KINGFISHER PACKAGED DRINKING WATER” AT Kingfisher (Iceberg Foods Ltd.), Aurangabad SUBMITTED BY: Ketan M. Rathod Under the guidance of: Prof. Kuldip Kahalekar SUBMITTED TO: “Dr.BABASAHAB AMBEDKAR UNIVERSITY ” In Partial Fulfilment of the requirement for the award of the degree Of Master of Business Administration (MBA) M. S. P. Mandal’s Deogiri College of Management Studies (MBA) Aurangabad-431001
  2. 2. M.S.P Mandal’s Deogiri Institute of Technology & Management Studies Aurangabad CERTIFICATE This to certify that MR.KETAN MULCHAND RATHOD Is Student of Deogiri Institute of Management Studies, Aurangabad Batch 2011-12Has Duly Completed the Summer Training Project (CP-304 )“A COMPREHENSIVESTUDY ON CHANNEL PARTNERS SATISFACTION LEVEL OF KINGFISHER PACKAGED DRINKING WATER “Has submitted Report to Dr.Babasaheb Ambedkar Marathwada University, Aurangabad in the partial fulfilment of M.B.A (First Year), for the academic year 2011-2012. Guided By H.O.D. DirectorMr.Kuldip Kahalekar Jiveen Solunke Dr. Ulhas D. Shiurkar
  3. 3. DECLARATION I hereby declare that this project titled, “A Comprehensive Study On Channel Partnerssatisfaction level Of Kingfisher Package Drinking Water ” is written by me in the academicyear 2011-12, and submitted to the ‘M. S. P. Mandal’s Deogiri College of Management Studies(MBA)’ affiliated to B.A.M.U. University for award of Master of Business Administrationdegree. I further declare that the same has not been submitted, in full or in part to anyother University for any other degree. Ketan M. Rathod MBA-Ist year (DeogiriCollege,A’bad)
  4. 4. ACKNOWLEDGEMENTI would like to express my sincere gratitude to all the individuals who have directly andindirectly helped me in the successful completion of this project.First of all, I am thankful to the management Kingfisher (Iceberg Foods Ltd.), Aurangabadfor giving me an opportunity to work in their esteemed organisation.I am also thankful to Mr. Satish Sawant, Regional Sales Manager for giving me his valuabletime and providing me with the essential information related to the project.I am grateful and highly indebted to my guide Prof. Kuldip Kahalekar for the valuableguidance they have rendered for the efficient completion of my project. They have guided meand helped me to solve the many queries and problems that I have encountered during thecourse of this venture.A special thanks to Prof. Jeevan Salunke, Head of Department (Deogiri College) forextending his total support and guidance. He has mentored us right from the beginning of thecourse and continues to do so and encourages us to perform to the best of our abilities.I express my sincere thanks to our Director Dr. Ulhas D. Shiurkar who is the backbone ofour coveted institutes, a constant source of inspiration and motivation for the students’ effortstowards academic and career development.I would also like to thank my family and friends for their moral support throughout thisproject.I sincerely hope that the project report will help the company and serve as guide to those usingthis project. Ketan M. Rathod MBA-Ist year (DeogiriCollege,A’bad)
  6. 6. EXECUTIVE SUMMARYTITLE OF THE PROJECT “A Comprehensive study on channel partners satisfaction level of Kingfisher Packaged Drinking Water”The proposed research is designed to find out the level of satisfaction and the factors that aid inretaining the retailers. It is designed to understand the sensibilities of the modern day retailerand thereby understand the factors that motivate the retailers and affects the sales andsustainability of a product in the market.REASON FOR CHOOSING THIS PROJECTIndia is the tenth largest bottled water consumer in the world. In 2002, the industry had anestimated turnover of Rs.10 billion (Rs.1,000 crores). Today it is one of Indias fastest growingindustrial sectors. Between 1999 and 2004, the Indian bottled water market grew at acompound annual growth rate (CAGR) of 25 per cent - the highest in the world. Kingfisher is the largest selling beer in India. According tostatistics one out of every 4 bottles of beer sold every second in India is Kingfisher. It is nowsetting a foothold in the mineral water industry too. It has introduced its products in a widevariety consisting of different packages of 1 litre, 500 ml, 2 litre, 5 litre and 20 litre jars. Customer satisfaction begins with a difficult faith; it starts with a commitment to deliverthe result for each customer which is also a concern of the retailers. Hence for a manufacturingcompany, in order to satisfy its customers, it is highly important to satisfy its retailers, as theyare the direct customers to them. Establishing satisfaction as the ultimate goal is like the otherultimate goals of business pursuit of higher profits or shareholders wealth. Perfect retailerservice or satisfaction is one that meets the combined need satisfaction is a systemized servicethat involves the entire organization. But many organizations have yet to develop this kind ofawareness of retailer satisfaction strategy. The reason behind choosing this topic is that it is necessary for the Kingfisher group tounderstand the market in the face of ongoing competition prevailing among existing market
  7. 7. players. Since the retailers are the final link in the channel partners’ chain, the company mustunderstand and view things from the retailers’ point of view. A careful study involving retailershelps in discovering opportunities and areas that need improvement. SCOPE AND OBJECTIVES OF THE PROJECTSCOPE OF THE PROJECT  The study of this project is based on the careful study of the Aurangabad market.  It is generally limited to retail outlets inside Aurangabad which stocked kingfisher packaged drinking water.  The findings are based on the result of the survey conducted upon the response of the owners/managers of these retail outlets.  It covers the study based on kingfisher packaged drinking water products.  It covers restaurants, bars, and convenience shops.OBJECTIVES  To understand the level of satisfaction of kingfisher packaged drinking water among channel partners (retailers).  To find the factors influencing the dealers to deal with kingfisher products.  To identify the retailers’ suggestions with respect to kingfisher products.  To Make recommendation about marketing efforts for promoting sales of “Kingfisher” packaged drinking water in Aurangabad city.DURATION  This project was carried out for the duration of two months (15th May-15th July)SAMPLE SIZE
  8. 8.  A sample size of 100 outlets was considered for this study. INDUSTRY PROFILE Bottled Water Industry in India India is the tenth largest bottled water consumer in the world. In 2002, the industryhad an estimated turnover of Rs.10 billion (Rs.1,000 crores). Today it is one ofIndias fastest growing industrial sectors. Between 1999 and 2004, the Indian bottledwater market grew at a compound annual growth rate (CAGR) of 25 per cent - thehighest in the world. With over a thousand bottled water producers, the Indian bottled water industry isbig by even international standards. There are more than 200 brands, nearly 80 percent of which are local. Most of the small-scale producers sell non-branded productsand serve small markets. In fact,making bottled water is today a cottage industry in the country. Leave alone themetros, where a bottled-water manufacturer can be found even in a one-room shop,in every medium and small city and even some prosperous rural areas there arebottled water manufacturers. Despite the large number of small producers, this industry is dominated by the bigplayers - Parle Bisleri, Coca-Cola, PepsiCo, Parle Agro, Mohan Meakins, SKNBreweries and so on. Parle was the first major Indian company to enter the bottledwater market in the country when it introduced Bisleri in India 25 years ago. Water The total annual bottled water consumption in India had tripled to 5 billion liters in bottle2004 from 1.5 billion liters in 1999. Global consumption of bottled water wasnearing 200 billion liters in 2006.
  9. 9. Bottled water companies earn extraordinary profit Up to 40% of bottled water comes from the same source astap water, but is sold back to consumers at hundreds of timesthe cost, says the website of the North American "ThinkOutside the Bottle" campaign. Not only Coca-Cola but thereare thousands of brands in Indias $445 million packaged waterindustry. "Whatever figures you come across in the bottledwater business would be underestimated," says ChandraBhushan, associate director of the New Delhi-based Center forScience and Environment that campaigns to protect groundwater resources. He said companies earn extraordinary profitsby selling water at 10 rupees (24 US cents) or more per litreafter a production cost of 25 paise, or 0.25 rupee per liter. Thewater is drawn mostly from public sources. Not just bottlers are involved. In south India, thousands offuel trucks converted to be water carriers sell ground water tohouseholds and establishments at about $10 for 5,000 liters.More than 13,000 tankers carry water drawn from farmlandsurrounding Chennai, according a social activist R Srinivasan.He estimates a $148 million tanker industry is cashing in onChennais acute water scarcity.Variety of packagesBottled water is sold in a variety of packages: pouches and glasses, 330 ml bottles, 500 mlbottles, one- litre bottles and even 20- to 50-litre bulk water packs. The formal bottled waterbusiness in India can be divided broadly into three segments in terms of cost: premium naturalmineral water, natural mineral water and packaged drinking water. Premium natural mineral water includes brands such as Evian, San Pelligrino and Perrier, whichare imported and priced between Rs.80 and Rs.110 a litre. Natural mineral water, with brandssuch as Himalayan and Catch, is priced around Rs.20 a litre. Packaged drinking water, which isnothing but treated water, is the biggest segment and includes brands such as Parle Bisleri, Coca-Colas Kinley and PepsiCos Aquafina. They are priced in the range of Rs.10-12 a litre. Bottled water top playersTop multinational players such as Coca-Cola and PepsiCo have been trying for the past decade tocapture the Indian bottled water market. Today they have captured a significant portion of it.However, Parle Bisleri continues to hold 40 per cent of the market share. Kinley and Aquafina arefast catching up, with Kinley holding 20-25 per cent of the market and Aquafina approximately10 per cent. The rest, including the smaller players, have 20-25 per cent of the market share. The western region accounts for 40 per cent of the market and the eastern region just 10.However, the bottling plants are concentrated in the southern region - of the approximately 1,200bottling water plants in India, 600 are in Tamil Nadu. This is a major problem because southernIndia, especially Tamil Nadu, is water starved.
  10. 10. COMPANY PROFILEA name synonymous with Beer in India - Kingfisher stands for excitement, youth and camaraderie. The Beer brands manufactured and marketed by United Breweries Ltd. have always been recognized for their international quality. Thats Beer at its best for the discerning consumer! • The largest selling Beer in India
  11. 11. • Now moving towards the mineral water industry also.• Commanding a 29% market share in the country• One out of every 4 bottles of beer sold every second in India• Available in 52 countries across the globe• The first among Indian brands to launch its own range of designer wear Company structure Dr. Vijay Mallya Chairman
  12. 12. John Simon Hunt Ravi Nedungadi Kalyan Ganguly Chhag Director Director Managing Director Direc Chugh Yoginder Pal John Nicolson Director Director Sunil Kumar Alagh Director Govin Iyengar Compa Secretary KINGFISHER“The King of Good Times” is India’s best-selling beer, and from Mumbai to Delhi, the localsguzzle through millions of bottles annually. But although the brand commands up to 25% of itsdomestic market, unless you’ve visited India or are a part-time connoisseur of curries, you may
  13. 13. not have recognized Kingfisher’s qualities as the perfect accompaniment to a chickenVindaloo.However, all that could change in the future as Kingfisher’s owners, United Breweries, havedelivered their premium brand to the web in an effort to increase global awareness of theircoveted flagship product.The Kingfisher homepage is everything you would expect from the Indian-based brand. It iscolorful and noisy (although the score sounds more Caribbean than Indian) and there’s plentyof animation to enhance the viewing experience. Areas of the site that are well worth a visitinclude the Fun n Beer section, where you can send E-cards to your friends or have a chuckleat the Beer Jokes; the Food section, which is a must for lovers of Indian cuisine; and the Worldsection, which contains information about the history of United Breweries and the Kingfisherbrand itself. Unfortunately, the facility to order Kingfisher beer and apparel online only existsfor residents of Bangalore at present, so from an E-tail perspective, the site is limited to afraction of its own indigenous market.This feeling of constraint is also extended to other site areas and there are several sectionswithin that are weak in terms of content and will need substantialembellishment if United Breweries are to make full use of the web as a marketing tool. TheSports pages are a good example of this as they simply contain a handful of paragraphs onKingfisher’s sponsorship of past sporting events, rather than evangelizing what associates theemotional aspects of the Kingfisher brand with its chosen recreational partners.MissionThe group Mission Statement embodies these objectives: To be the recognized leader in our target markets
  14. 14. 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 conceptsAchievements The largest selling Beer in India. Commands a 29% market share in the country. 6 bottles of Kingfisher are sold every second in India. Available in 52 countries across the globe. The first among Indian brands to launch its own range of designer wear. Won the Worlds best Lite Lager Award at the Stockholm Beer Festival in 1994. Won the Worlds best Lite Lager Award at the Stockholm Beer Festival in 1995. Won the Gold medal at the World Beer Championship held in Chicago in 1997. Won the first prize for the label work category at the Asian Grand Prix Cyrel 2000. Label award. First Prize in the International Beer Awards organised by the New Zealand Hop . ... Marketing Board. Won the Bronze award at the Australian International Beer Awards in the. International Packaged Beer Section for the year 2000."
  15. 15. ICEBERG FOODS LIMITED About UsWe are quality pet performs manufacturers in India with state of the art technology huskyinjection molding system. We can offer performs in 28 mm pco in 24, 27.7, 42& 48 GM. Allperforms 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 300,000performs/day.Company Profile Company Name: Iceberg Foods Ltd., Country/Territory: India 13,Udyog Bhavan, Sonawala Lane ,Goregaon(E), Address: Mumbai , Maharashtra We offer international quality(Pepsi approved) pet preforms in 28 mm pco neck in 24,27.7,42& 48 GM Products/Services : 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: Mr. Mallya
  16. 16. Iceberg Foods Ltd. is a seven years old company in this industry and we are one of the leadingcompany having all India rights for manufacturing & marketing packaged Drinking water witha brand name “Kingfisher” trademark owned by famous “UB” group & “RC Cola” trademarkowned by “Royal Crown Cola” which third largest selling soft drink brand in the world with apresence 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 ISIcertification in Rajasthan and we are committed to supply pure and hygienic water. Ourpackaged drinking water is manufactured under perfect hygienic conditions as per ISIStandards 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 servicesto all our vendors. We have around 110 distributors all over the Rajasthan who are furthersupplying 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 litters, 5litters, 20 litters & 600ml & 1.5 litters Soda.Our packaged drinking water is bottled in fully automatic plant with reverse osmosis,organization & ultra filtration process. Along with latest pesticides removal system throughactivated carbon filtration process as per EU norms.It is understood that throughout India 90% of the stress related diseases are caused due toconsumption of contaminated food & water. We process water at our plant with the mostmodern, high tech equipment sodium filtration resulting in not only healthy but also sweeterpackaged drinking water.Our packaged drinking water is processed and packed in a sophisticated and chemical freeplant to maintain highest level of hygiene. Our packaged drinking water is manufactured undera very strict in house quality control system, ensuring that what you drink is what natureintended.
  17. 17. Classification of ProductIceberg Foods Ltd. Is one of the loading pioneers in the field of “KINGFISHER PREMIUM”packaging & drinking water in various packing 500 ml, 1ltr, 2 ltr, 20 ltr.1 ltr, 2 ltr, 500 ml bottle
  18. 18. MANUFACTURING PROCESSPurification ProcessPurity and safety are two major factors taken care in sourcing and processing of Kingfisherwater. Underground spring is carefully selected based on its portability and pathogen freewater. Great care goes in tapping this source. Only water below 25 meters is tapped. This is toavoid any surface contamination to percolate and mix with underground water source. Areasurrounding the water collection tube at the surface is protected and kept clean.
  19. 19. Packaging of water should be done in clean, hygienic, colourless, transparent and temper proofplastic/glass bottles/containers suitable for preventing possible adulteration and contaminationof water. Plastic used for making plastic bottles/containers should be of food grade quality.Bottles/containers should be marked with information about name of product, name & addressof processor, brand name, batch or code number, date of processing, treat of disinfection, bestfor consumption date, net volume, and direction for storage and any other marking(s) requiredby Weights & Measures Standards, Packaged Commodity Rules and provisions of Preventionof Food Adulteration Act & Rules.Considering that above safety aspects should be ensured in the interest of public safety,Government has regulated manufacture, packaging and marketing of packaged drinking waterthrough a quality control order. Under this order Packaged Natural Mineral Water andPackaged Drinking Water should meet all requirements of IS 13428 and IS 14543 respectively.In addition bottles/containers containing water should bear ISI Mark. Any violation of thisquality control order attracts a fine of Rs. 50000 and imprisonment of six months. Provisionsof this order apply equally on the processing and packaging unit, distributor, stockiest andretailer.ISI marking on any bottle/container of drinking water provides an assurance by Bureau ofIndian standards that water meets the requirements of specified Indian Standard and is safe andfree from harmful organisms.Marvin Plastic Company makes the pet bottle for the kingfisher for packaging drinking water. Processing and Quality Assurance
  20. 20. The casing tube itself is protected with stainless steel mesh to give a preliminary filtration tothe water. Ultra filtration gives water reduction in turbidity and adds sparkle activated carbonpurifier to remove colour and odour in waterReverse osmosis membrane has porosity of less than 0.01 micron the process renders waterfree o microorganisms and also reduces dissolved solidsTo 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 ofhours.Sterilization effect of ozonised water continues even after water is packaged, thereby ensuringsafety 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.Good Manufacturing Practices are stringently followed at all times. Processing is religiouslymonitored at every stage. Testing source water, processing parameters, microbial quality,packaging material integrity and finally, shelf life studies, forms an integral part of quality andsafety assurance plan.Quality checking: Quality is checked by sampling method as a batched test at every stage ofbeer manufacturing even quality of bottle is also checked before actually using.Production:70,000 to 80,000 bottles per day. THEORETICAL BACKGROUNDRetailing consists of the sale of goods or merchandise from a fixed location, such as adepartment store, boutique or kiosk, or by mail, in small or individual lots for directconsumption by the purchaser. Retailing may include subordinated services, such as delivery.Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods or productsin large quantities from manufacturers or importers, either directly or through a wholesaler, andthen sells smaller quantities to the end-user. Retail establishments are often called shops orstores. Retailers are at the end of the supply chain. Manufacturing marketers see the process ofretailing as a necessary part of their overall distribution strategy. The term "retailer" is also
  21. 21. applied where a service provider services the needs of a large number of individuals, such as apublic utility, like electric power.Retailer Satisfaction begins with the following specific assumptions about the company’srelationship with the customers.1. The retailer service activities focus mainly on existing dealers.2. Some retailers are more important than others3. They are the assets.4. The retailer is always specific.The retailer needs and value should influence every aspect of the organization strategy,employee safety and performance, product and organization strategy, employee safety andperformance, product and service development, sales and marketing programs, operationalprocedures and information and measurement system.Understanding the retailer is critical to the success of any customer focus initiative, the firststep in understanding the dealers is to listen to them. A company needs to hear what its dealersare saying about its people, products, service and vision. Their information helps to developmeaningful product and service.Organizations need to listen to their retailer satisfied, dissatisfied, neutral and prospective. Asone company executive said, “talking to a satisfied customer is talking to myself”. In the past,dealer satisfaction and service was the responsibility of a separate organization that supportedthe retailer primarily after the sale. Today, service is also likely to be interested with the everyproduct accompany offers. High retailer satisfaction comes from providing effective services.But giving that service is a continuous activity. It means being efficient, reliable, courteous,caring and professional every time.
  22. 22. There are four stages to delivering outstanding retailer satisfaction. First, you must be able toexecute fundamental business processes effectively. Then you build in efficient systems torespond to customer needs. Once those systems are in place, you can tailor them to the uniquerequirements of individual customers. Finally, in stage four, you can align your supply-chainprocesses with individual customers. But it is a progression – you must complete one stage at atime, starting with the basic fundamentals.
  23. 23. This involves not just supply-chain issues, but all aspects of your relationships with retailcustomers:  Regular visits by sales representatives to customers;  Sales reps who are responsive to customer problems, who have the authority to make decisions, and who conduct effective meetings  Availability of basic consumer to offer category managers to support your category and promotion plans;  Complete and on-time delivery, within a reasonable order cycle time; and,  Accurate invoicing In other words, to become a best practice supplier, you must first be a low-maintenance supplier – one that doesn’t continually cause friction within a customer organization about how to get the basic business accomplished. It’s difficult, if not impossible, to progress further towards becoming a best-practice supplier until you’ve demonstrated an ability to master this first stage.
  24. 24. 4 P’s OF MARKETING:-This is a major concept in traditional marketing. It consists of Product, Price, Place andPromotion. This is known as 4 P’s of marketing mix. It represents the seller’s views ofmarketingtools available for influencing the buyers to opt for their products.MARKETING IS BECOMING A BATTLE BASED MORE ON INFORMATION THANON SALES POWER.Marketing Mix:It is the set of marketing tools that the firm uses to pursue its marketing objectives in the targetmarket.4 P’s of marketing are shown in the following diagram:Not all marketing-mix variables can be adjusted in the short run. Typically, the firm canchanges its price, sales force size, and advertising expenditures in the short run. It can developnew products and modify its distribution channels only in the long run. Thus the firm typicallymakes fewer period-to-period marketing-mix changes in the short run than the number of
  25. 25. marketing mix variables might suggest. Finally, the marketers must decide on the allocation ofthe marketing budget to the various products, channels, promotion media, and sales areas.PRODUCTWHO SHOULD ULTIMATELY DESIGN THE PRODUCTTHE CUSTOMER OF COURSE.The most basic marketing-mix tool is product – the firm’s tangible offer to the market, whichincludes the product quality, design, features, branding, and packaging. Product can be definedas follows:A PRODUCT is anything that can be offered to a market to satisfy a want or need. Productsthat are marketed include physical goods (automobiles, books), services (haircuts, concerts),persons (celebrities and film stars), places (Hawaii), organization and ideas (family planning,safe driving).A) Core benefit-It is the fundamental service or benefit that the customer is really buying. The customerpurchase PDW to satisfy his thrust.B) Basic Product-The second level the marketers turn the core benefit into a basic generic product. You needbasic infrastructure to satisfy your particular need.C) Expected Product-At the third level the basic product is turned into expected product, a set of attributes andconditions that buyers normally expect and agree to when they purchase this product.D) Augmented Product-At the fourth level the marketers prepare an augmented product that meets the customer’sdesire beyond their expectations. The bottle is of good quality and must be long life. It helpsthe customer to recall the product and that help in Next Time Purchase.E) Potential Product-
  26. 26. Potential product is that product which company wants to provide their customers in future.Why to design the product:COREBENEFITBASIC PRODUCTEXPECTED PRODUCTAUGUNANT PRODUCTPOTENTIALPRICE“THE BEST WAY TO ENTER AND KEEP CUSTOMERS IS TO CONSTANTLY FIGUREOUT HOW TO GIVE THEM MORE FOR LESS.”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 elementproducecosts. Price is also one of the most flexible elements of the marketing mix, in that it can bechanged quickly, unlike product features and channel commitments. At the same time, pricingand 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 toocost oriented; price is not revised often enough to capitalize on market changes; price is setindependent 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
  27. 27. salespeople. In large companies, pricing is typically handled by division and product-linemanagers. Even here, top management sets the general pricing objectives and policies andoften approves the prices proposed by lower levels of management. In industries where pricingis a key factor (aerospace, railroads, oil companies), companies will often establish a pricingdepartment to set prices of assist others in determining appropriate prices. This departmentreports to the marketing department, the finance department, or top management. Others whoexert an influence on pricing include sales managers, production managers, finance managers,and accountants.PLACE“THE MOST IMPORTANT THING IS TO FORECAST WHERE CUSTOMERS AREMOVING, AND TO BE IN FRONT OF THEM”Place, another key marketing- mix tool, includes the various activities they companyundertakes 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 tothe target market. A businessman must understand the various types of retailers, wholesalers,and physical distribution firms and how they make their decision.PROMOTION“SELL VALUE NOT PRICE”Promotion, the fourth marketing- mix tool, includes all the activities the company undertakesto communicate and promote its product to the target market. In today world where everyonereadyto cut the throat of everyone else, it is important to prepare form the starting because TODAYYOU HAVE RUN FASTER TO STAY IN THE SAME PLACE. Modern marketing calls formore than a developing a good product, pricing it attractively, and making it accessible totarget customers. Companies must also communicate with their present and potentialcustomers, retailers, suppliers, other stakeholders, and the general public. The marketingcommunications mix consists of five major modes of communication: advertising, salespromotion, public relations and publicity personal selling, and direct marketing.
  28. 28. Concept of RetailingRecent times have witnessed a major development in the emergence of varied retail formatsthat have started operating in most of the product categories. There are also the high endretailers targeting niche market segment. Each of these retailer types have distinct advantages.Retailers that combine the characteristics of more than one type of retailing to differentiatethemselves from the existing competition are more successful retailers.Retailers have an important and much refined role to play in today’s competitive environment.Today, retailers are gatekeepers deciding on which new product should find their way to theshelves of their store. As a result, they have a considerable stake in the success of product andservice introduced by the business firm. Therefore, marketers sell a new product several times– first within the company, then to the retailers and finally to the consumer.In the present competitive world, retailers have gained more attention from external partiessuch as market intermediaries and supplying partners are becoming increasingly powerful.Hence, manufacturers cannot undermine the needs and motivation of their partners in themarketing channels. Consumer companies have more chances to improve their product successrate if they put more effort in creating retailers value and consumer differential advantages.Channel StructureThe channel structure adopted by a company depends on the number of intermediaries it usesto distribute its product to end users. These intermediaries constitute different channel levels.The length of a channel is different for consumer markets and industrial markets. The possiblechannel levels are Zero level, One-level, Two-levels, and Three-levels.In a Zero level channel, the manufacturer directly sells to the end customer through door-to-door selling, telemarketing and so on. Companies like Modicare and Tupperware reach their
  29. 29. customers through direct selling. These companies use a Zero level channel to make theirproducts get to customers hands.In a One level channel, the manufacturer distributes the product directly to the retailer forhim/her to sell them to end users. A single channel intermediary – the retailer – exists betweenthe manufacturer and customers. Best examples of one level channel are automobilemanufacturer and petroleum companies.In a Two level channel, there are two channel intermediaries – wholesaler and retailer –present between the manufacturer and the customer. The manufacturer sells the goods to thewholesaler, who in turn sells them to the retailer. The retailer then sells the goods to consumer.A typical two level marketing channel is that used by manufacturer of fast moving consumergoods such as Hindustan Unilever Limited, Proctor and Gamble, Vicco, Godrej, etc.In a Three level channel, is characterized by the presence of three channel intermediariesbetween the manufacturer and the customer. The three channel intermediaries in a three levelmarketing channel are the wholesaler, the agent and the retailer. An agent acts as a mediatorbetween the wholesaler and the retailer. These channels are commonly found in thepharmaceutical industry. In this industry, medical representative acts as agents ofpharmaceutical companies and persuade retail drug stores to purchase from the manufacturer.0-Level 1-Level 2-Level 3-Level
  30. 30. Customer SatisfactionThe buyer is satisfied after purchase depends on the offer’s performance in relationship to thebuyer’s expectations, and weather the buyer interprets any deviation between the two. Ingeneral, satisfaction is a person’s feelings of pleasure or disappointment that result from
  31. 31. comparing product’s perceived performance to their expectations. If the performance falls shortof expectation, the customer is dissatisfied. If the performance matches the expectations, thecustomer is satisfied. If the performance exceeds expectation, the customer is highly satisfiedor delighted.A company would be wise to measure customer satisfaction regularly, because one key tocustomer retention is customer satisfaction. A highly satisfied customer generally stays loyallonger, buys more as company introduces new products and upgrades existing products, talksfavorably to others about the company and its product, pays less attention to competing brandsand is less sensitive to price, offer product or services ideas to the company, and costs less toserve the new customers because transactions can become routine.For customer – centered companies, customer satisfaction is both a goal and a marketing tool.Companies need to be especially concerned today with their customer satisfaction levelbecause the internet provides a tool for consumers to quickly spread bad word of mouth - aswell as good word of mouth – to the rest of the world. Companies that do achieve highcustomer satisfaction rating make sure their target market knows it. SWOT ANALYSIS STRENGTHS • Established name as company is operating since 1857 successfully, so has got a very strong customer loyalty.
  32. 32. • Brand image is very high than its competitors, its sales officer’s has got easy access within the corporate.• Its purification process is very high than its competitors.• Bottling for U B GROUP Limited.• Company is enjoying the advantage of latest technology of production.• Company is serving in all Aurangabad.• Kingfisher is having its own depot at Maharashtra.• Low rates as compared to the nearest competitors like Bisleri, Aquafina, and Lehar. WEAK N ES S ES• The high price of 20 litre jars• We are unable to provide chilled water• Poor after sale services• Promotion of product is rare• No stress on massive advertisement of the product.• The company is having a small sales force with low morale and professionalism.• Packaging of the product is not attractive.• Poor distribution channels & irregular visit in the market• High price of 1ltr. Water as compared to the local players. O PPO RTU N ITI E S• Wide market still remains unexplored• People are getting more health conscious• Municipalities are supplying impure water.
  33. 33. • Strong brand image of Kingfisher also become USP for shops, offices, & institutes• Persistent water scarcity• Can increase its market shares by advertisements and aggressive marketing. Company can use more of its production capacity.• Company has license to serve package drinking water in all over India so company can easily go for other states in order to tap the large unrepresented market.• New services could be attached e.g. after sales services. T H R EAT S• Bisleri, Aquafina and other companies are serving packaged drinking water in all over India. Competition from other companies and well-established brands operating in the market.• Consumers are becoming more brand loyal rather than quality conscious.• Attractive schemes are provided by the competitors for their brand promotion.• Public Relation & Promotional activities are inadequate in Aurangabad city.• Eureka Forbes and Aqua guard are trying to capture the market.• Local players like Urja, Yash, are growing at a very fast rate especially at bus stands and railway station area. RESEARCH METHODOLOGY
  34. 34. MEANING OF RESEARCHThe advanced learner’s dictionary of current English lays down the meaning of research as ‘Acareful investigation of inquiry especially through search for new facts in any branch ofknowledge.Radman and More define research as a “systemized effort to gain new knowledge”It is the pursuit of truth with the help of study, observation, comparison and experiment. Inshort, the search for knowledge through objective and systematic method finding to problem isresearch.MEANING OF RESEARCH METHODOLOGYResearch methodology is a way to solve the research systematically and scientifically to knowthe threats in specified problem. It may understand as science of studying how research is donescientifically. We generally study carious step that are adopted by a researcher and he is doingstudy on research problem along with the logic behind them. It is necessary for the researcherto know not only the research methods or techniques but also the methodology.RESEARCH DESIGNPreparing ‘Research design’ is an important stage in the process conducting research. Researchdesign is nothing but a scheme of the work to be undertaken by researcher at various stages.Systematic work on the research project and conduction of various operations methodicallycould be facilitated by a research design. The Research carried out was of descriptive type. Research was done on how theretailer evaluates the quality of products and the service provided by the company,understanding the retailer behaviour and designing retailer retention strategies.
  35. 35. DATA SOURCESThere are mainly two sources of dataPRIMARY DATA It refers to information collects directly from the market place like customers, traders, suppliers etc. It is classified under two categories, they are: • Census and sample  Census refers to information that collects from entire group whereas  Sample refers to pie taken from entire group, which can generalize if information taken represents the whole community for which the research conducted. Hence sampling responses was used to collect information from the customer situated in various parts.SECONDARY DATA It refers to information that has been collected earlier by someone else, such as internal database, Internet, websites and research magazines.
  36. 36. DATA COLLECTION Data is collected through the following techniques;TECHNIQUE USED FIELD SURVEY This is the most common technique. A personal approach gets higher meaningful responses and the tool used for this was a questionnaire, which gave direct feedback about the retail outlet. Secondary data collected from company manual and websites, primary data collected from fieldwork with the help of questionnaire.DATA ANALYSIS Data is summarized in tabular form and interpreted in pie chart and diagram analyzed byusing percentage method.
  37. 37. MARKETING RESEARCH PROCESS FF Review concepts Formulate Research Collect dataDefine and theories hypothesis design (Execution)researchproblem Review previous research findings Analyze data FF (Test Hypothesis if any) Interpret and F Report WHERE F = feedback (helps in controlling the subsystem To which it is transmitted) FF = feed forward (serves the vital function of Providing criteria for evaluation)
  38. 38. DATA ANALYSIS AND INTERPRETATIONIt was subdivided in many different areas and the many hotels and retail outlets were coveredunder it accordingly.Each area was studied in detail through which the total market analysis can be figured out bycomparison of different rival products in that area.These areas are:- 1. Waluj 2. Pandarpur 3. Ranjangoan 4. Osmanpura 5. Jalna Road 6. Deulgoan Raja 7. Ambad 8. Jalna City 9. Cidco 10. Aurangpura
  39. 39. Q.1 Are you satisfied with the quality & overall packaging of Kingfisher PackagedDrinking water? A. Very Satisfied B. Moderate C. Not SatisfiedInterpretationRetailers were asked to rate the quality of packaging; the following results were found  Very Satisfied-35  Moderate-45  Not Satisfied-20It was found that 45% of Retailers found the packaging quality to be Moderate 20% were notsatisfied and 35% were satisfied.Q.2 Do you feel that the pricing strategy of Kingfisher is competitive & providessatisfactory margin for retailer? A. Very Agree B. Moderate C. Disagree
  40. 40. InterpretationRetailers were asked the pricing strategy of Kingfisher is competitive & provides satisfactorymargin or not; the following results were found  Very Agree-63  Moderate-28  Disagree-09It was found that 63% of Retailers found the pricing strategy to be Very Agree 09% wereDisagree and 28% were Moderate.Q.3 Is the lead time to procure the goods from the distributer is too much? A. Yes B. NoInterpretationRetailers were asked weather the lead time to procure the goods from the distributer is toomuch or not; the following results were found  Yes-67  No-33It was found that 67% of Retailers were very satisfied with the lead time to procure the goodsfrom distributers while 33% were Not Satisfied
  41. 41. Q.4 Are you satisfied with trade promotion schemes offered to Retailers? A. Very Satisfied B. Moderate C. Not at allInterpretationRetailers were asked weather they satisfied with trade promotion schemes offered byKingfisher or not; the following results were found  Very Satisfied-10  Moderate-18  Not Satisfied-72It was found that only 10% of Retailers were very satisfied with trade promotion schemeswhile 72% were Not Satisfied and 18% were Moderate.Q.5 Is their any replacement given for damaged goods? A. Yes B. NoInterpretationRetailers were asked weather their is any replacement given for damaged goods or not; thefollowing results were found
  42. 42.  Yes-84  No-16It was found that 84% of Retailers were satisfied with the replacement given for damagedgoods while 16% were Not Satisfied. FINDINGS  Majority of the retailers were not happy with the durability of the plastic bottle of kingfisher.  More than half of the total number of retailers surveyed did not find the packaging of the bottle appealing. They felt that there was room for improvement.  Retailers were not happy about the promotional schemes offered to them by the company which consisted of only of 14”x10” wall posters and sheet banners. Major brands like aquafina and kinley offered them personalized display banners, fridges, display stands, and seasonal discounts.  A major slack in service quality was also observed. The response time to an order was not quick. Stocks were not replenished on time due to which the retailer suffered shortage of goods during demand.  In the study based on 100 retail outlets I found that 45%Retailers said that the customers demanded bisleri, 20%retailers said that customers demanded kinley, 25%retailers said that they demanded aquafina, 5% retailers said that the customer
  43. 43. demanded kingfisher and the remaining 5% retailers said that they demanded local brands. Goods are generally replaced promptly if any damage or spoilage is found at the time of delivery. Only in some stray cases, there was a delay in replacing damaged goods. Maximum number of retailers felt that the company should provide fridge and display stands for stocking their respective products. The chief reason behind this finding is that the major brands which provide a fridge and display stands do not allow the retailers to store other brands in their fridge. LIMITATIONS  The sample size for the survey was 100 outlets. A perfect conclusion cannot be drawn by surveying limited respondents.  Geographical survey was conducted only in a limited area i.e., Aurangabad. Therefore this study cannot be considered a comprehensive report of the prevailing market conditions all over the country.  There may be chances that some of the respondents might have furnished wrong information during the survey or other sources.  Some of the respondents did not give a direct response to the questionnaire but just gave a general feedback.  Lack of interest among the certain respondents to fill the questionnaire.  The time factor was the one of the major problems due to which the Retailers were too busy to go through entire set of questionnaire design.
  44. 44.  The duration stipulated to complete the entire project was two months. Conclusions The satisfaction level among retailers regarding kingfisher products is low owing to a certain number of reasons. A comprehensive study revealed that the leading players in the market are aquafina and kinley. The survey also revealed that a strong distribution network, responsive after- sales service, provision of fridge, display stands, display banners, and attractive promotional schemes are the factors that make kinley and aquafina the top contenders for the numero uno slot in the Aurangabad market. Bottle quality, packaging, service, availability, and marketing strategy are the major underperforming areas which need immediate corrective measures.
  45. 45.  The major factors that influence retailer retention are profit margin, promotional schemes, company’s goodwill, and product quality.  Kingfisher doesn’t provide fridge and display stands for its products the way kinley and aquafina do. This proves as a major setback to kingfisher as retailers are apprehensive about storing products of a different brand in a fridge provided by another company. The reason being that companies providing fridge do not approve stocking of other products in their fridge.  Nowadays, the market has shifted from the seller’s market to the buyer’s market.  The customers purchase the products only after verifying the quality, durability, after sales service of the product.RECOMMENDATIONS • After sales services should be improved. • Regular visit should be maintained for proper supply. • Increase no. of distributors. • More schemes should be launched by the company and organization. • 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.
  46. 46. • Packaging should be standardized & made attractive.• More experienced candidates should be appointed as sales officers.• Catering service providers should be taken care of.• The products should be advertised on a nationwide scale and the company should increase awareness in local markets with the help of the distributors.• It is suggested to organize some small camps like medical camps, awareness camps and social events. This helps the image of the company and enhances its reputation.BIBLIOGRAPHY1. Philip Kotler, Marketing Management, 11th Edition.2. www.kingfisherworld.com3. Kothari C.R., Research Methodology: Methods and Techniques, 2nd Edition.4. Wikipedia
  47. 47. ANNEXUREQUESTIONNAIREDear Sir/ Madam I am student of Deogiri College of Management Science, BBA conducting a marketsurvey related to my summer project which is a part of our education and whatever informationyou are willing to provide me will remain confidential.Summer Project: 2011 Surveyor: Ketan M. RathodNAME OF RETAILER: AREA:Q.1 Do you satisfied with the quality & overall packaging of Kingfisher PackagedDrinking Water?
  48. 48. A. Very Satisfied B. Moderate C. Not SatisfiedQ.2 Do you feel that the pricing strategy of Kingfisher is competitive & providessatisfactory margin for retailer? A. Very Agree B. Moderate C. DisagreeQ.3 Are you satisfied with point of purchase material provided by Kingfisher? A. Very Satisfied B. Moderate C. Not SatisfiedQ.4 Is the lead time to procure the goods from the distributer is too much? A. Yes B. NoQ.5 Are you satisfied with the number of visits & services provided by sales personal? A. Very Satisfied B. Moderate C. Not SatisfiedQ.6 Generally how many times a month do you have out of stock situation? A. Always
  49. 49. B. Sometimes C. NeverQ.7 Are you satisfied with trade promotion schemes offered to Retailers? A. Very Satisfied B. Moderately C. Not at allQ.8 Is their any replacement given for damaged goods? A. Yes B. NoQ.9 Do you feel that Kingfisher promotional champagne is playing vital role in liquidityof the goods? A. Very Much B. Moderate C. Not at all