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A project report on designing and implementing the market strategy plan for pwd, soda &rc cola of kingfisher in jaipur market

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A project report on designing and implementing the market strategy plan for pwd, soda &rc cola of kingfisher in jaipur market

A project report on designing and implementing the market strategy plan for pwd, soda &rc cola of kingfisher in jaipur market

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  • 1. Projectsformba.blogspot.com Designing &implementing marketing strategic plan for Kingfisher PWD & RC Cola. A Study Project Submitted to University of Pune in partial fulfillment of the requirements for the Award of Master’s Degree Course in Business Administration 2008 – 2010 Submitted by: Under Guidance:Projectsformba.blogspot.com 1
  • 2. Projectsformba.blogspot.com CERTIFICATE This is to certify that the Project Report titled “Designing &implementing marketing strategic plan for Kingfisher’s PWD & RC Cola” in ICE Berg food Ltd is the bonafide work carried out by ………………., student of MMM II of Sinhgad Institute Of Business Administration & Computer Applications, Lonavala for the fulfillment of MMM degree of the University of Pune. He has worked under our guidance and direction. His Work is found to be satisfactory and complete in all respect.Director Signature of GuideDate:Place:Projectsformba.blogspot.com 2
  • 3. Projectsformba.blogspot.com PREFACEBarring 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 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 maynot have recognized Kingfisher’s qualities as the perfect accompaniment to a chicken Vindaloo.As my area of interest is marketing,the project was provided to me titled“Designing & Implementing the market strategy plan for PDW and RC Cola‘Kingfisher’ in Jaipur market.”So that I can understand and learn the marketing skills in FMCG sectorI did my summer internship at “Kingfisher beverages”, Jaipur, under the guidance of Mr. MayurTiwari (Regional Sales Manager) and Mr. Pushkar Dwivedi (Area Sales Manager).I am please to work in this esteemed organization.I have tried my best to make this report a reader friendly & also did my level best to fulfill theobjective of the summer training.Projectsformba.blogspot.com 3
  • 4. Projectsformba.blogspot.com DECLARATIONI declare that the project entitled ‘Designing & Implementing the market strategic plan forPWD , soda &RC cola of’ Ice berg food Ltd. In Jaipir is a record of independent research workcarried out by me during the academic year 2007-2008 under the able guidance of my facultyguide ………………………………. of sinhgad Business School, lonavala, and my Project guide………………………...I also declare that the project is the result of my effort and has not been submitted to any otherUniversity or Institution for the award of any degree, or personal favor whatsoever. All thedetails and analysis provided in the report hold true to the best of my knowledge.Place:Date:Projectsformba.blogspot.com 4
  • 5. Projectsformba.blogspot.com ACKNOWLEDGEMENTSome Says “Managers are born and some says managers are made”. I was also in some dilemmabefore commencing my summer internship. But after the successful completion of my summerinternship I came to know that managers are made if they are guided properly and are motivatedto work willingly towards fulfillment of specific goal.It is with a sage sense of gratitude, I acknowledge the efforts of whole hosts of well - wisherswho have in some way or other contributed in their own special ways to the success andcompletion of this project.First of all, I would like to thank …………………………., from the bottom of my heart, withouthis help it would have been a dream only to carry out the project work. He is the only personwho takes all decisions by considering everyone’s view. He is the person who takes care of thesales of Kingfisher of Rajasthan state and always motivates people to increase sales. He alsomakes new strategies time and again to give Kingfisher some edge over competitors. One cansay he is the one-man army of Kingfisher, Jaipur branch.My profound sense of obligation goes to …………………………. who takes care of the supplyof 20 liters jar of packaged drinking water. He also gives proper guidance to all managementtrainees and staff.All the sales officers of ICE BERG FOODS LTD. JAIPUR who have helped me a lot during thecourse of my project. They were of great help to me in every aspect and enlivened us to win theproblem head that I faced during this project.At last I convey my sincere thanks to KINGFISHER, JAIPUR for their helping hand that Ialways found extended to me whenever I needed. With Sincere thanksProjectsformba.blogspot.com 5
  • 6. Projectsformba.blogspot.com PROJECT PROPOSAL SHEETProject Title:-“Designing & Implementing the market strategy plan for PWD , soda &RC cola of’ Kingfisherin Jaipur market.”Name Of The Organization:- UNITED BREWERIES GROUP (UB GROUP)Name Of The Company:- KINGFISHER LIMITEDManufactured & Marketed By:- ICEBERG FOODS LIMITEDProject Head & Supervisor:-Project Duration:-Projectsformba.blogspot.com 6
  • 7. Projectsformba.blogspot.comTABELS OF CONTENTS:- S.NO. CONTENTS Pg.no. 1. Industrial profile 08 2. Introduction about project 17 3. Company profile 18 4. New product (R C Cola) 21 5. Research methodology 23 6. Market analysis 30 7. Analysis & findings 44 8. SWOT Analysis 45 9. Recommendation & suggestions 48 10. Planning marketing programmers (strategies) 50 11. Questionnaires 65 12. Exhibit 67 13. Bibliography 70Projectsformba.blogspot.com 7
  • 8. Projectsformba.blogspot.com UNITED BREWERIES GROUP (UB GROUP)United Breweries Group:- based in Bangalore, is the worlds 2nd largest brewer and the largest in India. The companymarkets most of its beer under the Kingfisher brand and has also launched Kingfisher Airlines, adomestic airline service in India.The group is headed by Dr. Vijay Mallya who is also a member of the Indian Parliament. UnitedBreweries now has a near-monopoly over the Indian brewing market, thanks to its recenttakeover of the rival Shaw-Wallace company. The group owns the Mendocino BrewingCompany in the United States.HISTORY:-The UB Group was founded by a Scotsman, Thomas Leishman in 1857. The Group took itsinitial lessons in manufacturing beer from South Indian based British breweries. At the age of 29,Vittal Mallya was elected as the companys first Indian director in 1947. After a year, he replacedR G N Price as the chairman of the company.Projectsformba.blogspot.com 8
  • 9. Projectsformba.blogspot.comUnited Breweries made its initial impact by manufacturing bulk beer for the British troops,which was transported in huge barrels or "Hogsheads". Kingfisher, the Groups most visible andprofitable brand, made a modest entry in the sixties.During the 1950s and 60s, the companyexpanded greatly by acquiring other breweries. First was the addition of McDowell as one of theGroup subsidiaries, a move which helped United Breweries to extend its portfolio to wines andspirits business. Strategically, the Group moved into agro-based industries and medicines whenMallya acquired Kissan Products and formed a long-term relationship with Hoechst AG ofGermany to create the Indian pharmaceutical company now known as Aventis Pharma , theIndian 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 Grouplogo 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 theGroup. Later, the beer cask was removed to represent the Group’s multifaceted operations. Now,it is just the Pegasus. PRESENT HISTROY:-Sales of the United Spirits Ltd. are expected to exceed 60 million cases during the fiscal year2005-06 making the Group the third largest manufacturer of Spirits products in the world. Inaddition, USL is one of only three in the world to own seven millionaire brands and at least fivebrands rated by Drinks International, UK, to be amongst the ten fastest growing brands in theworld in their respective categories. The market share of the Spirits Division in India is currently60% and exports to the Middle East, Africa and Asian countries are growing rapidly.Projectsformba.blogspot.com 9
  • 10. Projectsformba.blogspot.comThe UB Group’s Brewing Entity - called United Breweries Limited (UBL) - has also assumedundisputed market leadership with a national market share in excess of 50%. Through a processof aggressive acquisition and market penetration, The UB Group today controls 60% of the totalmanufacturing capacity for Beer in India. The flagship brand, Kingfisher is now sold in over 52countries 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. 4,800crore)[1]. This would bring the brands of W&M like The Dalmore, Isle of Jura, Glayva, Fettercairn, Vladivar Vodka, and Whyte & Mackay Scotch under its portfolio.The UB group is also into manufacture of Fertilizers. The group company Mangalore Chemicalsand Fertilizers Limited ( MCF )has factory at Panambur in Dakshina Kannada district ofKarnataka.Projectsformba.blogspot.com 10
  • 11. Projectsformba.blogspot.comKINGFISHER LIMITED:-“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 maynot 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, 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 plenty ofanimation to enhance the viewing experience. Areas of the site that are well worth a visit includethe Fun n Beer section, where you can send E-cards to your friends or have a chuckle at the BeerJokes; 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 branditself. Unfortunately, the facility to order Kingfisher beer and apparel online only exists forresidents of Bangalore at present, so from an E-tail perspective, the site is limited to a fraction ofits own indigenous market.This feeling of constraint is also extended to other site areas and there are several sections withinKingfisher.com that are weak in terms of content and will need substantial embellishment ifUnited Breweries are to make full use of the web as a marketing tool. The Sports pages are agood example of this as they simply contain a handful of paragraphs on Kingfisher’s sponsorshipof past sporting events, rather than evangelizing what associates the emotional aspects of theKingfisher brand with its chosen recreational partners.Projectsformba.blogspot.com 11
  • 12. Projectsformba.blogspot.com ICEBERG FOODS LIMITEDAbout Company:-We are quality pet performs manufacturers in india with state of the art technology huskyinjection molding system. We can offer preforms 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 300,000preforms/day. Company ProfileCompany Name:- Iceberg Foods Pvt. Ltd.,Country/Territor:- IndiaAddress:- 1006, Raheja Centre, Nariman Point,, Mumbai, Maharashtra, India We offer international quality(pepsi approved) pet preforms in 28 mm pco neck in 24,27.7,42& 48 GMProducts/Services We Offer:- processed on husky injection molding system. Can manufacture 300,000 preforms/dayBusiness Type:- Manufacturer Packaging Product Stocks , Packaging RelatedIndustry Focus:- Machinery , Packaging, Printing Projects ,Geographic Markets:- WorldwideNo. of Employees:- 11 - 50 PeopleAnnual Sales Range (USD):- US$1 Million - US$2.5 MillionYear Established:- 1998Legal Representative/CEO:- Bharat ShahProjectsformba.blogspot.com 12
  • 13. Projectsformba.blogspot.comIceberg 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 with abrand 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 ISI Standardsand 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 toall 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 ltr, 5 ltrs, 20ltrs & 600ml & 1.5 ltr Soda.Our packaged drinking water is bottled in fully automatic plant with reverse osmosis,ozonization & 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 free plantto maintain highest level of hygiene. Our packaged drinking water is manufactured under a verystrict in house quality control system, ensuring that what you drink is what nature intended.Projectsformba.blogspot.com 13
  • 14. Projectsformba.blogspot.com (A). Distribution augmentation, Organization Data and Marketing Inputs :1. EXISTING DISTRIBUTION SYSTEM. i. Distribution networkWe have a distribution network consisting of three levels between the company to C&F and thento the consumers, i.e. Distributors and retailers.Plant supplies directly to the C&f and then to the distributors from where it generated its primarysales.We have 108 Distributors that are scattered all over Rajasthan.Rajasthan is divided into 5 zones: Rajasthan Jaipur Jodhpur Udaipur Ajmer BikanerIn 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)Projectsformba.blogspot.com 14
  • 15. Projectsformba.blogspot.comJaipur Zone: - In Jaipur zone the distribution network is divided in two segments. One isthe distribution in the city and the other is distribution in the connecting routes i.e Jaipurupcountry. We have different distributors for different routes.SALES DEPARTMENT:-We have following sales staff in Rajasthan sales team :  Sales Manager - One  Area Sales Manager - Two  Sales Officers - TenKingfishers Sales department along with the names and duties of each staffmember is given below.Projectsformba.blogspot.com 15
  • 16. Projectsformba.blogspot.com MANAGER-SALES Mr. Mayur Tiwari ASM Mr. R.S.Rathore Sales Officer Sales Officer Sales Officer Sales Officer Mr.Anwar Mr.Bhagwan Mr. R.K.Sharma Mr. Mahipal ASM Mr.Pushkar DwivediSales 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 Introduction about project:- Projectsformba.blogspot.com 16
  • 17. Projectsformba.blogspot.comThe study has to be made to improve the Kingfisher’s market potential in the Jaipur market inretail segment, and for this you have to undertake the project title:“Designing &Implementing the marketing strategy plan for PWD and RC Cola of Kingfisherin Jaipur Market”The project will be carried on in Jaipur city and will try to assess sales of different brands and atthe same time promote sales of” Kingfisher” packaged drinking water & soda sales in retail &bulk pack segment in Jaipur region. COMPANY- A PROFILEProjectsformba.blogspot.com 17
  • 18. Projectsformba.blogspot.comIt all began with 5 breweries in South India. The oldest of which, Castle Breweries, dated back to1857. 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 beerbecame a household sight. These carts wheeled their way to the customers, including Britishtroops, living in and around Madras, Bangalore and the Nilgiris.Almost immediately, the brew from UB became a favorite, especially with the British troops. Sobegan 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 neverlooked back. Today every one of the 32,000 Beer outlets in India sells one brand or the otherfrom United Breweries. MISSIONThe group Mission Statement embodies these objectives:-Projectsformba.blogspot.com 18
  • 19. Projectsformba.blogspot.comTo 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 ofinnovative 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 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 free water.Great care goes in tapping this source. Only water below 25 meters is tapped. This is to avoidany surface contamination to percolate and mix with underground water source. Areasurrounding the water collection tube at the surface is protected and kept clean.Processing and Quality Assurance:-Projectsformba.blogspot.com 19
  • 20. Projectsformba.blogspot.comThe casing tube itself is protected with stainless steel mesh to give a preliminary filtration to thewater. Ultra filtration gives water reduction in turbidity and adds sparkle activated carbonpurifier to remove color and odour in waterReverse osmosis membrane has porosity of less than 0.01 micron the process renders water freeo microorganisms and also reduces dissolved solidsTo ensure Kingfisher packaged drinking water is held safe free from contaminations, ultraviolettreatment and ozonisation process is carried out. Ozone is unstable trivalent oxygen, a verypowerful 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 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 of beermanufacturing even quality of bottle is also checked before actually using.Production: 70,000 to 80,000 bottles per day. ROYAL CROWN COLAEVOLUTION OF THE PRODUCT:-Projectsformba.blogspot.com 20
  • 21. Projectsformba.blogspot.comIn 1933, Claude Hatcher, still president, died and H.R. Mott who had been with the company forthirteen years took over as chief executive. One of the first tasks that Mott undertook was thedevelopment of a new cola drink. Rufus Kamm, chief chemist, developed the syrup for what wasto be called Royal Crown Cola, named after Hatchers original ginger ale.During the dark days of the depression Royal Crown Cola, shortened by the consumer to RCCola was selling in the 12 ounce bottle for just 5c a bottle. In 1940, Mott moved to Chairman ofthe 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 1930s to the mid 1950s. All bottles contained 12 ouncesand 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 thepyramids. All of these bottles were produced from the early to late 1950s. 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.Cobert retained the presidency until 1955 and directed the company through a period of rapidgrowth. By the end of 1940, the companys products were marketed in 47 states, and nationwideadvertising campaigns featured many of the Hollywood celebrities.MARKETING PROGRAMS:-From our well-trained marketing team to our unique merchandising programs, Royal CrownCola Internationals worldwide marketing efforts have been developed with two goals—toProjectsformba.blogspot.com 21
  • 22. Projectsformba.blogspot.comestablish and promote a global brand identity and to help our bottlers better serve theircustomers.RESEARCH AND DEVELOPMENT:-A commitment to state-of-the-art research combined with some old-fashioned Americaningenuity, has kept Royal Crown Cola International and our bottlers and distributors on thecutting-edge of new products, packaging and testing. Our innovative ingredients and uniqueformulations have helped Royal Crown Cola International remain both competitive and at theforefront of changing consumer taste trends.TECHNICAL SERVICES:-At Royal Crown Cola International, product quality is our top priority. Whether were helpingyou build a new facility from the ground up or working to ensure that your existing plant has thelatest state-of-the-art technology, our team of manufacturing experts is on call to assist youthrough the entire bottling process. In addition, our experienced engineers, chemists and foodtechnologists are available to help you safeguard the quality of the finished product. RESEARCH METHODOLOGYProjectsformba.blogspot.com 22
  • 23. Projectsformba.blogspot.comResearch Approach:-Research instrument:-Contact method:-How it was method:-Research problem for the present study:- The research plan:- Data source:- • Primary data • Secondary dataSteps in research design process:-Research plan • Area • Sample size • Respondents • Method of collection METHODOLOGYProjectsformba.blogspot.com 23
  • 24. Projectsformba.blogspot.comThe 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 ofknowledge.”Readman and Mory defines research as ‘A systematized effort to gain new knowledge.’ The project was to involve a detail study of the market based on the consumers. Themarkets available for the study were the retail shops, hotels and clubs. For estimating the marketpotential and our own brand’s market share different methods of primary data collection wereemployed in the form of questionnaire, structured and unstructured interviews and methods forestablishing 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 alsocarried away. When sorted and used properly, the data collected in the field can form thebackbone of later marketing campaigns.RESEARCH APPROACH:-Projectsformba.blogspot.com 24
  • 25. Projectsformba.blogspot.comThere are different research approaches and the research instruments that were employed duringthe research work. The common research approach for collecting the primary data areobservations, focus group, surveys and experiments.In this case, a general survey to gain knowledge about the market, commonly known as the pilotsurvey was and undertaken where particularly information was gatheredWith respect to the brands, people’s / consumers’ perception so that it serves as a foundation toprepare the questionnaire for collecting primary data and that it helps in deciding other methodsto be adopted which may be useful in gathering the necessary information.RESEARCH INSTRUMENTS:-Marketing researchers have a choice of two main research instruments in collecting primary data– questionnaire and mechanical devices. Mechanical devices are used frequently in marketingresearch. Mechanical devices hold no relevance for this study and thus only questionnaire wasused.A questionnaire consists of a set of questions presented to respondent for their answers. Becauseof its flexibility, the questionnaire by far the most common instrument used to collect theprimary data. Questionnaire had to be carefully developed, tasted and debugged before they areadministered on large scale. In preparing a questionnaire, the professional marketing researchercarefully chooses the question and their form, wording and sequence. In addition, the form of thequestion asked can influence the response. Marketing researchers distinguish between open –end and closed – end questions. Closed end questions pre – specify all the possible answers, andrespondents make a choice among them. Open – end questions allow respondents to answer intheir own words. Open – end questions often reveal more because they do not constrainrespondent’s answers. Open – end questions are especially useful in the exploratory stage ofresearch, where the research is looking for insight into how people think a certain way. Thequestionnaire should use simple, direct, unbiased wording and should be pre – tested before it isactually used.In this case too, questionnaire method was followed to collect primary date with respect to theproject which was finally implemented after pre testing closed end, multiple choice questionswere followed after pre testing and two different type of questionnaires were used (for details seeProjectsformba.blogspot.com 25
  • 26. Projectsformba.blogspot.comappendix) closed end multiple choice questions were used so that minimum time of consumers /respondents is consumed. (A) RETAILERS QUESTIONNAIRE: this questionnaire was designed for various retailers, which pass on these type of items to the ultimate customer. (B) C & F QUESTIONNAIRE (C) CUSTOMER QUESTIONNAIRECONTACT METHODS:-Once the sampling plan has been determined, the marketing researcher must decide how thesubject should be contacted. The choices are mail, telephone, or personal interviews. Telephonecould 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 thecollection of primary data, I designed the structured questionnaire for two levels first, for hotelindustry/ restaurants and secondly, for retail shops package drinking water, for filling thequestionnaire. I will use method of direct interview.Secondary data will be used to supplement the primary research and in terms of capacity andprofile of package drinking water industry. Method was adopted to collect the data related to thestudy.HOW IT WAS DONE:- 1. Research Problem for the present studyProjectsformba.blogspot.com 26
  • 27. Projectsformba.blogspot.com Analyzing the market of kingfisher package drinking water and soda and royal crown cola in Jaipur city. 2. The research plan 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.Secondary data: for the project were collected from: 1. Various publications on related subject. 2. Various publications on the area of work. 3. Newspapers, journals & Business Magazines. STEPS IN RESEARCH DESIGN PROCESS 1. Define the research problemProjectsformba.blogspot.com 27
  • 28. Projectsformba.blogspot.com Research problem definition involves specifying the information needed by management. 2. Estimate the value of the information to be provided by the research Descriptive research is characterized by a high degree of flexibility tends to rely on convenience sample. 3. Select the data collection method (s) Survey research, information directly from respondent’s shops. 4. Select the measurement technique Questionnaires, instrument for asking information directly from a respondent’s on the basis of question asked by interviewer. 5. Select the sample (primary considerations) Population, sample frame, sampling unit, sampling method (non-probability), Sample size, sample plan, and execution. 6. Select the analytical approach Data analysis involves converting a series of recorded observations into descriptive statement and/ or inferences about relationships. 7. Evaluate the ethics of research 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. 8. Estimate time and financial cost Time refers to the time needed to complete the project. The financial requirement is the monetary representation of personal time, computer time, and material requirements.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.Projectsformba.blogspot.com 28
  • 29. Projectsformba.blogspot.com 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. 3. Respondents: I visited at least once every counter of the respective areas. my respondents were the owner of the shops, salesman and purchase or food and beverages managers of different hotels. Method of collection:- For the collection of the data I adopted questionnaire method. For the purpose I had prepared a questionnaire and went to the respondents with that. My research was related to “excise and package drinking water trade”, so that a some places a lot of problems in collection of data, therefore instead of questionnaire I adopted interview method so that I could make my respondents feel easy. For appointment I used telephone in case of shops I have taken special permission from the contractor to visit his shops.Projectsformba.blogspot.com 29
  • 30. Projectsformba.blogspot.comPink City AreaMarket ShareProjectsformba.blogspot.com 30
  • 31. Projectsformba.blogspot.com 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 Acquafina with 19% and after that Kingfisher with15%. Other occupied19% market share. Reason behind of this low market share is poor supply of distributer.Market Summary Total Out-Let Visited 22 KF/KK Presence 11 Good Presence of KF/KK 5 Not Presence 11M.I. RoadProjectsformba.blogspot.com 31
  • 32. Projectsformba.blogspot.comMarket Share Others 18% Bislery 32% Kingfisher 21% Acquafine 29%In M.I road Besilery capture 32% market, Acquafine 29% and with 21% market share Kingfisherstand on third position. Others witch include like Kinely.McDonald and local player capture 18%market share. Reason of this large market share is a particular sales manager.Market Summary Total Out-Let Visited 30 KF/KK Presence 18 Good Presence of KF/KK 7 Not Presence 12Railway Station RoadMarket ShareProjectsformba.blogspot.com 32
  • 33. Projectsformba.blogspot.com 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 sharefolled by Bislery and Acquafine with 18% and12% market share. Others with 10% market share.Market Summary Total Out-Let Visited 35 KF/KK Presence 27 Good Presence of KF/KK 21 Not Presence 8Rambag & SMS RoadMarket ShareProjectsformba.blogspot.com 33
  • 34. Projectsformba.blogspot.com 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 Total Out-Let Visited 25 KF/KK Presence 14 Good Presence of KF/KK 6 Not Presence 11Tonk Road & University RoadMarket ShareProjectsformba.blogspot.com 34
  • 35. Projectsformba.blogspot.com Others 19% Bislery 37% Kingfisher 14% Acquafine 30%According to our survey Bislery is the market leader with 37% market share, Acquafine with30% and Kingfisher is with 14% market. Others players occupied 19% market.Market Summary Total Out-Let Visited 21 KF/KK Presence 9 Good Presence of KF/KK 3 Not Presence 12Jhotvara RoadMarket ShareProjectsformba.blogspot.com 35
  • 36. Projectsformba.blogspot.com Others 19% Bislery 34% Kingfisher 22% Acquafine 25%In this area Bislery taking 34% market. After that close fight between Acquafine and Kingfisherwith 25% and 22% respectively. Others are taking remaining 19% market of PDW.Market Summary Total Out-Let Visited 20 KF/KK Presence 6 Good Presence of KF/KK 0 Not Presence 14J.N. Road & New Raja parkMarket ShareProjectsformba.blogspot.com 36
  • 37. Projectsformba.blogspot.com 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. Acquafineand kingfisher are on 2nd and 3rd place with 27% and 19% market share respectively.Market Summary Total Out-Let Visited 20 KF/KK Presence 7 Good Presence of KF/KK 1 Not Presence 13AdharshnagarMarket ShareProjectsformba.blogspot.com 37
  • 38. Projectsformba.blogspot.com Others 16% Kingfisher Bislery 15% 46% Acquafine 23%In the area of Adharshnagar- Bislery is the market leader with 46% market share after thatAcquafine with 23% and then Kingfisher with 15% and finally Others capture 16% market inPDW.Market Share Total Out-Let Visited 32 KF/KK Presence 12 Good Presence of KF/KK 4 Not Presence 20SodalaMarket ShareProjectsformba.blogspot.com 38
  • 39. Projectsformba.blogspot.com Others 21% Bislery 38% Kingfisher 14% Acquafine 27%As the graph clearly show that Bislery is again the market leader with 38% market after thatAcquafine with 27% market. Than others capturing 21% and finally Kingfisher with 14 %market share.Market Summary Total Out-Let Visited 24 KF/KK Presence 5 Good Presence of KF/KK 0 Not Presence 19Vaishaly NagarMarket ShareProjectsformba.blogspot.com 39
  • 40. Projectsformba.blogspot.com 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 Total Out-Let Visited 26 KF/KK Presence 11 Good Presence of KF/KK 4 Not Presence 15Sakir RoadMarket ShareProjectsformba.blogspot.com 40
  • 41. Projectsformba.blogspot.com 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 Total Out-Let Visited 24 KF/KK Presence 13 Good Presence of KF/KK 2 Not Presence 11GopalpuraMarket ShareProjectsformba.blogspot.com 41
  • 42. Projectsformba.blogspot.com Others 30% Bislery 36% Kingfisher 8% Acquafine 26%According to our survey in Gopalura, Bislery is the market leader having 36% share. Otherseating 30% 0f pie. Acquafine is on 3rd place with 26%. With 8% share Kingfisher is on 4th place.Market Summary Total Out-Let Visited 23 KF/KK Presence 4 Good Presence of KF/KK 0 Not Presence 19ChandpolMarket ShareProjectsformba.blogspot.com 42
  • 43. Projectsformba.blogspot.com 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 Total Out-Let Visited 23 KF/KK Presence 5 Good Presence of KF/KK 1 Not Presence 17 FINDINGProjectsformba.blogspot.com 43
  • 44. Projectsformba.blogspot.com • Most of PWD’s consumer are use bislery because it is most branded and trustworthy. • Consumer who use kingfisher product branded name of UB group. And rational price. • Kingfisher is third largest in jaipur city. Bislery hold first position. Followed by Aquafina. • Kingfisher has good supply chain. And availability of staff and team.People’s saying:  Kingfisher is in beer segment not in water segment.  Kingfisher soda get flat very soon in compare to it’s competitor.  Retailer says that customer does not demand for PDW.  Packaging is not at all attractive as compare to its competitor.  The bottle is breakdown very easily.  Service is not available at the right time.  Customer gives headache if we don’t give the brand of his choice. SWOT ANALYSISProjectsformba.blogspot.com 44
  • 45. Projectsformba.blogspot.comProjectsformba.blogspot.com 45
  • 46. STRENGTHS WEAKNESSES • Established name as company is • The high price of 20 litre jars operating since 1857 successfully, soProjectsformba.blogspot.com has got a very strong customer loyalty. • We are unable to provide chilled water • Brand image is very high than its • Poor after sale services competitors, its sales officer’s has got • Promotion of product is rare easy access within the corporate. • Its purification process is very high than • No stress on massive advertisement of its competitors. the product. • Bottling for U B GROUP Limited. • The company is having a small sales • Company is enjoying the advantage of force with low morale and latest technology of production. professionalism. • Company is serving in all Rajasthan. • Packaging of the product is not • Kingfisher is having its own depot at attractive. Jaipur. • Poor distribution channels & irregular • Low rates as compared to the nearest visit in the market. competitors like Bisleri, Aquafina, and Lehar. • High price of 1ltr. Water as compared to the local players. OPPORTUNITIES THREATS • Wide market still remains unexplored • Bisleri, Aquafina and other companies • People are getting more health are serving packaged drinking water in conscious all over India. Competition from other companies and well-established brands • Municipalities are supplying impure operating in the market. water. • Consumers are becoming more brand • Strong brand image of Kingfisher also loyal rather than quality conscious. become USP for shops, offices, & • Attractive schemes are provided by the institutes competitors for their brand promotion. • Persistent water scarcity • Public Relation & Promotional • Can increase its market shares by activities are inadequate in Jaipur city. advertisements and aggressive • Eureka Forbes and Aqua guard are marketing. Company can use more of trying to capture the market. its production capacity. • Local players like Intimate, Yash, • Company has license to serve package Vinayak are growing at a very fast rate drinking water in all over India so especially at bus stands and railway company can easily go for other states station area.Projectsformba.blogspot.com 46 in order to tap the large unrepresented market. • New services could be attached e.g.
  • 47. Projectsformba.blogspot.comRECOMMENDATIONS & SUGGESTIONS:- • After sale 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. • Packaging should be standardized & made attractive. • More experienced candidates should be appointed as sales officers.Catering service providers should be taken care of.We should focus on the costumer more than the retailer for that local advertisement would helpus more like in local newspaper and magazines.Projectsformba.blogspot.com 47
  • 48. Projectsformba.blogspot.comWe suggest you to organize some small camps like medical camps or some awareness camps toexplain rural people that “KINGFISHER” is also a health caring stuff with mineral water undertheir belt.Action plan for covering the sample population: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:-To transform marketing strategy into marketing programs, marketing managers must take basicdecisions on marketing expenditures, marketing mix, and marketing allocation. First, one mustdecide what level of marketing expenditure is necessary to achieve its marketing objectives.Companies typically establish their marketing budget at a percentage of the sales goal. Aparticular company may spend more than the normal percentage ratio in the hope of achieving ahigher market share.Second, the company also has to decide how to divide the total marketing budget among thevarious tools in the marketing mix. Marketing is one of the key concepts in modern marketingtheory.Projectsformba.blogspot.com 48
  • 49. Projectsformba.blogspot.comMARKETING MIXIt is the set of marketing tools that the firm uses to pursue its marketing objectives in the targetmarket. 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 of marketingtools available for influencing the buyers to opt for their products. MARKETING IS BECOMING A BATTLE BASED MORE ON INFORMATION THAN ON SALES POWER. 4 P’s of marketing are shown in the following diagram:Projectsformba.blogspot.com 49
  • 50. Projectsformba.blogspot.comNot all marketing-mix variables can be adjusted in the short run. Typically, the firm can changesits price, sales force size, and advertising expenditures in the short run. It can develop newproducts and modify its distribution channels only in the long run. Thus the firm typically makesfewer 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 themarketing budget to the various products, channels, promotion media, and sales areas.PRODUCTWHO SHOULD ULTIMATELY DESIGN THE PRODUCT ??????????THE COUSTOMER 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. Products thatare marketed include physical goods (automobiles, books), services (haircuts, concerts), persons(celebrities and film stars), places (Hawaii), organization and ideas (family planning, safedriving).Here our product is Packaged Drinking Water. A) Core benefit-It is the fundamental service or benefit that the customer is really buying. The customer purchasePDW to satisfy his thrust. B) Basic Product-Projectsformba.blogspot.com 50
  • 51. Projectsformba.blogspot.comThe second level the marketers turn the core benefit into a basic generic product. You need basicinfrastructure to satisfy your particular need. The basic thing that customer want from any PDWis that the water is pure and good for the health at the same time they are conscious about theprice. 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. Buyerexpected 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 desirebeyond their expectations. The bottle is of good quality and must be long life. It helps thecustomer to recall the product and that help in Next Time Purchase. E) Potential Product- Potential product is that product which company wants to provide their customers in future. We will be planning to provide our customer in future the following features…. 1. More different size of water bottle. 2. Making of water bottle according to customer need requirement. 3. Direct home deliver as and when customer required.Projectsformba.blogspot.com 51
  • 52. Projectsformba.blogspot.comWhy to design the product: CORE BENEFIT BASIC PRODUCT EXPECTED PRODUCT AUGUNANT PRODUCTProjectsformba.blogspot.com 52 POTENTIAL PRODUCT
  • 53. Projectsformba.blogspot.comPRICETHE 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 element producecosts. 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 topmanagement rather by marketing or salespeople. In large companies, pricing is typically handledby division and product-line managers. Even here, top management sets the general pricingobjectives 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 willoften establish a pricing department to set prices of assist others in determining appropriateprices.This department reports to the marketing department, the finance department, or topmanagement. Others who exert an influence on pricing include sales managers, productionmanagers, finance managers, and accountants.Projectsformba.blogspot.com 53
  • 54. Projectsformba.blogspot.comPLACETHE MOST IMPORTANT THING IS TO FORECAST WHERE CUSTOMERS AREMOVING, AND TO BE IN FRONT OF THEMPlace, another key marketing- mix tool, includes the various activities they company undertakesto make the product accessible and available to target customers. One must identify, recruit, andlink various marketing facilitators to supply its products and services efficiently to the targetmarket. A businessman must understand the various types of retailers, wholesalers, and physicaldistribution firms and how they make their decision.PROMOTION “SELL VALUE NOT PRICE”Promotion, the fourth marketing- mix tool, includes all the activities the company undertakes tocommunicate and promote its product to the target market. In today world where every one readyto cut the throat of every one 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 to targetcustomers. Companies must also communicate with their present and potential customers,retailers, suppliers, other stakeholders, and the general public. The marketing communicationsmix consists of five major modes of communication: advertising, sales promotion, publicrelations and publicity personal selling, and direct marketing.Projectsformba.blogspot.com 54
  • 55. Projectsformba.blogspot.comPACETHE FIFTH P OF MARKETINGTHEY ARE CALLING IT THE FIFTH P. As plans based on the four fundamental Ps ofmarketing – Product, Price, Promotion, and Place-prove increasingly insufficient to survive in anintensely competitive and overcrowded brand bazaar, smart corporate are discovering that paceis another stratagem by which they can steal a competitive advantage over their rivals.A many–edged weapon, speed is being wielded in virtually every front of the marketing warsthat have broken out:To launch new products and re launch old ones, squeezing the average time between launches.To respond quickly to changes in consumer preferences by introducing brand variations.To maintain a high frequency of promotions, in order to keep consumer interest in product high.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 promotion.HOW IS PACE MANAGED?By launching brands without elaborate trials.By occupying new segment before rivals.Projectsformba.blogspot.com 55
  • 56. Projectsformba.blogspot.comBy creating systems designed for quick response.By compressing product- manufacturing cycles.WHAT IS THE PAY-OFFS?The thunder is stolen from competitor’s launches.Being first helps achieve leadership in a segment.Quick launches make up for late entries.Rivals are denied precious shelf- space.PACKAGINGPackaging, Which is considered to be another very important element of the marketing-mix, isdefined as follows:PACKAGING includes the activities of designing and producing the container or wrapper for aproduct.The container or wrapper is called the package. The package might include up to three levels ofmaterial. Thus, Old spice After-Shave Lotion is in a bottle (Primary package) that is in acardboard box (Secondary package) that is in a corrugated boxing (shipping package) containingsix dozens boxes of Old Spice.In recent times, packaging has become a potent marketing tool. Well designed packages cancreate convenience value for the consumer and promotional value for the producer. Variousfactors have contributed to packaging growing use as a marketing tool:Self-Service: An increasing number of products are sold on a self-service basis in supermarketsand discount house. In an average supermarket, which stocks 15,000 items, the typical shopperpasses by some three items per minute. Given that 53% of all purchases are made on impulse, theeffective package operates as a “five second commercial.” The package must perform many ofthe sales tasks. It must attract attention, describe the product’s features, create consumerconfidence, and make a favorable overall impression.Consumer affluence: Rising consumer affluence means consumers willing to pay a little more forthe convenience, appearance, dependability, and prestige of better packages.Projectsformba.blogspot.com 56
  • 57. Projectsformba.blogspot.comCompany and brand image: Companies are recognizing the power of well designed packages tocontribute to instant recognition of the company or the brand.Innovation opportunity: Innovative packaging can bring large benefits to consumer and profits toproducers. The first companies to put their soft drinks in pop-ton cans and their liquid sprays inaerosol can attracted many new customers. Even the company which first introduces sachets inthe Indian market attracted many customers and formed and important medium of reaching theIndian rural market where the purchases are based on daily wages.Developing an effective package for a new product requires several decisions. The first task is toestablish the packaging concept. The packaging concept defines what the package shouldbasically be or do for particular product. Should the package main function (s) be to offersuperior product protection, introduce a novel dispensing method, suggest certain qualities aboutthe product of the company, or something else?Therefore, once the packaging concept has been determined, decision must be made onadditional packaging elements- size, shape, materials, color, text, and brand mark. Decision mustbe made on how much or little text, cello phone or other transparent films, a plastic or alaminated 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 withmaterials, colors, and so on. The packaging elements must also be harmonized with decisions onpricing, advertising, and other marketing elements.After the packaging is designed, it must be tested. Engineering tests are conducted to ensure thatthe package stands up under normal condition; visual tests, to ensure that the script is legible andthe colors harmonious; dealer tests, to ensure that the dealers find the packages attractive andeasy to handle; and consumer testes, to ensure favorable consumer response.Developing effective packaging may cost several hundred thousand rupees and take from a fewmonths to a year. The importance of packaging cannot be overemphasized, considering thefunctions 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. Thegrowth of non-returnable glass containers has resulted in using up to 17 times as much glass aswith returnable containers. Many packages end up as broken bottles and crumpled cans litteringthe 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” intheir packaging. Companies must take decisions that serve society’s interests as well asimmediate customer and company objectives.Projectsformba.blogspot.com 57
  • 58. Projectsformba.blogspot.comLABELINGLabeling is a subset of packaging. Sellers must label their products. The label may be a simpletag attached to the product or an elaborately designed graphic that is a part of the package. Thelabel might carry only the brand name or a great deal of information. Even if the seller prefers asimple label, the law may require additional information.Labels perform several functions. First, the label identifies the product or brand- for instance, thename Maggi stamped on packet of noodles. The label might also grade the product; thus theDabur 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, andhow 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 softdrinks was substantially changed when its competitor labels began to picture fresh fruits, therebypulling in more sales. Orange Crush developed a label with new symbols to suggest freshnessand with much stronger and deeper colors.Note that the 4Ps represent the sellers’ view of the marketing tools available for influencingbuyers. From a buyer’s point of view, each marketing tool is designed to deliver a customerbenefit. Robert Lauterborn suggested that the sellers’ 4Ps4Ps 4CsProduct Customer needs and wantsPrice Cost to the customerPlace ConveniencePromotion CommunicationCorrespond to the customer’s 4Cs.Thus, winning companies will be those who can meet customer needs economically andconveniently and with effective communication.Projectsformba.blogspot.com 58
  • 59. Projectsformba.blogspot.com Michael E-Porter’s five-force industry analysis Potential entrants  Big target population  High profitability  Very few players  High growth prospect of industry due to increase in awareness related to health. Buyer’s bargaining powerSuppliers bargaining power Industry Competitor’s  Fast  Availability of many technological competitors in this changes field.  Intense price war  Low price offered by  Superior technologies of local competitors  Rising demand competitors  Additional value of safe and  More profit margin given by added services offered pure drinking local producer by competitors to water  Loyalty towards retailer. competitor’s brand Threat of substitute products  Conventional methods to save cost  Local player providing solution with unhygienic water Projectsformba.blogspot.com Other drinks like Cola, Juice 59 etc.
  • 60. Projectsformba.blogspot.comMARKET POTENTIAL is the limit approached by the market demand as industrymarketing expenditures approach infinity; for a given environment.The phrase “for a given environment” has great significance in the concept ofmarket potential. Consider the export market potential for the steel industry in India in a periodof recession when there was South Asian economic breakdown versus a period of prosperitywhen earlier to that, the market was all the time bullish. Even for that matter the market potentialof automobiles in a period of recession can be compared with the period when a most of foreignautomobile majors invested in Indian automobile industry. Companies cannot do anything aboutthe position of the market demand function, which is determined by the prevailing conditionsand environment in the market, for example, the culturapolitical, economic, natural, technological and demographic features that affect themaximum market demand.Therefore, potential being the measure of capability of a thing to exist, according to me, MarketPotential can be termed as Latent Talent.A very important confusion must be cleared before we understand other feature. Many peopleconfuse market potential with potential market, where the latter is the measure a sufficient levelof interest shown, for a product / thing offered by the market; by a set of consumers. Consumerinterest only does not have enough income for the product provided the product itself isdistributed well enough as within the reach of the customers.Projectsformba.blogspot.com 60
  • 61. Projectsformba.blogspot.comNow let us get ourselves aware of the practical methods of estimating market potential. The twoapproaches generally applied (as followed in this case also) are total market potential and Areamarket potential.TOTAL MARKET POTENTIAL: Total market potential in the maximum amount of sales thatmight be available to all firms in the industry during a given period under a given level ofindustry marketing effort and given environmental conditions. A common way to estimate totalmarket potential is an follows:T = nxqxp (F1)Where:T = Total market potentialN= Number of buyers in the specific product / market under the given assumptions.Q = Quantity purchased by an average buyer.P = price of an average unit.Thus if 100 million people buy books each year, and the average book buyers buy three books ayear, and the average price of a book is Rs. 50, then the total market potential for books in Rs. 15billion (= 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 populationin the nation, say 261 million people. The next step is to eliminate groups that obviously wouldnot buy the product. Let us assume that illiterate people and children under 12 do not buy booksand they constitute 20% of the population. This means that only 80% of the population, orapproximately 20% million people would in the suspect pool. We might do further research andfind that people of low income and low education do not read books and they constitute over30% of the suspect pool. Eliminating them, we arrive at a prospect pool of approximately146,300,000 book buyers. We would use this number of potential buyers in the formula (F1) tocalculate the total market 4 potential.Projectsformba.blogspot.com 61
  • 62. Projectsformba.blogspot.comA variation on formula (Fi) in the ratio method. This method involves multiplying a base numbera base number by several adjusting percentages. Suppose brewery ids interested in estimating themarket potential for a new light beer. An estimate can be made by the following calculation: Population x personal discretionary income per capita x average percentage spent Demand on food x average percentage of amount For spend on beverages x average percentage of amount spend on beverages that is spend on The alcoholic beverages x average percentage of amount spent on alcoholic beverages that is New spend on beer x expected percentage of light beer 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 budgetsoptimally among these territories. Therefore, they need to estimate the methods of assessing themarket of different cities, states, and nations. Two major methods of assessing the area marketpotential are available: The market buildup method, which is primarily used by the businessmarketers, 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 buyersin each market and estimating their potential purchases. This method produces accurate results ifwe 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 toestimate area market potentials. But the customer of consumer companies is too numerous to belisted. Thus the method more commonly used in consumer markets is a straightforward indexProjectsformba.blogspot.com 62
  • 63. Projectsformba.blogspot.commethod. A drug manufacturer, for example, might assume that the market potential for drugs isdirectly related to population size. If the city of Jaipur has 3.25% of the state of Rajas thanpopulation, the company might assume that Jaipur City would be a market for 3.25% of the totaldrugs sold.A single factor, however, is rarely a complete indicator of sales opportunity. Regional drug salesare also influenced by per capita income and the number of physicians per 10,000 people. Thus ifmake sense to develop a multi-factor index with each factor assigned a specific weight. Considerthe following buying- power index used in the “Annual Survey of Buying Power” published bySales and Marketing Management:B (I) = 0.5 y (I) + 0.3 r (I) + 0.2 p (I) F (2)Where:B (I) = percentage of total national buying power found in area IY = percentage of national effective buying income originating in area IR = percentage of national retail sales in area IP = percent of national population of ages 18 and over per household located in area i.The numbers are the weights attached to each variable, which are somewhat arbitrary. Othersweights can be assigned if appropriate. Furthermore, a manufacturer would want to adjust themarket potential for additional factors, such as competitors’ presence in that market, seasonalfactors, local promotion costs, etc.Projectsformba.blogspot.com 63
  • 64. Projectsformba.blogspot.comBasis of sale of Package Drinking Water Brands at shops/Hotel:Demand by the customer 50%Schemes offered by the companies 10%Advertisement 10%More margins 3%Others 2%Mostly the demand by the customer is the main reason for selling of particular brand of PackageDrinking Water and then it comes to schemes, advertisements and margins. In other reason itincludes availability, replacement of leaked bottles etc.Projectsformba.blogspot.com 64
  • 65. Projectsformba.blogspot.com QUESTIONNAIRE TO DEALER:-  Are you satisfied with the supply facility of C&F with regard to final delivery ? 1) Yes 2) No  How is the customer response? 1) Positive 2) Negative 3) Neutral  Are you satisfied with the offered margin? 1) Yes 2) No 3) No AnswerProjectsformba.blogspot.com 65
  • 66. Projectsformba.blogspot.comTO CUSTOMER:-  Which product do you use in PDW ? 1) Kingfisher 2) Bislery 3) Aquafina 4) Other  What sort of image do you have regarding our products ? 1) Excellent 2) Good 3) Average 4) Poor  Are you satisfy with the quality of the product ? 1) Strongly satisfied 2) Satisfied 3)Not satisfied 4) Can’t say  Which attribute do you like most in our product? 1) Packaging 2) Quality 3) Price 4) OthersProjectsformba.blogspot.com 66
  • 67. Projectsformba.blogspot.com  What changes you want us to work on? 1) Packaging 2) Price 3) Quality 4) AdvertisingEXIBIT:- RATE LIST PACKAGED DRINKING WATER Size Brand Name Rate Per Case (RS.) 1 Ltr. Kingfisher 90 Aquafina 100 Bisleri 113 Intimate 60 Mcdowell’s 84 Yash 60 Vinayak 60 Kinley 110 Himalya 180 2 Ltr.S Kingfisher 125 Bisleri 153 Yash 100 5 Ltr. Kingfisher 32 Bisleri 40 20 Ltr. Kingfisher 40 Bisleri 55Projectsformba.blogspot.com 67
  • 68. Projectsformba.blogspot.com PACKAGED DRINKING SODA Size Brand Name Rates Per Case(RS.) 500ml Kingfisher 145 Lehar 216 Kinley 192 1.5 ltr. Lehar 198 ROYAL CROWN COLA Size Price Bottles Scheme 300 ml. 240 24 +2 600 ml. 444 24 +4 2 ltr. 360 10 +2EXIBIT-02:-Projectsformba.blogspot.com 68
  • 69. Projectsformba.blogspot.com SCHEMES KINGFISHER 1 Ltr. Packaged drinking water, Rs. 115, 1 case+4 bottles extra. KINLEY 3 case of packaged drinking water ( any size), 6 glasses free. AQUAFINA 1 Ltr. Packaged drinking water, Rs. 124, 1 case+2 bottles extra. 2 Ltr. Pepsi, Rs. 387, 1 case+ 4 bottles of Aquafina extra. LEHAR 500 ml soda, Rs. 216. 1 case+ 2 bottles extra. BISLERI 1 ltr. Packaged drinking water, Rs. 128, 1 case+2 bottles extra. BIBLIOGRAPHYProjectsformba.blogspot.com 69
  • 70. Projectsformba.blogspot.com 1. Philip Kotler, Marketing Management, 11th Edition. 2. www.kingfisherworld.com 3. www.goolge.com 4. RC cola 5. Kothari C.R., Research Methodology: Methods and Techniques, 2nd Edition. 6. www.rccolainternational.comProjectsformba.blogspot.com 70