Packaged Drinking Water

CHIRANJIT MANDAL (11) DEBASHIS MISHRA (12) RAHUL MENON (41) SHIRSHENDU CHATTERJEE (50) XAVIER INSTITUTE OF MANAGEMENT, BHUBANESWAR

Sales & Distribution Management

This paper studies the Marketing and Selling activities of three brands of Packaged Drinking Water (Bisleri, Kinley and Dazzle). It also identifies the gap between the Marketing and Selling of the three brands and suggests certain recommendations to bridge those gaps.

ACKNOWLEDGEMENT

We are grateful to all those people who with their valuable inputs have helped us in completing this paper. We are thankful to Mr. S. K. Goel of Balaji Traders, Mr. Bijay Kumar Agarwal of Jay Maa Tara Enterprise who with their valuable inputs have guided us in getting a thorough understanding of the entire distribution of Kinley and Bisleri. We are also thankful to Mr. Jagmohan Panda of Trushna who have given us information about the local brand Dazzle. We are also thankful to all the different retailers who have spared from their valuable time and helped us in giving as much information as possible as per their capacity. We thank all for their valuable supports in making this project a success.

Packaged Drinking water market in India An introduction

In India, the per capita bottled water consumption is low - less than five litres a year as compared to the global average of 24 litres. However, the total annual bottled water consumption has risen rapidly in recent times - it has tripled between 1999 and 2004 - from about 1.5 billion litres to five billion litres. These are boom times for the Indian bottled water industry because the economics are sound, the bottom line is fat and Indian government shies away from conserving the nations water resources. The industrys phenomenal growth in recent years can be attributed to rising incidence of water -borne diseases, improper municipal supplies, evolved health consciousness of people & globalisation, which has brought in tremendous tourist inflow. India is the tenth largest bottled water consumer in the world. In 2002, the industry had an estimated turnover of Rs.10 billion (Rs.1,000 crores). Today it is one of India's fastest growing industrial sectors. Between 1999 and 2004, the Indian bottled water market grew at a compound annual growth rate (CAGR) of 25 per cent which was the highest in the world. In the Indian bottled water industry there are more than 200 brands, nearly 80% of which are local brands. Making bottled water is today a cottage industry in India. There are bottled water manufacturers in every medium & small city & in even some prosperous rural areas. The industry being dominated by over a thousand bottled water producers makes the Indian bottled water industry big by even the international standards. Despite the large number of small producers, this industry is dominated by the big players - Parle Bisleri, Coca-Cola, PepsiCo, Parle Agro, Mohan Meakins, SKN Breweries and so on. Parle was the first major Indian company to enter the bottled water market in the country when it introduced Bisleri in India 25 years ago. Bottled water is sold in a variety of packages: pouches and glasses, 330 ml bottles, 500 ml bottles, onelitre bottles and even 20- to 50-litre bulk water packs. The formal bottled water business in India can be divided broadly into three segments in terms of cost: premium natural mineral water, natural mineral water and packaged drinking water. Premium natural mineral water includes brands such as Evian, San Pelligrino and Perrier, which are imported and priced between Rs.80 and Rs.110 a litre. Natural mineral water, with brands such as Himalayan and Catch, is priced around Rs.20 a litre. Packaged drinking water, which is nothing but treated water, is the biggest segment and includes brands such as Parle Bisleri, Coca-Cola's Kinley and PepsiCo's Aquafina. They are priced in the range of Rs.10-12 a litre. In the retail consumer market, pack sizes of packaged drinking water are a) 500 ml, b) one litre, c) 1.2/1.5/2-litre d) five-litre & and the household and institutional market, the pack sizes comprises of 20 or

25-litre. The total Indian market for small segments, such as 0.5-2 litre stands at 12-15 million cases a year. Bulk water sale of 25-litre bubbletops stands at 16.8 million bottles a month Attracted by the huge potential that India's vast middle class offers, multinational players such as CocaCola and PepsiCo have been trying for the past decade to capture 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 are fast catching up, with Kinley holding 20-25 per cent of the market and Aquafina approximately 10 per cent. The rest, including the smaller players, have 20-25 per cent of the market share.

Cost of producing 1 litre branded bottled drinking water

Cap cost Bottle cost Treatment cost Label cost Carton cost Transportation cost Others Total cost (excluding labour, marketing & tax) Selling cost Rs 0.25 Rs 1.5 - Rs 2.5 Rs 0.1 - Rs 0.25 Rs 1.5 - Rs 0.25 Rs 0.50 Rs 1.0 - 0.25 Rs 0.50 Rs 2.85 - 4.25 Rs 10 - 12

For our study of the Marketing and Selling activities we have identified one brand each in the packaged drinking water segment of Multinational, National and Local origin. This paper intends to find out the Marketing and Selling activities of the three brands and identify the gap between the marketing and selling activities.

BRANDS

FO R ST

CONSIDERED

UDY

Coca Colas: Kinsley

Kinley was launched in India in the year 2000. Kinley was able to garner a market share of 24 per cent in the packaged drinking water segment in a little more than a year from its launch. Instead of setting up manufacturing facilities for Kinley, there were tie ups with existing plants and the route of contract manufacturing was taken for Kinleys expansion. This strategy allowed the company to save on both time and resources in India. By tying up with existing facilities, CCI (Coca Cola India) managed to score on the distribution aspect by making its brand, Kinley available throughout the country which gave credence to its rising market share in India. The below diagram represents a typical chain of manufacture to distribution of Kinley, the brand for packaged drinking water of Coca Cola India. The company follows the same chain for all its product. Because of the presence of its strong brand like Coca Cola, Thums Up, Sprite, Limca, etc. it makes it easy for the company to market as well as distribute Kinley through the same channel.

Manufacturing Plant

Sales and Distribution Operations

Distributors

Outlets

Outlets

FIGURE: CHAIN FOLLOWED FROM MANUFACTURE TO DISTRIBUTION

DISTRIBUTION NETWORK
CCI has a wide and well managed network of salesmen appointed for taking up the responsibility of distribution of products to diverse parts of the cities. The distribution channels are constructed in such a way that the demand of customers is fulfilled at the right place and the right time when it is needed by them.

A typical distribution chain at CCI would be

The customers of the Company are divided into different categories and different routes, and every salesman is assigned to one particular route, which is to be followed by him on a daily basis. A detailed and well organized distribution system contributes to the efficiency of the salesmen. It also leads to low costs, higher sales and higher efficiency thereby leading to higher profits to the firm.

DISTRIBUTION ROUTES
The various routes formulated by CCI for distribution of products are as follows:

Key Accounts: The customers in this category collectively contribute a large chunk of the total sales of the Company. It basically consists of organizations that buy large quantities of a product in one single transaction. The Company provides goods to these customers on credit, payments being made by them after a certain period of time i.e. either a month or half a month. Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc. Future Consumption: This route consists of outlets of Coca-Cola products, wherein a considerable amount of stock is kept in order to use for future consumption. The stock does not exhaust within a day or two, instead as and when required stocks are stacked up by them so as to avoid shortage or non-availability of the product. Examples: Departmental stores, Super markets etc. Immediate Consumption: The outlets in this route are those which require stocks on a daily basis. The stocks of products in these outlets are not stored for future use instead, are exhausted on the same day and might run a little into the next day i.e. the products are consumed at a fast pace. Examples: Small sized bars and restaurants, educational institutions etc.

General: Under this route, all the outlets that come in a particular area or an area along with its neighboring areas are catered to. The consumption period is not taken into consideration in this particular route.

DISTRIBUTION SYSTEM

Direct distribution: In direct distribution, the bottling unit or the bottler partner has direct control over the activities of sales, delivery, and merchandising and local account management at the store level.

Indirect distribution: In indirect distribution, an organization which is not part of the Coca-Cola system has control on one or more of the distribution elements (Sales, delivery, merchandising and local account management)

Merchandising: Merchandising means communication with the consumer at the point of purchase to convey product benefit, value and Quality. Sales people and delivery personnel both have this responsibility. In certain locations special teams who go into business locations to specifically merchandise our products.

MARKETING
Segmentation & Targeting
The 1 litre Kinley bottle is priced at Rs 12, 500 ml pack is priced at Rs 8 & the 20 25 litre bulk packs are priced at Rs 75. Kinley finds a special appeal amongst consumers who have an on the Go lifestyle, looking for hygienic and trustworthy drinking water while being on the move. Coca-Cola India has also introduced its premium mineral-enriched product 'Schweppes Water' in 45 select locations across Mumbai. It was the first company to launch 'enhanced water' brand in India. It's priced at Rs 30 for 250 ml bottle. It is aimed at consumers who prefer drinking good quality water & are brand conscious.

Repositioning: Boond Boond main vishwaas

Kinleys initial television commercial was built on the trust & safety platform. It depicted doctors endorsement which forced CCI to pull out the commercial off air after the notification by The Health Ministry of India that made doctors endorsement illegal. The new and slickly presented set of four television commercials was built on the platform of trust Boond boond mein vishwas and was aired on national television. The communication strategy was a montage of a slice of Indian life and emotions depicted by the boy scouts, the football match and the family celebrating Holi. The new and slickly presented set of four television commercials builds on the platform of trust - Boond boond mein vishwas and is in the process of being aired on national television. The ads took the communication to a different emotional level by depicting trust in the context of the largeness of water. The Commercial is in the form of a travelogue, where a young boy keeps the faith by going through a long journey to meet his grandmother. The film opens on the boy, who is en route to his ancestral home. The background score says, 'Mann Kaanch jaisa, Aar Paar Aisa, Aasman Sa Khula Saaf Dil Hai Tera'. Somewhere along the journey, he is looking for drinking water, and is skeptical about finding pure water. A shopkeeper, on sensing his dilemma, calls him and gives him the new bottle of Kinley. The boy, on seeing the trusted quality seal on the bottle, is happy that he has found his trusted Kinley. All along the journey on the bus, at a roadside dhaba, he uses Kinley to quench his thirst. At his grandmothers home, he is welcomed with lot of love and affection. His grandmother asks him to wash his hands (a symbol of purification) with Kinley. The commercial closes on the shot of the old lady and the grandson catching up with each other, with the super 'Boond Boond Mein Vishwas'. As part of its new re-branding campaign, Coca-Cola has changed the packaging design on Kinley water bottle which would be available in 500 ml and 1 litre packages and 20 and 25 litre bulk jars in

the price range of Rs 8 to Rs 75. The bottle now comes in a new 'easy to hold' shape; and the label has changed from the previous blue to a transparent one. Apart from television, outdoor and on-truck advertising is also being used as part of its communication strategy. Kinley has around 19.5 per cent market share followed by Aquafina (18 per cent), in the packaged drinking water segment.

SELLING
Sales Force Management
The distributor appoints their own salesmen for the distribution of goods to the retailers. Its salesmen also do door to door supply. The distributors have fixed different routes and every salesmen is assigned to one particular route to avoid any conflict. For the Distributor interviewed he had 5 different routes. Out of the 5 routes he had one route was the major route whereas the rest 4 were subsidiary routes. Targets are fixed basis the routes. The target for the main route is 1000 crates per month whereas for the rest 4 routes the target fixed is 500 crates per month. The sales people are given lumpsum incentives basis the target either at the end of the month or as bonus during any point of year. The salary for each sales person varies within the range of Rs 2000 to Rs 2500. The entire strategy of evaluating a sales person is decided by the Distributor. The company sales person visits once a month for record checking. The Distributor reports to the Sales Executive looking after the area.

Selection Criteria for Salesmen:

The distributor has set certain criteria for the selection of salesmen. These criteria become even more important as the attrition level has to be taken care of and the importance of salesmen in bringing more business.

1) 2) 3) 4)

The candidate must be at least a higher secondary pass. The candidate must have knowledge of local language. Candidates with prior relevant work experience are preferred. The candidate if from the territory is preferred.

Incentives for the salesmen:

A basic salary of around Rs 2000 to Rs 2500 is given irrespective of the performance of the salesman. Incentives are given in total as a lump sum either at the end of the month or as bonus at any point of year. Thus the incentive for the sales people is Fixed Salary plus Bonus.

Price Margins for the products:

Based on the primary data from the distributor; following are the margins which the distributor gets from the company for various capacities:

Capacity (Liters)

Cost Price (Rs)/Crate

Selling (Rs)/Crate

Price Margin (Rs)

Schemes Retailers

to

Liter (24pc per 170 crate)

180

10

bottles

of

500ml are given free to retailers

1 (12pc per crate)

114

124

10

2bottles

of 1L

are given free to retailers 2 (9pc per crate) 148 158 6 1 bottle of 2L is given free 20 54 58 4 Retailers prefer local brands for this pack size

Special discounts and schemes are given during festivals like Durga Puja and seasons like the marriage season just to boost up the sales volume. The rest schemes round the year remains almost constant with only minimal changes.

Flow of Cash and Credit

The distributor gets a credit period of 10 days from the company. The distributor gives a credit period of 7 to 10 days to the retailers depending upon the personal relationship with the retailers. For the various schemes that the distributor gives to the retailers like the free samples depends on the Credit Note given to them by the company. The Credit Note is the limit of amount to which a distributor can give a retailer free sample. This Credit Note is settled in the claims.

Critical Analysis
One of the major things plaguing the brand Kinley is its different pricing for the same pack size. For example for the 1 liter pack size there are two prices existing in the market, Rs 12 and Rs 15. This difference in price is because of the fact that the different portion of the state gets their product from different plants. The area in the state which receives products from the plant located at a larger distance has the prices of their product marked as Rs 15. This difference in price with respect to its competitor is affecting the market share of the brand.

BISLERI
Mineral Water under the name 'Bisleri' was first introduced in Mumbai in glass bottles in two varieties bubbly & still in 1965 by Bisleri Ltd., a company of Italian origin. This company was started by Signor Felice Bisleri who first brought the idea of selling bottled water in India. Parle bought over Bisleri (India) Ltd in 1969 & started bottling Mineral water in glass bottles under the brand name 'Bisleri'. Later Parle switched over to PVC non-returnable bottles & finally advanced to PET containers. Since 1995, Bisleris operations have expanded substantially; its turnover has multiplied more than 20 times since its inception & the average growth rate has been around 40 % over a period of 10 years. The general distribution channel of Bisleri looks like this:

MANUFACTURING PLANT

COMPANY WAREHOUSE

INSTITUTIONAL BUYERS/ORDERS OVER INTERNET

TRUCKS

DISTRIBUTORS

INSTITUTIONAL BUYERS/SEASONAL PARTY ORDERS

ROUTE SELLING RETAILERS

MARKETING
Segmentation & Targeting
Bisleri has a multi-pack and a multi-price strategy. It offers 7 packaging options; a 250-ml cup and bottles in 500 ml, 1-litre, 2-litre, 5-litre, 12-litre and 20-litre packs. The 1-litre bottle accounts for nearly 50 per cent of the sales, with the 2-litre bottle taking up 20 per cent of the sales. The remaining sizes share the balance. Bisleri has targeted the household segment with the large pack sizes of 20 & 25 litres. In India, certain households spend a huge amount of money on fuel in order to purify water. Households, in certain parts of India spend a huge amount of money on fuel in order to purify water. This was lapped up by Bisleri as a business opportunity in the water-scarce places in south India. Bisleri is priced to benefit volume purchase. The 1-litre bottle is priced at Rs 12, the 2-litre bottle is priced at Rs 20 (Rs 10 per litre), the 5-litre pack at Rs 30 (Rs 6 per litre) and the 20-litre pack at 70 (Rs 3.50 per litre).

Positioning: From "Pure and Safe" to "Play Safe"

The earlier brand building efforts Of Bisleri focused on being healthy with adequate minerals. The Italian name added a dash of class to it. The first print ad campaign captured the international essence and showed a butler with a bow tie, holding two bottles of Bisleri. The punchline was, "Bisleri is veri veri extraordinari" (the spelling of the punchline was designed to capture the consumer's attention). The campaign was successful and we were being noticed as someone who catered to the need for safe, healthy drinking water.

SELLING
Sales Force Management
The distributor employs their own salesmen. The salesmen are divided among the territories defined by the distributor. The distributor has 5 routes. Out of the 5 routes, one is the main route and the other four are sub routes. The salesmen are divided amongst these routes. This helps in avoiding horizontal conflict and leads to better focus and evaluation of sales performance of the salesmen. The company sales person makes a visit once every month. Rest of the month every communication regarding stock replenishment, etc. takes place over phone. The person of the company whom the distributors communicate with is the Sales Executive. At times the company deploys its own men to do the distribution job for the Distributor also.

Selection Criteria for Salesmen:

The distributor has set certain criteria for the selection of salesmen. These criteria become even more important as the attrition level has to be taken care of and the importance of salesmen in bringing more business.

1) 2) 3) 4)

The candidate must be at least a high school pass. The candidate must have knowledge of local language. Candidates with prior relevant work experience are preferred. The candidate if from the territory itself is preferred.

Incentives for the salesmen:

A basic salary of around Rs 2000 to Rs 2500 is given irrespective of the performance of the salesman. No incentives are given to the salesmen for distributing Bisleri as no such support is received from the

company. So no targets are also fixed for the salesmen as company doesnot give them any target. The entire distribution runs on the general demand of the market i.e. on the market pull only.

Price Margins for the products:

Based on the primary data from the distributor; following are the margins which the distributor gets from the company for various capacities:

Capacity (Liters)

Cost Price (Rs)/Crate

Selling (Rs)/Crate

Price Margin (Rs)

Schemes Retailers

to

Liter (24pc per 158 crate)

168

10

bottles

of

500ml are given free to retailers

1 (12pc per crate)

114

124

10

3 and sometimes 4 bottles of 1l are given free to retailers

2 (9pc per crate)

148

158

2 bottles of 2 l are given free

20

54

58

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

The schemes given to retailers are usually dependent on company policy. As per the company policy the various schemes are given to the retailers and the amount for the same is claimed from the company. But as per the experience of the Distributor the company doesnt settle the claims soon and takes much longer time for which many distributors have left the distributorship of Bisleri. Special discounts and schemes are given during festivals like Durga Puja and seasons like the marriage season just to boost up the sales volume.

Flow of Cash and Credit:

The company doesnt give any credit schemes to the Distributors. The Distributor either have to make Advance Payment or else the day on which company delivers stock to them the company people collects the payment. But the distributor offers credit of a maximum period of 3 days to the retailers.

Critical Analysis:
After discussion with the Distributors it came out that the Distributors are not happy with the companys policy. Many distributors have left the distributorship of Bisleri due to this. Since the Distributors need to bear the transportation cost of delivering the goods to the retailers, only big Distributors who have other distributorship also are having the Bisleri distributorship. For example, Mr. Bijay Agarwal, Proprietor, Jay Maa Tara Enterprise, have Coca Cola Distributorship. He sends the Bisleri products along with the Coca Cola products to the market. It seems that the market of Bisleri is entirely PULL driven. There is no effort from the company of any form of PUSH to sell its product. This unique advantage of Bisleri is due to the fact that it was the earliest entrant into this packaged drinking water segment so has almost converted its brand name as a generic name for the product supported by its aggressive advertising. But the Distributors feel in terms of quality Aquafina and Kinley are far better than Bisleri.

DAZZLE
Dazzle is a local brand of packaged drinking water manufactured and marketed by Dazzle Mineral Water Company. The company was established in 1992 and has operation all over the Orissa and especially in its capital city of Bhubaneswar. The company follows a three tier distribution channel for selling its packaged drinking water which is available in 1L, 2L, 5L, and 20L. The company appoints distributors in each district who in turn store, and transport its packaged drinking water to various retailers throughout the city. In Bhubaneswar they have one distributor who looks after the storage and transport of the products to various retailers who are at the 3rd tier. It is from these retailers these water bottles are sold to individual consumers. The distributor has institutional buyers for its products which are sold to various offices and hotels etc. Transportation charges for transporting the water bottles from company to the distributor is covered by the company whereas transportation charges for transporting the water bottles from the distributor to the retailers is taken care of by the distributor.

Dazzles Distribution Channel in Bhubaneswar

Companys Manufacturing Unit

Distributor

Retailers

Institutional Buyers (Hotels,

Corporate Offices of Various Companies)

Consumers

Consumers

Diagrammatic representation of the various levels of the channel.

MARKETING

Segmentation and Targeting

Dazzle being a local brand has more focus on extensive distribution rather than targeting a particular segment like Bisleri or Kinley. Dazzle targets both individual consumers and institutional buyers without focusing them separately. But like its competing brands it offers multiple products with varying price and capacity.

Positioning
Dazzle has positioned itself as a provider of core product i.e. quenching thirst and gives value for money as it is priced lower than its national and international competitors. That is why there is no major ad campaign visible in and around the city. Although in a few cinema halls in Bhubaneswar they show the ads of Dazzle during the intervals. Also in one of the local Oriya television serial, it is advertised during breaks.

Pricing Strategy
Dazzles pricing strategy is quite simple as it provides an inexpensive solution to packaged drinking water both for individual and institutional consumption. Throughout the product range it is charged around 20% lower than its national and local competitors. Al the same time they give higher margins to the channel members like the distributor and retailers vis--vis its competitors as a part of its push strategy.

SELLING
Sales Force Management:
The distributor has deployed five salesmen in the whole of Bhubaneswar. The distributor has also divided the whole city region into five sub regions for each salesman to operate in that particular area. This helps in avoiding horizontal conflict and leads to better focus and evaluation of sales performance of the salesmen.

Selection Criteria for Salesmen:

The distributor has set certain criteria for the selection of salesmen. These criteria become even more important as the attrition level has to be taken care of and the importance of salesmen in bringing more business.

1) 2) 3) 4)

The candidate must be at least a high school pass. The candidate must have own vehicle. The candidate must have knowledge of local language. Candidates with prior relevant work experience are preferred.

Incentives for the salesmen:

A basic salary of Rs 2500 is given irrespective of the performance of the salesman. Apart from this travel and food expenses incurred for business purposes are reimbursed. A commission of 1% on total sales per day is given.

Price Margins for the products:

Based on the primary data from the distributor; following are the margins which the distributor gets from the company for various capacities:

Capacity (Liters) 1/2 1 2 5

Cost Price (Rs) 4.5 6 12 32

Selling Price (Rs) 6 10 18 40

Margin (Rs) 1.5 4 6 8

Price margin goes on increasing as the quantity increases. This can be explained by the fact that the companies gives more margin for low sales product as this will act as an incentive for the company to push it through various channel members.

Flow of Cash and Credit:

The credit for purchasing goods by the distributor from the company is about a week. For the distributor to the retailers the credit period is a maximum of three days. Also the distributor charges security amount from the first time retailers.

Trade Schemes:
There are occasional trade schemes offered by the company to the distributor. This includes with every 12 cases of 12 bottles (of all capacities), the company gives one case free during the Durga Puja and Jagganath Yatra times.

COMPARITIVE ANALYSIS

Different Brands of Packaged Drinking water on the Selling Matrix

LOW

1. Picking

Behavior

4. Habit

Difference between brands

PUSH

PULL (Credence)

3.PROBLEM

SOLVING

Experience Attribute
HIGH 2.HEURISTIC

Search Attributes
Uncertainty of untried brands

LOW

HIGH

Bisleri has placed itself on the 4th quadrant of the selling matrix with credence attribute where it is entirely now pull driven. Kinley at present is in the 2nd quadrant and is moving from the search attribute to the experience attribute. Dazzle is still in the 1st quadrant where consumers show picking behavior and the market is entirely dependent on push.

Margins earned by the retailers

Name of the brands
Dazzle Kinley Aquafina Bisleri Dazzle Rs 1 pouch*

Cost Price

Selling price

Profit margin

Rs 8 Rs 12.25 Rs 10.50 Rs 10 Rs 50

Rs 10 Rs 14/15 Rs 12 Rs 12 Rs 100

Rs 2 Rs 1.75/2.75 Rs 1.50 Rs 2 Rs 50

Retailer purchases 1 box of 100 Dazzle pouches for Rs 50 & sells the pouches at Rs 1 each, earning a margin of Rs 50 per box. From the above table, its quite evident that the sales of Rs 1 pouch of local brands like Dazzle, Bubbles, Tribeni, etc is profitable for the retailers, especially those who have their shops near a bus stop or near the railway station, where they find people in transit. In retail stores & chemist shops there is a shortage of space, the retailers order stock as per the shelf space & the brands keep rolling off the shelves. Since the 1L pack size of Dazzle is priced at Rs 10 whereas the others are either Rs 12 or Rs 14 so the customers often end up in buying the local brands due to lack of change. Only very few customers intend on having the brand of their choice. Because the product is a high need (thirst) satisfying product and if not got at the right time its utility decreases. For instant use customers pick up any brand that is available at that point of time. If the brand of their choice is available at that moment they take that brand otherwise they settle with slight hesitation for any other brand which is there even if it is not in their consideration set.

COMPARISON OF MARKETING AND SELLING ACTIVITIES

KINLEY
MARKETING
With aggressive promotional campaign, point of purchase promotion and encasing on the brand value of other power brands of CCI, Kinley is creating a PULL in the market

BISLERI
Mass media advertisement, hoardings, etc. are used for promotional campaign. Change in packaging to reposition its brand. Already having credence attribute and positioned itself as safe in the minds of consumers. Has become a generic brand for mineral water and creating PULL entirely.

DAZZLE
Minimal advertising, restricted to only Cinema halls and few local television without any hoarding or bill board. Not much reinvention in packaging too over the years. Only the price is kept lower than their national and international competitors. Hence almost no PULL creation in the market.

SELLING

Trade schemes, retailers incentive, distributor incentives are meant for PUSH of the product in the market.

No much selling effort. Only minimal retailers scheme. No credit for distributor. Hence almost no PUSH. Markets entirely PULL driven.

High margin for retailers, distributors. Round the clock service. Trade incentives, high credit period, etc. are entirely meant for total PUSH of the product in the market.

GAP

Entire strategy is a combination of PUSH and PULL. Hence no such gap exists between marketing and selling activities. Therefore the market share of Kinley has been increasing over the years. The only consideration is the different price for same product as discussed earlier which is killing the market share of it.

Entirely PULL driven market with no or minimal PUSH. Though Bisleri has turned out to be generic name for mineral water but without any PUSH it might lose its market share to brands like Kinley or Aquafina. So Selling activities must be taken more seriously.

Entirely PUSH driven market. For sustainability of the product it is necessary that the company takes up Marketing activities to generate PULL in the market.

RECOMMENDATION

KINLEY
Should look into the matter of different pricing of the same pack size in the same state. This if continued for long might kill the brand.

BISLERI
Should be concerned about the intermediaries or the channel members. Should look into their needs. Should do some amount of PUSH. Claims settlement should be fast and efficient. If not done then the channel members can kill the product.

DAZZLE
Should go in for some amount of advertising in mass media to position its brand in the minds of the consumers. Should focus on moving up the selling matrix.

CONCLUSION
It is thus evident from the above study that marketing as well as selling activities both are needed to make a brand successful. In this cut throat competitive world it is very necessary to do both PULL and PUSH activity otherwise the sustainability of the brand comes into question. An efficient combination of marketing (PULL) and selling (PUSH) would help a brand to remain in the consideration set for long. Further in the product category we studied there lies ample scope for companies to earn profit as still this water business sector is in its nascent stage. The sector since growing provides huge opportunity to the players to reap in the benefit. Good strategic decisions will help the companies achieve their goals in this respect.

REFERENCES

1) Reinventing Bisleri Url: http://www.icmrindia.org/free%20resources/casestudies/reinventing-bisleri2.htm 2) Bottled loot: By Chandra Bushan URL: http://www.hinduonnet.com/fline/fl2307/stories/20060421006702300.htm 3) Coke's plans hold water : By Neha Kaushik URL:http://www.hinduonnet.com/businessline/catalyst/2001/11/29/stories/1929f05b.htm 4) Business: Kinleys packaging revamp URL: http://spoonfeedin.blogspot.com/2008/07/business-kinleys-packaging-revamp.html 5) Managing your salesforce: A Motivational Approach, by P.Venugopal