Trial at Kingfisher

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“Study of promotional Activities Of Kingfisher’s PDW, Soda with Special Reference to Kingfisher IBF Ltd.” Project Report Submitted to (University of Pune or SIBAR) In Partial Fulfillment of Requirement for the Award of (MMM-IIIrd SEM) By SHWETA SINGH Under the guidance of Mr. Pradip Patil Prof. Sheetel Bhosare 1

Transcript of Trial at Kingfisher

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“Study of promotional Activities Of Kingfisher’s PDW, Soda with Special

Reference to Kingfisher IBF Ltd.”

Project Report Submitted to (University of Pune or

SIBAR) In Partial Fulfillment of Requirement for the Award of

(MMM-IIIrd SEM)

By SHWETA SINGH

Under the guidance of

Mr. Pradip Patil Prof. Sheetel Bhosare

(External Guide, Organization) (Internal Guide)

Sinhgad Institute Of Business Administration And Research, Kondhwa

Session-2010-2012

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DECLARATION

I hereby declare that the project entitled, “A study of promotional Activities of Kingfisher’s

PDW, Soda with special reference to kingfisher IBF Ltd.”, submitted to Sinhgad college of

business administration and research college in partial fulfillment for the Award of Master of

Management Studies of University of Mumbai is my Original work and does not form any part

of previously conducted projects.

This information has been used purely for academic purpose.

Shweta Singh

M.M.M

Date : 24thJune

Place : Pune.

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CERTIFICATE

This is to certify that the project entitled, “A study of promotional Activities of Kingfisher’s

PDW, Soda with special reference to Kingfisher IBF Ltd. ”, submitted by Shweta Singh, in

partial fulfillment for the award of Master in Management Studies of University of Mumbai is

his original work and does not form any part of the projects undertaken previously.

Also it is certified that the project represents the original work on the part of the candidate.

Place : Pune

Date : 24th JUNE

Signature of the Director Signature of Guide

(prof. Avdhoot Pol) (Prof. Sheetel Bhusare)

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ACKNOWLEDGEMENT

I am overwhelmed while expressing my sense of gratitude towards all those who helped and

guided me during the course of this project.

I feel immense pleasure in expressing my sincere and profound sense of gratitude to Mr.

Mangesh Arnalkar,Regional Manager of Kingfisher IBF ltd, for their inspiring guidance and

constructive criticism during the course of summer project.

I express my sincere thanks to Mr.Pradip Patil, Area Sales Manager for their guidance,

constant encouragement and constructive criticism.

I am very thankful to Mr Sheetel Bhusare Sir, our Project Guide, of SIBAR, pune for their

cooperation and valuable guidance in completing the project.

I express my sincere thanks to Director prof.Avdhoot pol for inspiring guidance.

Shweta Singh.

M.M.M

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CONTENTS

Sr.No. Topic Page. No.

1 Executive Summary of Project

2 Objective Of The Study

2.1 Objectives

2.2 Scope Of The Study

2.3 Limitations

2.4 Need & Significance Of The Study

3 Company Profile

3.1 Introduction To Company

3.2 Kingfisher Ltd.

3.3 Iceberg Food Ltd.

3.4 Background Note

3.5 Product range and Varieties

3.6 Competitors’ View

4 Theoretical Background

5 Research Methodology

6 Data Analysis and Interpretation

7 Findings

8 Conclusion

9 Recommendations

Annexure

Bibliography

1. EXCUTIVE SUMMARY

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Title of the Project

“A study of Promotional Activities Of Kingfisher’s PDW, Soda with

special reference to Kingfisher IBF Ltd.”

The proposed research is designed to find out the level of satisfaction and the factors that

aid in retaining the retailers. It is designed to understand the sensibilities of the modern day

retailer and thereby understand the factors that motivate the retailers and affects the sales and

sustainability of a product in the market.

This study is related to soft drink in Pune, Maharashtra. India is the largest bottled water

consumer in the world. In 2009, the industry had an estimated turnover of Rs. 28 Billion. Today

it is one of India’s fastest growing industrial sectors. Between 1999 to 2004, the Indian bottled

water market grew at a compound annual growth rate of 26%, the highest in the world.

Kingfisher is the largest selling beer in India. Now, Kingfisher is trying to capture the

water industry market with Iceberg food ltd. Kingfisher has near about 17% overall market share

in India for packaged drinking water segment. Customers’ satisfaction begins with a difficult

faith; with a commitment to deliver the result for each customer which is also a concern for the

retailers. Hence, for a manufacturing company it is necessary to have right distribution channel

and in order to satisfy its customers, it is highly important to satisfy its channel partners, as they

are directly deals with end users.

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This Project was completed on the basis of survey method, where samples were chosen

by randomly. The project was conducted overall in Pune city only. The samples also comprises

distributors too, whose are part of distribution channel. Areas within the city limits like

Hadapsar, Pune station, Barathi Vidyapeeth , Dhankawadi, Koregaon park, Ambegaon Pathar,

Camp area, Swarget, Upper Indira nagar, were covered.

The results says that, the kingfisher packaged drinking water has less demand in the Pune

city, because there are reason like packaging, pricing, labeling, and taste too. The channel

partners in Iceberg Food ltd., has been found that, not satisfy with the company’s product, prices,

distribution system, etc offered by the company to them. But many organizations have yet to

develop this kind of awareness of retailer satisfaction strategy.

2.1. OBJECTIVE OF STUDY

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PRIMARY OBJECTIVE:

To study the Retailers Preferences and Retail Segment of kingfisher’s PDW, Soda.

To analyze each Distributors policies and Quotation with various Schemes.

To study the factors which attract the clients towards the Kingfisher’s PDW, Soda.

To study retailers Satisfaction towards dispatched system of Kingfisher’s PDW, Soda.

SECONDARY OBJECTIVE:

To study the impact on sales when offer is given to retailers by the company.

To study the overall sales after service facility offered by company to channel partners.

To study the distributors satisfaction towards the companies delivery and payment

system.

To analyze the overall Sales and Distribution management of Kingfisher IBF ltd of PDW,

Soda.

2.2. SCOPE OF STUDY

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The scope of the study was limited to Pune city. As the sample size was 100 clients only.

In today’s cut throat competition to increase the market share there is need to satisfy the

customer’s needs and wants. For this purpose all organizations are required to conduct research

work to understand customer’s needs and expectation from the company.

For every research work the study may have geographical conceptual scope. As subject to

the products limited to the study to the Pune district. The survey conducted will give the details

about the customer satisfaction level responding product and services.

GEOGRAPHIC SCOPE

The research is conducted in the Pune city, in the major areas where most of the FMCC market

established. So covering these major areas can make a good representative sample.

The areas were-

Bibvewadi- Upper Indira Nagar, Market Yard.

Hadapsar-Fatima Nagar, Mohommad wadi, hadapsar gaon.

Peth area- Ravivar peth, Nana peth, Somwar peth, Ghorpade road, Shukrawar peth, KEM

hospital area, Tilak road.

Yerwada- Band Garden, Kalyani Nagar. Vadgaon sheri, vishrant wadi

Others- FC Road, Koregaon Park, Pune Camp

TIME SCOPE

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I had given a period of two months. The areas that I am supposed to cover were

manageable in this period. I started my project from 6nd May, 2011 till 5th July 2011.

2.3. LIMITATIONS OF STUDY

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The survey was limited for Pune region only.

Random samplings of retailers were selected under the market survey.

Due to the restricted time frame the sample size was small. Bigger sample size would

have made few aspects more clear.

The information gathered was based on customers’ response to questionnaire. Even then

a genuine attempt has been made to get correct data from them.

Sales accounts for distributor as well as retailers are comprises over the counter sale.

While interviewing, the respondents to each question was not possible for few retailers,

hotel’s manager, so it is not possible to get perfect perception of interviewer.

Afternoon time is only the time when retailers entertain, for rest of the time is considered

as rush hours; so intern can target maximum of 7-8 retailers per day.

The study was limited carried out in Pune and its vicinity with sample size of 100

respondents.

Time was a constraint in study as only 50 day allotted.

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2.4. NEED AND SIGNIFICANCE OF STUDY

1. The study will be useful to organization in content of understanding channel partners

satisfaction and it will also useful to organization in relation to possible modification in

present sales and distribution system.

2. The study will be useful to the other experts and the student’s researchers to study in the

same area.

3. The study may help to organization to improve their quality and service that providing to

its channel partners.

4. The study will be remaining as guidance for the organization for better customer

satisfaction.

5. The study may help the organization to plan future policies and strategies for better

customer satisfaction.

6. The project study will be help in finding solutions of the problem faced by customer and

the problems faced by the organization.

7. A firm needs to analyze buying behavior for:

Buyers’ reactions to a firms marketing strategy has a great impact on the

firm’s success.

The marketing concept stresses that a firm should create a Marketing Mix

(MM) that satisfies (gives utility to) customers, therefore need to analyze

the what, where, when and how consumers buy.

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COMPANY PROFILE

3.1 INTRODUCTION TO COMPANY

UNITED BREWERIES GROUP (UB GROUP)

United Breweries Group:-

Based in Bangalore, is the world's 2nd largest brewer and the largest in India. The

company markets most of its beer under the Kingfisher brand and has also launched Kingfisher

Airlines, a domestic airline service in India. The group is headed by Dr. Vijay Mallya who is

also a member of the Indian Parliament. United Breweries now has a near-monopoly over the

Indian brewing market, thanks to its recent takeover of the rival Shaw-Wallace company. The

group owns the Mendocino Brewing Company in the United States.

HISTORY:-

The UB Group was founded by a Scotsman, Thomas Leishman in 1857. The Group took

its initial lessons in manufacturing beer from South Indian based British breweries. At the age of

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29, Vittal Mallya was elected as the company's first Indian director in 1947. After a year, he

replaced R G N Price as the chairman of the company.

United Breweries made its initial impact by manufacturing bulk beer for the British

troops, which was transported in huge barrels or "Hogsheads". Kingfisher, the Group's most

visible and profitable brand, made a modest entry in the sixties.During the 1950's and 60's, the

company expanded greatly by acquiring other breweries. First was the addition of McDowell as

one of the Group subsidiaries, a move which helped United Breweries to extend its portfolio to

wines and spirits business. Strategically, the Group moved into agro-based industries and

medicines when Mallya acquired Kissan Products and formed a long-term relationship with

Hoechst AG of Germany to create the Indian pharmaceutical company now known as Aventis

Pharma, the Indian subsidiary of the global Pharma major Sanofi-Aventis.

THE LOGO:-

The Pegasus, which is the symbol of the United Breweries, first found its place as the Group

logo in 1940. Then, the Helladic horse – associated with beer and nectar in Greek mythology

carried a beer cask between the wings, ostensibly because beer formed the core operations of the

Group. Later, the beer cask was removed to represent the Group’s multifaceted operations. Now,

it is just the Pegasus.

PRESENT HISTROY:-

Sales of the United Spirits Ltd. are expected to exceed 60 million cases during the fiscal

year 2009-10 making the Group the second largest manufacturer of Spirits products in the world.

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In addition, USL is one of only three in the world to own seven millionaire brands and at least

five brands rated by Drinks International, UK, to be amongst the ten fastest growing brands in

the world in their respective categories. The market share of the Spirits Division in India is

currently 60% and exports to the Middle East, Africa and Asian countries are growing rapidly.

The UB Group’s Brewing Entity - called United Breweries Limited (UBL) - has also

assumed undisputed market leadership with a national market share in excess of 50%. Through a

process of aggressive acquisition and market penetration, The UB Group today controls 60% of

the total manufacturing capacity for Beer in India. The flagship brand, Kingfisher is now sold in

over 52 countries worldwide having received many accolades for its quality. With plans to

becoming a global player United Spirits Ltd. (USL), the flagship of the UB group, purchased the

Scottish distiller Whyte and Mackay in May 2007 for £595 million (Rs. 4,800 crore). This would

bring the brands of W&M like The Dalmore, Isle of Jura, Glayva, Fetter cairn, Vladivar Vodka,

and Whyte & Mackay Scotch under its portfolio. The UB group is also into manufacture of

Fertilizers. The group company Mangalore Chemicals and Fertilizers Limited (MCF) has factory

at Panambur in Dakshina Kannada district of Karnataka.

KINGFISHER LIMITED:-

“The King of Good Times” is India’s best-selling beer, and from Mumbai to Delhi, the

locals guzzle through millions of bottles annually. But although the brand commands up to 25%

of its domestic market, unless you’ve visited India or are a part-time connoisseur of curries, you

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may not have recognized Kingfisher’s qualities as the perfect accompaniment to a chicken

Vindaloo.

However, all that could change in the future as Kingfisher’s owners, United Breweries,

have delivered their premium brand to the web in an effort to increase global awareness of their

coveted flagship product.

The Kingfisher homepage is everything you would expect from the Indian-based brand. It

is colorful and noisy (although the score sounds more Caribbean than Indian) and there’s plenty

of animation to enhance the viewing experience. Areas of the site that are well worth a visit

include the Fun n Beer section, where you can send E-cards to your friends or have a chuckle at

the Beer Jokes; the Food section, which is a must for lovers of Indian cuisine; and the World

section, which contains information about the history of United Breweries and the Kingfisher

brand itself. Unfortunately, the facility to order Kingfisher beer and apparel online only exists for

residents of Bangalore at present, so from an E-tail perspective, the site is limited to a fraction of

its own indigenous market.

This feeling of constraint is also extended to other site areas and there are several sections

within Kingfisher.com that are weak in terms of content and will need substantial embellishment

if United Breweries are to make full use of the web as a marketing tool. The Sports pages are a

good example of this as they simply contain a handful of paragraphs on Kingfisher’s sponsorship

of past sporting events, rather than evangelizing what associates the emotional aspects of the

Kingfisher brand with its chosen recreational partners.

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ICEBERG FOODS LIMITED

About Company:-

We are quality pet performs manufacturers in India with state of the art technology husky

injection molding system. We can offer performs in 28 mm pco in 24, 27.7, 42& 48 GM. All

performs are approved by pepsi. We use 100 % virgin material (Pepsi approved). We can sign

long term contract and have a manufacturing facility at present of 300,000 performs/day.

Company Profile:-

Company Name Iceberg Foods Pvt. Ltd.,

Country/Territory India

Country/Territor 1006, Raheja Centre, Nariman Point,, Mumbai,Maharashtra, India

Products/Services We Offer

We offer international quality(pepsi approved) pet preforms in 28 mm pco neck in 24,27.7,42& 48 GM processed on husky injection molding system. Can manufacture 300,000 preforms/day

Industry FocusPackaging Product Stocks , Packaging RelatedMachinery , Packaging, Printing Project

Geographic Markets Worldwide

No. of Employee 11K People

Annual Sales Range (USD) US$1 Million - US$2.5 Million

Year Established 1998

Legal Representative/CEO Kishor Agrawal

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Iceberg Foods Ltd. is a twelve years old company in this industry and we are one of the

leading company having all India rights for manufacturing & marketing packaged Drinking

water with a brand name “Kingfisher” trademark owned by famous “UB”group & “RC Cola”

trademark owned by “Royal Crown Cola” which third largest selling soft drink brand in the

world with a presence in almost all the countries of the world.

Our clients are spread all over the country. We are one of those few brands that have got

ISI certification in Rajasthan and we are committed to supply pure and hygienic water. Our

packaged drinking water is manufactured under perfect hygienic conditions as per ISI Standards

and we have been consistent in supplying Quality product to all our customers.

We have one of the best distribution infrastructures in the business to provide timely

services to all our vendors. We have around 110 distributors all over the Rajasthan who are

further supplying our stocks to thousands of retailers than to our end users. Our product comes in

a wide range of packages like 200ml, 250ml, 500 ml, 1ltr, 2 ltr, 5 ltrs, 20 ltrs & 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 through

activated carbon filtration process as per EU norms.

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It is understood that throughout India 90% of the stress related diseases are caused due to

consumption of contaminated food & water. We process water at our plant with the most

modern, high tech equipment sodium filtration resulting in not only healthy but also sweeter

packaged drinking water.

Our packaged drinking water is processed and packed in a sophisticated and chemical

free plant to maintain highest level of hygiene. Our packaged drinking water is manufactured

under a very strict in house quality control system, ensuring that what you drink is what nature

intended.

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3.2 BACKGROUND NOTE

(A). Distribution augmentation, Organization Data and MarketingInputs:

1. EXISTING DISTRIBUTION SYSTEM.

i. Distribution network

We have a distribution network consisting of three levels between the company to C&F

and then to the consumers, i.e. Distributors and retailers.

Plant supplies directly to the C &f and then to the distributors from where it generated its

primary sales.

We have 1600 Distributors that are scattered all over India.

Pune is divided into 6 zones. In each zone, whole city is covered. In each zone at least

one distributor is present. Zone wise distributors are given below (Each zone name signifies one

distributor)

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Pune City:-

In Pune zone the distribution network is divided in two segments. One is the distribution

in the city and the other is distribution in the connecting routes to surrounding areas. We have

different distributors for different routes.

Sales Department:-

We have following sales staff in Maharashtra sales team:

Sales Manager - One Area Sales Manager - One Sales Officers - Ten

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Pune

Market Yard

Bavdhan

Dhankawadi

Pune Station

Warje

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Kingfisher’s Sales department along with the names and duties of each staff member is

given below

3.3 PRODUCT RAGNGE AND VARITIES

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ChairmanUmesh Mallya

CEOKishor Agrawal

GMAshok Wartak

Regional Sales ManagerMangesh Arnalkar

Area Sales ManagerPradip Patil

Sales Officer

Sales Officer

Sales Officer

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Kingfisher Natural Spring Water:-

A soft and pure natural spring water of exceptional taste and quality, Kingfisher Natural Spring

Water is drawn from springs on certified organic land close to the Cambrian Mountains in

Wales.

The sensational packaging and superior quality of this water is sure to excite your customers, so

please don't delay your orders and we at UBSN are standing by to help you introduce this great

new product in your restaurant.

Available as STILL and SPARKLING in 750ml and 330ml glass bottles, Kingfisher Natural

Spring Water is packed in sturdy shipping cartons to protect the quality of this exceptional

product.

 

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For supplies and further details of this sensational new product, please contact your Kingfisher

distributor or your Kingfisher area sales manager.

ROYAL CROWN COLA

EVOLUTION OF THE PRODUCT:-

In 1933, Claude Hatcher, still president, died and H.R. Mott who had been with the

company for thirteen years took over as chief executive. One of the first tasks that Mott

undertook was the development of a new cola drink. Rufus Kamm, chief chemist, developed the

syrup for what was to 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

RC Cola was selling in the 12 ounce bottle for just 5c a bottle. In 1940, Mott moved to Chairman

of the Board and the title of President was passed to C.C. Colbert. For the collector of Royal

Crown cities bottles, two basic label variations are noted. The first variation is the "pyramid"

bottle, one of the most dynamic and colorful bottle labels. This label was produced from the mid

1930's to the mid 1950's. All bottles contained 12 ounces and were either aqua or clear glass.

The value range for cities collectors is from $12.00 to $18.00.

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The second group of bottles has the same red/yellow color combination but without the

pyramids. All of these bottles were produced from the early to late 1950's. The size range was 8,

10, and 12 ounces, and only aqua glass color has been noted. The value range is from $4.00 to

$8.00 to brand and cities collectors. Cobert retained the presidency until 1955 and directed the

company through a period of rapid growth. By the end of 1940, the company's products were

marketed in 47 states, and nationwide advertising campaigns featured many of the Hollywood

celebrities.

MARKETING PROGRAMS:-

From our well-trained marketing team to our unique merchandising programs, Royal

Crown Cola International's worldwide marketing efforts have been developed with two goals—

to establish and promote a global brand identity and to help our bottlers better serve their

customers.

RESEARCH AND DEVELOPMENT:-

A commitment to state-of-the-art research combined with some old-fashioned American

ingenuity, has kept Royal Crown Cola International and our bottlers and distributors on the

cutting-edge of new products, packaging and testing. Our innovative ingredients and unique

formulations have helped Royal Crown Cola International remain both competitive and at the

forefront of changing consumer taste trends.

TECHNICAL SERVICES:-

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At Royal Crown Cola International, product quality is our top priority. Whether we're

helping you build a new facility from the ground up or working to ensure that your existing plant

has the latest state-of-the-art technology, our team of manufacturing experts is on call to assist

you through the entire bottling process. In addition, our experienced engineers, chemists and

food technologists are available to help you safeguard the quality of the finished product.

Kingfisher Soda:

The product line of Kingfisher IBF ltd. also comprises the Kingfisher’s soda which is

available in 300ml, 600ml and 2 liter quantities.

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3.4 COMPETITORS VIEWS

Bisleri

Mineral bottled water in India under the name 'Bisleri' was first introduced in Mumbai by

Bisleri Ltd., a company of Italian origin in 1965. Mineral bottled water were in glass bottles in

two varieties- bubbly and still in 1965 This company was started by Signor Felice  who first

brought the idea of selling bottled water in India.  Parle bought over Bisleri (India) Ltd. In 1969

and started bottling Mineral water in  glass bottles under the brand name 'Bisleri'. Later Parle

switched over to PVC non- returnable bottles and finally advanced to PET containers. Since

1995 Mr.Ramesh J. Chauhan has started expanding Bisleri operations substantially and the turn

over has multiplied more than 20 times over a period of 10 years and the average growth rate has

been around 40% over this period. Presently it have 8 plants and 11 franchisees all over India.

Bisler command a 60% market share of the organized market.  

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Aquafina

  The biggest and perhaps the only serious for the coca-cola worldwide has an already been

Pepsi. In India, as per as the Cola segment is concerned with the biggest competition to coke

comes from its brands of Pepsi viz. Pepsi , Mirinda and Aquafina. Thums-up, which was the

leading brand of Parley product, was acquired by Coca-Cola just over a year ago to bolster its

market share in India. Today, Thums-up along with coke, the leading brand of the Coca-Cola

Company, other still competition to Pepsi, which despite this stiff competition is still by far the

single most popular Cola drink in India.

Kinley

             Coca-Cola was the leading soft drink brand in India until 1977 when it left rather than

reveals its formula to the government and reduces its equity stake as required under the Foreign

Exchange Regulation Act (FERA) which governed the operations of foreign companies in India.

After a 16-year absence, Coca-Cola returned to India in 1993, cementing its presence with a deal

that gave Coca-Cola ownership of the nation's top soft-drink brands and bottling network.

Coke’s Kinley, Limca, Maaza, Citra and Gold Spot provided not only physical manufacturing,

bottling, and distribution assets but also strong consumer preference. This combination of local

and global brands enabled Coca-Cola to exploit the benefits of global branding and global trends

in tastes while also tapping into traditional domestic markets.

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4. THEORETICAL BACKGROUND

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Importance of Distribution Channels

As noted, distribution channels often require the assistance of others in order for the

marketer to reach its target market. But why exactly does a company need others to help with the

distribution of their product? Wouldn’t a company that handles its own distribution functions be

in a better position to exercise control over product sales and potentially earn higher profits?

Also, doesn’t the Internet make it much easier to distribute products thus lessening the need for

others to be involved in selling a company’s product?

While on the surface it may seem to make sense for a company to operate its own

distribution channel (i.e., handling all aspects of distribution) there are many factors preventing

companies from doing so. While companies can do without the assistance of certain channel

members, for many marketers some level of channel partnership is needed. For example,

marketers who are successful without utilizing resellers to sell their product (e.g., Dell

Computers sells mostly through the Internet and not in retail stores) may still need assistance

with certain parts of the distribution process (e.g., Dell uses parcel post shippers such as FedEx

and UPS). In Dell’s case creating their own transportation system makes little sense given how

large such a system would need to be in order to service Dell’s customer base. Thus, by using

shipping companies Dell is taking advantage of the benefits these services offer to Dell and to

Dell’s customers.

Distribution Intensity

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There are three broad options - intensive, selective and exclusive distribution:

Intensive distribution aims to provide saturation coverage of the market by using all

available outlets. For many products, total sales are directly linked to the number of outlets used

(e.g. cigarettes, beer). Intensive distribution is usually required where customers have a range of

acceptable brands to chose from. In other words, if one brand is not available, a customer will

simply choose another.

Selective distribution involves a producer using a limited number of outlets in a

geographical area to sell products. An advantage of this approach is that the producer can choose

the most appropriate or best-performing outlets and focus effort (e.g. training) on them. Selective

distribution works best when consumers are prepared to "shop around" - in other words - they

have a preference for a particular brand or price and will search out the outlets that supply.

Exclusive distribution is an extreme form of selective distribution in which only one

wholesaler, retailer or distributor is used in a specific geographical area.

Functions of an Intermediary 

Deciding whether to use an intermediary in the distribution channel depends on many

factors, but essentially it involves determining whether the needs of the consumer can

successfully be met by the available resources and skills of the producer. The three basic

functions performed by an intermediary in the distribution channel are:

1. Transactional: This function involves adding value to the distribution channel by

bringing in the intermediary's resources to establish market linkages and customer

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contacts. The intermediary either directly undertakes the marketing and sales function or

helps to establish buyer-seller relationships by serving as a link between the manufacturer

and the retailer.

2. Logistical: This function involves the physical distribution of goods. It involves sorting

and storing supplies at locations within the reach of the end customer. It also breaks up

the bulk production of the manufacturer into smaller portions and may include the

transportation of smaller shipments to intermediaries or retailers further down the channel

of distribution.

3. Facilitating: Although often confused with logistics, the facilitating functions of

intermediaries supplement the entire marketing flow of the product and are separate from

logistics. The facilitating functions include financially supporting the marketing chain by

investing in storage capabilities. They may include facilitating sales by helping the

consumer buy even when he or she does not have cash (through financing plans, purchase

agreements, etc.).

Together, these functions performed by the intermediary ensure market coverage, reduce

the cost of market coverage, increase the availability of cash flow in the distribution channel, and

increase end-user convenience. A producer can bypass an intermediary by elimination or

substitution, but the tasks performed by the intermediary cannot be eliminated. 

Advantages of Using an Intermediary 

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The advantages of using intermediaries stem from the core economics of supply-chain

management: market coverage, customer contacts, lower costs, systematic cash flow, etc. The

intermediary adds value to the marketing of the product by bringing in specialization, marketing

knowledge, capacity to segment the market, and selling skills that allow the marketer to

implement marketing strategies effectively. 

Intermediaries providing logistic support increase convenience to both the producer and

the consumer by offering effective delivery and pre- and post-purchase customer service as well

as facilitating manufacturer services, making them indispensable to most mid- and small-scale

producers. 

5. RESEARCH METHODOLOGY

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  The word ‘research’ from the Latin word means ‘to know’. It is a systematic and a

replicable process that identifies and defines problems, within specified boundaries. It employs

well-designed method to contribute to generalized knowledge. 

Definition of Research:-    

According to Clifford Woody,” Research comprises of defining and redefining

problems, formulating hypothesis or suggested solutions, organizing and evaluating data, making

deductions and reaching conclusions, and at last carefully testing the conclusions to determine

whether they fit the formulating hypothesis.”

Research is a scientific and systematic search for pertinent    information on a topic.

Research is a “systematized effort to gain new knowledge”. 

 

 Definition of Methodology 

“Methodology is the analysis of principle of methods, rules and postulates employed by a

discipline”

Types of research

There are generally three types of research.

1. Exploratory research

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The objective of exploratory research is to explore through problem to provide insight

and understanding. The secondary data method is used.

2. Descriptive research

It requires planned and structured design. Experimentation is the main method of casual

research. 

RESEARCH DESIGN:

A research design is the logical and systematic planning and directing of piece of

research. It attempts to integrate various aspects of the research study. It brings the various

phases of research under the control of the researcher. The design also takes in account the

availability of time, energy and other resources at disposal. The word design suggests a research

plan or design in purposive. It also brings out the interrelationship between all these phases and

highlights the implication of every step with reference to the previous as well as further steps in

study. It thus helps the researcher to better appreciate the study in its totality.

1. Research approach – Survey

2. Data source – Primary & Secondary

3. Research instrument – Questionnaire

4. Sampling plan

5.Data analysis

 Sample unit:- FMCG  Industry:

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Research methodology used to complete this project is given point wise as follows:

o Identification of the subject/ problem to be studied

o Defining the objectives to be achieved while studying

o Collection of the necessary relevant data from various primary & secondary

sources of data.

o Data processing which includes classification and tabulation of data

o Preparing the observations & findings in the basis of the data collected.

o Arriving at a conclusion

o Based on the findings and observations, recommending an amicable solution to

the problem observed.

  

Data Analysis

Data analysis was done mainly from the data collected through the retailers. The data

Collected from secondary sources is also used to analyze on one particular parameter.

Qualitative analysis was done on the data collected from the primary as well as secondary

source.      

 

 

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DATA COLLECTION METHODS: 

              The data collection for research work is one of the crucial ventures to be done. In order,

to come out with the strength and weakness of the market by the way of data in terms of -

communication and observation.

               In order to reach some accurate and reliable conclusion, we require some set of

information. This information’s are nothing but the systematically processed and relevant ideas.

So, in other words we can say that, “Information Is out Come of Processed Data.”

There are mainly two types of data:-

1. Primary data

2. Secondary data

 

PRIMARY DATA:

                   It is collected to solve a problem or take the advantage of the opportunity on which

decision is pending. In this project the primary data is collected through a survey and well

designed questionnaire. It is of close ended questions of multiple choices.

                                                         

SECONDRY DATA:

These are the existing data, collected from known sources like:

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Publications (reports, organs, manual, journals etc.)

Website

Company records

SAMPLING PLANNING:

                It is a framework laid down by the researcher to obtain data from every unit/

representative portion of the population to be used. It is the approach, where only a few units of

population under the study is considered for analysis is called ‘sampling method’ 

The two aspects that have been taken into consideration of doing the study:- 

I. Population/ universe of the research defined as :-

‘Retail outlets of Pune’. 

II. Sampling frame or the research is developed as: –

{A} Sampling unit (who is to be surveyed) - Retail outlets with Kingfishers’

product.            

{B} Sample size (how many are to be surveyed) - 100

{C} Sampling design (how are they selected) - Random probability.

{D} Sampling media (how are they reached) - Questioning the respondent.

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6. DATA ANALYSIS AND INTERPRETATION

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7. FINDINGS

By making the overall analysis of data , intern finds that 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.

-Majority rated as worst to both the companies on the basis of replenishment services of

stock.

- Majority rated as worst to both the companies on the basis of credit period

- Majority rated as best to both the companies on the basis of SGA Coolers

- Majority rated as worst to best to Bislary and rated Best to Aquafina on the basis of

Schemes.

 

Channel Partners’ saying:

Kingfisher is number one in beer segment not in water segment.

Kingfisher soda get flat very soon in compare to its 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.

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8. SUMMARY AND CONCLUSTION

While concluding this, intern agrees with sales promotion activities help to increase the

sales of the company.

Kingfisher is carrying out different sales promotion activities like, special schemes to

delight the customers, promotion though providing retailer POP etc and they are getting positive

response in their sales promotions activities. But these activities are not carrying for packaged

drinking water, like rival part is doing.

Kingfisher packaged drinking water is not present all over India, so company can easily

go for other states in order to tap the large unrepresented market.

Kingfisher is not directly involved in production of packaged drinking water and soda,

it’s franchisee companies are doing the same and using the Kingfisher’s logo. So due to money

they are not able to promote the product all over India as others are doing.

Manufacturing is also not centralizing. Therefore they are not able to maintain the same

quality in terms of water taste as well as bottle quality.

From these studies it was found that there is an increase in sale. But they need to do hard

work to become market leader.

Kingfisher’s packaged drinking water and soda clients and customers as well as channel

partners i.e. distributors and retailers are not fully satisfied with all the facilities that provided by

the company, except the brand name which is blinking in the mind of the prospects.

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9. RECOMMENDATIONS

Following Recommendations and suggestion are applicable on the basis of

given Project:

· 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 help us more like in local newspaper and magazines.

We suggest you to organize some small camps like medical camps or some awareness

camps to explain rural people that “KINGFISHER” is also a health caring stuff with mineral

water under their belt.

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ANNEXURE

QUESTIONAIRE FOR RETAILERS

Outlet Name…………………………………………………

Retailer’s Name……………………………………………..

Year of Establishment………………...

Address……………………………………………………………………………………………

………………………………………………………….

Contact Number: ……………….

1. Which Packaged Drinking Water do you keep at your store?

Bisleri Kinley Aquafina Foster

Oxyrich Baily Kingfisher others

2. What do you think about the demand of Kingfisher’s Packaged Drinking Water at your retail

shop?

Very good Good Fair Poor

3. Are you satisfied with the margin offered by Kingfisher’s Packaged Drinking Water?

Highly Satisfied Satisfied Neutral

Dissatisfied Strongly Dissatisfied

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4. What do you think about the Pricing of Kingfisher’s Packaged Drinking Water?

Higher than others

Similar to others

Lower than others

5. After purchase order, How many days it takes to reach the product at your store?

Same Day Next Day Day after next Day

Not sure

6. Are you satisfied with delivery facility of Kingfisher’s Packaged Drinking water?

Highly Satisfied Satisfied Neutral

Dissatisfied Strongly Dissatisfied

Please Give Reasons…………………………………………………………

……………………………………………………………………………….

7. What do you think about the packaging of Kingfisher’s Packaged Drinking Water?

Excellent Very good Good Fair Poor

8. How do you push Kingfisher’s Packaged Drinking Water to Customer?

Customer ask for the same

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You give them Kingfisher’s Packaged Drinking Water Directly

You ask them to take Kingfisher’s Packaged Drinking water.

9. A) Have you got any complain from your customer regarding Kingfisher’s Packaged Drinking

Water?

Yes No

9. B) If ‘Yes’ then choose the reason-

Regarding Labeling

Regarding Capping of Bottle

Regarding Taste

Regarding Price per Bottle

10. Are you satisfied with the replacement policy of Kingfisher’s Packaged Drinking Water?

Highly Satisfied Satisfied Neutral

Dissatisfied Strongly Dissatisfied

11. How frequently company’s Salesmen visit your shop?

Everyday

Every alternate day

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Weekly

Not confirm

12. How do you place order to you Distributor?

Through Salesman

Through Phone

Through Distributor’s Agents

13. How do you pay to your Distributor?

Cash against Delivery

Post dated Cheque

Bill to Bill

On credit

Retailer’s Signature with Seal.

………………………………….

THANK YOU

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QUESTIONAIRE FOR DISTRIBUTORS

Distributor’s Name…………………………………………………

Owner’s Name……………………………………………..............

Year of Establishment...................................................................

Address……………………………………………………………………………………………

………………………………………………………….

Contact Number: ……………….

1. A) For how many years you are in this business?

0-1 years 1-2 years 2-3 years 3-4 years

1. B) Do you have any other business?

Yes No

2. Do you get delivery of good at your door by the company on right time?

Regular on time

Some time delayed

Always delayed

3. Are you satisfied with the profit margin given by the company?

Highly Satisfied Satisfied Neutral

Dissatisfied Strongly Dissatisfied

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4. When do you make payment to the company?

At the time of delivery

After 2 to 5 days

After 7 days

After 15 days

5. Do you have any support from the company salesmen in selling of Product?

Yes No

6. Are you satisfied with the current supply facility of company with regards to final delivery?

Highly Satisfied Satisfied Neutral

Dissatisfied Strongly Dissatisfied

Please Give Reasons…………………………………………………………

……………………………………………………………………………….

7. At what rate company gives you return (compensation) for damages?

100% 80% 60% 40 % Not given

8. A) Do you have distributorship of any other brand?

Yes No

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8. B) If ‘Yes’ then, Please, Give reason- ....................................................

........................................................................................................................

9. Do you get any banners, posters, boards or any means of Advertisement facility by company?

Sometimes Regular Never

10. Which factor most affects you to take/Keep distributorship of Kingfisher’s Packaged

Drinking Water/ Soda?

Profit Margin Regular Supply High Demand

Brand Image Others

11. What do you think about the packaging, capping and labelling of kingfisher’s Package

Drinking Water/Soda?

Excellent Very good Good Fair Poor

Distributor’s Signature with Seal.

………………………………….

THANK YOU

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BIBLIOGRAPHY

Saxena Rajan, Marketing Management, Third Edition, Published by The

McGraw Hill companies, New Delhi, 2009.

Kotlar Philip, Marketing Management, Twelfth Edition, Published by

Prentice Hall India ltd, New Delhi, 2010.

Sherlekar Vikas, Marketing Management, Third Edition, Published by

Himalaya Publication, Mumbai 2008.

IIPM’s 4P’s of Marketing Magazine, Mumbai, June, 2011.

WEBLIOGRAPHY

http://www.kingfisherworld.com

http://www.recolainternational.com

http://www.brupt.com

http://www.marketingresearch.com/waterindustry

http://www.imrbindia.com

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