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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
Aundh
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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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