Marketing

RIMS INTERNATIONAL SCHOOL OF BUSINESS AND TECHNOLOGY Yuvraj Minawala Parle Agros Bisleri


Unit Title: Marketing Student Name: Yuvraj Minawala Lecturer Name: Mr Ratnesh Pandey Rules and regulations:

Unit Code: 1 Date Issued

02.11.2012
Student ID: Date Received:

Assignment Brief

Internal Verifier Name Mr. M Azam

Plagiarism is presenting somebody elses work as your own. It includes: copying information directly from the Web or books without referencing the material; submitting joint coursework as an individual effort; copying another students coursework; stealing coursework from another student and submitting it as your own work. Suspected plagiarism will be investigated and if found to have occurred will be dealt with according to the procedures set down by the College. Please see your student handbook for further details of what is / isnt plagiarism. Coursework Regulations
1 Submission of coursework must be undertaken according to the relevant procedure whether online or paper-based. Lecturers will give information as to which procedure must be followed, and details of submission procedures and penalty fees can be obtained from Academic Administration or the general student handbook. All coursework must be submitted to the Academic Admin Office and a receipt must be obtained. Under no circumstances can other College staff accept them. Please check the Academic Admin Office opening hours. Late coursework will be accepted by Academic Admin Office and marked according to the guidelines given in your Student Handbook for this year. If you need an extension (even for one day) for a valid reason, you must request one, using a coursework extension request form available from the Academic Admin Office. Do not ask the lecturers responsible for the course - they are not authorised to award an extension. The completed form must be accompanied by evidence such as a medical certificate in the event of you being sick. General guidelines for submission of coursework: a) All work must be word-processed and must be of good standard. b) Document margins shall not be more than 2.5cm or less than 1.5cm c) Font size in the range of 11 to 14 points distributed to including headings and body text. Preferred typeface to be of a common standard such as Arial or Times New Roman for the main text. d) You are required to produce an academic report, answering the questions below with a word limit of 3500-4000 words (+/- 10%) e) You are required to reference sources with Harvard Referencing Style format. f) All course work must be submitted online on 13.06.11, www.stponline.org.uk. g) The copy of the course work submitted may not be returned to you after marking and you are advised to have your personal copy for your reference.

2 3 4

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h) All work completed, including any software constructed may not be used for any purpose other than the purpose of intended study without prior written permission from St Patricks International College.

Remember to keep your coursework receipt.

Outcomes and assessment requirements

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Assignment Questions:

Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably. The Chartered Institute of Marketing (CIM). With this definition in mind, choose a wellknown organization and answer the following questions:

1. What is marketing, and how does the concept of marketing affect your chosen organisation? Include arguments which highlight the organisations marketing process, and the costs and benefits of marketing. 2. What are the micro and macro environmental elements that influence marketing decisions in your organisation? 3. How does your chosen organisation pursue Segmentation, Targeting and Positioning activities? Propose new suggestions based on your findings 4. How does the extended marketing mix apply to your chosen organization? Analyse and give examples. 5. Identify different types of buyer behaviors and how they apply to your chosen organisation? 6. How does the extended marketing mix apply to different marketing segments? Compare consumer vs business markets, and International vs domestic markets.

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 1 1.1 1.2 1.3 2 2.1 2.2 2.3 3 3.1 3.2 3.3 4 4.1 4.2 5 5.1 6 6.1 6.2

Chapter 1 Introduction to Bisleri company Defining marketing Marketing at Bisleri Chapter 2 Micro environmental Macro environmental PESTAL and SWOT analysis Chapter 3 Market segmentation Targeting marketing Positioning Chapter 4 Marketing mix-product, place, price and promotion Extended marketing mix- people, process and physical evidence Chapter 5 Consumer behaviors Chapter 6 Different marketing segments Marketing mix in rural areas

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Q1.What is marketing, and how does the concept of marketing affect your chosen organization? Include arguments which highlight the organizations marketing process, and the costs and benefits of marketing. The origins of Bisleri lie in Italy, and the brand owes its name to founder Felice Bisleri, an Italian entrepreneur. In India, Bisleri set up a plant in Mumbai for bottling and marketing mineral water, which was first of its kind in India. However, it did not quite work. Among other reasons, the fact that the Indian consumer was unprepared to accept bottled mineral water was responsible for its failure. Consumer mindsets were more geared towards boiling water at home. In 1969, Parle bought over the' Bisleri' brand. In those days Bisleri water was available in glass bottles. Parle's taking charge of Bisleri did not make a dramatic difference to the brand's fortunes immediately. While it did gain in terms of visibility and reach (piggybacking on Parle's existing distribution network), efforts to expand the bottled water market were not exactly painstaking. Parle at that particular time was interested in making soda water and not mineral water. There were just minor initiatives on part of the company for making mineral water, as it was not considered to be a very profitable business at that time a people still considered boiling water to be a safer bet than mineral water. Moreover they were not ready to pay for a commodity like water, which was so abundantly available. In 1972-73 Parle changed the packaging of its bottled water to plastic bottles and that significantly made a difference in the sales. The buyers, then, were mainly the upper class - the trendy people. The upsurge in the sales of Bisleri started from this point as Parle sold off its stable of brands to Coca-Cola. This was the time when its started concentrating on making Bisleri a success in the domestic mineral water market. The reason why Parle chose to retain the Bisleri name was that Parle saw a fairly lucrative business of mineral water in Bisleri's equity. What is marketing? Marketing is concerned with meeting business objectives by providing Customer satisfactions. Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. Marketing is the performance of business activities that direct the flow of goods and services from organizations to their customers. Marketing involves the business understanding the needs and wants of customers and adapting the operations to deliver the right goods and services more effectively than its competitors. Marketing is concerned with the matching of an organizations capabilities with consumers wants. Marketing is the process of determining consumer demand for a product. Motivating its sale and distributing it into ultimate consumption at a profit.

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Marketing is the management process responsible for identifying, anticipating and satisfying requirements efficiently and profitability. Marketing is the ability of an organization to provide the right product, at the right price, via the right outlets (place) and presented in the right way (promotion). Marketing at Bisleri

Mission of Bisleri-To provide the highest quality product, keeping in mind all aspects including freshness, purity and safety, and making it easily available to the consumer at a very affordable price. The bottled water industry is a part of beverage industry, which comes under the fast moving consumer goods. Market strategy includes the analysis, strategy development and implementation. First, company has developed a vision about the market of interest to the company and then selected market target strategies, establishing objectives and developing and implementing the strategies. It includes managing and marketing program positioning strategies formulated to fulfill the value needs of the customers in every market target. Taking into consideration a consistent varying business environment and the requirement to bring excellent customer value. Bisleri has developed strategic marketing to concentrate on organizational performance instead of focusing on increasing sales. The marketing strategy of Bisleri tries to bring excellent customer value by integrating the customerinfluencing strategies of the business into an organized set of market- driven activities. The company has connected its strategic marketing with the organizational environment and views marketing as a liability of the whole business instead of a specialized purpose. There is marketings boundary orientation between the organization and its customers, competition and channel members. The marketing processes are centralized to business strategy planning process. Strategic marketing supplies the knowledge for environmental screening, for choosing what customer group to serve, for directing product specifications and for selecting competitors for position against. Bisleri has successfully integrated cross-functional strategies, which are decisive for offering excellent customer value. Bisleri uses competitor price strategy to get the market. As Bisleri has the first mover advantage and the market is full of competition so they decide to increase the advertising expenses for ad campaign. Bisleri itself is known as mineral and pure water. The branding and segmentation of Bisleri is very strong as it cover household to big hotels. To target the customer Bisleri launched different product line with different prices and different size of bottles. The Bisleri uses three level of distribution channel as it consists of wholesalers, dealers and retail shop.

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Customers needs Marketing Identifying Anticipiting Supplying Firms objectives

Figure 1, marketing process, fieldwork

The major feature of the marketing oriented organization is that they are aimed to stay closer to the customers and ahead of their competitors. The reason is that the basic aim of these organizations is to attract the customers. The main emphasis is to focus on the on the customer first and the needs of the business thereafter. It is an acknowledgement that a business organizations main purpose is to satisfy the needs of its customer, which is an outwards perspective. 1. Closeness to the customer - intimacy and a profound understanding of their needs. 2. Productivity through people - Recognizing that employees are the most important internal customers of a business. 3. A bias for action - Doing- as opposed to talking about doing 4. Value driven - Providing continuous value to customers through products and service offerings. 5. Simple form lean staff - organization structures that facilitate customer interaction.

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Q2. What are the micro and macro environmental elements that influence marketing decisions in your organization?

Micro Environment
Those forces which effect the organization from within, due to its own activities and performance. The microenvironment consists of six forces (mentioned below) close to the company that affect its ability to serve its customers: 1) The company itself: organizations internal environment-its several departments and management levels-as it affects marketing management's decision making 2) Suppliers: Suppliers are those people who are responsible for supplying necessary inputs to the organization and ensure the smooth flow of production like the suppliers of plastics to Bisleri are very important because the bottles are made of plastic. 3) Competitors: can be called as the close rivals and in order to survive the competition Bisleri has to keep a close look in the market and formulate its policies and strategies as such to face the competition. The major competitors include Kinley from Coca-Cola and Aquafina from Pepsi.co, rest all are the regional players. 4) Customer markets: consists of the five types of markets in which the organization can sell: the consumer, producer, reseller, government, and international markets 5) Publics: consists of all the publics that have an actual or potential interest in or impact on the organizations ability to achieve its objectives: financial, media, government, citizen action, and local, general, and internal publics. 6) Marketing intermediaries: helps Bisleri in promoting, selling and distribution of the bottled water to its consumers. Therefore, marketing intermediaries are vital link between Bisleri and the consumers.

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Economic factors Political factors Technological factors Demographic factors Cultural factors Suppliers Competitors Consumers Stakeholders Men Money Machinery Materials Minutes

The Macro- enviroment The Micro- enviroment The Internal enviroment

figure 2, macro and micro environment of bisleri, fieldwork

Macro Environment
The company and all of the other factors operate in a larger macro environment of forces that shape opportunities and pose threats to the company. There are four major forces (mentioned below) in Bisleris macro environment.

Political There are various political parties protesting against the pricing of mineral water There is stable government at the center with liberal policies The government has improved price ceiling on bottled water Economical There is an increase income per capita Majority people buying bottled water are from middle and upper middle class No licensing policy adopted in this sector Availability of cheap labor Government promoting new bottling plants through public-private partnership Social Bottled water is consider as a status symbol earlier Marketing Yuvraj Minawala 10

Bottled water now is the only source of pure drinking water in places where there is scarcity of water Bottled water is believed to be safer than ordinary tap water People are now more health conscious so they buy purified mineral water

Technological Introduction of technologies like distillation, reserve osmosis, activated carbon filter, etc. helps in better quality water Shift in packaging from bottles made of glass to bottle made of plastic, this has helped in recycling and reducing environmental pollution Legal Mineral water should be packed in clean, transparent, odorless, colorless, tamper proof bottles made up of polyethylene PFA (Prevention of Food Adulteration) and BIS (Bureau of Indian Standards) lays standard for metals like lead, mercury, aluminum and barium BIS has provided standards for mineral and drinking water. The BIS approval was mandatory from 1999 Environmental Increasing use of plastic bottled water has raised environmental pollution. Increasing consumption of bottler mineral water causes depletion of valuable fossil fuels.

PESTLE Analysis There are various factors affecting the Indian bottled water industry, the government policies regarding the quality of packaged water are very stringent and all the companies have to adhere to the BIS (Bureau of Indian Standards). The low cost in set up and the availability of cheap players has exerted a pull of many small and big players in the market. There is a constant pressure on the bottled water companies on the quality of product and the packaging. The technological advances in purification processes help in enhancing and maintaining quality of water. There is no industrial licensing policy present currently which attracts many players to enter in this industry. The low entry barrier in this segment affects the major players of the market. There has been a price ceiling imposed by the government in this market segment due to which price war is not possible in this industry. The scarcity of safe drinking water in many areas creates opportunity for the players to cater to this growing demand. There have been instances of protest against the bottled water companies against the pricing strategy and over the depletion of scarce resources. The industry has considerable growth prospect in newer areas and the macro environmental factors present attract new players.

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Strengths: -Bisleri is the Uirst in the segment has built up a brand name -A generic product -Spreaded distribution network all over india -High quality standard -Marketing

Weakness: -Less margins of reatilers or distributors -high cost of 5 and 20lt. bottle as compared to competitors -Reusable bottles

SWOT ANLYSIS

Opportunities: -In Ulavoured water segment., fruit juices -In neighbouring countries

Threats: -Local companies entering into the market and selling at very low price -Duplicity resulting in bringing down the Brand name -Heavy market potential in this segment invite the big players and the competition increases

figure 3, SWOT analysis of Bisleri, fieldwork Strengths Produce packaged drinking water in different packaging Having the largest distribution network Low cost of distribution for packaged water bottles Heavy investment on ad campaigns Its name has become synonym for packaged drinking water Low cost incurred on production per bottle Break-away seal attracts more consumers Large stock maintained by the company Availability of Bisleri bottle at the nearest possible outlet Maintaining constant quality checks on purified water Weakness Produce low quality per bottle, which cannot be sterilized More prices of 5lt. and 20lt. bottles as compared to competitors

Threats Kinley is the biggest threat to Bisleri as it is Coca-Cola company and they have surplus funds to invest in the company

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High prices and low retailers margin has made the competitors to strengthen their feet in the Bisleris market Being an Indian company, it is getting affected by international brands like kinley (Coca-Cola), Aquafina (Pepsi), and nestle

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Q.3 How does your chosen organization pursue Segmentation, Targeting and Positioning activities? Propose new suggestions based on your findings.

Market Information

Market Segmentation

Target Market

Brand/ Product postioning

Marketing Decisions

Figure 4, the segmentation, targeting and positioning process Kotler (1994) defines market segmentation as the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action, it enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another. The purpose for segmenting a market is to allow the firms marketing/sales program to focus on the subset of prospects that are most likely to purchase your offering. If done properly this will insure the highest return for Bisleris marketing and sales expenditures. The market was segmented into premium, popular and bulk. They changed their segments as per market situation keeping the old intact. They changed strategy and grew market share in bulk segment. Every new entrant in the mineral water market adopted the purity so shift necessitate. The ad campaign of play safe saw a shift in positioning from "pure and safe" to "play safe. Geographic segmentation Demographic segmentation Psychographic segmentation Behavioral segmentation

Geographic segmentation- the following are some example of geographic variables often used in segmentation of Bisleri. Region: by continent, country, state or even neighborhood Size of metropolitan area: segmented according to size of population Population density: often classified as urban, suburban, or rural Climate: according to weather patterns common to certain geographic regions Demographic segmentation- this includes Age distribution of population- for example age group of 15-65 is more likely to buy bottled water than any other age group. Gender- Both male and female prefer drinking bottled water Marketing Yuvraj Minawala 14

Family size Income- people with high income and people with low income, both are likely to buy Bisleri Occupation- Any person who is employed in any kind of field or work or even unemployed will buy bottled water Social class

Psychographic segmentation- is the groups of customers according to their lifestyle, activities, interests, opinions, attitudes and values Behavioristic segmentation- this is based on actual customer behavior towards a product like the Bisleri. It includes Benefits sought Usage rate Brand royalty User status: potential, regular or first-time, mostly regular buyers Readiness to buy, whenever thirsty the consumers buys bottled water immediately Occasions: holidays and events that stimulate purchases for example during the wedding season, sales of bottled water is more likely to increase
Segmentation

Behavioural

Psychlogical

Geographic

Demographic

Brand loyalty

Lifestyle

Region

Age

User status

Interset

Population

Income

Purchase/ Transaction Consumption/ Usage

Attitudes

Climate

Gender

Personality

Occupation

Perceptions

Social class

Figure 5,Segmentation criteria for consumer markets, fieldwork

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Target market- is a market or segment selected for special attention by an

organization. (Business Essentials 2009- Marketing) Targeting- determining which market of the segment uncovered should be targeted and made the focus of a comprehensive marketing program. Ultimately, managerial discretion and judgment determines which markets are selected and exploited and which others are ignored. Kotler (1984) suggested that in order for market segmentation to be effective, all segments must be: Distinct- each segment should clearly different from other segments Accessible- buyers should be reached through appropriate promotional programs and distribution channels Measurable- the segment should be easy to identify and measure Profitable- the segment should sufficiently be large to provide a stream of constant future revenues and profits

Size of the bottle 150 ml (cups) 250 ml (cups) 500 ml

Price per bottle N.A Rs. 5 Rs. 10

Target consumer Indian Airlines travellers Guest at Marriages parties and meetings Teenagers, college students and roadside consumers. Also aimed to supply to the Indian Railways. General consumers and travelers. Small offices, shopkeepers, households Households, institutes, offices, retail shops, showrooms Kitchens in the home, restaurants, offices Households, institutes, offices, schools and colleges, airports, libraries, health clubs

1 liter 2 liters 5 liters 15 liters 20 liters

Rs. 18 Rs. 36 Rs. 90 Rs. 250 Rs. 300

Table 1, targeting customers and market, fieldwork Positioning- as per Kotler (1997), positioning is the act of designing the companys offering and image so that they occupy a meaningful and distinct competitive position in the target customers minds. Having segmented the market, determined the size and potential of market segment, and select specific target market, the third process is to position the brand within the market.

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Positioning therefore is about a products attributes and design, how product is communicated, and the way these elements are fused together in the minds of customers.

Trendy and stylish packaging

Range of bottles

Brand reputation

Value for money

More quanity

More quality

Figure 6, branding and positioning, fieldwork

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4Q. How does the extended marketing mix apply to your chosen organization? Analyze and give examples. According to Philip Kotler (1994)- marketing mix is the mixture of controllable marketing variables that the firm uses to pursue the sought level of sales in the targeted market. Marketing mix is the combination of four basic elements under one headProduct, place, price and promotion. PRODUCT- a product is something that satisfies set of wants that customers have. The main product of the company is the mineral water by the name of Bisleri Mineral water. Other product offered by the company is soda water under its brand name called Bisleri Soda water. The company Bisleri first introduced the concept of bottled mineral water in India, and this is this reason it has become a generic name for the mineral water. Bisleri has become a perfect synonym of the mineral water for the Indian consumers. The difficult task that all company faces in the mineral water industry is that there is no scope of innovation and invention in the product, which can be added as the additional benefits of the product. It is just water after all. Bisleri values their customer and therefore have developed 8 unique pack sizes to suit every indiviual The company offers a wide range of sizes of the product, starting from 500ml bottles to jumbo pack (18lt. jar).
Core product functionality, key beneUits Actual product features, ingredients, design, packaging, colour etc. Extended product after sales service, guarantee, brand, training, corporate ethics

Figure 7, the product, fieldwork

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Figure 8, the product life cycle, http://www.writeawriting.com/

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Product Mineral bottled water

Feature Plastic

Advantage Easier to carry around Disposable Cheaper in price Available almost every where

Benefit Purified and clean water Quality Minerals Better for health

Table 2 , features, advantage and benefit (FAB), fieldwork Product range-the number or scle of the product or services offered by the supplier. PACKAGING The packaging of the product is an important factor in the marketing of the product. The main purpose is to hold and protect water inside. The packaging of the product was absolutely accepted by the customers till now. But it has been along time the company has changed the packaging of 1ltr. Mineral water bottle. PLACE Place stands for the company activities that make the product available to the target customers. To make the product available to the target consumers a good distribution network has to be there to support the good quality of the product. Here in the case of the mineral water industry the distribution network is the important factor in being competitive and the catch lies in making water available to maximum number of places in the country. DISTRIBUTION NETWORK: The small-scale players built their sales by piggybacking on the generic category built up by Bisleri. Its a battle that Bisleri can win by sheer distribution muscle. One of the reasons why Bisleri is running strong in this industry is its strong distribution network built over the years since its inception.

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Manufacturing Unit

Company warehouse
Institutional Buyers/ Seasonal Party Orders. Hotels, corporates, offices of various companies)

Trucks

Distributors

Retailers

Customers

Figure 8,Distribution channel of Bisleri, fieldwork Product: convenience Distribution: intensive Channel length: medium Its obvious that availability holds the key to the market. For any product to be successful the distribution channel has to be really good. Large tracts of the country have not been exploder by the national brands, which explain the proliferation of smaller brands. Bisleris strategy is to build a direct distribution system at all India level. That means serious investments in company owned trucks and casts. Parle Argo wishes to double its existing fleet of 1000 trucks. This will make it the largest fleet owner in the whole country. Currently, Bisleri has around 80,000 retail outlets across the country, with 12,000 each in the metro cities like Delhi and Mumbai. Bisleri is looking forward to increase its outlets in the country to serve its customers better and to reach every possible Indian citizen. PRICE AN ECONOMIC FACTOR AFFECTING THE BUYERS BEHAVIOUR Price can be defined as a measure of the value exchanged by the buyer for the value offered by the seller, for the benefits of having or using the product.

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Price is the only element in the marketing mix that produces revenue. All other elements represent costs. In India, where the majority of the population comprise of the middle-income group and lower income groups it is not hard to understand that pricing is one of the most important factor in the buying decisions. Bisleri has met the expectations of the consumers in terms of pricing the product and also making the product available in variations of liters, making Bisleri both convenient and affordable. The company is following a very aggressive pricing. Its product is available at a very reasonable price. Bisleri charges Re.1 for every 100ml. This strategy by the company is very effective in the Indian context where the customers are highly price conscious. The company has come up with another variant of the product, which is 1.2-liter bottle that is priced at Rs.12 keeping the price fixed at Re.1 per 100 ml. The company has an edge over its competitor Aquafina recently launched by Pepsi that has priced its product at Rs.10 for 750 ml. PROMOTION Promotion is concerned with communication between the seller and the buyer. Modern marketing calls for more than just developing a good product, pricing it attractively, and making it available to the target customers, companies must also communicate with their customers, and what they communicate should not be left to chance. The company needs maximum exposure that will alert potential customers about what the company and the products are and where to purchase them from. A Companys total marketing communications program- called its Promotion Mix consists of specific blend of advertising, personal selling, sales promotion, and public relations tools that the company uses to pursue its advertising and marketing objectives. Bisleris promotional mix Directing marketing Sales promotion Personal selling- as Bisleris major part of profits comes from bulk orders, it constantly keeps on looking out for new hotels, restaurants, companies that have come up. Public relation- Bisleri is known for its brand building. This is only possible through effective public relations. Due to the credibility of brand Bisleri, the working staff is motivated as well. Advertising- on the television, posters, hoardings, billboards, newspapers and internet Branding Sponsorship- sponsoring of sports events like cricket matches which has a huge craze in India. Packaging- attractive packaging with trendy design and color and easy to hold even portable.

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Every brand needs a good ad campaign to establish itself in the market. So it becomes very imperative to look at various ad campaigns that Bisleri undertook to build itself as a brand. Bisleri started its game plan with the punch line of Pure and Safe and used the same catch-line for advertising. But with the advent of many new players, all claiming the purity, it became very imperative for Bisleri to differentiate its product so as to stand out in the market. Bisleri found the answer in sealed cap bottles. It claimed 100% purity. Extended marketing mix People Process Physical evidence

PEOPLE- all people that are directly or indirectly involved in the consumption of Bisleri are an important part of the extended marketing mix. Knowledge workers, employees, management, distributors and consumers often add significant value to the total product offering. PROCESS- procedure, mechanisms and flow of activities by which Bisleri is produced, sold and consume (costumer management process) are an essential element of the marketing strategy. Associated with customer service there are a number of processes involved in making marketing effective in an organization like Bisleri for e.g. processes for handling customer complaints, processes for identifying customer needs and requirements, processes for handling order. PHYSICAL EVIDENCE- the way in which the bottle is presented and packed, the bottles are transparent and have a green color label which has the brand name, manufacturing date, ingredients and price. It is comfortable to hold the bottle as well as it is portable and easy to carry around.

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Q5. Identify different types of buyer behaviors and how they apply to your chosen organization? Consumer buying behavior can be defined as the decision process and acts of individuals involved in buying and using products and services (Dibb: marketing concepts and strategies, 2001) As Dibb (2001) says, the study by an organization of consumers buying behaviors is important to a marketing manager for several reasons: 1. The consumers reaction to the organizations marketing strategy has a major impact on the success of the organization. 2. If the organization is truly to implement the marketing concept, it must examine the main influence on what, where, when and how consumers buy. Only in this way it will be able to devise a marketing mix that satisfies the needs of the consumers. 3. By gaining a better understanding of the factors influencing the customers and how the customers will respond, organization will be better able to predict the effectiveness of the marketing activities. Bisleri has identified the general stages of consumers in the buying process as follows. Need recognition- this process begins when buyers recognizes a need or problem. This can be trigged by internal stimuli, such as thirst, or external stimuli, such as social esteem. The buyer knows how to satisfy the thirst through the purchase of a particular type of product, for instance Bisleri bottled water. Information search- once aroused the customer will search for more information about the products that will satisfy the need. The search is done by personal source (friends, family), commercial source (salesperson, packaging, direct mail), public source (mass media) and experimental source. Evaluation of alternative- selecting the best option among all the brands of mineral water by checking the quality, quantity, price and availability of each alternatives. Purchase decision- having evaluated the range of brand choices the consumer has formed a purchase intention to buy the most preferred brand. CONSUMER: The central question the company has to understand is: How do consumer respond to various marketing stimuli the company might use? The company that really understands how customers will respond to different product features, prices and advertising appeals has a great advantage over its competitors. The question can be further broken down to: Who buys? When do they buy? Where do they buy? Why do they buy?

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Who buys? In the survey conducted by Bisleri, they found that the middle income and the upper income groups are the users of the bottled water. The lower income group who lives in villages and remote areas is still dependent on the water from wells and hand pumps because no retail shops in those areas and no knowledge about the product. In the middle-income group also, people buy bottled water while travelling in railways and buses. Among the various income groups, there comprise the students, the office going executive, tourists and the retired people. So the company should go in for strategies to target customer segments based on appeal, prices, convenient packaging and other characteristics conforming to the customer segment the company is targeting. When do they buy? In the survey they found that the middle-income group buys mineral water while travelling. At home or at the work place they mainly use water filters that are installed. Or, they use large pack of bottled water like the jumbo pack (18 lt.) by Bisleri. The upper income group uses mineral water only. So, they constitute a large part of the total market. While having a meal at a restaurant, people usually order a bottle of mineral water. Where do they buy from? According to the survey conducted by Bisleri, the bottled water users buy the water from retail outlets and also through tie-ups with dealers. Large consumers of bottled water like Hotels, institutions, corporate order their water requirements through dealers. Frequent consumer buys bottled water from retail outlets stores, theaters/cinema hall, railway stations, collage/school canteens, office cafeterias, airports, restaurants and supermarkets. Why do they buy? For obvious reasons, satisfy their thirst, soaring mercury levels are directly proportional to consumption of purified bottled water. The obvious reason consumers ask for bottled mineral water is for the safety. With the growing health hazards in the country and as the people are becoming more health conscious they are switching over to bottled water. This is the reason that the industry is growing at fast pace. The other reason after this is, that the bottled water is convenient to carry and dispose, they can throw the bottles after use unlike when they carry water from home. Consumer Concerns and Perceptions The thinking here is that with consumer perceptions about mineral water changing, the brand Bisleri has to Reinvent itself. Earlier, mineral water used to stand for water enriched with certain minerals and was picked up by healthconscious consumers. This no longer holds. Mineral water has come to mean

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just thatwater. Albeit safe drinking water that is conveniently available. The consumer does not really care if the water contains minerals. The most important consideration is purity of the product.

Buying process stage Need recognition Information search

Buying a mineral bottle water at a station Feeling thirsty but train due in five minutes Look for a vending machine, shop or a canteen Consider soft drink or water, cold or normal temperature, still water or sparkling water. Make decision based on brand preference and personal choice

Evaluation of alternatives

Purchase decision

Table 3, consumer buying behavior, fieldwork

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Q6. How does the extended marketing mix apply to different marketing segments? Compare consumer vs. business markets, and International vs domestic markets. Marketing mixes for two different segments in consumer markets like the rural and urban markets. Rural marketing a marketing activity which is targeted to rural population in the rural areas which have some difference in their needs, wants, desire, buying behavior, consumer behavior etc. as they are raised in different customs, tradition and culture and have different economic, social and political background. More than 617 million Indians (74.3%) of Indias population live in rural areas. They are distributed over a 6,30,000 villages across India. The large amorphous mass of rural India is verily a marketers delight. Pricing in rural areas: every firm should realize that the rural consumers are not misers. They are not looking for the cheapest product in every category. They also understand and demand value for money in every purchase they make. Pricing therefore is a direct function of factors including cost-benefit advantage and opportunity cost. The villagers due to their limited resources are very price sensitive by nature. Pricing offered to rural customers should valuable and affordable. As compared to urban areas the income levels are lower in rural places, so by selling small packaging of bottles like the 500ml and 1.lt. or 1.2 lt. bottles which costs from 712 rupees respectively, this will attract more consumers and they would buy the mineral water because of safety purpose as well as price factor. Promotion in rural areas: a promotion aspect always creates a challenge in rural markets because of the fact that villages have less population as compared to metro cities and the population is widely spread over large remote areas. Even the people in villages are not educated so they cant read or write English. The methods to promote Bisleri in remote areas is by: Television- little number of people has T.V sets in village, but they always watch T.V in saloons, shops and roadside restaurants Radio: villagers always listen to radio to keep them selves updated to the news and cricket scores, and advertising on radio will create awareness among the villagers about the product. Print media: reading local and national newspaper is a tradition in all villages so print advertises in newspapers will benefit the firm. Hoarding/Wall painting: wall paintings across the area are beneficial because no hoardings are there in villages.

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Place: One of the ways could be using company delivery vans which can serve two purposes- it can take the products to the customers in every nook and corner of the market and it also enables the firm to establish direct contact with them and thereby facilitate sales promotion. Melas, festivals, spiritual gatherings and free markets Marketing Bisleri to consumers is bigger and harder, there are vast amount consumers out there and a whole huge tough competition. Selling Bisleri to consumers should have an affordable price and must have value for money. Marketing in consumers markets can be done by television advertisement, radio, newspaper, hoardings, promotions and many more. Whereas selling to organizations, the Bisleri needs to do certain contract with the firm, which includes a certain discounted amount on bulk buying which benefits both the organization as well as Bisleri because when Bisleri sells its products in bulk quantities and that to even on a regular routine basis helps them to keep a steady flow of income coming in without any need of massive promotions or marketing. The buying party in this case the organization will also benefit because they get a good amount of discount on bulk buying and also gets some amount of free bottles on a big purchase. This encourages them to keep continuing with Bisleri because it has quality products at an affordable price, and also allows discount on bulk quantities.

Social and cultural factors

Domestic Relatively homogenous market Similar purchasing habits

Economical factors

National price Uniform financial climate Stable business environments

International Fragmented, diverse markets Rules diverse, changeable and unclear Diverse purchasing habits Diverse national process Variety of financial climates Multiple business environments, some
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Competitive factors

Political factors

Technological factors

unstable Competitors products, Many more prices, cost and plans competitors, but less usually known information about their strategies Relative freedom from Involvement in national government economic plans interference Use of standard Training of foreign production and personnel to operate measurement systems and maintain equipment

Table 4, national and international markets, business essentials, marketing

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Bibliography
1. Business essentials, Marketing, first Indian edition (2009) 2. Anonymous. (2001). Ramesh Chauhan's biggest gamble with water http://www.domainb.com/companies/companies_p/parle_bisleri/20010201 _parle_bisleri.html 3. Bottled water- India. (2009) Country sector briefing: Euromonitor International. 4. Parle Bisleri Ltd- Soft drinks- India. (2009) Local company profile (pp. 1-2): Euromonitor International 5. Iyer, B. (2010). Bisleri's expansion thirst, Business Standard. Retrieved from http://www.business-standard.com/india/news/Bisleri\s-expansionthirst/389299/ 6. Anonymous. (2007). How Bisleri reinvented itself Retrieved 3/4/2010, from http://www.rediff.com/money/2007/feb/06spec.htm 7. Business studies second edition by Peter Stimpson and Alastair (2002) Farquharson 8. http://businesscasestudies.co.uk/business-theory/marketing/the-extendedmarketing-mix-7ps.html 9. http://www.scribd.com/doc/52993310/bisleri 10. http://www.bisleri.com/#/Water_And_More/Product 11. http://www.gits4u.com/water/water16.htm 12. kotler principles of marketing 3rd european editon (2001)

BOOKS & JOURNALS MARKETING MANAGEMENT BY PHILIP KOTLER. THE EFFECTIVE USE OF MARKET RESEARC BY ROBIN BIM. BUISNESS WORLD, BUISNESS TODAY. A&M, BRAND EQUITY MARKETING- Business Essentials

WEBSITES WWW.BISLERI.COM WWW.PARLE.COM WWW.INDIAINFOLINE.COM WWW.REDIFF.COM WWW.HELLOMINERALSWATER.COM http://www.cim.co.uk http://www.marketing.com/ http://managementhelp.org/marketing/index.htm

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