bisleri_sdm

8/4/2019 Bisleri_SDM

1/17

DISTRIBUTION NETWORK OF

BISLERI


2/17

P

R

OD

U

CT

8 unique pack sizes

Non Returnable packs

250ml cups

250ml bottles500ml

1L

2L

Returnable packs

5L10L

20L

S

IZ

E

S


3/17

PRICING

PACKAGING PRICE(Rs.)

250 ml Cups 3

250 ml Bottle 3

500 ml Bottle 6

1 Litre Bottle 12

2 Litre Bottle 20

5 Litre Returnable Packs 30

10Litre Returnable Packs 45

20 Litre Returnable Packs 60


4/17

COST OF PRODUCING 1 LITRE OF BRANDED

BOTTLED DRINKING WATER

Cap Cost

Bottle Cost

Treatment Cost

Label Cost

Carton Cost

Transportation Cost

Others(Tapa & Case)

Total Cost(Excluding

Labour,Marketing,Tax)

Selling Cost

Rs. 0.25

Rs.1.50-2.50

Rs. 0.10-0.25

Rs. 0.15-0.25

Rs. 0.50

Rs. 0.10-0.25

Rs. 0.25

Rs. 2.85-4.25

Rs. 10-12


5/17


6/17

DISTRIBUTOR AND RETAILOR MARGINS


7/17

Their Supply Chain and Distribution

Network

Retailers

Hotels,Hospitals,

Restaurantsetc.

CustomersRetailers

Distributors

Factories

Plastic Bottles(Agents)

Cartons

FranchiseFactories

Stickers


8/17

Their Supply Chain and Distribution

Network

Retailers

Hotels,Hospitals,

Restaurantsetc.

CustomersRetailers

Distributors

Factories

Plastic Bottles(Agents)

CartonsFranchiseFactories

Stickers

Waterprocessing

Inspection Sealing Shipping Billing


9/17

Exclusive-Agency Driven Distribution

Model

Bisleri gives its agency to distributers signing anagreement that they are distributers solely for Bisleri.

But most distributers were seen selling many othercompeting brands and even locally manufacturedwater.

Distributors rationale: It is not profitable to sell only Bisleri as

it is one of the most expensive brands and those who demandregular supplies opt for cheaper brands.

Bisleris rationale: Distributors association with Bisleri givesthem increased credibility and it is easier for them to indulgein such malpractices.


10/17

Problems Faced by Distributors

Distributors need to bear the transportation cost of transporting to theretailers

It is a demand pull driven product due to its early entry (hence attractiveoffers are not introduced)

It is profitable to stock bisleri only if the distributor is stocking othercompeting products

Margins on brands such as Kingfisher etc. are better

Target Based Selling: The managers at Bisleri claimed that targets are set and strict actions are

taken

But the distributers felt that targets are not so rigid.

They also added that a lot of times incentives on meeting targets were notgiven as promised


11/17

Distributors Coverage strategy

Offices/

Restaurants/

Colleges(20 lt)

Retailers(within a 5Km radius)

Households

(20Lts)

Again within

5 km radius


12/17

Critical Evaluation

Brand image : synonymous with mineral water

Multiple channels to serve different customers

Higher penetration : wide reach throughextensive distribution

High level of customer satisfaction in case of

Direct selling.

Simply and short supply chain with fewintermediaries


13/17

Encouraging channel members : targets and

intermediaries

Timely delivery

Convenient payment terms

Targeting and segmentation

1. Comes 7 Different sizes

2. Variants like Vedica introduced


14/17

Recommendations

Bisleri needs to work on managing the practice of duplicacy ofbottles at various levels of the distribution channel.

Bisleri needs to chalk down a proper plan for the distribution ofmargins among the distributors and retailers.

Bisleri needs to control the penetration of local brands that eatsinto its sales, maybe by creating awareness about such brands thatcould be harmful to the water industry.

Bisleri should counter the problem of unhealthy competitionbetween its distributors and try to promote unity and a level ofunderstanding among them.

Bisleri should be stricter about the targets it defines for thedistributors


15/17

Recommendations

A stricter, planned and better rewarding system should be adopted.

Bisleri also needs to keep a check on the distributors commitmentto sell their brand and not to promote any other

Bisleri should try and make their customers aware of thepurifying/quality management process at Bisleri which can helpthem differentiate their brand

Distribution and availability in distant and rural areas needs to be

managed better (major part of the sales go to the local brandsowing to the price difference).

The number of small size dealers should be increased to makeproper and easy availability of the brand as compared to itscompetitors.


16/17

Recommendations

More exclusive depot and company owned

outlets should be introduced, so that

customers get authentic original water at

reasonable prices.

Bisleri should also help and encourage the

distributors and retailers in promotional

activities at their respective levels.


17/17

Some Distributors we visited!!

bisleri_sdm

Documents