Presentation on Bisleri and Birla Shakti cements

SUMESH PANDIT

PGDM 2013-15

201311824

INTRODUCTION• FOUNDED IN 1969, BIRLA SHAKTI IS ONE OF THE GLOBAL LEADERS IN CEMENT

TECHNOLOGY.

• BESIDES BEING A LEADING SUPPLIER OF CEMENT AND AGGREGATES, WE ALSO OFFERCONSULTING, RESEARCH, TRADING, ENGINEERING AND OTHER SERVICES TOCOMPLEMENT OUR CUSTOMERS’ BUSINESS NEEDS.

• OUR HEADQUARTERS IS IN INDIA AND WE HAVE PRODUCTION SITES IN SEVERALPARTS OF THE COUNTRY.

• ONE OF THE MAIN REASONS FOR OUR TREMENDOUS SUCCESS IN THE INDIANMARKET HAS BEEN OUR REACH ACROSS THE NINE HIGHLY INDUSTRIALIZED STATESOF ANDHRA PRADESH, MAHARASHTRA, KARNATAKA, GOA, KERALA, MADHYAPRADESH, ORISSA, CHHATTISGARH AND TAMIL NADU.

• OUR DEALER NETWORK IN THE TRADE SEGMENT COMPRISES 1,581 STRONG ANDLOYAL DEALERS ACROSS THE TERRITORIES.

• MOST OF THESE DEALERS HAVE BEEN ASSOCIATED WITH US FOR THE LAST 35YEARS. THIS STRONG BOND EMPOWERS US WITH THE CONFIDENCE AND ABILITY TOGROW FURTHER IN THIS SEGMENT

AREAS COVERED

Focus

Point

Quality

Price

IncentivesCustomer

Focus

Marketing

Strategies

DEALERS FEEDBACK

VASAVADATTA CEMENTS SHOULD DO SOME ADVERTISEMENT LIKE AMBUJA, ACC,

ULTRA TECH.

DEALERS PROMOTION ACTIVITIES SHOULD BE DONE AS AMBUJA, ACC,

ULTRATECH.

PRICES OF VASAVADATTA CEMENTS ARE VERY HIGH AS COMPARE TO

COMPETITORS.

SOME OFFERS TO BE INTRODUCE TO THE DEALERS IN THE SAME WAY AS AMBUJA,

ACC, ULTRA TECH.

NEED MARKETING REPRESENTATIVES TO STUDY THE MARKET AND TO CHECK

WITH COMPETITORS PLAN OF ACTION.

RETAILERS FEEDBACK

VASAVADATTA CEMENTS SHOULD ALSO INTRODUCE TO THE RETAILERS BUT

WITHOUT HOOKS.

IF INTRODUCE CO. SHOULD PROVIDE THEM RETAILERS SCHEMES AS AMBUJA,

•Non regular

payment

•New areas

can be

tapped

•Low

Presences in

the market

•Strong

bonding

with Dealers

StrengthWeaknes

s

ThreatsOpportuniti

es

RECOMMENDATION

COMPANY SHOULD MATCH UP THEIR PRICES WITH THE PRICES OF THE OTHER

BRANDS IN NON-TRADE.

COMPANY NEEDS TO FOCUS ON THE RETAIL MARKET SO THAT THE SALES OF

THE COMPANY CAN BE INCREASE.

IT IS VERY IMPORTANT FOR THE COMPANY TO CREATE A VISIBILITY FOR THE

BRAND WITH THE HELP OF DIFFERENT MODES OF MEDIA SO AS TO AWARE THE

CUSTOMERS ABOUT THE BRAND.

PROMOTION ACTIVITY SHOULD BE DONE FOR THE DEALERS SO THEY CAN BE

MOTIVATED TO INCREASE THE SALE OF BRAND.

DEALERS & RETAILERS SHOULD BE GIVEN PROPER INCENTIVES.

PRODUCT SHOULD BE AVAILABLE FOR ALL TIME IN THE YARDS SO THAT IT CAN

BE DELIVERED ON TIME TO THE DEALERS AND NOT FROM THE OTHER DEPOT.

BUILDERS SHOULD BE GIVEN SPECIAL DISCOUNT IF THEY ARE PURCHASING

PRODUCT IN BULK AND ALSO NEED TECH SUPPORT TO UPGRADE IT.

BISLERI INTERNATIONAL

Off take Patterns

of Energy Drink

in Mumbai20 Ltrs packaged

drinking water local

Market of Mumbai

ENERGY DRINK MARKET IN MUMBAI

0

5

10

15

20

25

FOOD JOINT PAN BIDI SHOP COLD DRINK

HOUSE

AAREY MILK

CENTRE

WINE SHOP LARGE GROCERY

SHOP

SMALL GROCERY

SHOP

18.5

11.510.5

8.5

14.5

16

20.5

Category of Shop in (%)

200 Stores

Category of Shop in (%)

1%

97%

2%

Consumption Of Energy Drink Age Group Wise in (%)

15-20 yrs.

20-40 yrs

40 yrs. & Above

56%

44%

Female Buying Energy Drink in (%)

Yes

No

0

10

20

30

40

50

60

70

80

90

100

RED BULL MONSTER GATORADE REST LESS CAFE CUBA CLOUD 9 BURN RIO MAD CROC NRG

97.5

2 30 0 0 0 0.5 0.5 0

Top Preferred Energy Drink in (%)

20 LTRS PACKAGED DRINKING WATER IN MUMBAI

OBJECTIVE

TO STUDY THE 20 LTRS LOCAL BRAND MARKET

TO VISIT 55 BIS REGISTERED MANUFACTURING PLANTS ACROSS MUMBAI.

Focus

Basic

Details

Plant Size

Marketing

Strategies

Distribution

Channels

No. of

Distributors

Area

Covered

0

1

2

3

4

5

6

1995-2000 2001-2005 2006-2010 2011-2014

1

4

6

5

ESTABLISHMENT OF PLANTS

Plants

0

0.5

1

1.5

2

2.5

3

3800 Sq.ft 4000 Sq.ft 6000 Sq.ft 5000 Sq.ft 10000Sq.ft

TOTAL PRODUCTION SPACE (top 5)

Total Space

0

10

20

30

40

50

60

70

White Wonder Voles J.M.Industries Viking Corp.

No. OF DISTRIBUTORS (top 4)

Distributors

0

5000

10000

15000

20000

25000

30000

35000

40000

Voles Pvt.Ltd Viking Corp. Vaibhav Aqua Fresh Dynamic Beverages

APPROXIMATE SALE PER MONTH (top 4)

Cases

0

10

20

30

40

50

60

70

80

90

100

Voles Pvt.Ltd Viking Corp Vaibhav Aqua Fresh Dynamic Beverages

DISTRIBUTION MODEL

Distributors Institutes Customers

• Market Is Eyed by the Big Players

• Illegal Manufacturers

• Fast Growing Field

• Bisleri Can Utilize ItsDistribution Chain

• Method Adopted For Distribution

• Pressure by Government Authority

• Quality standard

• Trust for Brand

• Large Range of Products

• Marketing

STRENGTHS WEAKNESSES

THREATSOPPORTUNITIES

RECOMMENDATIONS

BISLERI SHOULD ADOPT THE TECHNIQUE OF SELF-DISTRIBUTION AS MOST OF

THE LOCAL BRANDS HAVE ADOPTED.

THIS TECHNIQUE WILL HELP THE COMPANY TO REDUCE THEIR

TRANSPORTATION CHARGES. BECAUSE OF WHICH THE PROFIT MARGIN WILL

INCREASE.

COMPANY CAN ALSO LOOK FORWARD TO OFFER FRANCHISEE TO THE LOCAL

PLANT HOLDER WHICH IS AGAIN COST EFFECTIVE.

COMPANY CAN ALSO OPEN A NEW PLANT IN THE DIFFERENT AREA WHICH

WILL HELP THEM IN THEIR DISTRIBUTION CHAIN.

AN AREA LIKE NAVI MUMBAI IS STILL UNTOUCHED AND FRESH MARKET

COMPANY SHOULD INTRODUCE THEMSELVES IN THIS MARKET TOO WHICH

WILL GIVE THEM A NEW MARKET AND NEW SETS OF CUSTOMERS.

COMPANY CAN TIE UP WITH THE INSTITUTIONS LIKE INDIAN RAILWAYS AND

AIRPORTS WHICH IS AGAIN A GOOD MARKET TO TAP.