A Study On Effectiveness of Supply Chain Management With Special Reference To Bisleri International PVT LTD
A Study On Effectiveness of Supply Chain Management With Special Reference To Bisleri International PVT LTD
A Study On Effectiveness of Supply Chain Management With Special Reference To Bisleri International PVT LTD
REPORT ON
“A STUDY ON EFFECTIVENESS OF SUPPLY CHAIN
MANAGEMENT WITH SPECIAL REFERENCE TO BISLERI
INTERNATIONAL PVT LTD”
Dissertation submitted in partial fulfillment of the requirement for the award of the
degree of
MASTER OF BUSINESS ADMINISTRATION
OF
BANGALORE UNIVERSITY
Submitted By
RAHUL Y
Reg. No. 12KXCMA039
Under the guidance of
Internal Guide External Guide
TABREEZ PASHA Mr. KUMAR
Assistant Professor - Department of MBA Marketing Manager
SURANA COLLEGE
CENTRE FOR POST GRADUATE STUDIES
#17 KENGERI SATELLITE TOWN,
BANGALORE-560060
Bangalore University 2013-2014
DECLARATION
I also declare that this project is the outcome of my own efforts and that it has
not been submitted to any other university or Institute for the award of any other
degree or Diploma or Certificate.
Date: RAHUL Y
Place: (12KXCMA039)
ACKNOWLEDGEMENT
I sincerely acknowledge the help I received from various persons and sources in
collecting dates and information in completing this satisfactory project.
Last but not least I would like to thank all the faculty members of institute, my father
and friends for their kind co-operation throughout the project.
All deserve my work and sincere appreciation gratitude
Date: RAHUL Y
Place: (12KXCMA039)
TABLE OF CONTENTS
Introduction
3.4 Hypothesis 42
5.1 Findings 79
5.3 Conclusion 81
Bibliography 82-83
Appendices 84-86
LIST OF TABLES
TABLE NO. DESCRIPTION PAGE NO.
LIST OF GRAPHS
Hypothesis 1 75
Hypothesis 2 77
EXECUTIVE SUMMARY:
Supply chain management (SCM) is a hot topic today. Many companies are
implementing SCM in an effort to increase profits and customer satisfaction. The first
article discusses SCM as the strategy through which the integration of the various
nodes along the supply chain can be achieved. The second article describes several
guidelines that supply chain managers should follow in order to achieve SCM
success. The third article describes the types of information shared: inventory, sales,
demand forecast, order status, and production schedule. The article also discusses
how and why this information is shared using industry examples and relating them to
academic research. This paper presents the results of the analysis of three articles that
describe SCM and its basic concepts as well as advances in information system
technology for the evolution of supply chain management.
A study is made on the “A STUDY ON EFFECTIVENESS OF SUPPLY CHAIN
MANAGEMENT WITH SPECIAL REFERENCE TO BISLERI INTERNATIONAL
PVT LTD” to determine the supply chain management of the company is following.
The main objective of the research study is to evaluate the supply chain management
of the company. Research methodology is the manner by which the data for the study
is collected, measured, analyzed and interpreted in a scientifically structured manner
and whereby problem can be identified, defined and stated to get an appropriate
solution.
The study includes industry profile, company profile, analysis and interpretation of
comparative analysis of marketing strategy of both the companies with the findings,
suggestions and conclusions which will be helpful for further study of the
organization.
A STUDY ON EFFECTIVENESS OF SUPPLY CHAIN MANAGEMENT
CHAPTER-1
INTRODUCTION
A few years back, the packaged drinking water market had been crawling at the rate
of 3-4%, or even a lower figure. Indians carried drinking water in earthen pitchers,
plastic or PUF bottles. But increasing case of typhoid and other water borne diseases
began to be reported. In addition to this, liberalization happened and the mineral
water industry began to be stirred and shaken. The market started growing an
astounding rate of over 100% per annum. The fact that there were very few players in
the market meant that their business grew by leaps and bounds.
The market today has grown to Rs.1100 crore. The organized sector- branded
packaged drinking water – has only Rs.700 crore of market share. The rest is
accounted for by the unorganized sector which is dominated by small regional
players. The market is still growing – at a rate greater than 80% per annum.
In the branded segment, Parle’s Bisleri is the market leader with a share of more than
40%. Other major players in the market are Kinley, Aquafina, Kingfisher, Ganga of
T-Series, Himalayan, Nestle, Bailey, Catch, Paras. Sensing the opportunity that this
segment holds, MNCs began to draw up plans to enter the market. Today the market
is proving to be yet another battlefield for an ongoing battle between the domestic and
MNCs. Last year the industry had around 170 brands. This figure is over 300
presently. The boom in the market has also encouraged MNCs to draw up plans to
enter the market. Coca-Cola made a splash when it launched Kinley brand and is now
doing reasonably well. Nestle, the global leader in the packaged drinking water
market, has also come up with its premium product, Perrier though Brand Pure Life is
almost dying. Pepsi’s Aquafina is also growing in the market. Britannia is also
launching Evian.
Almost the first to challenge Bisleri’s near monopoly was Pepsi’s Aquafina. Though
Pepsi launched its bottled water in just one SKU (stock keeping unit) of 750 ml. in
the very starting but now they have also launched 1 litre, the Chauhans of Bisleri
were galvanized into action. They launched their 500ml. bottle to stave off
competition.
A supply chain is a network of facilities and distribution options that performs the
functions of procurement of materials, transformation of these materials into
intermediate and finished products, and the distribution of these finished products to
customers. Supply chains exist in both service and manufacturing organizations,
although the complexity of the chain may vary greatly from industry to industry and
firm to firm.
Below is an example of a very simple supply chain for a single product, where raw
material is procured from vendors, transformed into finished goods in a single step,
and then transported to distribution centers, and ultimately, customers. Realistic
supply chains have multiple end products with shared components, facilities and
capacities. The flow of materials is not always along an arbores cent network, various
modes of transportation may be considered, and the bill of materials for the end items
may be both deep and large.
To simplify the concept, supply chain management can be defined as a loop: it starts
with the customer and ends with the customer. All materials, finished products,
information, and even all transactions flow through the loop. However, supply chain
management can be a very difficult task because in the reality, the supply chain is a
complex and dynamic network of facilities and organizations with different,
conflicting objectives.
Supply chains exist in both service and manufacturing organizations, although the
complexity of the chain may vary greatly from industry to industry and firm to firm.
The following are the five basic components of Supply Chain Management:
1. Plan:-
This is the strategic portion of SCM. You need a strategy for managing all the
resources that go toward meeting customer demand for your product or service. A
big piece of planning is developing a set of metrics to monitor the supply chain so
that it is efficient, costs less and delivers high quality and value to customers.
2. Source:-
Choose the suppliers that will deliver the goods and services you need to create
your product. Develop a set of pricing, delivery and payment processes with
suppliers and create metrics for monitoring and improving the relationships. And
put together processes for managing the inventory of goods and services you
receive from suppliers, including receiving shipments, verifying them,
transferring them to your manufacturing facilities and authorizing supplier
payments.
3. Make:-
This is the manufacturing step. Schedule the activities necessary for production,
testing, packaging and preparation for delivery. As the most metric-intensive
portion of the supply chain, measure quality levels, production output and worker
productivity.
4. Deliver:-
This is the part that many insiders refer to as logistics. Coordinate the receipt of
orders from customers, develop a network of warehouses, pick carriers to get
products to customers and set up an invoicing system to receive payments.
5. Return:-
The problem part of the supply chain, Create a network for receiving defective
and excess products back from customers and supporting customers who have
problems with delivered products.
The major objective of supply chain management is to reduce or eliminate the buffers
of inventory that exists between originations in chain through the sharing of
information on demand and current stock levels. Broadly, an organization needs an
efficient and proper supply chain management system so that the following strategic
and competitive areas can be used to their full advantage if a supply chain
management system is properly implemented.
2. Logistics:
The cost of transporting materials as low as possible consistent with safe and reliable
delivery. Here the supply chain management system enables a company to have
constant contact with its distribution team, which could consist of trucks, trains, or
any other mode of transportation. The system can allow the company to track where
the required materials are at all times. As well, it may be cost effective to share
transportation costs with a partner company if shipments are not large enough to fill a
whole truck and this again, allows the company to make this decision.
3. Smooth Production:
Ensuring production lines function smoothly because high-quality parts are available
when needed. Production can run smoothly as a result of fulfillment and logistics
being implemented correctly. If the correct quantity is not ordered and delivered at
the requested time, production will be halted, but having an effective supply chain
management system in place will ensure that production can always run smoothly
without delays due to ordering and transportation.
5. Reduction in Costs:
Keeping the cost of purchased parts and products at acceptable levels. Supply chain
management reduces costs by increasing inventory turnover on the shop floor and in
the warehouse controlling the quality of goods thus reducing internal and external
failure costs and working with suppliers to produce the most cost efficient means of
manufacturing a product.
6. Mutual Success:
Among supply chain partners ensures mutual success. Collaborative planning,
forecasting and replenishment (CPFR) is a longer-term commitment, joint work on
quality, and support by the buyer of the supplier’s managerial, technological, and
capacity development. This relationship allows a company to have access to current,
reliable information, obtain lower inventory levels, cut lead times, enhance product
quality, improve forecasting accuracy and ultimately improve customer service and
overall profits. The suppliers also benefit from the cooperative relationship through
increased buyer input from suggestions on improving the quality and costs and
though shared savings. Consumers can benefit as well through higher quality goods
provided at a lower cost.
Activities/Functions of SCM
Supply chain activities can be grouped into strategic, tactical, and operational levels
of activities.
(a) Strategic:-
Strategic network optimization, including the number, location, and size of
warehouses, distribution centers and facilities.
Strategic partnership with suppliers, distributors, and customers, creating
communication channels for critical information and operational
improvements such as cross docking, direct shipping, and third-party logistics.
Products design coordination, so that new and existing products can be
optimally integrated into the supply chain.
Information Technology infrastructure, to support supply chain operations.
Where to make and what to make or buy decisions.
(b) Tactical:-
Sourcing contracts and other purchasing decisions.
Production decisions, including contracting, locations, scheduling, and
planning process definition.
Inventory decisions, including quantity, location, and quality of inventory.
Transportation strategy, including frequency, routes, and contracting.
Benchmarking of all operations against competitors and implementation of
best practices throughout the enterprise.
(c) Operational:-
Daily production and distribution planning, including all nodes in the supply
chain.
Production scheduling for each manufacturing facility in the supply chain
(minute by minute).
1. Location,
2. Production,
3. Inventory, and
4. Transportation (distribution), and there are both short term and long-term elements
in each of these decision areas.
1). Location Decisions:
The geographic placement of production facilities, stocking points, and sourcing
points is the natural first step in creating a supply chain. The location of facilities
involves a commitment of resources to a long-term plan. Once the size, number, and
location of these are determined, so are the possible paths by which the product flows
through to the final customer.
We live in interesting times. Powerful forces are re-shaping the global business scene:
financial and economic upheaval in the Far East, Latin America & China is creating a
tidal-wave of change in the competitive environment.
To meet the challenge of simultaneously reducing cost and enhancing customer value
requires a radically different approach to the way the business responds to
marketplace demand. One of the keys to success is the creation of an agile supply
chain on a worldwide scale.
The solution has to be to re-engineer the organization structure so that supply chains
are managed on a truly integral basis with cross-functional teams being given the
responsibility for managing the pipeline from source to final market.
The idea that companies should focus on their core competencies is rapidly taking
hold. As a result there is a greater willingness to out-source than was previously the
case. This trend has been particularly observable in global corporations where there
has been recognition that the complexity of managing a worldwide logistics chain
requires specialist resources.
There is now a great opportunity to start thinking of the supply chain as a value chain.
Rather than accepting the conventional view that believes that all value-creating
activities need to be conducted under the same corporate roof, forward-looking
organizations are taking a different view. Particularly as supply chains become global
it will often make sense to move to a greater level of 'localization', i.e. the final
finishing or configuration of the product being performed much closer to the point of
demand. To enable this to be achieved on a global basis, specialist third party
logistics service providers have emerged who can now act as extensions of the
company's value chain.
In structuring cost-effective and agile global supply chains the question of where in
that chain the value creation should take place becomes crucial. By working more
closely with specialist providers, greater levels of customer value can often be
achieved at less cost to the supply chain as a whole. Hewlett Packard has adopted this
concept for many of its products such as the Desk Jet printer, even going to the
lengths of re-designing it so that a generic semi-finished global version could be built
centrally with localisation being performed by regional partners.
Future of SCM
The most notable is Radio Frequency Identification, or RFID. RFID tags are
essentially barcodes on steroids. Whereas barcodes only identify the product, RFID
tags can tell what the product is, where it has been, when it expires, whatever
information someone wishes to program it with. RFID technology is going to
generate mountains of data about the location of pallets, cases, cartons, totes and
individual products in the supply chain. It's going to produce oceans of information
about when and where merchandise is manufactured, picked, packed and shipped. It's
going to create rivers of numbers telling retailers about the expiration dates of their
perishable items-numbers that will have to be stored, transmitted in real-time and
shared with warehouse management, inventory management, financial and other
enterprise systems. In other words, it is going to have a really big impact.
Benefits:
The main benefit of RFIDs is that, unlike barcodes, RFID tags can be read
automatically by electronic readers. Imagine a truck carrying a container full of
widgets entering a shipping terminal in China. If the container is equipped with an
RFID tag, and the terminal has an RFID sensor network, that container's whereabouts
can be automatically sent to Widget Co. without the truck ever slowing down. It has
the potential to add a substantial amount of visibility into the extended supply chain.
Inventory Management:-
Maintain a real-time view of tagged inventory as it flows
through the supply chain.
Track discrete movement of tagged inventory.
Trigger alerts around inventory movement based on business
rules you construct.
Allowing just-in-time practices.
Marks & Spencer, a British retailer, has just extended a trial in which tags are applied
to suits, shirts and ties for men, allowing retailers to monitor and replenish stock
levels with far more accuracy at the end of each day to make sure that every size,
style and color remains in stock. Beyond improving efficiencies, the smart tags could
help to drive sales. One example of improving customer service: a customer could
take a tagged suit to a kiosk, which could then suggest a matching shirt and tie.
RFID tags represent a significant step forward from traditional bar code technology
and offer highly reliable data most notably, the US Department of Defense requires
their suppliers to ship products with RFID tags from 2006 onwards. Therefore, the
broad adoption of RFID is on its way. By 2010, RFID should be ubiquitous
throughout industries. Right now the two biggest hurdles to widespread RFID
adoption are the cost of building the infrastructure and the lack of agreed-upon
industry standards.
Some Key technologies which are going to change the face of SCM in coming
days are:
1. EDI (for exchange for information across different players in the supply chain);
2. Electronic payment protocols;
3. Internet auctions (for selecting suppliers, distributors, demand forecasting, etc.);
4. Electronic Business Process Optimization;
5. E-logistics;
6. Continuous tracking of customer orders through the Internet;
3.) Information:
Integrate systems and processes through the supply chain to share valuable
information, including demand signals, forecasts, inventory and transportation.
Conclusion:
What has enabled the effective implementation of supply chain management? The
answer is found from the rapid developments in information and communications
technologies. Use of databases, communication systems, and foremost advanced
computer software are crucial for the development of a modern cost-effective supply
chain management.
CHAPTER 2
INDUSTRY PROFILE
COMPANY PROFILE
AND
PRODUCT PROFILE
Surana College PG Department, Bangalore Page 17
A STUDY ON EFFECTIVENESS OF SUPPLY CHAIN MANAGEMENT
Bisleri is a brand of bottled water in India. Bisleri has 36% market share in packaged
drinking water in India, Its operations run throughout the subcontinent of India and is
one of the leading bottled water supplying companies in India. As of 23 October
2013, Bisleri has 19 plants, 15 franchisees & 64 contract packers all over India.
The bottled water industry in India has shown strong growth over the last five years.
Recent market figures suggest that the market grew from USD 599 mn in 2003 to
USD 865 mn in 2012. This is tantamount to a growth rate of 216 percent. It has been
estimated that over the next 5 years, the industry will grow twofold. The Indian
market is one of the fastest growing markets across the world. One of the primary
reasons stated for such high growth has been the rise in the level of disposable
income among consumers. This coupled with poor water infrastructure has boosted
the market. Players are trying to capitalize their position in the market via large scale
investments. PepsiCo forwarded that they plan on investing USD 220mn in the Indian
beverages industry.
India is the tenth largest bottled water consumer in the world. In 2013, the industry
had an estimated turnover of Rs.14 billion (Rs.1, 000 crores). Today it is one of
India’s fastest growing industrial sectors. Between 2004 and 2013, the Indian bottled
water market grew at a compound annual growth rate (CAGR) of 45 percent – the
highest in the world.
Bottled water industry is growing at mouth watering rate of 40 percent per year.
Current market size of bottled water industry is 4200 crores. With the growing market
there is a growing demand for employees in bottled water industry.
The total annual bottled water consumption in India had tripled to 10 billion liters in
2013 from 1.5 billion liters in 2004. Global consumption of bottled water was nearing
400 billion liters in 2013.As the bottled water business in India is growing fast, but
the supplies are erratic and the quality of water delivered is unreliable too. No wonder
consumer preference for bottled water has spurred a billion-dollar industry during the
last decade. From less than 2 million cases in the early-‘90s, the current consumption
of bottled water is well over 90 million cases in India and growing.
With over a thousand bottled water producers, the Indian bottled water industry is big
by even international standards. There are more than 200 brands, nearly 80 per cent of
which are local. Most of the small-scale producers sell non-branded products and
serve small markets. In fact, making bottled water is today a cottage industry in the
country.
Leave alone the metros, where a bottled-water manufacturer can be found even in a
one-room shop, in every medium and small city and even some prosperous rural areas
there are bottled water manufacturers. Despite the large number of small producers,
this industry is dominated by the big players - Bisleri, Coco-Cola, PepsiCo, Parle
Agro, Mohan-Meakins, SKN Breweries and so on. Bisleri was the first major Indian
company to enter the bottled water market in the country when it introduced Bisleri in
India 40 years ago.
With a little over 5 billion liters of bottled water being consumed in a year, the bottled
water industry has been growing at a compound growth rate of anywhere between 25-
40%. This is the highest amongst the world’s leading bottled water consuming
countries. Industry pundits believe that the boom time for the Indian bottled water
industry is to continue – more so because the economics are sound, the bottom line
flat and the government uncaring about what happens to the nation’s water resources.
The phenomenal reach of bottled water, available in plenty even where taps run dry
for the better part of the year, is worrisome on three counts. One, the unrestricted
reach of bottled water absolves the government of its primary duty of providing
potable water to its citizens. Two the patronage of bottled water by the middle class
leaves the poor at the mercy of unreliable municipal supplies. Three overdraft of
unregulated groundwater by the bottled water industry leaves the farmers high and
dry.
Ironically, consumers are not aggrieved at this usurping of peoples’ rights. Nor does
the judiciary consider it an infringement of fundamental rights. This leaves the bottled
water industry space and scope to rework its marketing strategies. Targeting the
growing middle class segment, companies have re-invented their 20 and 25 liter
jumbo home packs that are fitted with a spout to make them more consumer-friendly.
Bottled home packs have become part of household grocery bills across cities.
The question is can consumers, who are the victims of the erratic and unreliable
public water distribution system, be expected to lead the change? Unless the well-off
stop buying bottled water, there will not be sufficient political pressure to rev up
quality public water supply. The unquestioning consumption of bottled water reflects
an abject surrender of one’s fundamental right! Inadvertently, access to cheap and
clean water to millions is denied too. Away from the right-obligation discourse, there
are compelling reasons for the State to revive public water distribution systems. If
calculations by the Washington-based Earth Policy Institute are any indication, it
takes about 300,000 barrels of oil to manufacture the water bottles Indians use each
year. Add the substantial amounts of fuel used in transporting water and the cost of
recycling, and the environmental costs of bottling water are substantial.
It is surprising, but there are around 1600 brands of bottled/packaged water in India.
This market has witness the exponential growth rate and industry predicts it will soon
be the largest segment in the soft drinks market, outstripping even carbonated drinks,
which have been losing market to both, fruit drinks/juices and packaged drinking
water.
With the growing market size, one can imagine the employment opportunities being
created with the surge in bottled water industry. It’s just not manufacturing of bottled
water any more. Professionals required in this industry are engineers with
mechanical, electrical and chemical background. Demand for chemists and a
microbiologist is also on rise too. In fact, each operation of a bottled water plant
requires candidates with the specialized skill.
Bisleri International Pvt. Ltd., is a premier ISO 9001, BIS & W.H.O certified mineral
water Company in India and second most trusted brand for cold beverages in India. It
is a four decade company producing mineral water for India.
‘Bisleri’ is a Mineral Water company was first started in Mumbai in the early 1960’s.
In 1965 Signor Felice Bisleri an Italian origin, who first brought the idea of selling
bottled water in India. The company Bisleri Ltd Offered mineral water in two variants
– bubbly and still, Parle bought over the Bisleri (India) Ltd. 1969 as Jayantilal Mohall
Chauhan its founder & started bottled Mineral water in glass bottles under the brand
name ‘Bisleri’ later Parle introduced PVC non-returnable bottles & finally advanced
to PET containers.
In 1995 Mr. Ramesh J. Chauhan as its chairman has started expanding Bisleri
operations substantially and the turnover 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 they have 13 branches & 11 franchisees all over India. They command a
60% market share of the packaged drinking water market.
Therefore they have developed 7 unique pack sizes to suit the need of every
individual. They are available in 250ml bottles, 500ml, and 1l, 1.5L, 2L which are the
non-returnable packs (One-way packs) & 5L, 20L which are the returnable packs
(Two-way packs). Till date the Bisleri has been offered water to the Indian
consumers, however the Bisleri inn effort of bringing something refreshingly new to
its customers, they have introduced Bisleri Natural Mountain Water – (water brought
from the foothills of the mountains situated in Himachal Pradesh) and recently they
have also introduced fizzy soda. Hence their product range now comprises three
variants: Bisleri with added minerals, Bisleri Mountain Water and Bisleri fizzy soda.
Due to Rigorous Research and Development & stringent quality controls has made
Bisleri a market leader in the bottled water segment. Bisleri has always been
committed to offering every Indian pure and clean drinking water. Hence Bisleri
water is put through multiple stages of purification, ionization and is hygienically
packed for final consumption.
Bisleri commitment is to maintain strict quality controls in every unit, they not only
purchase caps from approved vendors, and also manufacture their own bottles, in-
house. To be at par with International standards, they have recently procured the
latest state-of-the-art machinery which has not only helped them to improve
packaging quality but has also reduced raw materials wastage and doubled production
capacity and customer can rest assured that they are drinking safe and pure water
when they consume Bisleri is free of impurities and is 100% safe-Enjoy the sweet
taste of Purity!
Bisleri constantly endures to reach higher levels of performance for which Jayantilal
Mohanlal Chauhan has already bagged the excellence award for their service. Bisleri
ranks higher than many iconic brands, and has recently received 2 nd most trusted
brand award in cold beverages after GLUCON-D. In the year of 2008 Bisleri was
ranked at 80th position but in 2009 it was ranked at 23rd position – (reference- Brand
Equity, THE ECONOMIC TIMES, 17 JUNE 2009) and also Bisleri has been
awarded the Reader’s Digest ‘Most Trusted Brand’ twice. The Bisleri International
Pvt. Ltd. – Bangalore unit was started in the year 1982, it covers around 12 acres of
land at Udayagiri village, Devanahalli taluk. In the start up the production rate was
600cases/day, now the workforce has doubled the number due to the sincere
commitment by the top management and thus production capacity is increased by
6000 cases/d.
The Emerge & journey of Bisleri: started from the year 1969, where the country was
going through the motions of political reform. Times were difficult and needless to
say individual enterprise unthinkable. But not for an audacious 27 year old young
man who saw nothing but opportunity in a market that was just perfect to buy out a
mineral water brand called Bisleri from its original Italian owner and start the spade
work that would one day mark it a category leader.
As, Mr. Chauhan had the learning’s accumulated from his year of experience in the
beverage business to dip into. With the purple patch he was on due to brands like
Gold spot, Limca, and thumps up becoming an instant rage from their debut days.
Mr.Chauhan realized a few simple truths very early on. He recognized that providing
affordable. Safe and pure drinking water to a country of over 3 billion people was all
about getting the economies of scale working for the consumer, the R&D working for
the brand and the delivery logistics working for the company’s bottom line, A belief
that earned the reputation of being the man, who was destined to quench the thirst of
an entire nation.
As a product born out of a vision into the future, Bisleri was to be the instant answer
to a pressing need that the nation would experience nearly a decade hence. It was
envisaged to be a daily usage product of a country well into its adulthood; confident,
free thinking, urbanized and changing by the day. And indeed, it did become one.
But a lot had a transpired backstage before Bisleri became the drinking water giant
promising the sweet taste of purity. It began with a change of packaging, starting with
a shift from glass bottles to plastic bottles and then to the more fluid friendly PET
bottles. With that came a fresh labeling and contemporized package-size variations
and eventually product variants. In turn with the success of Bisleri, others jumped
into the fray with me-too packaging (coping of packaging). As Bisleri was the icon
brand, its design, color and shape soon became almost generic to the category.
Ramesh Chauhan analysed this as a potential loss of revenue and decided to take the
industry to the next level, with another innovative re-packaging effort. This plan
involved a comprehensive relook at the brand identity, by moving the label from the
category defining blue to refreshing green. The move, written off as ‘harakiri’ by
some early saints, meant that leader and category definer was moving from the well
accepted blue palette that it had once created to the untested waters of new color. This
bold move worked wonders for Bisleri, as the brand stood out. Consumers who were
earlier asking for Bisleri and setting for any bottled water with a blue label, now
began asking for and demanding the new-look Bisleri. With the refreshing new green
label and the traditional promise of purity, Bisleri had yet again hit upon a success
formula.
Recent studies have displayed a prominent trend emerging in India, that of the nation
getting more and more health and brand conscious. But given the unfortunate
regression in infrastructure and public healthcare of the country over the last 40 years,
access to clean drinking water, especially in the major towns, cities and metros
remains a challenge. Every day, polluted seeps into the soil from cesspools, manure
heaps and similar sources and gets carried into rivers, lakes and supplying drinking
water to the nation. Therefore the drinking water supplied to homes is filled with
harmful bacteria and is not safe for consumption. Adding to the problem is also the
reality that our water supply systems are in desperate need of repair and replacement.
The sewage systems too are archaic exacerbating the water contamination crisis.
Every day, nearly 5000 delivery vans drive out of the 59 strategically located Bisleri
bottling plants carrying over 1 million units of pure, sweet drinking water to replenish
the stocks of 2500 distributors and nearly 600,000 retail outlets. And pre-empting the
increasing demand for pure drinking water by health conscious Indians, Bisleri has
plans of adding a whopping 25 more bottling and manufacturing units, for which the
company has envisaged a Rs 50-crore investment for setting up these new bottling
plants in Maharashtra, Kerala, Jammu & Kashmir, Himachal Pradesh, Tamil Nadu,
Karnataka, UP, Orissa, Jharkhand and North Bengal. These plants will be set up
partly by the company and partly by a franchisee.
Bisleri International Pvt. Ltd., Bangalore unit is a private sector whose head office is
in Mumbai is engaged in manufacturing and selling of packaged drinking water to
various people. Bisleri major customers are Nokia, Software companies, Government
offices, Indian Railways, & Household/Common people. So competition between the
companies in the industry seems to be healthy.
Bisleri controls 60% of the Indian market share in the packaged drinking water
industry. And others have the remaining 40% market share in the water industry.
With a little over 5 billion liters of bottled water being consumed in a year, the bottled
water industry has been growing at a compound growth rate of anywhere between 25-
40%. This is the highest amongst the world’s leading bottled water consuming
countries
Area of Operation
Since 1995 Mr. Ramesh J. Chauhan has started expanding Bisleri operations
substantially and the turnover 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
Bisleri is having 13 plants located at Jagathpur (Cuttack), Ranchi (Jharkhand),
Ownership Pattern
PACKAGING OF PRODUCT
Production Process
Carbon Filter
(Removes chemicals, odour,
colour & taste) To ensure water free of
micro organisms & dust
particles
5µ Filter
(Removes remained
microbes) Packing in all pack size
1µ Filter (Removes
all Microbes even Bacteria &
viruses)
The future prospects of Bisleri is to manufacture mineral water with added flavors
like strawberry flavor, guava flavor, pineapple flavor and some other flavors.
Parle Bisleri also plans to procure recycling plants from Japan, for its PET bottles,
and set up at least two such plants in Chennai and Delhi at a cost of Rs five crore each
by this year-end. Crushed and compacted bottles from other parts of the country will
be transported to the two plants and a better part of the compacted PET will go into
manufacturing polyester yarn.
Though the company plans to come out with an IPO, two years down the line, the
present capital expenditure plan will be financed entirely through internal accruals.
Vision
Our vision is to be the dominant player in the branded water business where the
second player is less than 20% of our business.
Mission
We are in the business to serve the customer. He is the most important person. He is
the only one who pays. He deserves the best quality and presentation at a worth of the
price. We must have world class quality, at the lowest production & distribution cost.
This will make us an unbeatable leader, and will have satisfied loyal customers.
Values
This product is bottled drinking water at its best. Bisleri with added minerals has a
TDS count (total dissolved solids count) of approximately 100. It contains minerals
such as magnesium sulphate and potassium bicarbonate which are essential minerals
for healthy living. They not only maintain the PH balance of the body but also help in
keeping you fit and energetic at all times.
Bisleri with added minerals is also put through multiple stages of purification to
ensure the elimination of all forms of bacteria. This makes the water you drink
completely safe to consume.
It is a new product introduced by Bisleri in 2009 which has been well received in the
market.
The mineral water market is to set to explode and hit the Rs.2000 cr. mark in the next
couple of years. This drew the big gun’s attention. First Britannia launched Evian.
And then Pepsi entered the fray with Aquafina. Then Nestle with Pure Life but now
with Perrier, pure thrust. Meanwhile, Parle Agro’s Bailey has been growing steadily.
Small local players are breathing down Bisleri’s neck riding on better trade margins
and intensive distribution (in their respective areas of operation). Bisleri faces tough
competition from these in organize sector
Coca-Cola Kinley
Pepsi Aquafina
Nestle
KINLEY
Kinley water was launched in August 2000 in one litre bottles for Rs. 10 but not been
rolled out nationally. Coca-Cola joined the race by announcing the imminent launch
of fits own brand of water and, in the process, putting to rest rumors of its so-called
takeover of Bisleri. The water is produced at Coca-Cola's three green field
manufacturing plants at Bidadi near Bangalore, Dasna in Uttar Pradesh and Goa. The
company plans to either add more water bottling operations or go for contract bottling
as it goes national.
In September, CCI made an announcement that literally grabbed the headlines. CCI
announced that Kinley had overtaken the near-generic Bisleri brand in terms of
market share. Quoting ORG-MARG/ AC Nielsen data, CCI claimed that for the
period ended July 31, 2002, Kinley's market share had been recorded at 35.1 per cent,
against that of Bisleri 34.4 per cent. The peak summer months saw CCI rolling out
Kinley in 200 ml cups. The cups, priced at Rs 3 each, were first rolled out in pockets
of Gujarat. With this initiative in place, the company is hoping to generate market
share from the institutional segment such as restaurants and hotels, caterers, and
transport channels such as buses and trains. CCI said it was doubling the bottling
capacity for Kinley through a combination of company-owned plants, franchisee
operations and contract packers. Two of CCI's key bottling partners, namely the
Gandharis and Goenkas, invested Rs 10 crore for a new bottling water plant in Punjab
for Kinley. Its consumers are also quality conscious and brand loyal.
AQUAFINA
The advantage for AQUAFINA is that though they are over 300 labels of bottled
water in the Indian market, few can be called. It is necessary to remember that every
product with a name is not a brand; even Bisleri has become generic to this category.
It does not have any emotional values attached to it. So there was no difficulty for
Pepsi in creating space in such a market which is completely different from the soft
drinks market, where it will be very difficult for any new player to find a slot. So the
creative team at HTA virtually had an empty canvas to work on.
And it came up with a campaign that did have people talking. First, as series so
teasers, followed by a film that showed healthy bodied and youthful people and, of
course, lots of water. Although Aquafina started with only 750 ml. pet at Rs. 10 but
now it launched its 1 lt. pack also with the price range of Rs.12. in addition to the
tamper proof seal, there is reliable method of checking whether the bottle has been
reliable. The date of manufacturing has been written on the cap as well as on the
bottle. Thus a person who is refilling it would have to find a matching cap and bottle,
the probability of which is very low.
NESTLE
Nestle India is the latest to enter this market with the launch of its brand `Pure Life' in
New Delhi. It plans to grab a 50 per cent market share in the next two years and
emerge as a strong player. The company has not ruled out acquiring existing brands.
The product will be available in other cities as well soon.
The water is bottled at Nestle's new plant at Samalkha in Haryana. Nestle has already
launched two of its global premium mineral water brands `Perrier' and `San
Pellegrino' which are targeted at niche markets.
Bailey the brand that is owned by Ramesh Chauhan’s brother Prakash Chauhan is
very popular in the southern part of India. Southern part of India accounts for 20% of
the sale of the whole water market industry. Bisleri would have a tough competition
from Bailey since the company plans to spread its presence in that part of the country.
Another thing that makes the competition difficult for the company is the price at
which its competitor is offering the product. Like Bisleri it also gives the 1 lt. for
Rs.10. The only strength point of the company which it can capitalize is its generic
name. And also the company would have to enter that market with a strong
distribution base. We know the fact that Bailey has grown at a rapid pace using the
route of franchising which Bisleri has not adopted. This is another point which the
company would have to take care of to face the competition.
At present the various major players in the packaged drinking water market can be
outlined as following in terms of % market share:
Bisleri
Kinley
others 10%
Aquafina
others
15%
Aquafina
brands
Kinley
31%
44%
Bisleri
Bisleri has been awarded Jayati Lal Chauhan Award for excellence by Parle
Exports Ltd.
Consumer focused initiatives that have earned the brand coveted Reader’s Digest
award of being ‘The Most Trusted Brand’ in consecutive years.
Bisleri is the 2nd most trusted brand in India compared with competitors
according to Brand equity.
Bisleri International Pvt. Ltd., is a premier ISO 9001, BIS & W.H.O certified
mineral water Company in India.
Those forces which effect the organization from within i.e. due to its own activities
and performance, Forces can be controlled by the organization and an organization
can improve on its strength and weaknesses in the market.
STRENGTHS:
Those activities, which put the organization a step ahead of others with its
performance in the field of marketing mix, are products, price, promotion, and
physical distribution.
WEAKNESSES:
They charge more for 5 lt. And 20 lt. Bottles as compared to other emerging
companies.
Those forces, which affect the performance and ability of an organisation from
outside, i.e., those forces are uncontrollable and the organization cannot manipulate
these forces.
OPPORTUNITIES:
The business is growing at the rate more than 80% per annum
There is a high growth in 500 ml, 2 lt., 5 lt., 20 lt., water bottles.
Now middle class people also use packaged drinking water at their shops and
homes and it become the need of the metros.
THREATS:
Its higher prices and low retailer’s margin has made the competitor to
strengthen their feet in the Bisleri market.
CHAPTER 3
REVIEW OF
LITERATURE
&
RESEARCH DESIGN
sources, and as such, do not report any new or original experimental work. Also, a
literature review can be interpreted as a review of an abstract accomplishment.
Review of Literature
Name of the journal: A Journal of the Decision Science Institute, Volume 33, Issue
4, pages 495–504.
According to Asoo J. Vakharia In recent years, the area of Supply Chain Management
has generated a substantial amount of interest both by managers and researchers. This
interest has also been fueled by the growth in the development and application of e-
business technologies. These technologies enable the supply chain manager to make
coordinated decisions by integrating the diverse and sometimes conflicting objectives
of the various trading partners in a chain. The purpose of this paper is to: (a) highlight
strategic and tactical issues for analyzing supply chains in an e-business setting based
on papers published in this special issue; and (b) describe future research
opportunities in this emerging interdisciplinary area.
Name of the journal: European Journal of Operational Research, Volume 163, Issue
3, Pages 575–588.
We reviewed the manuscripts focused on Supply Chain Management that had been
published in PRODUCTION AND OPERATIONS MANAGEMENT (POM) over
roughly 15 years (1992 to 2006). The manuscripts covered dealt with topics including
supply chain design, uncertainty and the bullwhip effect, contracts and supply chain
coordination, capacity and sourcing decisions, applications and practice, and teaching
supply chain management. In the process of this review, we highlight the significant
contribution of POM to the field of supply chain management, and illustrate how this
body of work has served to further the mission of the journal. We then highlight
works from this group along with the discussion of selected papers from other top
journals in an effort to provide a reasonably complete overview of important issues
addressed in recent supply chain management research. Using our research survey
and conceptual overview of the area as a foundation, we offer comments which
highlight opportunities and suggest ideas on how to usefully expand the body of work
in the supply chain management area.
Name of the journal: European Journal of Operational Research Volume 196, Issue
2, Pages 401–412.
Facility location decisions play a critical role in the strategic design of supply chain
networks. In this paper, a literature review of facility location models in the context of
supply chain management is given. We identify basic features that such models must
capture to support decision-making involved in strategic supply chain planning. In
particular, the integration of location decisions with other decisions relevant to the
design of a supply chain network is discussed. Furthermore, aspects related to the
structure of the supply chain network, including those specific to reverse logistics, are
also addressed. Significant contributions to the current state-of-the-art are surveyed
taking into account numerous factors. Supply chain performance measures and
optimization techniques are also reviewed. Applications of facility location models to
supply chain network design ranging across various industries are presented. Finally,
a list of issues requiring further research is highlighted.
Authors: Aysegul Sarac Nabil Absi , Stephane Dauzere-Peres, Ecole des Mines de
Saint-Etienne
According to Aysegul Sarac Nabil Absi , Stephane Dauzere-Peres, Ecole des Mines
de Saint-Etienne
France RFID technologies may improve the potential benefits of supply chain
management through reduction of inventory losses, increase of the efficiency and
speed of processes and improvement of information accuracy. Various RFID systems
can be obtained by combining different tags, readers, frequencies and levels of
tagging, etc. The cost and potential profit of each system change in a wide range. In
this paper, a state-of-the-art on RFID technology deployments in supply chains is
given to analyze the impact on the supply chain performance. Potential benefits,
particularly against inventory inaccuracy problems, the bullwhip effect and
replenishment policies, are briefly surveyed.
There is a visible demand at the distributor and retailer front but due to supply chain
drawbacks bottling units are not able to service the demand.
3.4 Hypothesis
Hypothesis1:
Hypothesis: 2
H0: There is a significant distributor satisfaction with the current policy regarding
supply chain management
H1: There is no significant distributor satisfaction with the current policy regarding
supply chain management
The study is confined to one month based on the primary data obtained from
marketing department, the middle level managers and other supervisory staff.
Secondary data include reports and brochures provided by the company directly and
those accessed through internet.
Supply Chain Management is “The network of organizations that are having linkages,
both upstream and downstream, in different processes and activities that produces and
delivers the value in form of products and services in the hands of ultimate
consumer.” Thus a shirt manufacturer is a part of supply chain that extends up stream
through the weaves of fabrics to the spinners and the manufacturers of fibers, and
down stream through distributions and retailers to the final consumer. Though each of
these organizations are dependent on each other yet traditionally do not closely
cooperate with each other. An integrated supply chain management streamlines
processes and increases profitability by delivering the right product to the right place,
at the right time, and at the lowest possible cost.
3.7 Methodology
Descriptive research
The success of any project or market survey depends heavily on the data collection
and analysis. It is necessary that the data collected is a reliable data in order to
achieve the research objective. All data sources can be classified into two data:
1. PRIMARY DATA
2. SECONDARY DATA
1. PRIMARY DATA- Primary data is the data which are fresh and collected for
the first time, and are original in character. It consist of the actual information.
There are various Primary data collection techniques, which have helped in
data gathering.
b) SURVEY METHOD
c) QUESTIONNAIRE METHOD
2. SECONDARY DATA- Secondary data are those data, which have been already
collected or published for the purpose other than specific research need at hand. This
data is simply used up by the researcher for his purpose of collected the data and its
use is now not the same.
a) MAGAZINES
c) WEBSITES
A sample design is a definite plan for obtaining a sample for a given population. A
sample is only a portion in the universe. Sampling is used to collect the primary data.
The objective of sampling is to get maximum information about the parent population
with minimum effort. Sample Design consists of the following factors.
1. Sampling unit
2. Sampling Techniques
3. Sample size
The sample size for the survey conducted for the analysis of:
The data collected will be classified, tabulated and analyzed by using SPSS software
and statistical tools i.e. Chi square, Z-test and the graphs used for analysis are pie
chart Diagram , Bar Diagram graph and pyramids have been used for charted
representation of data for better perpetual in understanding of the study.
Chapter 1 : Introduction
Chapter 2 : Industry, Company Profile and product profile
Chapter 3 : Review of Literature & Research Design
Chapter 4 : Results, Analysis and Discussion
CHAPTER 4
RESULTS, ANALYSIS
&
DISCUSSION
Surana College PG Department, Bangalore Page 56
A STUDY ON EFFECTIVENESS OF SUPPLY CHAIN MANAGEMENT
Table 4.1 From how many years you are distributor of Bisleri International Pvt. Ltd.?
Frequency Percent
Cumulative
Frequency Percent Valid Percent Percent
Statistics
N Valid 50
Missing 0
Mean 2.28
Median 2.00
Mode 1
Std. Deviation 1.107
100
100
90
80
70
60 50
Frequency
50 Percent
40 32
26 24
30
16 18
20 13 12
9
10
0
4.1 graph showing the dealers association in number of years with Bisleri
International Pvt. Ltd.
Analysis
It is found that 32% respondents lie in between 1-2 years, 26% respondents lies
between 2-4 years, 24% respondents lies between 4-8 years & 18% respondents lies
between above 8 years for distributor of Bisleri International Pvt. Ltd. From the
above table we had got that the average (mean) value 2.28, the mid value is 02, the
mode value is 01 and the std. Deviation is 1.107.
Interpretation
From the above graph we had found that the maximum distributors of Bisleri
International Pvt. Ltd lies between 1-2 years and the minimum distributors of Bisleri
International Pvt. Ltd lies in above 8 years.
Table 4.2 For what reason you have chosen Bisleri Distribution Unit?
Frequency Percent
Cumulative
Frequency Percent Valid Percent Percent
Statistics
N Valid 50
Missing 0
Mean 3.00
Median 4.00
Mode 4
Std. Deviation 1.212
Frequency
10
6
Brand image
8 Market deamand
Profit margin
50 All of the above
Total
26
4.2 graph showing For what reason you have chosen Bisleri Distribution Unit?
Analysis
From the above analysis the 52% respondents chosen brand image, market demand&
profit margin have chosen Bisleri Distribution Unit & 20% respondents chosen brand
image, 16% respondents chosen profit margin& 12% respondents chosen market
demand. From the above table we had got that the average (mean) value 03, the mid
value is 04, the mode value is 04 and the std. Deviation is 1.212.
Interpretation
From the above graph we had found that the maximum distributors chosen Bisleri
International Pvt. Ltd because brand image, market demand and profit margin, The
minimum distributors chosen Bisleri International Pvt. Ltd. because of market
demand.
Table 4.3 Overall how do you rate the distribution unit of Bisleri International Pvt.
Ltd.?
Frequency Percent
Cumulative
Frequency Percent Valid Percent Percent
Statistics
N Valid 50
Missing 0
Mean 3.98
Median 4.00
Mode 4
Std. Deviation .714
120
100
80
Frequency
60
50
40
25
20 13 12
4.3 graph showing Overall how do you rate the distribution unit of Bisleri
International Pvt. Ltd.?
Analysis
It is found that 50% respondents are satisfied the & 26%respondents are dissatisfied
& 24% respondents are highly dissatisfy
ied by distribution from Bisleri International Pvt. Ltd From the above table we had
got that the average (mean) value 3.98, the mid value is 04, the mode value is 04 and
the std. Deviation is 0.714.
Interpretation
From the above graph we had found that the maximum distributors are satisfied with
distribution from Bisleri International Pvt. Ltd and the minimum distributors highly
satisfied with distribution from Bisleri International Pvt. Ltd. because of market
demand.
Frequency Percent
50% 25 50.0
25% 4 8.0
Nil 11 22.0
Total 50 100.0
Cumulative
Frequency Percent Valid Percent Percent
Statistics
N Valid 50
Missing 0
Mean 2.32
Median 2.00
Mode 2
Std. Deviation 1.039
100%
90%
80%
70% 20 50 8 22 100
60%
Percent
50% Frequency
40%
30%
20%
10%
0%
4.4 graph showing Is there any replacement given for damaged goods?
Analysis
From the above analysis 50% respondents had said that 50% replacement on damage
goods & 22% respondents said that 0%, 20% respondents said 100% & 8%
respondents said that 25% replacement given for damaged goods. From the above
table we had got that the average (mean) value 2.32, the mid value is 02, the mode
value is 02 and the std. Deviation is 1.039.
Interpretation
From the above graph we had found that the maximum distributors said that 50%
replacement given for damage goods, The minimum distributors that 25%
replacement given for damage goods.
Table 4.5 How successful do you think is your company in managing its supply chain
in general?
Frequency Percent
Valid Cumulative
Frequency Percent Percent Percent
Statistics
N Valid 50
Missing 0
Mean 2.48
Median 2.00
Mode 2
Std. Deviation .839
Frequency
3
14
5
1
4.5 graph showing How successful do you think is your company in managing its
supply chain in general?
Analysis
It is found that 54% respondents are not successful of company’s scm, 28%
respondents somewhat successful, 10% respondents successful,6% not successful at
all &2% respondents Are very successful company’s scm. From the above table we
had got that the average (mean) value 2.48, the mid value is 02, the mode value is 02
and the std. Deviation is 0.839.
Interpretation
From the above graph we had found that the maximum respondents said that the
company supply chain management is not successful and the minimum respondents
said that the company supply chain management is very successful.
Frequency Percent
120
100
100
80
58 Frequency
60
50 Percent
42
40
29
21
20
4.6 graph showing Is your deliver of products on time as per your order?
Analysis
From the above analysis 58% respondents said no & 48% respondents said yes
deliver of products on time as per our order.
Interpretation
From the above graph we had found that the maximum distributors said no for the
delivery of the products as per their order and the minimum distributors said yes for
the delivery of the products as per their order.
Frequency Percent
Cumulative
Frequency Percent Valid Percent Percent
Statistics
N Valid 50
Missing 0
Mean 1.90
Median 2.00
Mode 1
Std. Deviation 1.074
Frequency
24
Average
Good
50 Very effective
Excellent
Total
14
7
5
4.7 graph showing How do you rate the delivery activity of the department?
Analysis
It is found that 48% of respondents said average, 28% respondents said good, 14%
respondents said excellent & 10% respondents said very effective about the delivery
activity of the department. From the above table we had got that the average (mean)
value 1.90, the mid value is 02, the mode value is 01 and the std. Deviation is 1.074.
Interpretation
From the above graph we had found that the maximum respondents said that the
delivery activity of the deportment will be average. The minimum respondents said
that the delivery activity of the deportment will be excellent.
Table 4.8 Rate the working strategies of supply chain management department on the
basis of the current programs?
Frequency Percent
Cumulative
Frequency Percent Valid Percent Percent
Statistics
N Valid 50
Missing 0
Mean 2.24
Median 2.00
Mode 2
Std. Deviation .657
100%
90%
80%
70% 8 64 24 4 100
60%
Percent
50%
Frequency
40%
30%
20%
10%
0%
average Good Excellent Outstanding Total
4.8 graph showing Rate the working strategies of supply chain management
department on the basis of the current programs?
Analysis
From the above analysis 64% distributors said good, 24% said excellent, 8% said
average & 4% said that the working strategies of supply chain
management department on the basis of the current programs. From the above table
we had got that the average (mean) value 2.24, the mid value is 02, the mode value is
02 and the std. Deviation is 0.657.
Interpretation
From the above graph we had found that the maximum distributors rate that the
strategies of supply chain management is good. The minimum distributors rate that
the strategies of supply chain management is outstanding.
Table 4.9 Do you have good relationship with Bisleri International Pvt. Ltd.?
Frequency Percent
Valid Bad 1 2
Below average 5 10
average 21 42
Good 18 36
Excellent 5 10
Total 50 100
Cumulative
Frequency Percent Valid Percent Percent
Statistics
N Valid 50
Missing 0
Mean 3.42
Median 3.00
Mode 3
Std. Deviation .883
Frequency
1 5
21
50
5 18
4.9 graph showing Do you have good relationship with Bisleri International Pvt. Ltd.?
Analysis
From the above analysis 42% distributors are given average, 36% are given good,
10% are given below average & excellent & 2% are given bad about the good
relationship with Bisleri International Pvt. Ltd. From the above table we had got that
the average (mean) value 3.42, the mid value is 03, the mode value is 03 and the std.
Deviation is 0.883.
Interpretation
From the above graph we had found that the maximum distributors have average
relationship with Bisleri International Pvt. Ltd. the maximum distributors have bad
relationship with Bisleri International Pvt. Ltd.
Table 4.10 Do you also stock the other brand in distribution unit?
Frequency Percent
100%
90%
80%
46 54 100
70%
60% Percent
50% Frequency
40%
30%
20%
10%
0%
4.10 graph showing Do you also stock the other brand in distribution unit?
Analysis
It is found that 54% distributors said no & 46% are said yes stock the other brand in
distribution unit.
Interpretation
From the above graph we had found that the maximum distributors said no to stock
the other brand in distribution unit and the minimum distributor said yes to stock the
other brand in distribution unit.
Table 4.11 Comparing to other company products the price of products of Bisleri
International Pvt. Ltd.?
Frequency Percent
Cumulative
Frequency Percent Valid Percent Percent
Statistics
N Valid 50
Missing 0
Mean 2.70
Median 3.00
Mode 3
Std. Deviation .707
100
100
90
80
70
60 54
50
50 Frequency
Percent
40 32
27
30
16
20 10
4 5
10 2
0
Low Reasonable High Very high Total
4.11 graph showing comparing to other company products the price of products of
Bisleri International Pvt. Ltd.?
Analysis
From the above analysis 54% distributors said that comparing to other company
products the price of products of Bisleri International Pvt. Ltd. Was high, 32% said
that reasonable, 10% said very high & 4% said that it is low. From the above table we
had got that the average (mean) value 2.70, the mid value is 03, the mode value is 03
and the std. Deviation is 0.707.
Interpretation
From the above graph we had found that the maximum respondents said that the price
of the products of Bisleri International Pvt. Ltd. Is high the minimum respondents
said that the price of the products of Bisleri International Pvt. Ltd, Is low.
Table 4.12 Promotional support that has been provided by company is?
Frequency Percent
Cumulative
Frequency Percent Valid Percent Percent
Statistics
N Valid 50
Missing 0
Mean 3.06
Median 3.00
Mode 3
Std. Deviation .682
Frequency
1
7
Below average
Average
Good
30 Excellent
50 Total
12
4.12 graph showing Promotional support that has been provided by company is?
Analysis
From the above analysis 60% of distributors said that the Promotional support that
has been provided by company is good, 24% said that excellent, 14% average & 2%
were said that it is below average. From the above table we had got that the average
(mean) value 3.06, the mid value is 03, the mode value is 03 and the std. Deviation is
0.682.
Interpretation
From the above graph we had found that the maximum respondents said that the price
of the products of Bisleri International Pvt. Ltd. Is high the minimum respondents
said that the price of the products of Bisleri International Pvt. Ltd. Is low.
Table 4.13 How satisfied are you with the current policy regarding SCM?
Frequency Percent
Cumulative
Frequency Percent Valid Percent Percent
Statistics
N Valid 50
Missing 0
Mean 3.18
Median 3.00
Mode 3
Std. Deviation 1.137
160
140
120
100
100
80 Percent
Frequency
60
42
40
20 18
20 14
6
0
Not at all Somewhat Satisfied Quite Very Total
satisfied satisfied
4.13 graph showing How satisfied are you with the current policy regarding SCM?
Analysis
It is found that 42% distributors are satisfied, 20% are somewhat satisfied, 18% very
satisfied, 14% are quite satisfied & 6% are not at all satisfied with the current policy
regarding SCM. From the above table we had got that the average (mean) value 3.18,
the mid value is 03, the mode value is 03 and the std. Deviation is 1.137.
Interpretation
From the above graph we had found that the maximum distributors are satisfied with
the current policy regarding SCM. The minimum distributors are not at all satisfied
with the current policy regarding SCM.
Frequency Percent
Cumulative
Frequency Percent Valid Percent Percent
Statistics
N Valid 50
Missing 0
Mean 2.84
Median 3.00
Mode 1
Std. Deviation 1.670
Frequency
18
50
8
14
Analysis
From the above analysis 36% distributors motivated to sell or push bisleri, 28% are
said other brand, 16% said Aquafina, 10% said kingfisher & kinley. From the above
table we had got that the average (mean) value 2.84, the mid value is 03, the mode
value is 01 and the std. Deviation is 1.670.
Interpretation
From the above graph we had found that the maximum distributors are motivated to
sell or push bisleri products and the minimum distributors are motivated to sell or
push kingly and kingfisher products.
Table 4.15 Are you happy with the margin given by the Bisleri International Pvt.
Ltd.?
Frequency Percent
100
100
90
80
70
54
60 Frequency
46
50 Percent
40
30
20
10
0
4.15 graph showing Are you happy with the margin given by the Bisleri International
Pvt. Ltd.?
Analysis
It is found that 54% of distributors are said yes & 46% are said no with the margin
given by the Bisleri International Pvt. Ltd
Interpretation
From the above graph we had found that the maximum distributors said yes by the
margin given by the Bisleri International Pvt. Ltd. The minimum said no by the
margin given by the Bisleri International Pvt. Ltd.
HYPOTHESIS
Hypothesis1:
Delivery
Test Statistics
deliver
Chi-Square(a) 1.280
Df 1
Asymp. Sig. .258
Graph: 4.16
Delivery
35
30
25
20
15
10
0
Yes No
Analysis:
From the above analysis 58% respondents said no & 48% respondents said yes
deliver of products on time as per our order.
Result:
Interpretation:
After doing Chi-Square test, we had found that the calculated value of the Chi-Square
is 1.280 and the table value of the Chi-Square is 3.841. The calculated value is
smaller than the table value. So, we can conclude by saying that H0 is accepted,
which means that the delivery of products on time by Bisleri International Pvt. Ltd is
effective and H1 is rejected, and which means the delivery of products on time by
Bisleri International Pvt. Ltd. is effective.
Hypothesis: 2
H0: There is a significance of distributer satisfy with the current policy regarding
supply chain management
H1: There is no significance of distributer satisfy with the current policy regarding
supply chain management
SCM
Test Statistics
scm
Chi-Square(a) 18.000
df 4
Asymp. Sig. .001
Graph:4.17
25
20
15
21
10
10 9
5 7
3
0
Not at all Somewhat Satisfied Quite satisfied Very satisfied
Analysis:
It is found that 42% distributors are satisfied, 20% are somewhat satisfied, 18% very
satisfied, 14% are quite satisfied & 6% are not at all satisfied with the current policy
regarding SCM.
Result:
Interpretation:
After doing Chi-Square test, we had found that the calculated value of the Chi-Square
is 18.00 and the table value of the Chi-Square is 9.488. The calculated value is higher
than the table value. So, we can conclude by saying that H0 is rejected, which means
that the Bisleri International Pvt. Ltd. current policy of scm is not effective and H1 is
accepted, and which means that the Bisleri International Pvt. Ltd. current policy of
scm is effective.
CHAPTER 5
FINDINGS
5.1 Findings
2. Bisleri is the market leader and having neck to neck competition with Kinley.
3. Majority of distributors are operating from past 2-3 years.
4. Majority of distributors have chosen Bisleri International Pvt. Ltd. because of
Brand image, market demand& profit margin.
5. Majority of distributors are satisfied with the distribution from Bisleri
International Pvt. Ltd.
6. 50% of damage goods are replaced from manufacturing unit.
7. The Bisleri International Pvt. Ltd. is not managing its SCM in proper way.
8. The products are not delivered as per the order given by the distributors to
manufacturing unit.
9. There is an average relationship between distributors & the Bisleri
International Pvt. Ltd. It was observed during the interview that, many of the
dealers felt that the incentive schemes were the major reason for the poor
relationship.
10. The price of the Bisleri products is higher than competitor’s products.
11. Majority of distributors are satisfied with the current policy regarding SCM.
12. The delivery activities of department lies in average.
13. The working strategies of SCM department are good.
14. Majority of the distributors are not having other brand of products in unit.
15. Company has provided good promotional support for distributors.
16. The distributors are highly motivated by the Bisleri International Pvt. Ltd.
17. Majority of distributors are happy with margin given by the Bisleri
International Pvt. Ltd.
5.2 Suggestions
5. Counters outside hospitals, cinema halls, at bus stands & at the tourists areas
should be given special consideration.
5.3 Conclusion
Future supply chains are likely to be more dynamic in nature, and consist of
collaborative value networks in which productivity and efficiency are constantly
maximised. Purchasing firms need to ensure that costs and risks are equitably shared
across the supply chain. Risk management has become a strategic imperative –
particularly for manufacturers operating global supply chains.
The supply chain management process works through the implication of a strategic
plan that ensures the desired end product leaving a customer with maximum
satisfaction levels at the lowest possible cost.
The activities or the functions involved in this type of management process are
divided into three levels: the strategic level, the tactical level and the operational level
The efficient delivery of the product to the consumer at the right price, in the right
place and at the right time will result in good business for each link of the chain. This
takes strategic planning and effective collaboration with all partners.
Specialization is more cost-effective for Kellogg's and partnering with other industry
specialists reduces costs to the business, the customer and the environment. Kellogg's
champions socially responsible operations. Through effective supply chain
management, it benefits itself, the environment and other businesses.
Bibliography
Books:
Website:
www.bisleri.com
http://www.wikipedia.org/
http://www.scribd.com
http://www.slideshare.net/
Journals:
APPENDICES
Survey
or: Rahul Y
Name of the Distributing Unit: …………………………………..
Area: ………………………………………….
…………………………………………………
1. From how many years you are distributor of Bisleri International Pvt. Ltd.?
a. 1-2 Years b. 2-4 Years
c. 4-8 Years d. Above 8 Years
3. Overall how do you rate the distribution from Bisleri International Pvt. Ltd.?
a. Highly Satisfied b. Satisfied
c. Dissatisfied d. Highly Dissatisfied
e. Nor or Neither Satisfied
5. How successful do you think is your company in managing its supply chain in
general?
a. Not Successful at all b. Not successful
c. Somewhat successful d. Successful
e. Very Successful
6. Is your deliver of products on time as per your order?
a. Yes b. No
13. How satisfied are you with the current policy regarding SCM?
a. Not at all b. Somewhat
c. Satisfied d. Quite Satisfied
e. Very Satisfied
15. Are you happy with the margin given by the Bisleri International Pvt. Ltd.?
a. Yes b. No
…………………………………………………………………………………………
…………………………………………………………………………………………
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