REFRESHING FLAVOR

MADE FOR SHARING

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INTORDUCTION
The 50-bn-rupee soft drink industry is growing now at 6 to 7% annually. In India, Coke and
Pepsi have a combined market share of around 95% directly or through franchisees. Campa
Cola has a 1% share, and the rest is divided among local players. Industry watchers say, fake
products also account for a good share of the balance. There are about 110 soft drink
producing units (60% being owned by Indian bottlers) in the country, employing about
125,000 people. There are two distinct segments of the market, cola and non-cola drinks.
The cola segment claims a share of 62%, while the non-cola segment includes soda, clear
lime, cloudy lime and drinks with orange and mango flavors.

We are starting new company call BIG K. BIG K brand is the largest multinational
beverage in the world. Demand for BIG K is increasing day by day due to its cheaper rate,
good quality, and beater taste and healthy to all age group. BIG K has many benefits as
compared to other soft drinks. BIG K comes with enormous global brand weight and it is
competing with the existing top brands in the country such as Pepsi, coca cola, etc. These
drinks contains sugar, caffeine and aspartame which can be healthy to adults but not for
childrens and old age people. BIG K is caffeine free to appeal to both adults and children.
There are several flowers in the BIG K such as ginger sods, ginger lemon, jeera soda, and
many fruits juices. BIG K is famed for not containing any caffeine. This future makes BIG K
an international favorite soft drink brand. There are three flowers available in BIG K SUCH
as orange, lime, and cola are best product in the world. The bottle size starts from 300ml to
2.50 in all there flavors. BIG K is the most suitable, tasty and safe soft drink for all ages in
the world.

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TARGET AUDIENCE

The company has set certain limitations when it comes to target marketing. BIG K

targets mostly people who are 12 years old or older. According to BIG K, the company

is reducing the amount of advertising that targets children who are younger than 12. The

company indicates that it avoids buying advertising that markets to an audience ratio that is

more than 35 percent under the age of 12.

According to the company's marketing statement, BIG K is promoting responsible

marketing strategies by avoiding extensive advertising to children and disclosing nutritional

information of all BIG K products to parents in order to allow them to decide what their

children should drink. This change in advertising strategy pertains to all media outlets. BIG

K is trying to promote a health-conscious image, such as its water brands like Dasani and

Smart Water.

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According to the New York Times, BIG K is also trying to target health-conscious

consumers. More of BIG Ks advertising also targets affluent, young people with

products like BIG K Life. BIG Ks products and marketing campaigns are also

targeting international audiences.

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BRANDING STRATEGY

When a popular brand rebrands, you can bet that it is for some very good reasons. A couple
of these reasons are
It wants to refresh its image
It wants to promote itself to a global audience

BIG Ks foray into logo-less branding achieved both flawlessly when it removed its

labels from its cans. This time, it takes a rather different approach to its branding strategy it

unifies four of its products under one umbrella. And that umbrella is a Red Disc and color

coordinated packaging.

The move is a part of BIG Ks One Brand unification strategy and its Feel The Fresh
campaign. The campaign currently focuses on four of the brands products Big K Orange,
Big K Cola, Big K Diet Cola.

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Its Taste the Feeling campaign, on the other hand, focuses less on world peace and more

on the brand itself. You can see why the packaging is customized this time. The purpose is to

help consumers make more informed choices about their choice of big k.

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Brand Extension:

The Brand extension is commonly used by well-known brands that use their image to launch

new varieties of their products in order to satisfy different needs of their current consumers

as well as to gain new ones. This strategy is also implemented when a new trend is being

developed in the market and to enlarge the brands awareness.

In the Cola market, Coca Cola and Pepsi have both been very active in this matter. They

have taken advantage of their brand equity and launched several variations of their regular

products in terms of flavors and ingredients. The brand stretching with not only the highest

impact in sales but also the oldest attempt of widen the brands portfolio has been diet or

light products, that still today continues to be updated with new versions thanks to the health

concerns both brands have acquired as seen previously in the blog and trying to respond to an

ever increasing demand of consumers for healthier products.

The rivalry between Coca Cola and Pepsi is evident as well in this field, where being the first

to develop an idea is very important and usually the other brand responds to this initiatives

by launching a similar product.

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Lets take a look to the most important examples of brand extension for Coca Cola and
Pepsi!

Coca Cola:

Coca Cola Zero: introduced in 2005 within the low calories segment and its main

target are men, because they tend to link Diet and Light to women. It is intended to be

the same taste as the Coca Cola Classic, while Coca Cola Light/Diet Coke has a different

formula. Is sweetened with a blend of low-calorie sweeteners, while Diet Coke is

sweetened with aspartame

Coca-Cola Cherry, Diet Cherry and Zero Cherry: it was launched in 1985 and was

the third variation of the brand. Then, in 1986 thanks to a successful performance Diet

Cherry Coke was introduced and in 2007 was added Coca-Cola Cherry Zero

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 Coca-Cola Black Cherry Vanilla and Diet: it was launched in 2006 but due to low

sales it was then discontinued in 2007

Pepsi:

Diet / Light Pepsi: Introduced in 1964 to attack the current competitor Tab

produced by The Coca Cola Company that was an innovative Cola in the Low Calories

segment. Nowadays it is one of the main products of the Pepsi Portfolio

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 Pepsi Next: launched in 2013 with 30% less sugar than regular Pepsi and no

artificial sweeteners. Is specially created for people who dont like Diet Pepsis taste

Pepsi Wild Cherry: Introduced in 1988 in order to compete against Cherry Coke

that was developed two years earlier

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 Pepsi Free: Developed in 1982 and it is a Caffeine-Free that is today known as

Caffeine-Free Pepsi and Caffeine-Free Diet Pepsi

BIG K. customers are buying its corporate brands at a faster rate than national brands and the

Cincinnati-based grocer is working to expand its offerings.

BIG K brand sales represented 27 percent of grocery department sales dollars and 34 percent

of grocery department units sold, up from 26 percent a year ago, BIG K President and Chief

Operating Officer Rodney McMullen said in a call with investors. Compared to the first

quarter, the BIG K brand dollar share and total units each increased 100 basis points.

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To further boost its corporate brand sales, BIG K is launching five new flavors of its Big K

soda products. The new flavors are Apple, Pineapple Passionfruit, Watermelon Kiwi,

Blackberry Citrus and Mandarin.

Our multi-billion dollar Corporate Brands portfolio is a competitive advantage because it

gives our customers more choices in variety and value to complement the broad

assortment of national brand products we offer, This is particularly important today as

many shoppers continue to watch expenses and look for quality items at affordable prices.

Cincinnati-based BIG K operates 40 food processing plants in the INDIA.

My favorite Big K soda has always been Cherry Cola. It's got more cherry flavor than other

cherry colas, almost like a full-on cherry soda.

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Types of Branding Strategies:
A branding strategy helps establish a product within the market and to build a brand that will
grow and mature in a saturated marketplace. Making smart branding decisions up front is
crucial since a company may have to live with the decision for a long time. The following are
commonly used branding strategies:

Company Name
In this case a strong brand name (or company name) is made the vehicle for a range of
products (for example, Mercedez Benz or Black & Decker) or a range of subsidiary brands
(such as Cadbury Dairy Milk or Cadbury Fingers in the United States).

Individual Branding
Each brand has a separate name, putting it into a de facto competition against other brands
from the same company (for example, Kool-Aid and Tang are both owned by Kraft Foods).
Individual brand names naturally allow greater flexibility by permitting a variety of different
products, of differing quality, to be sold without confusing the consumer's perception of what
business the company is in or diluting higher quality products.

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Attitude Branding and Iconic Brands
This is the choice to represent a larger feeling, which is not necessarily connected with the
product or consumption of the product at all. Companies that use attitude branding include:
Nike, Starbucks, The Body Shop, and Apple, Inc. Iconic brands are defined as having aspects
that contribute to the consumer's self-expression and personal identity.

Brands whose value to consumers comes primarily from having identity value are said to be
"identity brands. " Some brands have such a strong identity that they become "iconic brands"
such as Apple, Nike, and Harley Davidson.

"No-brand" Branding
Recently a number of companies have successfully pursued "no-brand" strategies by creating
packaging that imitates generic brand simplicity. "No brand" branding may be construed as a
type of branding as the product is made conspicuous through the absence of a brand name.
"Tapa Amarilla" or "Yellow Cap" in Venezuela during the 1980s is a prime example of no-
brand strategy. It was simply recognized by the color of the cap of this cleaning products
company.

Multi-brands Strategy
Alternatively, in a very saturated market, a supplier can deliberately launch totally new
brands in apparent competition with its own existing strong brand (and often with identical
product characteristics) to soak up some of the share of the market. The rationale is that
having 3 out of 12 brands in such a market will give a greater overall share than having 1 out
of 10. Procter & Gamble is a leading exponent of this philosophy, running as many as ten
detergent brands in the US market. In the hotel business, Marriott uses the name Fairfield
Inns for its budget chain.

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Private Labels
Also called own brands, or store brands, these have become increasingly popular. Where
the retailer has a particularly strong identity this "own brand" may be able to compete against
even the strongest brand leaders, and may outperform those products that are not otherwise
strongly branded.

Crowdsourcing Branding
These are brands that are created by the people for the business, which is opposite to the
traditional method where the business creates a brand. This type of method minimizes the
risk of brand failure, since the people that might reject the brand in the traditional method are
the ones who are participating in the branding process.

Nation Branding
This is a field of theory and practice which aims to measure, build, and manage the
reputation of countries (closely related to place branding).

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Today every company focuses on branding activities as to develop brand. To maintain a
brand image is very crucial.

The marketing mix is a very important concept of marketing which involves the 4 main

elements i.e people, prom otion, place

and price. However, the second most important factor in the marketing mix after product is
the type of pricing being used. This is because the type of pricing can alter the distribution
and the promotion mix as well.

When establishing a new company or even after years of existence on the market, it is a big
challenge to set up the right price for your products and services. The dilemma is, if you set
the price too high you risk losing customers or not attracting customers at all, and if you set it
too low, you will probably have no return on your investment and very low margins.

There are several factors which need be taken into consideration before setting up prices, and
these factors are influenced by current market supply and demand, competition levels as well

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as other political and economic influences. During the price planning process, your main
focus should lie in finding the right price point where you can maximize your sales and
profits. This usually depends on your individual marketing goals and objectives.

11 types of pricing strategy

1. Premium pricing

It is a type of pricing which involves establishing a price higher than your

competitors to achieve a premium positioning. You can use this kind of
pricing when your product or service presents some unique features or core
advantages, or when the company has a unique competitive advantage
compared to its rivals. For example, Audi and Mercedes are premium
brands of cars because they are far above the rest in their product design
as well as in their marketing communications.

2. Penetration pricing

This type of pricing is designed to capture market share by entering the market with a
low price as compared to the competition. The penetation pricing strategy is used in
order to attract more customers and to make the customer switch from current brands
existing in the market. The main target group is price sensitive customers. Once a
market share is captured, the prices are increased by the company. However, this is a
sensitive strategy to apply as the market might be penetrated by yet another new
entrant. Or the margins are so low that the company does not survive. And finally, this
strategy never creates long term brand loyalty in the mind of customers. This strategy
is used mainly to increase brand awareness and start with a small market share.

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3. Economy pricing

This type of pricing takes a very low cost approach. Just the bare minimum to keep
prices low and attract a specific segment of the market that is highly price sensitive.
Examples of companies focusing on this type of pricing include Walmart, Lidl and
Aldi

4. Skimming price

Is used by companies that have a significant competitive advantage and which can gain
maximum revenue advantage before other competitors begin offering similar products
or substitutes. It can be the case for innovative electronics entering the marketing
before the products are copied by close competitors or Chinese manufacturers. After
being copied, the product loses its premium value and hence the price has to be
dropped immediately. Thus, to get maximum margins from their products, innovative
companies keep launching new variants so that customers are always in the discovery
phase and paying the required premium.
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5. Psychological pricing

Is a type of pricing which can be translated into a small incentive that can make a huge
impact psychologically on customers. Customers are more willing to buy the necessary
products at $4,99 than products costing $5. The difference in price is actually
completely irrelevant. However, it make a great difference in the mind of the
customers. This strategy can frequently be seen in the supermarkets and small shops.

6. Neutral strategy

Focuses on keeping the prices at the same level for all four periods of the product life
cycle. However, with this type of strategy, there is no opportunity to make higher
profits and at the same time it doesnt allow for increasing the market share. Also,
when the product declines in turnover, keeping the same price effects the margins
thereby causing an early demise. This pricing is used very rarely.

7. Captive product pricing

Is a type of pricing which focuses on captive products accompanying the core

products. For example, the ink for a printer is a captive product where the core product
is the printer. When employing this strategy companies usually put a higher price on

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 the captive products resulting in increased revenue margins, than on the core product.

8. Optional product pricing

Can be frequently observed in the case of airline companies. For example, the basic
product of KLM Airlines is offering or providing seats in the airplane for different
flights. However, once the customers start purchasing these seats, they are offered
optional features along with the seats. Examples may be extra seat space, more drinks
etc. Because of this optional product, there is more revenue generated from the main
product. Customers are willing to spend for the optional product as well.

9. Bundling price

Ever hear of the offer of 1 + 1 free? In the supermarket, when two different products
are combined together such as a razor and the lotion for shaving, and they are offered
as a deal, then we get to experience the bundling type of pricing first hand. This
strategy is mainly used to get rid of excess stocks.

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10. Promotional pricing strategy

Is just like Bundling price. But here, the products are bundled so as to make the
customer use the bundled product for the first time. This type of pricing focuses on
buying one, and getting a new type of product for free. Promotional pricing can also
serve as a way to move old stock as well as to increase brand awareness

11. Geographical pricing

Involves variations of prices depending on the location where the product and service
is being sold and is mostly influenced by the changes in the currencies as well as
inflation. An example of geographic pricing can also be the sales of heavy machinery,
which are sold after considering the transportation cost of different locations.

There are three different pricing strategies we are primarily follow:

Price skimming: charging premium price initially to earn maximum revenue.

Market Pricing: setting price as going market rate(by competitors)
Market Penetration: charging lowest price to achieve highest possible sales.

To first determine its price, they used a cost-based

Pricing system for its Original big k. they first Cost based pricing
Designed the product, the original big k, determined
the cost for the product (product costs, capital cost,
Market penetration
and operational costs), set a price based on the
cost of soft drink, and finally convinced the pricing

consumer of the sodas value.

Competition based

pricing

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 We uses the segmentation pricing strategy. Based on different packages, BIG K
is available at different price. By their product in different sizes and at different
costs, they get to increase their revenue, because there is not much difference in
the costs required to produce the product. Following are the different packages
available for different target audience:
1. RGB- Retumable/ Refillable Glass Bottles
2. PET- Plastic Bottles
3. CAN- Aluminum Cans(Tins)
4. Tetra- Tetra Packs
5. BIB- Beverages in bag

Following are the different pricing for different sizes:

1. BIG K COLA

Packs 200ml 300ml 600ml 1.50ml 2.25ml 3000ml

Price 10 15 32 55 78 88

2. BIG K ORANGE

Packs 200ml 300ml 600ml 1.50ml 2.25ml 3000ml

Price 10 15 32 55 78 88

3. BIG K LIME

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 Packs 200ml 300ml 600ml 1.50ml 2.25ml 3000ml
price 10 15 32 55 78 88

4. BIG K SODA

Packs 600ml
Price 23

PRICING OBJECTIVES
Pricing can be defined as the process of determining an appropriate price for the product, or
it is an act of setting price for the product. Pricing involves a number of decisions related to
setting price of product. Pricing policies are aimed at achieving various objectives. Company
has several objectives to be achieved by the sound pricing policies and strategies. Pricing
decisions are based on the objectives to be achieved. Objectives are related to sales volume,
profitability, market shares, or competition. Objectives of pricing can be classified in five
groups as shown in figure 1.

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1. Profits-related Objectives:
Profit has remained a dominant objective of business activities.

Companys pricing policies and strategies are aimed at following profits-related

objectives:

I. Maximum Current Profit:

One of the objectives of pricing is to maximize current profits. This objective is aimed at
making as much money as possible. Company tries to set its price in a way that more current
profits can be earned. However, company cannot set its price beyond the limit. But, it
concentrates on maximum profits.

ii. Target Return on Investment:

Most companies want to earn reasonable rate of return on investment.

Target return may be:

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(1) fixed percentage of sales,

(2) Return on investment, or

(3) A fixed rupee amount.

Company sets its pricing policies and strategies in a way that sales revenue ultimately yields
average return on total investment. For example, company decides to earn 20% return on
total investment of 3 crore rupees. It must set price of product in a way that it can earn 60
lakh rupees.

2. Sales-related Objectives:
The main sales-related objectives of pricing may include:

i. Sales Growth:
Companys objective is to increase sales volume. It sets its price in such a way that more and
more sales can be achieved. It is assumed that sales growth has direct positive impact on the
profits. So, pricing decisions are taken in way that sales volume can be raised. Setting price,
altering in price, and modifying pricing policies are targeted to improve sales.

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ii. Target Market Share:
A company aims its pricing policies at achieving or maintaining the target market
share. Pricing decisions are taken in such a manner that enables the company to
achieve targeted market share. Market share is a specific volume of sales determined
in light of total sales in an industry. For example, company may try to achieve 25%
market shares in the relevant industry.

iii. Increase in Market Share:

Sometimes, price and pricing are taken as the tool to increase its market share. When
company assumes that its market share is below than expected, it can raise it by appropriate
pricing; pricing is aimed at improving market share.

3. Competition-related Objectives:
Competition is a powerful factor affecting marketing performance. Every company tries to
react to the competitors by appropriate business strategies.

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With reference to price, following competition-related objectives may be priorized:

i. To Face Competition:
Pricing is primarily concerns with facing competition. Todays market is characterized by the
severe competition. Company sets and modifies its pricing policies so as to respond the
competitors strongly. Many companies use price as a powerful means to react to level and
intensity of competition.

ii. To Keep Competitors Away:

To prevent the entry of competitors can be one of the main objectives of pricing. The phase
prevention is better than cure is equally applicable here. If competitors are kept away, no
need to fight with them. To achieve the objective, a company keeps its price as low as
possible to minimize profit attractiveness of products. In some cases, a company reacts
offensively to prevent entry of competitors by selling product even at a loss.

iii. To Achieve Quality Leadership by Pricing:

Pricing is also aimed at achieving the quality leadership. The quality leadership is the image
in mind of buyers that high price is related to high quality product. In order to create a
positive image that companys product is standard or superior than offered by the close
competitors; the company designs its pricing policies accordingly.

iv. To Remove Competitors from the Market:

The pricing policies and practices are directed to remove the competitors away from the
market. This can be done by forgoing the current profits by keeping price as low as
possible in order to maximize the future profits by charging a high price after removing
competitors from the market. Price competition can remove weak competitors.

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4. Customer-related Objectives:
Customers are in center of every marketing decision.

Company wants to achieve following objectives by the suitable pricing policies and
practices:

i. To Win Confidence of Customers:

Customers are the target to serve. Company sets and practices its pricing policies to win the
confidence of the target market. Company, by appropriate pricing policies, can establish,
maintain or even strengthen the confidence of customers that price charged for the product is
reasonable one. Customers are made feel that they are not being cheated.

ii. To Satisfy Customers:

To satisfy customers is the prime objective of the entire range of marketing efforts. And,
pricing is no exception. Company sets, adjusts, and readjusts its pricing to satisfy its target
customers. In short, a company should design pricing in such a way that results into
maximum consumer satisfaction.

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5. Other Objectives:
Over and above the objectives discussed so far, there are certain objectives that company
wants to achieve by pricing.

They are as under:

i. Market Penetration:
This objective concerns with entering the deep into the market to attract maximum number of
customers. This objective calls for charging the lowest possible price to win price-sensitive
buyers.

ii. Promoting a New Product:

To promote a new product successfully, the company sets low price for its products in the
initial stage to encourage for trial and repeat buying. The sound pricing can help the
company introduce a new product successfully.

iii. Maintaining Image and Reputation in the Market:

Companys effective pricing policies have positive impact on its image and reputation in the
market. Company, by charging reasonable price, stabilizing price, or keeping fixed price can
create a good image and reputation in the mind of the target customers.

iv. To Skim the Cream from the Market:

This objective concerns with skimming maximum profit in initial stage of product life cycle.
Because a product is new, offering new and superior advantages, the company can charge
relatively high price. Some segments will buy product even at a premium price.

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v. Price Stability:
Company with stable price is ranked high in the market. Company formulates pricing
policies and strategies to eliminate seasonal and cyclical fluctuations. Stability in price has a
good impression on the buyers. Frequent changes in pricing affect adversely the prestige of
company.

vi. Survival and Growth:

Finally, pricing is aimed at survival and growth of companys business activities and
operations. It is a fundamental pricing objective. Pricing policies are set in a way that
companys existence is not threatened.

To first determine its price, I believe BIG K used a cost-based pricing system for its Original soft drink.
They first designed the product, the original big k, determined the costs for the product (product
costs, capital costs, and operational costs), set a price based on the cost of big k, and finally convinced
the consumers of the soda's value. From there, I think that big k chose to use market-penetration
pricing for its price. Here, they set low initial prices in order to attract a large number of buyers
quickly, to gain a large market share.

BIG K uses the following pricing strategies for Original BIG K:

BIG K uses the psychological pricing strategy for their Original soft drink. They set the price to
end in a 9, because this makes customers think the price is less than $2.50, to appeal to the
customer.

BIG K also uses the promotional pricing strategy. In store that cell BIG K, prices are often
temporarily priced below the list price to increase short-run sales. It gives the product a sense
of urgency and customers purchase the product because of the lower price.
BIG K uses the segmented pricing strategy for its Original BIG K. For instance, BIG K offers liter
bottles, 6-pack cans, 6-pack bottles, and 12-pack cans of the same product, all for separate

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 prices. By their product in different sizes and at different costs, they get to increase their
revenue, because there is not much difference in the costs required to produce the products.
BIG K also uses the international pricing strategy. For instance, the price of a 2-liter bottle of
BIG K in the United States is different from the price of the same product in China. This has to
do with the difference in economic conditions, competitive situations, and laws.

I think BIG K pricing strategy is working well. Based on financial reports (BIG K has increased profits
and income, which means that customers are purchasing more of the products, and because of this,
seem to be generally satisfied with the pricing. If they were not satisfied, they would choose another
brand over BIG K.

Distribution Strategies

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For product-focused companies, establishing the most appropriate distribution strategies is
a major key to success, defined as maximizing sales and profits. Unfortunately, many of
these companies often fail to establish or maintain the most effective distribution
strategies. Problems that we have identified include:

Unwillingness to establish different distribution channels for different products

Fear of utilizing multiple channels, especially including direct or semi-direct sales,
due to concerns about erosion of distributor loyalty or inter-channel cannibalization
Failure to periodically re-visit and update distribution strategies
Lack of creativity and resistance to change

To be fair, there can be sound reasons for these perceived weaknesses. More typically,
however, they are due to failings such as simple inertia, lack of understanding of the
ultimate customers and their preferences, or a failure to acknowledge the importance of a
distribution strategy and invest sufficient resources in understanding it.

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 Now is absolutely NOT the time to blindly continue the status quo with your
distribution strategies. The Internet is creating sea-changes in terms of traditional
manufacturer-distributor relations. It has seen significant waves of disintermediation in
multiple product lines, and can facilitate cost-effective broadening of distribution
channels. Meanwhile, improvements in supply chain management technologies must also
be factored into choice of distribution partners.

Info Trends can help your company improve its distribution strategies by:

Mapping your products to the end-user

Determining customers channel preferences and comparing these preferences with
actual availability
Recommending new channels, and why
Examining competitors strategies and comparing them and their effectiveness with
your own
Confidential interviews with your distribution partners to identify areas for
improvement, as well as existing strengths to be encouraged

There are three broad options:

1) Intensive Distribution:

Intensive distribution aims to provide saturation coverage of the market by using all available
outlets. For many products, total sales are directly linked to the number of outlets used (e.g.,
cigarettes, beer). Intensive distribution is usually required where customers have a range of
acceptable brands to choose from. In other words, if one brand is not available, a customer
will simply choose another.

This alternative involves all the possible outlets that can be used to distribute the product.
This is particularly useful in products like soft drinks where distribution is a key success

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factor. Here, soft drink firms distribute their brands through multiple outlets to ensure their
easy availability to the customer.

Hence, on the one hand these brands are available in restaurants and five star hotels and on
the other hand they are also available through countless soft drink stalls, kiosks, sweetmeats,
tea shops, and so on. Any possible outlet where the customer is expected to visit is also an
outlet for the soft drink.

2) Selective Distribution:
Selective distribution involves a producer using a limited number of outlets in a geographical
area to sell products. An advantage of this approach is that the producer can choose the most
appropriate or best-performing outlets and focus effort (e.g., training) on them. Selective
distribution works best when consumers are prepared to shop around in other words
they have a preference for a particular brand or price and will search out the outlets that
supply. When the firm distributes its brand through just one or two major outlets in the

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market, who exclusively deal in it and not all competing brands, it is said that the firm is
using an exclusive distribution strategy. This is a common form of distribution in products
and brands that seek a high prestigious image.

Typical examples are of designer ware, major domestic appliances and even automobiles. By
granting exclusive distribution rights, the manufacturer hopes to have control over the
intermediaries price, promotion, credit inventory and service policies. The firm also hopes to
get the benefit of aggressive selling by such outlets.

This alternative is the middle path approach to distribution. Here, the firm selects some
outlets to distribute its products. This alternative helps focus the selling effort of
manufacturing firms on a few outlets rather than dissipating it over countless marginal ones.

It also enables the firm to establish a good working relationship with channel members.
Selective distribution can help the manufacturer gain optimum market coverage and more
control but at a lesser cost than intensive distribution. Both existing and new firms are known
to use this alternative.

3) Exclusive Distribution:
Exclusive distribution is an extreme form of selective distribution in which only one
wholesaler, retailer or distributor is used in a specific geographical area. When the firm
distributes its brand through just one or two major outlets in the market, who exclusively deal
in it and not all competing brands, it is said that the firm is using an exclusive distribution
strategy. This is a common form of distribution in products and brands that seek a high
prestigious image.

Typical examples are of designer ware, major domestic appliances and even automobiles. By
granting exclusive distribution rights, the manufacturer hopes to have control over the

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intermediaries price, promotion, credit inventory and service policies. The firm also hopes
to get the benefit of aggressive selling by such outlets.

The BIG K Company is an INDIAN business that operates on a local scale, in every
community where they do business. The term is second most well-known after okay, making
it recognizable in nearly all communities and cultures across the INDIA. The Company is
able to create a global a global reach with local focus because of the strength of its system,
which comprises the BIG K Company and their more than 250 bottling partners worldwide.

The system has numerous legal and managerial departments and sections, all independent of
each other, and it does not own or control all of it bottling partners in all over INDIA.

While it is generally perceived that BIG K runs all its operations in INDIA it, this process it
done through various local channels. The Company manufactures and sells concentrates,
beverage bases and syrups to bottling operators. It still however, owns the brand and is
responsible for consumer brand marketing initiative. The bottling partners manufacture,
package and distribute the final branded beverages to customers and vending partners, who
then sell products to consumers.

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All bottling partners work closely with suppliers- grocery stores, restaurants, convenience
stores, amongst many others- to execute localized strategies developed in partnership with
BIG K. More precisely, although BIG K is a INDIAN company, its products never have to
travel far to reach the final consumer, making the product more local than you may think, the
product is made local to the market where it is sold.

Their business is a local business, typically products arent shipped more than a few hundred
miles; its all about being responsive to the customers needs and the local tastes of the
consumers in every market. The BIG K Company sells its products to bottling and canning
operations, distributers, fountain wholesalers and some fountain retailers. They then
distribute them to retail outlets, corner stores, restaurants, petrol stations and many more.

Arrays of points of sales that BIG K products can roughly be categorized into are:

Wholesalers/ distributers

Retail/ corner stores/ super markets

Restaurants/ cafes/ night clubs

Petrol stations

Automated teller machines (AMTs)

The firms distribution system is one of the most well planned and executed compared to all
other drinks of the same category. It has such an impact on consumers and is so successful
that even wholesalers and distributers need the product for their business success. BIG Js
position on consumers mind makes it essential to retailers and wholesalers. They have

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achieved their goal due to this high visibility, and to the availability of their products all over
the world, even remote places.

REFRAESING FLAWER MADE FOR SHARING

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Sales Promotion Meaning
The most important tool used in promotion is sales promotion. Most consumers relate ideas
of marketing to the use of sales promotion techniques. The other main forms are advertising,
and personal selling. The following section deals with sales promotion in detail.
Advertising takes the buyer towards the product, while sales promotion takes the product
towards buyer.

The word promotion is derived from the Latin word Promovere. This means to move
forward or to push forward an idea. Sales promotion is the important element of promotion
mix. The general purpose of Sales promotion is to boost product selling.

Objectives of sales promotion

Sales promotion secures the following objectives:

1. Bridge between advertising and personal selling: Sales

promotion consists of those activities other than personal selling, advertising and publicity. It
serves as a bridge between personal selling and advertising.

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2. Introduction of new products: Sales promotional devices help introduce
new products in the market. They induce buyers to purchase a new product. Free samples are
distributed or money or merchandise allowance is offered to the dealers to stock and sell the
new product.

3. Attracting new customers: Sales promotion aims at wooing new customers.

Sales promotional devices at consumers level include Coupons, product samples, giving
demonstration about the product, organizing contests, refund offers, offering free trials etc.
These stimulate customers to make purchase promptly on the spot.

4. Inducing present customers to buy: Sales promotion induces present

customers to buy more of the product. Sales promotion methods work faster than
advertisement. Moreover, sales promotion materials make the salesmans effort more
productive. It enables the consumer to know more about the product, its ingredients and uses.

5. Increasing sales during off season: Some products are seasonal in

nature. After the season is over, they are not demanded any more. Sales promotion is used to
retain customers interest in the product during off-season. Short term incentives offered to
the buyers stimulate sales.

6. Encouraging business buyers: Wholesalers and retailers purchase goods

for resale. Promotional activities are undertaken to attract retailers and wholesalers to stock
the products more. Display and advertising allowances are granted to dealers to compensate
them for the space given for the display of manufactured products. Premiums are offered for
purchasing above a particular level.

7. Improving the public image of the firm: Huge amounts are now

being spent on determining appeals for arresting the attention of the prospects towards the
product. Consumers dissatisfaction about a particular brand can be removed by aggressive
sales promotion programmers. Sales promotional devices make products popular among
customers. Ultimately, they enhance the public image of the firm.

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Sales promotion is any initiative undertaken by an organization to promote an increase in
sales, usage or trial of a product or service (i.e. initiatives that are not covered by the other
elements of the marketing communications or promotions mix). Sales promotions are varied.
Often they are original and creative, and hence a comprehensive list of all available
techniques is virtually impossible (since original sales promotions are launched daily!). Here
are some examples of popular sales promotions activities:(a)

Buy-One-Get-One-Free (BOGOF)
- Which is an example of a self-liquidating promotion. For example if a loaf of bread is
priced at $1, and cost 10 cents to manufacture, if you sell twofer $1, you are still in profit -
especially if there is a corresponding increase in sales. This is known as a PREMIUM sales
promotion tactic.(b)

Customer Relationship Management (CRM)

Incentives such as bonus points or money off coupons. There are many examples of CRM,
from banks to supermarkets.

New media
- Websites and mobile phones that support a sales promotion. For example, in the United
Kingdom, Nestle printed individual codes on KIT-KAT packaging, whereby a
consumer would enter the code into a dynamic website to see if they had won a prize.
Consumers could also text codes via their mobile phones to the same effect.(d)

Merchandising
Additions such as dump bins, point-of-sale materials and product demonstrations.

Free gifts

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E.g. Subway gave away a card with six spaces for stickers with each sandwich purchase.
Once the card was full the consumer was given a free sandwich.

Discounted prices
E.g. Budget airline such as EasyJet and Ryanair, e-mail their customers with the latest low-
price deals once new flights are released, or additional destinations are announced.(g)

Joint promotions
Between brands owned by a company, or with another company's brands. For example fast
food restaurants often run sales promotions where toys, relating to a specific movie release,
are given away with promoted meals.

Free samples
E.g. tasting of food and drink at sampling points in supermarkets. For example Red Bull (a
caffeinated fizzy drink) was given away to potential consumers at supermarkets, in high
streets and at petrol stations (by a promotions team).(i)

Vouchers and coupons

, often seen in newspapers and magazines, on packs.(j)

Competitions and prize draws

, in newspapers, magazines, on the TV and radio, on The Internet, and on packs.(k)

Cause-related and fair-trade

Products that raise money for charities, and the less well-off farmers and producers, are
becoming more popular.(l)

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Finance deals
For example, 0% finance over 3 years on selected vehicles

PRAMOTION/ADVRTISMENT

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We adopt various advertising and promotional strategies to create an increased demand in the
market by associating with life style and behavior and mainly targeting value based
advertising. You are more likely to see a ginger cola ad individualized for a particular
festival or in with a general positive message. It has many brand ambassadors like Shahrukh
khan, Hrithik Roshan, South Indian Actor Vijay and Trisha , Ghambir, Aamir khan etc. and
has signed contract recently with Imran khan. It allows price discounts and allowances to
distributors and retailers in order to push more products into the market. It employs both
push strategy through promotions and pull strategy through advertisements and campaigns.
The all ads come on sports channels, movies channels, serials channel and so many other
channels.

BIG K

ADVERTISMENT MASSAGE TO CUSTOMER

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We introduced in brand in company and his name is GINGER COLA. The product is healthy
and safe to all age of group. In that there are three flowers are available in the market. The
are available in 300ml, 600ml, 1.50l, 2.50l bottles are in stores.

In future we introduced 4 new flowers in the market. The flowers are ginger lemon, ice cola,
and ginger orange, pulpy mango.

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