The Principles Of Strategic Management Marketing Essay

1974 words (8 pages) Essay

1st Jan 1970 Marketing Reference this


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In today’s business world we can see different kind of business. And person who is doing business wants to be successful and it is the main aim of any businessman. To become a successful businessman he or she should take right decisions in the right time and implement the changes required as per market requirement in the right time. Corporate strategy, strategic marketing, plays crucial role for any business organization. Businessman has to take decision in so many matters like capital issues, market forecasting etc. The study of strategic marketing management helps the managers to take such decisions depending on different marketing ideas or activities and situations which determine long run performance of organization. Due to such managerial marketing decisions organization can become the front runner and the aim of any businessman can be achieved successfully.

Organization summary:

Here I have selected the mineral water company having major supply in different metro cities and rural areas. Today most of peoples afford to buy mineral water because of the purchasing power of people has been increasing, Mineral water was first introduced in Bombay (Today’s Mumbai) in early 60’s.then after at start of 70’s Italian company Felice Bisleri came with idea of selling mineral bottled in india.then after some year’s name “Bisleri”became popular in market in two variants bubbly and still. In 1969 parle bought over Bisleri (India) Ltd.and started the business of mineral bottled water under the name”Bisleri”.

Bisleri got his expansion under the leadership and vision of Mr.Ramesh j.Chauhan.The company witnessed an exponential average growth rate over the 10years has been around 40% .at the end of year bisleri enjoying more than more than 60% of the market share in mineral water business segment. According to current market statistics Bisleri has 11 fanchisees and about 8 plants operate in India and another setting up new plans projects are under pipeline.

Outcome 1

Understand the principles of strategic marketing management.

Task 1

The role of strategic marketing is has been changing according to market. Marketing strategy adopted by ‘Bisleri’has also changed over the years. In the initial years when it was a frontrunner in mineral water market and positioned as a luxury item. The marketing punch line was “very very extraordinary”. Then international brand like coca cola and Pepsi entered in market ‘Bisleri’changed the strategy. But even after went through the international brand competition company remained positioned itself as a good quality product of the customer. But they changed the catch line to “Pure and safe”. But in recent years there were some quality problem like some insecticide contents found in some bottled of company.Marketing of the company has carried out in the medium like television, magazines, and company private transportation.

Relationship between marketing strategies with corporate strategy.

Marketing strategy: Strategic marketing mainly focuses to develop competitive advantage through the drivers of shareholder value. It delivers the value to business which requires insight into changing marketplace and helps in decision making regarding how to match organisation’s capabilities with promising value opportunities.

Corporate strategy: – It is concerned with long term survival and growth of business organization.

Defination: “the pattern of major objectives, purpose of goals and essentials policies and plans for achieving those goals, stated in such a way as a define what business the company is in or is to be in and the kind of the company it is or to a changing world it is a way of expressing a persistent concept of the business so as to exclude so possible new activities and suggests entry in to others”.

(Economics and corporate strategy, by Clive jullion satton, Andrews 1971, p 28,)

In corporate strategy the strategic management is a vital in which the senior’s managers have the responsibity in making the decisions. Effective strategies that enables organization to achieve its objectives. If the strategies being created by managers are inappropriate then this will ineffective choices made at all level of organization.

(Rob Dransfield, 2001Corporate strategy).

Relation between marketing strategies consists of company’s long term plan of action to increase the sales and profit. It is the key part of the marketing plan for a company. The marketing strategy is an important part of the corporate strategy. It is made in the direction of the organization which is directed by the corporate strategy. The marketing strategy is always in line with the corporate strategy. The need of to go together to be get success to organization. Corporate strategy is a total organization strategy which considers financial, marketing, and decision making .Marketing strategy is devised by the high level management because it totally reflects the growth and profit of organization. Other corporate strategies can be implemented within the organization but marketing strategies can play only in external environmement of organization. Because it directly relate to customer and other business corporation for increase their sales. Customer always constitutes the major resources of company revenue, marketing is bonded with sales.

Outcome 2

Explain the process of strategic marketing with the help of a diagram and elaborate each stage in the diagram. Give example with your chosen organization.

Strategic marketing is a market driven process of strategy development, which carry out in the business environment to give better service for better value. The main focus of organization is not only increasing sales but also make the performance better of organization. It also important to design the policies customer oriented.

1) Porters five process

2) PESTEL Analysis

Porters Five Forces:

In the year 1985r’Michael Porter’ introduced a tool which helps to assess the profit analysis of any business and to understand the environment of a business. Here porters five forces tool can be used for finding the environment of ‘Bisleri’function.The five forces of porters model are as follows.

Competitive rivalry.

Threat of new entry

Threat of substitute product.

Bargaining power of buyers

Bargaining power of suppliers.


Threats of new entrants

Bargaining powers of customers.

Competitive rivalry in industry.

Threat of substitute products

Bargaining powers of suppliers

(The essential of strategy, Harward Business School publishing house2006,)

Competition among rival companies.

Bottled mineral water industry in India is growing day by day, and peoples are getting more health conscious as per their standard of living is also become high because of their good income. So compition in this so called ‘water industry ‘becomes more competitive in the market. All the industry in this field wants to get more market share. ‘Bisleri’ have to face lot of competition from multinational companies like coca-cola , Pepsi and ‘Himalayan ‘though its position in market is safe and good.

2) New entry in market.

Due to consistent growth of this industry and also because high profit percentage and risk there is always a threat of new entries in market. The demand of mineral water is increasing day by day due to,

(1)Health consciousness in people

(2) The purity and quality of product

(3)Increase in Purchasing (Buying) power of people.

(4) Profitability.

(Kotler, P&Armsrtong, G (2006), Principles of Marketing, Prentice Hall Printers, Australia.)

Threat of substitute’s product.

The best way to enter in to the market by small and substantial product with good quality. If people like the product then company introduces major relative product of that. Similar to this concept many substitutes for mineral water bottled available in market. Such as water pouches, sizes and designs of bottles, and water purification technology.etc in mineral bottled industry soft drink, energy drinks, and juice, and tea products also compete in market.

Bargaining power of buyer.

The simple law of purchasing is if there are lot of options of brands available in the market then buyer can have get a great deal with good bargaining power.this also affect the profitability of buyer.Bisleri always providing a quality product at very competitive price.

Bargaining power of supplier

As we seen that Indian market is very competitive and there another new day, new company launches its product, because the demand is more. And to supply their needs most of companies are available in the market with new strategy, so it directly effect on the bargaining power of the suppliers. So if ‘Bisleri’has his own manufacturing unit of making plastic bottles then suppliers bargaining power becomes very less as compared with other rival companies.

Bisleri obtained their status in market by adopting new strategies like positioning, it changes over the years when company was in shining days and positioned as a luxury item, the punch line was ‘veri veri extraordinari’later on major players came in market like coca cola and pepsi,that made company to change their strategy. So the catch line changes to “pure and safe”. After few years there were some cases where insecticides found in bottles of Bisleri, which decreases sales .then company changes slogan “Play Safe”. Which being very popular these days.

The brand of Bisleri itself is the core competency for Bisleri. The seal technology and the transparency of the bottle of Bisleri bottles help and recognize the purity of water. The company always maintains its financial and physical strength in good way which believes the customers that the company is very efficient and effective in service. And helps to maintain the targets of the company. The major advantage of the company is Intellectual capital in which the bottle seal is patented. The company having a strong dual distribution channel to be competitive in mineral water industry.


Bisleri gains a good brand position in the competitive market. Company has goodwill in the market. Bisleri was a brand name in 1990’s and very popular also. No strong rivalry seen in that gradually came into existence as when major companies like Coca-Cola and Pepsi entered the market. Company always follows the hygienic, and bottles are sealed, refilled and recycled on timely basis. So there were no doubts in their minds about the purity of the brand. Company has a approximately 65% of market share To crack the competition among the major players Bisleri patented the bottle seal. Bisleri provides a safe drinking water which maintains and take care of the health of the people leading and attaining the threshold resources. In cut throat competition Aquafina and Kinley the major competitors of Bisleri who are entering with various strategies to beat the competition. The Bisleri adopts pricing strategy and keeps concentration on advertising again that it works on safe and pure form of bottled water, which shows its complementary resources and competencies in this way the brand Bisleri itself acts as a unique resource and became so popular in the minds of the people.

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