Coca Cola Consumer Buying Behaviour
Content
A
PROJECT STUDY REPORT
ON
“The study of consumer buying behavior in mid segment cold drinks: with special
reference to COCO COLA”
Submitted in partial fulfillment for the
Award of degree of Bachelor of Business Administration
SUBMITTED BY :
SUBMITTED TO :
ANKIT KUMAR NAGAR
MBA III SEM
DR.SONAL JAIN
(HOD)
2011-12
DEEPSHIKHA COLLEGE OF TECHNICAL
EDUCATION, JAIPUR
PREFACE
Soft drink includes all types of non alcoholic carbonate flavoured or otherwise sweetened
beverages. Soft drinks are mostly packaged in 200 ml, 300 ml, 500 ml, 1000 ml, 1500 ml,
and 2000 ml and comes in a variety of flavours. It also comes in glass as well as in plastic
bottles.5ince so many changes and transformations are under going ever changing
consumer demands, Govt. Policies and innovative packaging. Then industries are much
emphasizing advertising to increase its sales.
With the introduction of fruit pulp based soft drinks, packaged in cardboard cartoons known
as "TERRAPACK" has been introduced in the market. The bottled soft drink market has
undergone a marginal decreases in demand After 1994 the eminent re-entry of coca-cola in
Indian soft drink Industry it is heading for two giants war to capture the market. It has
introduced various sharp and efficient tools say tour packages, prizes gift other avenues to
enhance social status and satisfying personal egos also.
ACKNOWLEDGEMENT
This project is an outcome of six weeks mandatory summer training, which I have to
undergo for the partial fulfillment of the MBA program. I wish to put on record my sincere
gratitude to the following person without whose support the completion of this project would
not have been possible.
I am grateful to Mr. Israr Ahmad (A.S.M) of Coca Cola Company, who has given an
opportunity for me to work in Coca Cola Company.
I would like to thank to my institute also where I got all the knowledge and
skills required for this research project. I also want to thank to Marketing
Faculty who took our project seriously and kept check on this time to time.
Without the co-operation of the above person this work
Certainly would not have been as good as, it is now.
(Ankit Kumar Nagar)
EXECUTIVE SUMMARY
This project was undertaken during the summer Training. A great deal of effort has been
put in preparing the questionnaire, in order to understand the market better {Ghaziabad}.
The Coca Cola Company was incorporated in September 1919 under the laws of the State
of Delaware and succeeded to the business of a Georgia Corporation with
the same name that had been organized in 1892. Coca Cola Company is
one of numerous competitors in the commercial beverages market. Of the
approximately 53 billion beverage servings of all type of consumed
worldwide every day. Beverages bearing trademarks owned by or licensed
to company account for approximately 1.5 billion. Coca-Cola, the corporate
nourishing the global community with the world’s largest selling soft drink
concentrates since 1886. Coca Cola Company put his first step in India in
1952 but withdrew completely in 1977 due to change in Indian Government
policies..
Objectives: 1. Extent to which merchandising assets are being used by the retailers in promoting
the brands.
2. Market demand of Coca Cola and Thums-up vis-à-vis Pepsi.
3. Market demand of Fanta vis-à-vis Mirinda-O
4. Market demand of Limca, Mountain dew, Sprite and 7up vis-à-vis Mirinda-L
5. Market demand of Maaza vis-à-vis Slice.
6. Market comparison of all the available brands of the soft drinks in the market.
7. Brands availability of Coca-cola and its brands vis-à-vis Pepsi and its brands.
The scope of the study was limited to Indian Market. This project was conducted for
Coca Cola Limited to assess the preferences of Customer in India. . Data collected
with help of questionnaire was put in excel sheets. A survey of 400 Customer was
conducted in Ghaziabad. The sample has covered the Cold Drink Customer of other
Competitor also as to understand the competition and their strength and
weaknesses.
A BRIEF DESCRIPTION OF THE FINDINGS:1.
Extent to which merchandising assets are being used by the retailers in
promoting the brands: -
Retailer who are having DPS Boards / GSB and other display material like stands, posters
etc. were selected. Display material on the retailers shop was given rank between 1, 2 and
3 according to their visibility. If the DPS Boards / GSB and other display material were
found visible at first sight then they have been ranked '1st', if they were found visible at
second sight then they have been ranked '2nd' otherwise '3rd'.In the similar fashion ranks
were allotted to the refrigerators in the retailers shop.
While entering each shop it was taken care that the display materials are properly ranked
according to there visibility and incase of confusion, opinion of the consumers were taken.
Those shops with GSB’s were visited during the evening in order to see there visibility. In
these cases some glaring facts were found. (Areas which were looking like monopoly
markets of Coca-Cola because of its Red-color during the day had altogether a different
look in the evening. They turned into Pepsi monopoly during the evening because of the
GSB's. Researcher have also tried to find out what are the difficulties retailers are facing on
using these brands up to 100% of their strength.
2.
Market demand of each of Coca-Cola's product vis-à-vis to their competitor
flavours in Pepsi's artillery: -
For this, retailers were asked about the market demand of the different brands and they
have been asked to rank the brands with respect to their competitive flavors. In this also
some interesting facts came out like no lemon brand exists in front of Coca Cola. Our
Limca, which we were thinking that it will be competing with Mountain dew, actually it is
grabbing the Coca-Cola's Sprite’s market and Pepsi’s, 7up's market. In case of Mirinda
(O) and Coca-Cola's Fanta, Mirinda’s market is going up day by day.
In case of mango drinks Slice even after entering the market so late has been able to
quickly pick up with Maaza. From the day Tetra Slice has entered the market it has
captured the market of Frooti.
In case of Aquafina, Coca-Cola's Kinley stands nowhere but brands which are competing
with kit are Paras, Bisleri, and Kingfisher.
3. Market comparison of all the available pickings of the soft drinks in the market: In the market this study is done to find out that on which packing, company should
concentrate more. From the day company has introduced its 200ml packs, Coca-Cola is
more economical for the lower income grade consumers like Riksha-pullars and others.
4.
Brands/ Pack availability of Coca-cola and its brands vis-à-vis Pepsi and its
brands: For this study, retailers were asked that how many bottles they are having in their fridge
and how many of them are of the brand whose fridge they are having and about the
capacity of their fridge. In spite of these findings Researcher have worked on some other
things like retailers expectations from the company. He tried to find out how the company
can increase the sales. In the answer to this some funny recommendations came up (some
consumers recommended that Pepsi should change the percentage of the sweetening
content of its cola drinks). Secondly he tried to find out what are the problems they are
facing in promoting Pepsi.
Health effects:-
The consumption of sugar-sweetened soft drinks is associated with obesity,[12][13] type 2
diabetes, dental cavities, and low nutrient levels.[13]Experimental studies tend to support a
causal role for sugar-sweetened soft drinks in these ailments,[12][13] though this is challenged
by other researchers.[14][15] "Sugar-sweetened" includes drinks that use high-fructose corn
syrup, as well as those using sucrose.
(Coca Cola) is a Soft Drink company. The main objective of this company is to provide the
best services to their customer in low cost as compared to their competitor. They offer more
Healthy and sweetest drink in marginal cost. Occasionally they give some offers for the
benefit of the customers and retailer and distributor.
I hope will recognize this as well as take more references from this project report. HR
department has been given more emphasis for the study of the project because it is the
only sector where all type of Age group, Income class and different level of people are
represented.
Coca Cola Company manufactures and sells beverage concerates, sometimes referred to
as “beverages bases” and syrups, including fountain syrups, and finished beverages.
“Jo Dikhta Hai Wo Bikta Hai”
Contents
TITLE
Page No-
1.
INTRODUCTION OF INDUSTRY
9-14
2.
INTRODUCTION OF COMPANY
15-41
3.
RESEARCH METHODOLOGY
42-47
4.
o Title of the Study
o Duration of the Project
o Objective of Study
o Type of Research
o Sample Size and method of selecting sample
o Scope of Study
o Limitation of Study
FACTS AND FINDING
43
43
43-44
44-45
45-46
47
47
48-49
5.
ANALYSIS AND INTERPRATATION
50-68
6.
SWOT
69-72
7.
CONCLUSION
73-75
8.
RECOMMENDATION AND SUGGESTION
76-79
9.
APPENDIX
81-82
10.
BIBLIOGRAPHY
83
INTRODUCTION
OF
INDUSTRY
1. INTRODUCTION OF INDUSTRY
The introduction of soft drink was due to necessity of traveling particular in the absence of
availability of reliable water. But meaning quietly changed with changing in time. It has
become so, popular commodity fashion & habit instead of requirement of quenching thirst.
The first marketed soft drinks (non-carbonated) in the Western world appeared in the 17th
century. They were made from water and lemon juice sweetened with honey. In 1676,
the Companies des Limonadiers of Paris was granted a monopoly for the sale of lemonade
soft drinks. Vendors carried tanks of lemonade on their backs and dispensed cups of the
soft drink to thirsty Parisians.
Carbonated drinks:-
Soft drinks displayed on supermarket shelves.
In the late 18th century, scientists made important progress in replicating naturally
carbonated mineral waters. In 1767, Englishman Joseph Priestley first discovered a method
of infusing water with carbon dioxide to make carbonated water which has 3.4 mg in the
drink[5] when he suspended a bowl of distilled water above a beer vat at a local brewery in
Leeds, England. His invention of carbonated water (also known as soda water) is the major
and defining component of most soft drinks.[6]
Priestley found that water treated in this manner had a pleasant taste, and he offered it to
friends as a refreshing drink. In 1772, Priestley published a paper entitled Impregnating
Water with Fixed Air in which he describes dripping oil of vitriol (or sulfuric acid as it is now
called) onto chalk to produce carbon dioxide gas, and encouraging the gas to dissolve into
an agitated bowl of water.[7]
Another Englishman, John Mervin Nooth, improved Priestley's design and sold his
apparatus for commercial use in pharmacies. Swedish chemist Torbern Bergman invented
a generating apparatus that made carbonated water from chalk by the use of sulfuric acid.
Bergman's apparatus allowed imitation mineral water to be produced in large amounts.
Swedish chemist Jones Jacob Berzelius started to add flavors (spices, juices, and wine) to
carbonated water in the late 18th century.
Soft drink bottling industry:Over 1,500 U.S. patents were filed for either a cork, cap, or lid for the carbonated
drink bottle tops during the early days of the bottling industry. Carbonated drink bottles are
under great pressure from the gas. Inventors were trying to find the best way to prevent the
carbon dioxide or bubbles from escaping. In 1892, the "Crown Cork Bottle Seal" was
patented by William Painter, a Baltimore, Maryland machine shop operator. It was the first
very successful method of keeping the bubbles in the bottle.
The Coca Cola Company was incorporated in September 1919 under the laws of the State
of Delaware and succeeded to the business of a Georgia Corporation with the same name
that had been organized in 1892. Coca Cola Company is one of numerous competitors in
the commercial beverages market. Of the approximately 53 billion beverage servings of all
type of consumed worldwide every day. Beverages bearing trademarks owned by or
licensed to company account for approximately 1.5 billion. Coca-Cola,
The corporate nourishing the global community with the worlds largest selling soft drink
concentrates since 1886. Coca Cola Company put his first step in India in 1952 but
withdrew completely in 1977 due to change in Indian Government polices. Again returned
to India in 1993 after a gap of 16 years giving a new thumb up to the Indian Soft Drink
Market. In the same year, the Company took over ownership of the nation's top soft-drink
brands and bottling network. No wonder, their brands have assumed an iconic status in the
minds of the consumers.
INTRODUCTION TO SOFT DRINKS IN INDIA:Gold Spot considered as the first soft drink, established 50 years ago before all
empowering Coca-Cola entered the company to dominate the scene. It faced no
competition and its euphoric image built up in western countries helped it get ready clientele
& glamour. Parle export private ltd. should be regarded as the first Indian company
introducing limca a lemon drink complimentary to their well entiemched Gold Spot in 1970
which got moderate success. However, before this, it had also introduced Cola-Pepino
which was withdrawn in face tough competition from Coca-cola.
Coca-Cola serves in India some of the most recalled brands across the world, which
include names such as Coca-Cola, Diet Coke, Sprite, Fanta, along with the Schweppes
product range. The acquisition of Thums Up brought some of the leading national soft
drinks like Thums Up, Limca, Maaza, Citra and Gold Spot under its umbrella. To add to this,
Kinley mineral water was launched in the year 2000.
THE VALUE CHAIN
The Coca-Cola
Company
Bottler
Customer
Consumer
When Coca-cola bid farewell in 1977, Indian market was open for various cold drinks and
several companies came forward pushing the different in the market. Parle people
introduced their Cola-Thumps Up with a mightily bang saying “Happy days are here again”
as if happy days went away with Coca-cola pure drinks of Delhi, also without loosing much
time introduced pure drinks with Campa Orange and Campa Lemon. Modern bakeries
interested the market Double Seven, Mohan Meakings with Marry and Pick Up & McDowell
with Thrill, Rush and Sprint and Indian Market where there was competition previously a cut
throat competition and heavy advertising was on. Each one was trying their best to be come
under one company with “A Class” products in the field of soft drink business, now after a
long gap; Govt. of India had given permission to the Coca-Cola to start their business in
India. Coca-Cola came with Parle to do business on the Indian soil. They are trying best
regaining its prestige which it had before.
The government has adopted liberalized policies for the soft drink trade to give the industry
a boast and promote the Indian brands internationally. Although the import and
manufacture of international brands like Pepsi and Coke is enhanced in India the local
brands are being stabilized by advertisements, good quality and low cost. The soft drinks
market till early 1990s was in hands of domestic players like Campa, Thumps up, Limca etc
but with opening up of economy and coming of MNC players Pepsi and Coke the market
has come totally under their control.
Soft drinks are available in glass bottles, aluminum cans and PET bottles for home
consumption. Fountains also dispense them in disposable containers Non-alcoholic soft
drink beverage market can be divided into fruit drinks and soft drinks. Soft drinks can be
further divided into carbonated and non-carbonated drinks. Cola, lemon and oranges are
carbonated drinks while mango drinks come under non carbonated category.
The market can also be segmented on the basis of types of products into cola products and
non-cola products. Cola products account for nearly 61-62% of the total soft drinks market.
The brands that fall in this category are Pepsi, Coca- Cola, Thumps Up, Diet Coke, Diet
Pepsi etc. Non-cola segment which constitutes 38% can be divided into 4 categories based
on the types of flavors available, namely: Orange, Cloudy Lime, Clear Lime and Mango.
OPERATING GROUP:The Operating Group of Coca-Cola. The map is segmented into Coca Cola Operating
Groups: Africa, Eurasia, European Union, Latin America, North America, Pacific, Bottling
Investments. Certain prior year amounts have been reclassified to conform to the current
year presentation.
1) In 2007, Coca Cola adopted Financial Accounting Standards Board (FASB)
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" and recorded an
approximate $65 million increase in accrued income taxes in their consolidated balance
sheet for unrecognized tax benefits, which was accounted for as a cumulative effect
adjustment to the January 1, 2007 balance of reinvested earnings.
2) In 2006, Coca Cola adopted Statement of Financial Accounting Standards (SFAS)
No.158, "Employers' Accounting for Defined Benefit Pension and Other Postretirement
Plans -- an amendment of FASB Statements No. 87, 88, 106, and 132(R)."
3) Coca Cola adopted FASB Staff Position (FSP) No. 109-2, "Accounting and Disclosure
Guidance for the Foreign Earnings Repatriation Provision within the American Jobs
Creation Act of 2004" in 2004. FSP No. 109-2 allowed the Company to record the tax
expense associated with the repatriation of foreign earnings in 2005 when the previously
unremitted foreign earnings were actually repatriated.
4) Coca Cola adopted FASB Interpretation No. 46(R), "Consolidation of Variable Interest
Entities," effective April 2, 2004.
INTRODUCTION
OF
COMPANY
2. INTRODUCTION OF COMPANY
If we Indians recall our memory there was a time when one was asked for a soft
drink, the brand that comes and gave a knock on our mind was Coca-Cola. Coca-Cola, the
word most admired trademark has maintained its special a sense of belongingness to India,
which had resulted some sort of its monopoly throughout the Indian soft drink market. It has
been said that the internal environment of the industry has been greatly effected from its
internal environment. The same thing was also happen with this famous company. When
the Government policy were in introduce and forced this MNC's to go outside from the India
market. Hence, it was thrown out of India in the year 1977. A lacuna was created at that
time in the country's soft drinks market. How ever after a gap of 17 years, the Coca-cola
has reappeared in the soft drinks market of India, by making itself more strong and
confident in this field.
In today's market, the cola's (Coke, Thumsup, Pepsi, etc.) had a 70% share, Lemon
10% and Orange 20%. There appears to be a concentrated rush to bag a share in the soft
drinks market. Due to a manifold increase in the demand of soft drinks large number of
company has entered into this competitive market scenario.
In India two major companies engaged in soft drinks market are Pepsi and CocaCola. While RC cola is still a novice in the Indian Market, although it being the world oldest
soft drinks manufacturer.
Pepsi-Cola attacked Coca-cola before World War-II. Coca-Cola dominated the
Americans soft drinks industry. Pepsi-Cola was a drink
costing less to manufacturers and with a less satisfactory taste than coke.
During the Second World War Pepsi and Coke, both of them enjoyed a huge sale.
After the war the Pepsi sales started to fall relatively to Coke. The factors which were
responsible for the decline in Pepsi sales were poor image, poor task force, poor quality
control and dull packaging.
It was a momentous day when Coca-Cola staged its reliance in India. Coca-Cola
was relaunched again in India in Sep. 1993 at Hathras near Agra, where the first bottling
facility of Coca-Cola in India was switched on. The Indian people welcomed the come back
of their most loved cola in the country with great enthusiasm and vigor. Coca-Cola market
its relaunching acquiring 5 Parle Exports Ltd. Top Selling products Viz-Thums up, Sprite,
Limca, Fanta, Mazza, K. Soda,Kwater,Coke.
In 2000, the company opened a new bottling plant at Dasna in Agra distt. For the
supply of 300 ml Bottle and 1.5 liter Bottles. This plant is more settled equipped than the
plant at Ghaziabad.
RED, IN INDIA:Hindustan Coca Cola Beverages Pvt.Ltd., India division under Eurasia Operating Group
has been working on RED i.e. Right Execution Daily since FEB 2006. Coca Cola Company
believes that its success depends on their ability to connect with consumers by providing
them with a wide variety of choices to meet their desires, needs and lifestyles choices.
Company success further depends on the ability of their people to execute effectively, every
day.
COMPANY GOAL:Company goal is to use the Company’s asset –company brands, financial strength,
unrivaled distribution system, global reach and talent and strong commitment of our
management and associates-to become more competitive and to accelerate growth in
manner that creates value for our shareowners. Company wants to increase his profit
and sells.
Coca Cola Company manufactures and sells beverage concerates, sometimes referred to
as “beverages bases” and syrups, including fountain syrups, and finished beverages.
“THANDA MATLAB, COCA COLA”
A 100 YEARS OF THE SURVY GLASS BOTTLE OF COCA-COLA:-
Coca-Cola Company marks a mile stone on Wednesday, 24th March 1899 Chattanooga;
Tenn where its first bottling plant was started 100 year ago by two men struck one of the
most lucrative business deals in US history. Joseph Whitehead and Benjamin Thomas
offered Coca-Cola Company owner Asia Candler a dollar for the right to bottle soft drinks in
1899. Today I billion soft drinks are sold each day in more than 200 countries around the
world.
Candler had purchase what would become the Cola Company for $2,300 eight years earlier
from John Pemberton, an Atlanta Phamacist who astonished the world. Candler thought
the bottling Venture would never succeed, but he signed the contract with White Head And
Thomas and way, "and the rest is history", Bob Lovell, vice president of marketing for CocaCola bottling company, United Inc., said in telephone interview from Chattanooga.
Lovell said Thomas had seen Cuban Fields hand drinking Pina Fria a Pineapple beverages,
from bottles while he was stationed in Cuba during Spanish American War. When he
returned to Chattanooga, he decided to pitch the idea of bottle soft drinks to coke, which
was then sold only as a fountain beverage.
"It occurred to him that Coca-Cola in bottles would be very popular", Lovell said, "Mr.
Candler did not see any future in it because the containers were not sound, but that's how it
all came about. "Thomas and Whitehead promised to pay one dollar for the right to bottle
Coca-Cola, but legend has it that no money changed hands.
THE IMAGE:-
The image is communicated all around the world in advertisement on media such as
newspaper, magazines, radio and televisions. The list goes on....
However, image is much than just advertising every person working within the coca-cola
system is part of the image whether one is involved in creating its advertising, making it's
quality products, or selling, merchandizing and distributing its beverage their hard work and
attitude will say something to the people about its product.
COCA-COLA SYSTEM FLOW CHART
Raw Material
Coca-Cola
Company
Bottler
Customer
Consumer
In today's market, the cola's (Coke, Thumsup, Pepsi, etc.) had a 70% share, Lemon 10%
and Orange 20%. There appears to be a concentrated rush to bag a share in the soft drinks
market. Due to a manifold increase in the demand of soft drinks large number of company
has entered into this competitive market scenario.
COCA COLA: THE STORY BEHIND:-
Coca-Cola was formulated in 1886 by Dr. John Pemberton, a Pharmacist in Atlanta,
Georgia. The drink was sold ad refreshing elixir at the fountain counter of Jacob's
Pharmacy of which Dr. John Pemberton was part owner, unaware that the pharmacist had
given birth to a caramel colored syrup which is now the chief ingredient of the worlds
favorite drink. Today the white-on-red flow of Coca-Cola is familiar sight in more then 195
countries. The syrup combines with the carbonate water to fuel a $ 16.2 billion corporation
that has captured a 46% Slice of the global soft drinks market. The company estimates that
the drink is served more than 773 million times every day and if all Coke ever produced
were filed in standard bottles and placed end to end it would wrap around the equator 21,
161 times.
The story of Coca-Cola is a story of a drink and its charm with the consumer. The of
ecstasy and again that the drink has caused to those dedicated to its growth Pemberton
first managed to sell and average of 9 drinks per day, though a shop called Jacob's
pharmacy, in 1891, Candler bought Coca-cola company with four companies he formed the
coca-cola company with the initial stock of $100,000. Coca-Cola was registered at the US
patent office in 1893, and began selling at soda fountains for 5 cents a glass of therapeutic
refreshment 1894, I got into bottles, courtesy a candy merchant Joseph Boedenharn of
Mississippi.
Five years later; the drink was being bottled on a regular basis under a region wise
franchising system; and its first competitor Pepsi cola, Coca-Cola's first bottling plant
opened in Chatanooga, Tennessee followed by another in Atlanta in 1900. The unique taste
of cola was an outstanding success. Over the next two decade the number of plants
crossed 1000. In a bit to difference the prodect, the company adopted 6.5 ounce, pale
green countor bottle designed by the root glass company of Terri Haute, Indiana. Today it is
an intrinsic part of the brand.
The company broadened its horizons when Robert Woodruff the son of a banker who
acquired to Company for $25 million in 1919, assumed charge in 1923. He began by
ungrading bottling operations, brought in innovations like a six-bottle carry home carton,
and gear up advertising support. It was under Wood Ruff that the brand. Known
affectionately as coke by now associated it self with sportive events. By the early 1940's the
brand was selling as the "real thing" to set it self apart from "me to" cola's.
As a time went by the company brought out some new aerated drinks. The first one "Fanta"
appeared in the selves in 1960.
Its birth was an accident, the company's German name is an attempt to produce Coca-Cola
without some key ingredients, turned out into an orange flavored drink instead. its
strategists who feared the dependence on just one put a cap on growth welcomed it. While
Fanta was being rolled out the company bought minute made cosrp. Which in 1967 was
combined with Duncan foods to pave way for the Coca-Cola foods. Several beverages
followed the most notable being 'sprite', a lemon drink developed in the late 1950 and
formally launched in 1961.
Coca-Cola had diversified the company into businesses and it even had a steam generator
and boi8ler making division. Robert C Goizueta, Cuban born 27 years veteran took over as
the Coca-Cola unlike Pepsi company depended on a single brand. The best insurance
policy that he figured was to let coke evolve to the summer slacking it with variants, even
reinventing if needed. In 1982, the company launched what is now considered among the
world's most successful brand extensions 'Diet Coke', under the leadership of Sergio
Zyman, the head of us marketing. The idea was to retain the loyalty for the health
conscious drinker who loved the taste but hated the calories. After this it came out with
cafeeine free versions of its main drinks. yet in the US the company kept losing ground to
Pepsi. zyman, a former Pepsi marketer argued that the correct strategy was to replace 98
year old with better tasting cola, label it as "New Coke" and blare the news which is exactly
what the company did more a decode age in 1985. But when placed on the shelves it did
not budge. On wide spread protest it was recalled after 79 days.
The company has about 100 brands in its portfolio but coke, Fanta and sprite account for
most of its sales. In 1994, the real thing's coke sold over 52.5 billion liters. For the taste of it
diet coke along with Coca-Cola light sold 8.5 billion liters, which makes it the world's two top
non cola drinks sold over 6.5 billion liters each. Which sprite aimed at the independent
youngster two does not care what as others drink (the as line "obey you're a thrust"). In
1993, Coca-Cola reentered India after a 16 years ling exile, four years Pepsi made its debut
India. While Coke plays on brand nostalgia. Pepsi address the young crowd, which unlike a
in America is a dominate ort if the population here.
THE COCA-COLA COMPANY:-
The Coca - Cola Company is the world's largest beverage company. Along with Coca Cola, recognized as the world's best - known brand, The Coca - Cola Company markets
four of the world's top five soft drink brands, including diet Coke, Fanta and Sprite, and a
wide range of other beverages, including diet and light soft drinks, waters, juices and juice
drinks, teas, coffees and sports drinks. Though the world's largest distribution system,
consumers in more than 200 countries enjoy The Coca - Cola Company's products at a rate
exceeding 1 billion servings each day. For more information about the Coca - Cola
Company, please visit our website at http: // www.coca- cola.com/.
Forward - Looking Statements:This press release may contain statements, estimates or projections that constitute "forward
- looking statements" as defined under U.S. federal securities laws. Generally, the words
"believe," "expect," "intend," "estimate," "anticipate," "Project," "will" and similar expressions
identify forward - looking statements, which generally are not historical in nature. Forward looking statements are subject to certain risks and uncertainties that could cause actual
results to differ materially from The Coca - Cola Company's historical experience and our
present expectations or projections. These risks include, but are not limited to, changes in
economic and political conditions, changes in the non - alcoholic beverages business
environment, including actions of competitors and changes in consumer preferences;
product boycotts; foreign currency and interest rate fluctuations; adverse weather
conditions; the effectiveness of our advertising and marketing programs; fluctuations in the
cost and availability of raw materials; our ability to achieve earnings forecasts; regulatory
and legal changes; our ability to penetrate developing and emerging markets; litigation
uncertainties; and other risks discussed in our Company's filings with the Securities and
Exchange Commission (the "SEC"), including our Annual Report on Form 10-K, which
filings are available from the SEC. You should not place undue reliance on forward - looking
statements, which speak only as of the date they are made. The Coca Cola Company
undertakes on obligation to publicly update or revise any forward - looking statements.
ORGANIZATIONAL STRUCTURE
CHAIRMAN
PRESIDENT
VICE PRESIDENT
R.G.M.
A.G.M.
I.S.M
.
S.M.
F.M.
M.O.E.
P.M.
A.S.M.
S.E.
S.E.
H.R.M.
S.E.
S.E.
Where,
R.G.M.
:
Regional General Manager
A.G.M.
:
Area General Manager
I.SM.
:
Information System Manager
F.M.
:
Finance Manager
S.M.
:
Sales Manager
P.M.
:
Production Manager
H.R.M.
:
Human Resource Manager
A.S.M.
:
Area Sales Manager
M.O.E.
:
Marketing Operation Executive
C.D.E.
:
Cold Drink Executive
S.E.
:
Sales Executive
PRODUCT PROFILE OF COCA COLA:The product range of the coke has listed brands:
Coke : 200ml, 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt
Thumps UP: 200ml, 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt.
Limca: 200ml, 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt.
Fanta: 200ml, 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt.
Sprite: 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt.
Mazza: 250 ml, Tetra Pack
Diet Coke: 330ml, 1.5 lt, 2lt.
Kn. Soda: 300ml, 500ml,
Kn. Water: 500ml, 1lt, 2lt,
Some facts About Coca Cola Pvt Ltd:Head office
Atlanta (U.S.A)
Corporate office
Enkay Towers,
Udyog viharV,
Gurgaon,Haryana
Chief Executive officer
Alex von Behr
Total Investment
Rs.3200 Crore
Owned Bottling Plants
35
No. of Franchisees
16
No. of Employees
6000
THE FUTURE OF COCA-COLA:While dong business overseas offers Coke wonderful growth opportunities it also has its
own disadvantages. The economic slowdown in various overseas markets and the strong
dollar had their impact on Coca-Cola revenues and bottom line in 1999. But the company
optimistic about the future.
Mc-Douglas Investor, The Chief Executive Officer of the Coca-Cola Company says, "This
past year 1999 has been a challenging period for the Coca-Cola Company as economic
environment became more uncertain in the later part of 1999, we strongly believe that our
fundamental opportunities for long term growth have not changed".
As long as maximization of share holder wealth remain coke's focus for its future4 is
assured Goizueta had stated and proven to the world that focus on shareholder wealth
does more good to the company than focus on revenues and it is not hat coke does not
enjoy volumes for it is world's No. 1 soft drink manufacture. It is not content with this title
and is aiming at higher volumes year after year. Surely coke will continue to grow. Point on
Roberto had reduced the company basically to its trademark and the returns are so
astronomical as to be off the boards. It just absolutely added a jet engine to their
performance.
COKE'S BOTTLING STRATEGIES:In the soft drink business the bottlers are responsible significant extent for ensuring the
availability of the products. Bottlers are supplied with concentrate to which they add aerated
water and bother ingredients before packing and sealing either cans or bottles. Bottlers play
a strategic role in the success of soft drinks companies and this was not far from Goiueta's
mind.
In 1986 the company merged some of its company owned bottling operations with two large
ownership groups that had been put up for sale. All these bottling activities were combined
to from its own subsidiary Coca-Cola Enterprises (CCE) to handle bottling operations. The
Coca-Cola Company took 49 percent equity stake in Coca-Cola Enterprises enabling it to
retain its own balance sheet.
MARKET PLACE:More than a billion times everyday, thirsty people around the world reach for Coca-Cola
products for refreshment. They deserve the highest quality-every time. Our promise to
deliver that quality is the most important promise we make. And it involves a worldwide, yet
distinctively local, network of bottling partners, suppliers, distributors and retailers whose
success is paramount to our own. Our investment in local communities in over 200
countries totals billions of dollars in jobs, facilities, marketing, the purchase of local goods
and services, ands local business partnerships, always and everywhere, we pursue
continuous innovation in the products we offer, the processes we use to make them, the
packages we develop and the ways we bring them to market.
COMPETITOR:The biggest and perhaps the only serious for the coca-cola worldwide has an already
been Pepsi. In India, as per as the Cola segment is concerned the with the biggest
competition to coke comes from its brands of Pepsi viz. Pepsi and Mirinda. Thums-up,
which was the leading brand of Parley product, was acquired by Coca-Cola just over a year
ago to bolster its market share in India. Today, Thums-up along with coke, the leading
brand of the Coca-Cola Company, other still competition to Pepsi, which despite this stiff
competition is still by far the single most popular Cola drink in India
With both the companies being backed fully by the parent concerns based in the
united state, the fight to become the dominant player in the huge Indian Soft drink market
continues unabated. Aggressive ad campaign's, sale-promotion, schemes for retailers are
just some of the strategies being adopted by the two companies to outwit each other and
grab and large share of the market.
In the Cola segment, which occupies by far the largest chunk of the soft drink market
in India, the market share of Coke is 60%while the market share of Thums-up is 32.16%.
The market share of Coke in this Cola Segment is 27.84%. The remaining market share is
occupied by the other brands, which constitute about 14% of the Cola market share.
So Coca-Cola with its two brand clubbed together i.e. Thums-up + Coke occupies a
combined market share of 60% (32.16% + 27.84%)
which is just higher than the market share occupied by Pepsi on the all India basis.
The market share for the Cola segment of different in India is given in Graph below:
The fight between the Rs. 1,000 Crore Pepsi co. India. Pepsi and Coca-Cola India,
The fully owned subsidiary of the $ 18.55 Billion Atlanta based "The Coca-Cola' company to
become India's No. 1 player seems likely to continue unabated over the next four years".
PEPSI PROFILE:Pepsi Co. Inc. was founded in the year 1965. Major products of the new company are Pepsi
Cola. Diet Pepsi and Mountain Dew. Pepsi entered the Indian market in 1992 and now is
the market leader with a market share of 26.5 percent in the cola segment. Pepsi is in
between the two of it's closet competitors as far as marketing strategies are concerned.
Pepsi is an international drink with Indian imagery in it's communication Traditional focus of
Pepsi has been on the early teenager with a gender skew more to the female.
Pepsi is by far the more aggressive player in the market. With in your face advertising
continuous event marketing targeting the new generation and eye catching merchandising.
It's got its selling strategy well mapped out.
The company has always been innovating it's ad campaigns which has helped the
company to get top of the mind recall. From "The choice of the new generation" to the
"Freedom" campaign the company has been able to Indianise the brand. With the help of
promotional schemes Pepsi has managed to keep the brand alive and has not let it become
old. During 1995 the total ad spent by the company was Rs. 6.98 crore only on television
Pepsi has set aside Rs. 8 crore for its advertising programme in the run up to and during
the cricket world cup.
Product lines of Coke& Pepsi are as follows:-
Pepsi Brand Name
pepsi
pepsi Diet
mirinda
mirinda lime
7 up
Slice
pepsi
pepsi Diet
mirinda lime
mirinda
Slice
7 up
FLAVOUR
COKE BRAND
PEPSI BRAND
Cola
Coca-Cola
Pepsi
Thums-up
Pepsi diet
Coke diet
Orange
Fanta
Mirinda
Limca
Mirinda lime
Clear lime
Sprite
7up
Mango
Maaza
Slice
Cloudy
Lemon
COMPETITIVE AREA:The soft drink market all over the world has been witnessing a neck to neck battle between
the two major players, Coca-Cola and Pepsi since the very beginning. The thirst quenchers
are trying hard to have to major chunk of the pie of carbonated soft drink market. Both the
players are spending their energies in building capacity, infrastructure, promotional
activities etc.
Coca-cola being 11 years older than Pepsi has dominated the scene in most of the soft
drink markets in the world and enjoying leadership in terms of market share. But the CocaCola people are finding it hard to keep away Pepsi, which has been narrowing the gaps
regularly. The two are posing threats to each other in every nook and corner of the world.
While Coca-Cola has been earning most of its bread and butter through beverage sales,
Pepsi has a multi products portfolio with some portion from the same business.
The two warriors are face to once again here in India with different strategies and tactics to
attack the rival. Coca-Cola is focusing upon the joint ventures with the existing bottlers
(FOBO) franchise owned bottling operations to enhance its control on manufacturing
and marketing of its products range and attain the quality standards of its class.
Countering it Pepsi has taken the battle its own hands by floating as investment of $ 95
billion to set Pepsi Company. India holdings, as subsidiary for (COBO) Company owned
bottling operations. Both the companies are following different path to reach the same
destiny i.e. to fetch the bigger portion of aerated soft drink market. Both consider India
a huge potential market, as per capita consumption here is a mere 3 serving annually
against the world average of 80. Therefore, they are putting in their best efforts to woo the
Indian consumer who has to work for 1.5 hours to buy a bottle of soft drink. In comparison
to the international norms minutes, a major hurdle to cross over for both the athletes for
getting No. 1 position comparison tot he inter. Coca-Cola is well set with its 53 bottling sites
through out the country giving tit an edge over competition by processing a well-built
bottling and distribution set-up. On the other hand, Pepsi, with two more years in India, has
been able to set an image of a winner in India and has been able to get the pulse of the
India soft drink market. The soft drink giants are leaving on stone unturned and her for the
long terms.
Coca-Cola has been penetrating the market through its wide product range with a
determination to change consumption pattern of soft drink in India. Firstly, they upgraded
the whole industry by introduction 300 ml bottles, which in turn had given the industry a
booming growth of 20% as compared to the earlier 5%. They want to develop a coca
culture here and are working on a strategy to offer soft drink in every possible package. In
Coca-Cola camp, the idea of competition has not come from Pepsi, but from the other
beverages such as tea, coffee, Nimbu Pani, water etc. Pepsi is quite aggressive in its
approach to Indian Consumer. They are desperately working on the strategy to be winners
in the hot cola war between two big barons. According to Pepsi philosophy, it's the
madness that encourages executive to think, to conjure up those creative tactics to knock
the fizz out their competition. Pepsi had plumbed a large on the visibility of its blue red and
white logo. They have been going with aggressive marketing by putting Sachin Tendulkar,
Akshay Kumar and now Shahrukh Khan in their advertisement to endorse their brand, the
role models for its targeted consumer the teenagers. They have increased the fizz in the
market place by
introducing the dispensers called Fountain Pepsi and has been enjoying a lead over its rival
there.
Coca-Cola on the other hand, has been working on the saying slow and steady wins the
race's side by retailing to every more of its competitor. They have procured the shield of
Thums-Up with a handsome market share in Indian soft drink market.
Countering Pepsi's international commercial that used two chimpanzees to cock a snoop at
coke, Thums-up come with the ad line, Don't be Bandar, taste the Thunder. Also ThumsUp has been positioned now very near to that young image of Pepsi and giving it a though
time.
These cool merchants have put everything on fire. It Coke got the status of the
official drink of wills. World Cup, Pepsi blushed as nothing official about it. As
Thums-Up projected as 'Saaree Jahan Se Achcha' Pepsi was passionate enough with
'Freedom to be' and now the "Yeh Dil Mange More" when Thums-Up came with Thunder
Blast, the other offered 'Pepsi Stuff Card'. If Red is meant for coke, Pepsi has chosen to
be blue.
MAIN COMPETITORS
COCA-COLA V/s PEPSI
Total Investment in India
New Investments
Number of Employee
Number of owned bottling Plants
Number of Franchisees
Number of Fountain
Total Investment by bottlers
New Plants Planned
(Year of 2010-11 )
Coca-Cola
Pepsi
Rs. 250 Crores
Rs. 2400 Crores
140
9
54
1500
Rs. 125 Crores
Nil
Rs. 500 Crores
Rs. 300 Crores
2400
11
15
4000
Nil
6
Overall volume of Coca-Cola products have increased by 40% whereas the industry growth
rate is 20%. Last year total sale of soft drink Industry in India was approximately 170 million
crates. Out of these around 60% was of Cola and other 40% was of non-Cola Brands.
Sources of Data :- This Last Year data is provided by Sales Executive of
Company.
MARKETING MIX:-
Prof. Neil H Barden defines marketing mix as 'the appointment of effort, the combination,
the designing and integration of the elements of the marketing into a programme of mix
which will best achieve the objective of the enterprise at the give time."
Marketing mix is the set of marketing tools that the firm uses to pursue its marketing
objective of in the target market. The marketing problems are analyzed:
1. By utilizing the important forces emanating from the marketing operation of an
enterprise.
2. By adopting producer & for an efficient marketing programme.
ELEMENTS OF MARKETING MIX :The marketing mix denotes a combination of various elements which in their totally
constitute affirms marketing system. McCarthy popularized a four factor classification of the
se tools called the four P"s, product, price, place promotion.
PRODUCTS:
Product variety
Quality
Design product
Brand name
Feature
Packaging
Size service
Warranties
Returns
PRICE:
List Price
Discounts
Allowances
Payment period
Credit teams
PLACE:
Channels
Coverage
Place assessments
Locations
Inventory
Transports
PROMOTION:
Sales promotion
Advertisement
Sales Forces
Public relations
Direct marketing
The particulars marketing variable under each P are shown below:
4 Ps
PRODUCT
PRICE
PLACE
PROMOTION
4 Cs
CUSTOMER NEED
AND WANTS
COST TO THE
CUSTOMER
CONVENIENCE
COMMUNICATION
DISTRIBUTION IN THE COCA-COLA SYSTEM:GETTING PRODUCTS TO MARKET
One of the value of the coca-cola system is presence that coca-cola should exist
everywhere. In the words of former CEO-India operations - Richard Nichoilas, "Our goal
is to have coke available within an arm's reach of desire". To fulfill this gool, coca-cola
not only produces products, but also has an effective systems to distribute them all over
India.
DISTRIBUTION:Distribution Sales + Delivery + Merchandising + Local Account Managemetn.
Distribution of Coke's products includes the activities of sales, delivery merchandizing and
local accounts management. These are two major types of distribution systems.
(i) Direct and Indirect:-
In direct distribution, the bottler partner direct control over the activities of sales,
delivery, merchandizing and local account management.
In indirect distribution, an organization which is not a part of the coca-cola system
has control of one or more of the distribution elements (Sales, Merchandizing and local
accounts managements).
With Direct distribution there are two types of sales:-
Advanced sales and conventional sales. :In conventional sales, all the distribution activities (Sales, Delivery, Merchandizing and
Local Accounts Management) are performed by the same persons.
In advanced sales, sales and delivery are performed by different people within the cococola system.
Difference between a Customer and a Consumers.
A consumer is some one who drinks coca-cola products.
A customer is a business location which sells or serves coca-cola products to
consumers.
MERCHANDIZING:One the products are delivered to the customer's they are promoted at the point-ofpurchase to maximize the company's sales opportunities, merchandizing involves looking at
the presentation of the products through the eyes of the consumers. It is an on-going
process that help the company present its products properly to the consumers in the market
place for instance, is the display attractive? Are the product neatly organized.
PRESENTING THE PRODUCTS:Coca-Cola presents its products for sale in four different ways. They are as follows:
Secondary Display
Coolers
Vending Machines
Post Mix / Pre Mix
INDIA'S RELATIONSHIP WITH COCA-COLA:Just after independence, the Maharaja of Patiala oversaw his coca-Cola-Cola hoarding
from his huge, ornate palace, Coca-Cola export representative Frank Harrold, was awed by
the Maharaja's opulent life style. In 1993 after Coca-Cola returned to India after a 16 years
absence (beorge Fernandes threw the company out of the country in 1977 on the pre text
that it had refuse to divalge its formula to Indian officials), CEO of the Coca-Cola Company,
Robesto boirueta "Salivated over a virtually untapped market of 840 million people".
PROMOTION : THE COCA-COLA WAY
Goal for the 90's :"To place coca-cola within an arm's reach of desire.
Consumer activity clusters:-
Grocery shopping
Other shopping & services
Eating and drinking Entertainment/ Recreation. Leisure
Travel / Transportation/ Hospitality
Educational
At Work
The 3A's:The strategy for reaching in creasing numbers of consumers in India is based on the belief
that consumers will buy our products it they are Available, Affordable and Acceptable.
Strategies for the 3A's:
Focus on the consumer and customer,
To provide quality customer services, and caring about the quality of performance in
respective jobs.
Caring enough about what we do, to it the best we know how.
The 3A's is Coca-Cola underlying strategy for meeting its goal to reach increasing numbers
of consumer's. How does coke position its limited resources to help meet its good. Let us
explore the specific ways in which the Coca-Cola system addresses each of the 3A's.
AVAILABILITY:Some of the way sin which the Coca-Cola Company hopes to increase availability of its
product include improved or innovative packaging, dispensing systems, distributions
system, marketing.
AFFORDABILITY:The ways to address affordability include pricing decisions, as well as resource
management. To make its product available at a price affordable to the consumer.
Continually processes more efficient and therefore more cost-effective.
ACCEPTABILITY:Making coca-Cola brand products the beverage choice for any occasion's depends on a
variety of strategies to reach the target audience. The common strategies adopted to effect
acceptability were though sponsorships, promotion youth market activities, community
programs, and other activates.
Coca Cola mission, vision and values outline who they are, what they seek to
achieve, and how they want to achieve it. These provide a clear direction for the Company
and help ensure that they are all working toward the same goals.
MISSION:•
Everything Coca Cola do is inspired by their enduring Mission:
•
To Refresh the World...in body, mind, and spirit.
•
To Inspire Moments of Optimism...through their brands and their actions.
•
To Create Value and Make a Difference…everywhere they engage.
VISION:To achieve sustainable growth, Coca Cola has established a Vision
with clear goals: Planet : Being a responsible global citizen that makes a difference.
Portfolio: Bringing to the world a portfolio of beverage brands that
anticipate and satisfy Peoples' desires and needs.
Partners: Nurturing a winning network of partners and building mutual loyalty. Profit:
Maximizing return to shareowners while being mindful of our
VALUES:Coca Cola is guided by shared Values that they will live by as a company and as
individuals:
•
Leadership
:
“The courage to shape a better future”
•
Passion
:
“Committed in heart and mind”
•
Integrity
:
“Be real”
•
Accountability
:
“If it is to be, it's up to me”
•
Collaboration
:
“Leverage collective genius”
•
Innovation
:
“Seek, imagine, create, delight”
•
Quality
:
“What we do, we do well”
RESEARCH
METHODOLOGY
3. RESEARCH METHODOLOGY
3.1 TITLE OF THE STUDY:All the findings and conclusions are based on the survey done in the working area within
time limit. I tried to select a sample representative of the whole group during my job training.
I have collected data from 200 respondents for studying (Consumer Buying Behavior
With reference to “Coca Cola”) Market Segmentation, selected randomly from different
areas in Ghaziabad.
3.2 DURATION OF THE PROJECT:16th May 2011 to 30 June 2011 (45 DAYS)
3.4 OBJECTIVES OF STUDY:PRIMARY OBJECTIVES:•
To find out to which extent merchandising assets are being used by the retailers in
promoting the product of coca-cola
•
To find out Market demand of Coca Cola and Thums up vis-à-vis Pepsi
•
To study marketing strategies adopted by coca-cola.
•
To study customer satisfaction about coca-cola products.
•
To study the effect of RED on boosting sales of coca-cola products
•
To find out Market demand of Fanta vis-à-vis Mirinda-O
•
To find out Market demand of Limca, Sprite vis-à-vis Mirinda-L and 7up
•
To find out Market demand of Maaza vis-à-vis Slice.
SECONDARY OBJECTIVES:•
To find out Market comparison of all the available brands of the soft drinks in the
market.
•
Brands availability of Coca-cola and its brands vis-à-vis Pepsi and its brands.
3.5 TYPES OF RESEARCH:Date sources: sources of information are as follows:(1) Primary sources:Who’s the primary source??
Retailers are the primary source.
(2) Secondary sources:Researcher collected secondary information from Journals of Company, News
papers,Magazines.
Research Approach:-
Researcher followed one approach to collect the information
(1) Survey – Researcher contacted the retailers in the market place to gather the relevant
information.
(2) Number of Retailers contacted – 200 Retailers.
•
Survey Area: Kanpur & NEAR BY AREAS
1) Kanpur, Station road
2) Kanpur,Main market
3) Bhaguwala Market ,Kanpur Road
4) Kotwali market ,Lucknow road
5) Shanpur, Main Market
6) Raipur Market, Nagina Road
7) Haridwar road, Chidiapur
8) Kiratpur Market
9)
Researcher began his survey with route riding, i.e. traveling along with the sales persons on
his daily trip to service the retailers. Researcher asked the retailers about their uses of
Coca-cola merchandises and try to Asses the market share of the Coca-cola’s different
brands. This is very important point as it gave me an inside view of the whole setup and
further on during the planning of any of the promotions. Researcher was aware of the
limitations and strengths of the environment he would be working in. The various methods
and principles adopted are listed below:
3.5 SAMPLE SIZE AND METHOD OF SELECTING SAMPLE:Sample size:The number of sample is 110 from Ghaziabad city, which fulfills the requirement. Each
respondent is treated as a case of detailed analysis.
Sampling design:Convenience sampling is used for this study. Convenience sampling is used in exploratory
research where the researcher is interested in getting an inexpensive approximation of the
truth. As the name implies, the sample is selected because they are convenient. This non
probability method is often used during preliminary research efforts to get a gross estimate
of the results, without incurring the cost or time required to select a random sample.
Data collection method:For the accumulation of data the sources were primary and secondary data.
Primary Data:These data are raw material. They are the measurement observed and recorded as a part
of original study. They are original in character. The investigator or researcher directly
collects this data. The basic form of obtaining this data is by observing and questioning.
The Primary data was a detailed interview schedule with the help of a detailed
questionnaire. The samples were drawn purposively from various areas for the relevance of
the study. Discussions were held with the general, branch manager and executives of the
company to design and execute the research
Secondary Data:They are not originally drawn by the researcher as fresh data. These are collected by some
other person for this purpose and published. These types of data can be collected through
various sources.
For this study the secondary data were collected from magazines ,journals , references and
websites and manuals of the Idea.
Tools and techniques of analysisPercentage analysis and statistical tools were used in the study. The statistical tools used
for data analysis are Rank correlation and hypothesis testing. ANOVA and t – test had
applied for hypothesis testing.
Rank Correlation =
If Rank Correlation is negative we can say that there is no correlation between the variable,
if rank correlation is positive we can say that there is a relation between the variable, if the
Rank correlation is less than.06 we can say that there is a low degree of relation between
the variable, if rank correlation greater than .06 we can say that there is high degree of
relation between the variables and if Rank Correlation is very nearer to 1 such as .99 we
can say that there is very high degree of relation between the variable.
3.6 SCOPE OF THE STUDY:Study of Management of RED helps the management in the following ways:-
•
It improves management’s ability to plan and control the sales of Coca Cola.
•
It will certainly help the strategies for survival and growth of the Company.
•
It avoids wastage and underutilization of resources which can be employed
profitably.
•
It is relevant to inflows and outflows conditions of the Company.
3.7 LIMITATION OF THE REPORT:I found the following limitations during my actual project execution:•
More stress was given on the primary data.
•
The finding of the survey will be strictly based on the response of the consumers,
since it is difficult to ascertain the authenticity of the statements.
•
All the observation and recommendation will be made on the feedback obtained
from the survey.
•
The sample for the survey covered subscribers from India only.
•
The time for the research was limited.
•
The result is limited to the reliability of method of investigations, measurement and
analysis of data.
•
People were not interested in filling questionnaire properly.
•
It is very small research, which may be insufficient to give the real picture.
FACTS
&
FINDINGS
4. FACTS & FINDINGS
•
It improves management’s ability to plan and control the sales of Coca Cola.
•
It will certainly help the strategies for survival and growth of the Company.
•
It avoids wastage and underutilization of resources which can be employed
profitably.
•
It is relevant to inflows and outflows conditions of the Company
•
More stress was given on the primary data.
•
The finding of the survey will be strictly based on the response of the consumers,
since it is difficult to ascertain the authenticity of the statements.
•
All the observation and recommendation will be made on the feedback obtained
from the survey.
•
The sample for the survey covered subscribers from India only.
•
The time for the research was limited.
•
The result is limited to the reliability of method of investigations, measurement and
analysis of data.
•
People were not interested in filling questionnaire properly.
•
To find out to which extent merchandising assets are being used by the retailers in
promoting the product of coca-cola
•
To find out Market demand of Coca Cola and Thums up vis-à-vis Pepsi
•
To study marketing strategies adopted by coca-cola.
•
To study customer satisfaction about coca-cola products.
•
To study the effect of RED on boosting sales of coca-cola products
5. ANALYSIS & INTERPRETATION
FIGURE 1
Out of Coca-Cola and Pepsi Beverages India Limited
whose GSBdo you have ?
PBI
11%
Coca-Cola
14%
PBI
Coca-Cola
Both
5%
Both
None
None
70%
Out of the sample size which has been covered only 11 % of the shops had Pepsi’s
GSB’s vis a vis to 14 % of Coca-Cola’s GSB’s.
14 % of the sample size had the GSB’s of both the major players of the soft drink
industry.
70% of the sample size didn’t have any of the GSB’s displayed.
FIGURE 2
Ranking according to visibility - Pepsi ?
Ranking according to visibility - Coca Cola ?
13%
14%
14%
Rank 1
Rank 1
Rank 2
49%
Rank 3
Rank 2
Rank 3
38%
72%
72% of the shops having Pepsi GSB’s got the 1st rank according to their visibility
status on the other hand only 14% of the retailers got the rank 2nd and 3rd each. This
shows that retailers who got the GSB as display material from the company are
using them satisfyingly.
49% of the shops having Coca-Cola GSB’s got the rank 1st according to their
visibility status on the other hand 38% of the retailers got the rank 2nd and only 13%
of the retailers got the rank 3rd. This shows that in comparison to Coca-Cola,
Pepsico.’s GSB are being used in more proper way.
FIGURE 3
Out of Coca-Cola and Pepsi Beverages India Limited
whose DPSBoard do you have ?
PBI
27%
PBI
Coca-Cola
Both
Coca-Cola
8%
None
62%
None
Both
3%
Out of the sample size which has been covered 27 % of the shops had Pepsi’s DPS
Boards vis -a -vis to 8 % of Coca-Cola’s DPS’s.
3 % of the sample size had the DPS Boards of both the major players of the soft
drink industry.
62% of the sample size didn’t have any of the DPS Boards displayed.
*DPS-DISTRIBUTOR PROMOTINAL SIGNAGE* FIGURE 4
Ranking according to visibility - Pepsi ?
Ranking according to visibility - Coca Cola ?
0%
12%
18%
Rank 1
18%
Rank 1
Rank 2
Rank 2
Rank 3
Rank 3
70%
82%
82% of the shops having Pepsico. DPS Boards got the rank 1st according to their
visibility status on the other hand 18% of the retailers got the ranks 2nd and nobody
got the 3rd. This shows that retailers who got the DPS Boards as display material
from the company are using them satisfyingly.
70% of the shops having Coca-Cola DPS Boards got the rank 1st according to their
visibility status on the other hand 18% of the retailers got the rank 2nd and only 12%
of the retailers got the rank 3rd. This shows that in comparison to Coca-Cola,
Pepsico.’s DPS Boards are being used in far more satisfyingly.
FIGURE 5
EMBED Excel.Chart.8 \s
25%
27%
11%
PBI
37%
COCA-COLA
BOTH
OWN
Out of the sample size, which has been covered 37% % of the shops, had
CocaCola’s refrigerator vis a vis to 25 % of Pepsi’s refrigerator. This shows that
percentage distribution of the refrigerators of Coca-cola co. is more than Pepsico. .
11 % of the sample size had the refrigerator of both the major players of the soft
drink industry.
27% of the sample size didn’t have any of the company’s refrigerators; they are
using their own refrigerators for the chilling purpose.
FIGURE 6
Ranking according to visibility - Pepsi ?
Ranking according to visibility - Coca Cola ?
0%
8%
33%
24%
Rank 1
Rank 1
Rank 2
Rank 2
Rank 3
Rank 3
67%
68%
68% of the shops having Pepsico. refrigerators got the rank 1st according to their
visibility status on the other hand only 24% of the retailers got the ranks 2nd and 8%
of the retailers got the rank 3rd. This shows that retailers who got the refrigerators as
display material from the company are not using them satisfyingly.
Only 33% of the shops having Coca-Cola refrigerators got the rank 1st according to
their visibility status on the other hand 67% of the retailers got the rank 2nd and none
of the retailers got the rank 3rd. This shows that in comparison to Coca-Cola,
Pepsico.’s refrigerators are being used in far more proper way.
FIGURE 7
How many Bottles of PBI/ Coca-Cola do you have in
your fridge
PBI, 4260
4500
4000
3500
3000
2500
2000
1500
1000
500
0
FIGURE 8
Coca-Cola, 3368
PBI
Coca-Cola
PBI
Coca-Cola
Availabity Comparision between Pepsi and Coca-Cola at the
Outlets - using Coca-cola Merchandising Asset
Coca-Cola
44%
PBI
Coca-Cola
PBI
56%
In the CocaCola’s refrigerators 56% of the Pepsi bottles were found. This shows
that CocaCola’s refrigerators are not being used to optimum by the retailers in
promoting CocaCola’s products.
FIGURE 9
Reasons for not optimum use of Refrigerator / Ice Box
at outlets ?
Shortage
13%
Other
36%
Problem of the
Empty bottle
17%
Irregularity of the
Salesman
34%
Shortage
Problem of the Empty
bottle
Irregularity of the Salesman
Other
While giving the reasons for not using the Coca-Cola’s refrigerators 34% of the
retailers blame it to the lack of regular services from the company (irregularity of the
salesman), 17% of the retailers voted to the problem of the empty bottles of
Hindustan Beverages India, 13% voted for the shortage of the different packing.
Despite of all the above reasons a huge segment 36% blame it to different other
reasons for below optimum use of refrigerators.
Out of the 36% other major reasons low demand (33%) and lesser capacity
refrigerators (34%) got the maximum share.
Despite of all the above there are even major number of retailers who blame it to the
unfulfilled promises from the company professionals.
FIGURE 10
Approximate sale of the retailer
100
90
80
70
60
50
40
30
20
10
0
0.5 to 2
FIGURE 11
3 to 5
6 to 10
More Than 10
Approximate sale of the retailer
More Than 10
18%
0.5 to 2
8%
3 to 5
46%
6 to 10
28%
The sample size shows that maximum portion (around 46 %) of the retailers whose
sale are between 3 to 5 crates daily and only 8 % are the ones who are selling less
that two crates.
FIGURE 12
How the retailler gets display material from the
company ?
70
60
50
40
30
20
10
0
Schemes
FIGURE 13
Gift
Sharing / Draft
Other
How the retailler gets display material from the
company ?
Gift
40%
Sharing / Draft
21%
Schemes
33%
Other
6%
The sample size gives us the brief idea about the pattern of distribution of
merchandising assets by the companies. Most of the retailers (around 73%) are
getting the display material through different schemes or as the gifts.
FIGURE 15
Market Demand of different packings of Soft-Drinks
2lt
26%
200ml
30%
2lt
1lt
500ml
1lt
7%
300ml
200ml
500ml
14%
300ml
23%
This gives us an indication, where the better prospects lies. In which particular type
of packing little innovation can do wonders. This provides us with an idea where we
should concentrate.
The sample size shows that there is huge demand of 2lt pack (26%) and 200ml
bottles (30%).
300ml bottles with 23% shares the 3 rd position and 500ml. Shares the 4th position of
the demand total demand with the market demand of 14%
FIGURE 16
Market Demand of Softdrink ( Cola )
500
400
Pepsi
300
Coca-Cola
200
Thums-up
100
0
S1
Pepsi
Coca-Cola
Thums-up
FIGURE 17
Market Demand of Softdrink ( Cola )
Thums-up
24%
Pepsi
39%
Pepsi
Coca-Cola
Thums-up
Coca-Cola
37%
Sample size shows the comparison between the market demands of each of cola
drink.
Pepsi is on the top, shares the demand of 39% from the market.
Coca-Cola seconds with the shares of the demand of 39% from the market beating
Thumps up with the remaining 24%
FIGURE 18
Market Demand of Softdrink ( Orange )
290
280
270
260
250
240
Fanta, 285
Mirinda-O, 260
Mirinda-O
S1
Fanta
FIGURE 19
Market Demand of Softdrink ( Orange )
Mirinda-O
48%
Fanta
52%
Sample size shows the comparison between the market demands of each of Orange
drink.
Mirinda and Fanta are almost head to head with 48% and 52% market demand.
Though Fanta is having 4% more share than Mirinda Orange.
FIGURE 20
Market Demand of Softdrink ( Lemon )
Sprite
9%
7 Up
5%
Mirinda-L
27%
Mountain Dew
28%
Limca
31%
FIGURE 21
Market Demand of Softdrink ( Lemon )
1000
800
Limca, 865
Mountain Dew,
Mirinda-L, 735
400
770
Sprite, 235
200
7 Up, 123
0
Mirinda-L
Limca
Mountain
Sprite
7 Up
Dew
600
S1
Sample size shows the comparison between the market demands of each of Lemon
drinks available in the market
Limca in the lemon flavour with the market demand share of 31% is beating all the
giants.
Pepsi’s two products Mirinda Lemon and Mountain Dew together with the market
demand share of 55% are competing with the Limca.
The new entrant to the market, Mountain Dew is gaining the market share more
dynamically than its competitor brands.
Sprite and 7 up are lacking behind with just the share of 14%.
FIGURE 22
Market Demand of Softdrink ( Mango )
Slice, 300
300
295
Mazza, 290
Series
1
290
285
Slice
Mazza
FIGURE 23
Market Demand of Softdrink ( Mango )
Mazza, 290
Slice, 300
Sample size shows the comparison between the market demands of each of Mango
drinks available in the market Slice and Mazza is almost head to head with 52% and
48% market demand. Though Slice is having 4% more share than Mazza.
SURVEY REPORT CONDUCTED BY INDIVIDUAL AGENCY:-
FOR THE MONTH
APRIL
MAY
JUNE
MARKS
34.5
22.3
30.1
Coca Cola India has been working on RED (Right Execution Daily) since 2006. In Patna
Region RED was introduced in FEB 2006. RED is an integration of Sales Management &
Marketing Execution Plan. By this, company not only has been increasing its Sales &
Market Shares but it also has proved as a media for the company to come closer to its
Customers & Shoppers.
This case of Coca Cola Company is related to the Patna Region where the company is the
leader in the both the Market Shares & the Sales Volume. After RED was introduced in
Patna, the Company continuously tried to improve its RED Score Card.
Its RED Score Card shown in April 2008, in Patna Region (especially Exhibition Road,
Pirmohani, Goriatoli & New Market) was 34.5% (Approx), which was not near to the
Standard i.e. 50, fixed for the month.
The Standard for the month May was fixed 60 by the Sales Management for this Region.
But the result was negative for this month i.e. 22.3%(approx). The RED Score declined by
63% in this month as it was fixed by sales management.
It put extra pressure on Sales Execution Team to uplift this Score in the month of June. So,
it was the challenge for the Sales Execution Force to regain its prestige but still they didn’t
achieve the minimum Standard of 60% but somehow manage the score 31.1% which was
increased from the previous month.
On the basis of Urge(“ Prefer More Often”)
OPERATING GROUP:The Operating Group of Coca-Cola. The map is segmented into Coca Cola Operating
Groups: Africa, Eurasia, European Union, Latin America, North America, Pacific, Bottling
Investments. Certain prior year amounts have been reclassified to conform to the current
year presentation.
5) In 2007, Coca Cola adopted Financial Accounting Standards Board (FASB)
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" and recorded an
approximate $65 million increase in accrued income taxes in their consolidated balance
sheet for unrecognized tax benefits, which was accounted for as a cumulative effect
adjustment to the January 1, 2007 balance of reinvested earnings.
6) In 2006, Coca Cola adopted Statement of Financial Accounting Standards (SFAS)
No.158, "Employers' Accounting for Defined Benefit Pension and Other Postretirement
Plans -- an amendment of FASB Statements No. 87, 88, 106, and 132(R)."
7) Coca Cola adopted FASB Staff Position (FSP) No. 109-2, "Accounting and Disclosure
Guidance for the Foreign Earnings Repatriation Provision within the American Jobs
Creation Act of 2004" in 2004. FSP No. 109-2 allowed the Company to record the tax
expense associated with the repatriation of foreign earnings in 2005 when the previously
unremitted foreign earnings were actually repatriated.
8) Coca Cola adopted FASB Interpretation No. 46(R), "Consolidation of Variable Interest
Entities," effective April 2, 2004.
DATA COLLECTION AND RELIABILITY OF DATA:-
For this research work there is need of both Primary & Secondary data. Here I have
taken the Primary data which was collected from the Customers.
The secondary data are those, which have already been collected by someone else for
other purpose. The data, which are secondary in the hands of one, may be primary for
others. Here the Secondary data is collected from the company’s R&D department.
ANALYZING THE DATA:The next step in the research process is to extract pertinent findings from the data. The
researcher tabulates the data and uses various financial tools to assess the financial
soundness of the company.
•
Research instrument:-
Researcher used questionnaire as his instrument for conducting the survey.
• Sampling Plan
(1) Sampling unit – Retailers
(2) Sampling procedure- Simple Random Sampling Procedure.
• Contact Method
Researcher personally contacted the retailers.
Where f = Feed Back (Help in Controlling the Sub System to Which it is transmitted )
Ff = Feed Forward (serves the vital function of providing criteria for evaluation)
MARKETING STRATEGIES:-
1) Coca-Cola sales club:This club is for the retailers. In this approach retailers are given some points once in a
month depending upon how they are using the display material provided by the
company to them. This material consists of Fridges, DPS Boards, Glow Sign Boards,
Display Bottles (500ml. 1lt. 2lt, Commodity Packs, Stands, Posters etc. Depending
upon these points retailers are rewarded by certain gifts from the company.
The retailers are participating in these schemes curiously. But few of the retailers found
furious and angry because they had lost the points because of miscommunication or
lack of guidance. Therefore they need some kind of guidance from the company. It
would be a better idea that our salesman who are distributing the beverages to the
retailers can be equipped by the appropriate training so that they can guide the retailers
about how to use their display material to 100% of their strength and able to tell about
the new schemes convincingly.
2) Schemes:Hindustan Beverages India comes out with the schemes on their different products many
times in a year. Most of these schemes are made to benefit the retailers. Some of the
schemes are as follows:
•
1 bottle of 2lt. free with one 2lt bottle pack.
•
1 bottle of 1lt. free with one 1lt bottle pack.
•
2 bottles of 500ml free with one 500ml bottle pack.
•
6 bottles of Kinley free with one pack of Kinley.
These schemes keep on changing depending upon the stock. Beverages companies are
giving these schemes despite of acute shortage of soft drink in every segment to meet the
competition, to make sure the availability their brands and sometimes to satisfy and benefit
the retailers and the end consumers.
3) Advertising:Through the consumers survey it has been proved that the T.V. commercials and sinages
affect the consumer buying behaviour by approximately 70%. May be only Cococola. is
investing huge finances in the T.V. commercials and other sinages, big names of Indian film
industries and sports hero’s are being proposed to become the brand promoters and brand
ambassadors. Amir Khan, Akshay Kumar, Hritik Roshan, Riya Sen and more are being
offered huge amount for carrying out the promotions.
•
Posters
•
DPS boards
•
Glow Sign boards
•
Date calendars
•
Cinema hall tickets
•
Radio commercial
4) Promotion through restaurants and cinema hall holdings:-
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca, Sprite, Maaza etc. these
restaurants are authorized to keep and use the merchandising assets of Pepsi. Usually
these kinds of restaurants and fast food chains are in contract with the Pepsi Co., so
that they cannot promote any other brand.
5) Merchandising assets:Coca-Cola also try to promote their brands by providing their retailers and dealers some
display items. Some of such items are as follows:
1. Fridges
2. Coca-Cola/Mazza stands
3. Display bottles
4. Posters
Coca-Cola provide the above things to the retailers to use them in promoting companies
brands and products, and provide refrigerators to the retailers in the hope that these
retailers only use these assets in promoting the Coca-Cola’s products and they will chill the
Coca-Cola’s products so that its products will always be available to the end consumers.
But it is not true in most of the cases. Retailers usually use the merchandising asset of one
company in such a way that it benefits another company. Sometime they do it unknowingly,
sometimes they do it knowingly and sometimes because of the deficiencies of the company
itself. These deficiencies are as follows: 1. Irregularity of the salesman to the retailers shop.
2. Shortage of the different products and different packages.
3. Sometimes because of the rude behavior of the salesman.
6) Strengthen distribution network and promotions through word of mouth through
sales man:Unlike the rival brand Pepsi, Coca-Cola co.. Basically depends upon its sales man for
promoting and launching the new as well as old brands because instead of doing the
business through dealer’s network like Pepsi, Coca-cola believes in making and
maintaining relations with retailers directly. Therefore salesman is the very important part of
Coca-cola co. marketing strategy.
INTRODUCTION OF REPORT:Every year with the start of summers in India the real race to quench the thirst of the
consumers begins in the soft drink beverages industry. Every year millions participate in it,
either in the hot sun or sitting at home watching their, sipping the soft drink and watching
the newly launched advertisements.
Lime n' lemoni Limca:Soft drinks manufacturers in India face a number of major problems, such as distribution
difficulties.
Access to the 500,000 villages is limited due to the poor road network.
Inconsistent tax policies, the prevalence of duplicates, hefty packaging costs and India's
seasonal nature are other factors holding back growth.
During New Year the two of the largest soft drink giants in India Pepsi and Coca-Cola start
experiments with products, packages, flavors and prices in an effort to boost their market
share. For this the biggies make huge investments in terms of advertising, setting up new
and more productive and modernized plants, improving the distribution network to get better
reach to the end consumer.
One of the areas where these companies are making huge investments is merchandising.
This is the area where companies try to get the maximum display in the consumer’s eyes at
the retailers shop through refrigerators, glow signboards, DPS boards, stands, posters,
display bottles etc. But the question arises that whether these retailers are making the
proper use of these materials, which the company is providing them. Are they using these
materials to their optimum level in promoting the product of the company that has provided
them the
merchandising material? Are the companies getting the optimum results of the investments
they are making in this area?
Researcher have tried to find out answers to the above questions in his research work,
which researcher has conducted during his summer training during the partial fulfillment of
his BBA programme.
Under the Activation, the attention is given to ensure the following points at the
purchase point: -
Prices of HCCBPL products communicated in a clear & visible manner.
DPS/Flex Board/Glow Sign Board, Flange, or Road Standee, at least 1, should be in
a proper condition.
Ariel Mobile Hanger with at least 4 mobiles displayed at stores front in Convenience
Stores.
OBM/Drinking Shot Communication present at each store.
Table Top display unit/Hanging Rack, at least 1 should be pure & should be at least
50% charged in Convenience Stores.
Self Display Rack in which minimum 8 facings of any PET displayed & visible in
Grocery.
Rack should be pure & should be at least 50% full in Grocery.
Combo Communication should be present in E&D.
Branded Menu Cards with KO (cola) Beverages Menu (at least 5 Menu Cards)/Menu
Board (at least 1) with KO beverages listing.
ORGANIZATIONAL STRUCTURE:Coca Cola in India
SWOT ANALYSIS
6. SWOT ANALYSIS
STRENGTHS:-
Coca Cola competitive strengths include leading brands with a high level of consumer
acceptance, a worldwide network of bottlers & distributors of company products,
sophisticated marketing capabilities; & a talented group of dedicated associates.
Coke Company has a good market reputation and a strong distribution network.
Coke is having a multi brand strategy ad is looking for a great volume opportunity in
India.
Coke is presently no. 1 player in Indian Carbonated soft drinks market.
Coke was born 11 year before Pepsi (in 1987) ad a century later still maintains that
pioneering least.
Pepsi and coke both have good brand image.
WEAKNESS:-
Sales of Coca Cola ready-to-drink nonalcoholic beverages are somewhat seasonal, with
the second & third calendar quarters accounting for highest sales volumes. The volume of
sales in the beverages business may be affected by weather conditions.
Coke has less no. of retailers
Less force - it has less no. Have owned bottling plant.
It has not planned for setting up of any new plants where their competitor has
planned to set up several new plants.
OPPORTUNITY:Over the next several years Soft Drinks Industry’s growth is expected to out pace the
growth of the world economy. By 2010 is projected to eclipse $650 billion in total revenue.
There is tremendous opportunity to grow our sparkling beverages in both developed &
emerging markets.
A rapidly growing market, which is expanding @ 205 every year.
It can take the market very well with the new investment of Rs. 2400 corers.
It can give a big jerk to its major competitor Pepsi it can increase its number of
fountain to a sizeable amount.
Increasing trend of cold drink of different brands.
THREATS:Coca Cola Company competes in the nonalcoholic beverages segment of the commercial
beverages industry. Based on internally available data & a variety of industry sources, Coca
Cola believe that in 2007, worldwide sales of Company products accounted for
approximately 10% of total worldwide sales of nonalcoholic beverages products. The
nonalcoholic beverages segment of the commercial beverages industry is highly
competitive, consisting of numerous firms.
It has a continuous threat from Pepsi as well as various other local soft drinks.
Coke has a major market than Pepsi between the teenager as well as the student
due to advertisement of world cup cricket.
A large amount of expenses on the advertisement.
There is no proper policy of distributing the merchandising assets of the company to
the retailers.
LIMITATION:-
Despite the possible efforts in conducting the research, there were some unavoidable
situations, which limited the scope of the project.
Considering the population, the sample taken for present study seems small and
hence further investigation may be required.
The sample taken for study was not of equal distribution so a comparative study
cannot be made.
Some of the retailers were non-cooperative in giving information, which hampered
the actual calculation.
Time available for research was very short so certain aspects have been overlooked.
Retailers were hesitant to provide the complete information due to fear of misuse of
information.
Respondents may sometimes misinterpret the questions, leading to a different
answer.
CONCLUSION
7. CONCLUSION
After conducting the research, Researcher found that there are two categories of retailers.
The first one is of those retailers, which just want to increase their assets, for them the sale
doesn’t matter according to them they can only increase the sale if the company will invest
in them or in their shops. These types of retailers will only work for the company, which
invest in them hugely. And if at any moment they found company has lost or lowered their
interest in them they will again shift to other major player. Other kinds of retailers are those
who are more bothered about working hard and build their reputation in the market. These
types of retailers are using the merchandising assets to their optimum level. And sometimes
if they are unable to do so it’s because of the irregularity of the salesman (when the
salesman on the route gets changed) or because of the shortage of the different
products/packing.
•
There is a requirement of the company professionals to visit these retailers
continuously. So, that they can understand the market.
•
Suggest changes accordingly. Despite of this, salesman and other company
professionals who visit these retailers must not do the false promises. Due to this
retailers loose their confidence in the company.
•
There is also the need of the transparent schemes and marketing mix that the
retailers can understand more properly.
•
But all these services can be delivered when a company retain its customers and
biggest loophole in retaining customer for Market. And market is the foremost thing
that customer wants.
•
This case of Coca Cola Company is related to the Patna Region where the company
is the leader in the both the Market Shares & the Sales Volume. After RED was
introduced in Patna, the Company continuously tried to improve its RED Score Card.
•
Most of the respondents prefer to take the beverage on the basis of taste.
•
Out of the whole lot of the Coca Cola products most of the people prefer to take
Maaza in Large quantities.
•
Majority of the people know the beverages of Coca Cola thru advertisements.
•
It is heartening to notice that the availability of the Coca Cola Product is excellent.
•
The Coca Cola products are always found in its optimum condition in which it is
expected to be.
•
It has come to my notice that most of the customers are unsatisfied with the price of
the beverages.
•
Almost all the respondents take the beverages on the basis of personal judgment.
•
Also it is good to observe that most of the people are aware of the promotional
schemes offered by the Company.
•
All the products in the Visicooler are kept in a systematic way(CLOJ).
•
It has been observed that most of the people visualize the activation boards properly
in front of the Outlets.
RECOMMENDATIONS
&
SUGGESTION
8. RECOMMENDATIONS & SUGGESTIONS
1.
Company should do something to meet its demand in the market. Because there is an
acute shortage of Coca-Cola 2Lts party pack and tin pack because of the shortage, CocaCola is not only loosing the present market share but also providing way to the rivals. For
this either plant size can be expanded or some more production equipments can be
installed.
2.
Since the market capacity is huge salesman needs time at every retailer to satisfy him
and tell him about the different products, packaging, schemes etc. it’s quite difficult for him
to visit every shop on his route everyday. Therefore, there is necessity to divide his route
into two parts and increase the total number of routes.
3.
Sometimes salesman for different routes keeps on changing very frequently (in a very
short period). This should be prohibited because every sales man needs time to get
adjusted to a particular route and even to know all the shops on the route.
4.
Salesman is working for 15 to 16 hours regularly during the peak season at very low
reimbursement, which may sometimes kill his interest. Therefore there is a need of fixing
up his working hours. Delivery van should be ready when he comes into the depot in the
morning. There should be different labour for shipping or de-shipping the delivery vans.
5.
Company professions must not make the false promises about the merchandising
assets with the retailers. These retailers must get the proper information and guidance
about the company policies on the merchandising assets. So that there must be no
frustration generated.
6.
Though the GSB’s and DPS Boards are being used by the retailers satisfyingly but still
there is need of the guidance for the retailers.
7.
Schemes should be transparent and made clear to the retailers.
8.
As maximum number of retailers are selling around 3 to 5 crates daily. Our schemes
should be revolving around this percentage only. And while formatting the different
schemes this should be kept in mind.
9.
For this salesman can be provided with some kind of guidance/ training, so that they
can clear the queries of the customers about the different schemes/ proposals
10.
Retailer benefit schemes, which the company launches time by time during the whole
year, must be made clear to all the retailers.
11.
12.
Customers can be informed about the schemes through the broachers.
Broachers can be distributed to all the retailers for the schemes that are being
launched once in a year. And for the daily schemes which get change on daily bases and
which depends on the stock availability providing details about the day's schemes/ after a
paper/ pamphlet on different products can be sticked to the delivery van signed by the ASM
or anybody authorized. So that every retailer if needed/ required can verify himself about
the daily schemes.
13.
Company professionals should visit the field more regularly and they must try to visit
every retailer at least once in a month.
14.
A proper trust and relationship building process is required with the retailers, which
need to be worked on.
15.
Above figures shows the market demand comparison between the different products
of all the flavors available in the market. Which show that we can gain market share through
Coca-Cola’s Limca and Sprite. So we should concentrate more in completing the market
demand of these products.
16.
Above figures shows the market demand comparison between the different packs
available in the market. Which show that we can gain market share through concentrating
more on 2Lt. and 200ml. pickings. So we should concentrate more in completing the market
demand of these packing
17.
Other products and packing like Sprite and 300 ml. Whose demand is going down
require proper attention and strategy.
18.
Most of the respondents wants to increase the flavours of the Coca Cola Ionized
beverages as they have been consuming the same flavor over a period of time.
19.
Promotion and promotional schemes need to be propagated in the rural areas so as to
tap the unsaid and unclaimed potential of the rural life and habitat.
20.
Well, I would advise the Company to reduce the price affixed to each and very of
beverages so that all the classes and categories of the people can have the pleasure of
drinking the Coca Cola product.
APPENDIX
9. APPENDIX
Name of the SHOP ______________ Tel No.__________________
ADDRESS _____________________________________________
1 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE GSB DO YOU HAVE?
a. PEPSI
B COCA-COLA
C BOTH
D NONE
RANKING ACCORDING TO VISIBILITY?
1
2
3
2 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE DPS BOARD DO YOU HAVE?
a. PEPSI
B COCA-COLA
C BOTH
D NONE
RANKING ACCORDING TO VISIBILITY?
1
2
3
3 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE REFRIGERATOR DO YOU HAVE?
a. PEPSI
B COCA-COLA
C BOTH
D NONE
RANKING ACCORDING TO VISIBILITY?
1
4
2
3
HOW MANY BOTTLES OF COCA-COLA DO YOU HAVE IN YOUR FRIDGE?
COCA-COLA __________________ TOTAL ________________
5
WHAT ARE THE REASONS THAT YOU ARE NOT USING THE REFRIGERATOR / ICE BOX TO ITS FULL
STRENGTH?
A.SHORTAGE
[ ]
B. EMPTY PROBLEM [ ]
C . IRREGULARITY OF THE SALESMAN [
]
D. OTHER
[ ]
6 APPROXIMATELY HOW MANY CRATES DO YOU SALE?
a. 0.5-2 [ ]
B. 3-5 [ ]
C. 6-10 [ ]
7
D.
MORE THAN 10 [ ]
HOW DO YOU GET THE DISPLAY MATERIAL FROM THE COMPANY?
a. SCHEMES [ ]
B GIFT [ ]
C SHARING / DRAFT [ ] D OTHER [ ]
8 PLEASE RANK THE FOLLOWING ACCORDING TO THE MARKET DEMAND?
( ) 2 LT . ( ) 1 LT
( ) 500 ML ( ) 300 ML ( ) 200 ML
9 PLEASE RANK THE FOLLOWING ACCORDING TO THE MARKET DEMAND?
A. ( ) PEPSI
( ) COCA-COLA ( ) THUMS-UP
1
B. ( ) MIRINDA-O ( ) FANTA
C.
( ) MIRINDA –L( ) LIMCA
( ) 7-UP
D.
( ) SLICE
( ) MOUNTAIN-DEW ( ) SPRITE
( ) MAAZA
Thanks
If you Have Any Suggestion…………………………(
)
Signature
10.BIBLIOGRAPHY
Name of the books used for the reference and their authors.
•
1). Kotler, Philip, Marketing Management, Delhi, Pearson education Pvt. Ltd.,
2004
•
2). Kothari, C.R., Research Methodology, New Delhi, Wishwa Prakashan Pvt.
Ltd., 2003,pg.14-26.
•
Ramaswamy, “Marketing Management”,
Websites Referred:http://www.coca-cola.com
www.financialexpress.com
www.businessworld.com
www.cocacolacompany.com
www.cocacolaindia.com
http://www.google.com
MAGAZINES:Time Education Magazine
Business Today
PROJECT STUDY REPORT
ON
“The study of consumer buying behavior in mid segment cold drinks: with special
reference to COCO COLA”
Submitted in partial fulfillment for the
Award of degree of Bachelor of Business Administration
SUBMITTED BY :
SUBMITTED TO :
ANKIT KUMAR NAGAR
MBA III SEM
DR.SONAL JAIN
(HOD)
2011-12
DEEPSHIKHA COLLEGE OF TECHNICAL
EDUCATION, JAIPUR
PREFACE
Soft drink includes all types of non alcoholic carbonate flavoured or otherwise sweetened
beverages. Soft drinks are mostly packaged in 200 ml, 300 ml, 500 ml, 1000 ml, 1500 ml,
and 2000 ml and comes in a variety of flavours. It also comes in glass as well as in plastic
bottles.5ince so many changes and transformations are under going ever changing
consumer demands, Govt. Policies and innovative packaging. Then industries are much
emphasizing advertising to increase its sales.
With the introduction of fruit pulp based soft drinks, packaged in cardboard cartoons known
as "TERRAPACK" has been introduced in the market. The bottled soft drink market has
undergone a marginal decreases in demand After 1994 the eminent re-entry of coca-cola in
Indian soft drink Industry it is heading for two giants war to capture the market. It has
introduced various sharp and efficient tools say tour packages, prizes gift other avenues to
enhance social status and satisfying personal egos also.
ACKNOWLEDGEMENT
This project is an outcome of six weeks mandatory summer training, which I have to
undergo for the partial fulfillment of the MBA program. I wish to put on record my sincere
gratitude to the following person without whose support the completion of this project would
not have been possible.
I am grateful to Mr. Israr Ahmad (A.S.M) of Coca Cola Company, who has given an
opportunity for me to work in Coca Cola Company.
I would like to thank to my institute also where I got all the knowledge and
skills required for this research project. I also want to thank to Marketing
Faculty who took our project seriously and kept check on this time to time.
Without the co-operation of the above person this work
Certainly would not have been as good as, it is now.
(Ankit Kumar Nagar)
EXECUTIVE SUMMARY
This project was undertaken during the summer Training. A great deal of effort has been
put in preparing the questionnaire, in order to understand the market better {Ghaziabad}.
The Coca Cola Company was incorporated in September 1919 under the laws of the State
of Delaware and succeeded to the business of a Georgia Corporation with
the same name that had been organized in 1892. Coca Cola Company is
one of numerous competitors in the commercial beverages market. Of the
approximately 53 billion beverage servings of all type of consumed
worldwide every day. Beverages bearing trademarks owned by or licensed
to company account for approximately 1.5 billion. Coca-Cola, the corporate
nourishing the global community with the world’s largest selling soft drink
concentrates since 1886. Coca Cola Company put his first step in India in
1952 but withdrew completely in 1977 due to change in Indian Government
policies..
Objectives: 1. Extent to which merchandising assets are being used by the retailers in promoting
the brands.
2. Market demand of Coca Cola and Thums-up vis-à-vis Pepsi.
3. Market demand of Fanta vis-à-vis Mirinda-O
4. Market demand of Limca, Mountain dew, Sprite and 7up vis-à-vis Mirinda-L
5. Market demand of Maaza vis-à-vis Slice.
6. Market comparison of all the available brands of the soft drinks in the market.
7. Brands availability of Coca-cola and its brands vis-à-vis Pepsi and its brands.
The scope of the study was limited to Indian Market. This project was conducted for
Coca Cola Limited to assess the preferences of Customer in India. . Data collected
with help of questionnaire was put in excel sheets. A survey of 400 Customer was
conducted in Ghaziabad. The sample has covered the Cold Drink Customer of other
Competitor also as to understand the competition and their strength and
weaknesses.
A BRIEF DESCRIPTION OF THE FINDINGS:1.
Extent to which merchandising assets are being used by the retailers in
promoting the brands: -
Retailer who are having DPS Boards / GSB and other display material like stands, posters
etc. were selected. Display material on the retailers shop was given rank between 1, 2 and
3 according to their visibility. If the DPS Boards / GSB and other display material were
found visible at first sight then they have been ranked '1st', if they were found visible at
second sight then they have been ranked '2nd' otherwise '3rd'.In the similar fashion ranks
were allotted to the refrigerators in the retailers shop.
While entering each shop it was taken care that the display materials are properly ranked
according to there visibility and incase of confusion, opinion of the consumers were taken.
Those shops with GSB’s were visited during the evening in order to see there visibility. In
these cases some glaring facts were found. (Areas which were looking like monopoly
markets of Coca-Cola because of its Red-color during the day had altogether a different
look in the evening. They turned into Pepsi monopoly during the evening because of the
GSB's. Researcher have also tried to find out what are the difficulties retailers are facing on
using these brands up to 100% of their strength.
2.
Market demand of each of Coca-Cola's product vis-à-vis to their competitor
flavours in Pepsi's artillery: -
For this, retailers were asked about the market demand of the different brands and they
have been asked to rank the brands with respect to their competitive flavors. In this also
some interesting facts came out like no lemon brand exists in front of Coca Cola. Our
Limca, which we were thinking that it will be competing with Mountain dew, actually it is
grabbing the Coca-Cola's Sprite’s market and Pepsi’s, 7up's market. In case of Mirinda
(O) and Coca-Cola's Fanta, Mirinda’s market is going up day by day.
In case of mango drinks Slice even after entering the market so late has been able to
quickly pick up with Maaza. From the day Tetra Slice has entered the market it has
captured the market of Frooti.
In case of Aquafina, Coca-Cola's Kinley stands nowhere but brands which are competing
with kit are Paras, Bisleri, and Kingfisher.
3. Market comparison of all the available pickings of the soft drinks in the market: In the market this study is done to find out that on which packing, company should
concentrate more. From the day company has introduced its 200ml packs, Coca-Cola is
more economical for the lower income grade consumers like Riksha-pullars and others.
4.
Brands/ Pack availability of Coca-cola and its brands vis-à-vis Pepsi and its
brands: For this study, retailers were asked that how many bottles they are having in their fridge
and how many of them are of the brand whose fridge they are having and about the
capacity of their fridge. In spite of these findings Researcher have worked on some other
things like retailers expectations from the company. He tried to find out how the company
can increase the sales. In the answer to this some funny recommendations came up (some
consumers recommended that Pepsi should change the percentage of the sweetening
content of its cola drinks). Secondly he tried to find out what are the problems they are
facing in promoting Pepsi.
Health effects:-
The consumption of sugar-sweetened soft drinks is associated with obesity,[12][13] type 2
diabetes, dental cavities, and low nutrient levels.[13]Experimental studies tend to support a
causal role for sugar-sweetened soft drinks in these ailments,[12][13] though this is challenged
by other researchers.[14][15] "Sugar-sweetened" includes drinks that use high-fructose corn
syrup, as well as those using sucrose.
(Coca Cola) is a Soft Drink company. The main objective of this company is to provide the
best services to their customer in low cost as compared to their competitor. They offer more
Healthy and sweetest drink in marginal cost. Occasionally they give some offers for the
benefit of the customers and retailer and distributor.
I hope will recognize this as well as take more references from this project report. HR
department has been given more emphasis for the study of the project because it is the
only sector where all type of Age group, Income class and different level of people are
represented.
Coca Cola Company manufactures and sells beverage concerates, sometimes referred to
as “beverages bases” and syrups, including fountain syrups, and finished beverages.
“Jo Dikhta Hai Wo Bikta Hai”
Contents
TITLE
Page No-
1.
INTRODUCTION OF INDUSTRY
9-14
2.
INTRODUCTION OF COMPANY
15-41
3.
RESEARCH METHODOLOGY
42-47
4.
o Title of the Study
o Duration of the Project
o Objective of Study
o Type of Research
o Sample Size and method of selecting sample
o Scope of Study
o Limitation of Study
FACTS AND FINDING
43
43
43-44
44-45
45-46
47
47
48-49
5.
ANALYSIS AND INTERPRATATION
50-68
6.
SWOT
69-72
7.
CONCLUSION
73-75
8.
RECOMMENDATION AND SUGGESTION
76-79
9.
APPENDIX
81-82
10.
BIBLIOGRAPHY
83
INTRODUCTION
OF
INDUSTRY
1. INTRODUCTION OF INDUSTRY
The introduction of soft drink was due to necessity of traveling particular in the absence of
availability of reliable water. But meaning quietly changed with changing in time. It has
become so, popular commodity fashion & habit instead of requirement of quenching thirst.
The first marketed soft drinks (non-carbonated) in the Western world appeared in the 17th
century. They were made from water and lemon juice sweetened with honey. In 1676,
the Companies des Limonadiers of Paris was granted a monopoly for the sale of lemonade
soft drinks. Vendors carried tanks of lemonade on their backs and dispensed cups of the
soft drink to thirsty Parisians.
Carbonated drinks:-
Soft drinks displayed on supermarket shelves.
In the late 18th century, scientists made important progress in replicating naturally
carbonated mineral waters. In 1767, Englishman Joseph Priestley first discovered a method
of infusing water with carbon dioxide to make carbonated water which has 3.4 mg in the
drink[5] when he suspended a bowl of distilled water above a beer vat at a local brewery in
Leeds, England. His invention of carbonated water (also known as soda water) is the major
and defining component of most soft drinks.[6]
Priestley found that water treated in this manner had a pleasant taste, and he offered it to
friends as a refreshing drink. In 1772, Priestley published a paper entitled Impregnating
Water with Fixed Air in which he describes dripping oil of vitriol (or sulfuric acid as it is now
called) onto chalk to produce carbon dioxide gas, and encouraging the gas to dissolve into
an agitated bowl of water.[7]
Another Englishman, John Mervin Nooth, improved Priestley's design and sold his
apparatus for commercial use in pharmacies. Swedish chemist Torbern Bergman invented
a generating apparatus that made carbonated water from chalk by the use of sulfuric acid.
Bergman's apparatus allowed imitation mineral water to be produced in large amounts.
Swedish chemist Jones Jacob Berzelius started to add flavors (spices, juices, and wine) to
carbonated water in the late 18th century.
Soft drink bottling industry:Over 1,500 U.S. patents were filed for either a cork, cap, or lid for the carbonated
drink bottle tops during the early days of the bottling industry. Carbonated drink bottles are
under great pressure from the gas. Inventors were trying to find the best way to prevent the
carbon dioxide or bubbles from escaping. In 1892, the "Crown Cork Bottle Seal" was
patented by William Painter, a Baltimore, Maryland machine shop operator. It was the first
very successful method of keeping the bubbles in the bottle.
The Coca Cola Company was incorporated in September 1919 under the laws of the State
of Delaware and succeeded to the business of a Georgia Corporation with the same name
that had been organized in 1892. Coca Cola Company is one of numerous competitors in
the commercial beverages market. Of the approximately 53 billion beverage servings of all
type of consumed worldwide every day. Beverages bearing trademarks owned by or
licensed to company account for approximately 1.5 billion. Coca-Cola,
The corporate nourishing the global community with the worlds largest selling soft drink
concentrates since 1886. Coca Cola Company put his first step in India in 1952 but
withdrew completely in 1977 due to change in Indian Government polices. Again returned
to India in 1993 after a gap of 16 years giving a new thumb up to the Indian Soft Drink
Market. In the same year, the Company took over ownership of the nation's top soft-drink
brands and bottling network. No wonder, their brands have assumed an iconic status in the
minds of the consumers.
INTRODUCTION TO SOFT DRINKS IN INDIA:Gold Spot considered as the first soft drink, established 50 years ago before all
empowering Coca-Cola entered the company to dominate the scene. It faced no
competition and its euphoric image built up in western countries helped it get ready clientele
& glamour. Parle export private ltd. should be regarded as the first Indian company
introducing limca a lemon drink complimentary to their well entiemched Gold Spot in 1970
which got moderate success. However, before this, it had also introduced Cola-Pepino
which was withdrawn in face tough competition from Coca-cola.
Coca-Cola serves in India some of the most recalled brands across the world, which
include names such as Coca-Cola, Diet Coke, Sprite, Fanta, along with the Schweppes
product range. The acquisition of Thums Up brought some of the leading national soft
drinks like Thums Up, Limca, Maaza, Citra and Gold Spot under its umbrella. To add to this,
Kinley mineral water was launched in the year 2000.
THE VALUE CHAIN
The Coca-Cola
Company
Bottler
Customer
Consumer
When Coca-cola bid farewell in 1977, Indian market was open for various cold drinks and
several companies came forward pushing the different in the market. Parle people
introduced their Cola-Thumps Up with a mightily bang saying “Happy days are here again”
as if happy days went away with Coca-cola pure drinks of Delhi, also without loosing much
time introduced pure drinks with Campa Orange and Campa Lemon. Modern bakeries
interested the market Double Seven, Mohan Meakings with Marry and Pick Up & McDowell
with Thrill, Rush and Sprint and Indian Market where there was competition previously a cut
throat competition and heavy advertising was on. Each one was trying their best to be come
under one company with “A Class” products in the field of soft drink business, now after a
long gap; Govt. of India had given permission to the Coca-Cola to start their business in
India. Coca-Cola came with Parle to do business on the Indian soil. They are trying best
regaining its prestige which it had before.
The government has adopted liberalized policies for the soft drink trade to give the industry
a boast and promote the Indian brands internationally. Although the import and
manufacture of international brands like Pepsi and Coke is enhanced in India the local
brands are being stabilized by advertisements, good quality and low cost. The soft drinks
market till early 1990s was in hands of domestic players like Campa, Thumps up, Limca etc
but with opening up of economy and coming of MNC players Pepsi and Coke the market
has come totally under their control.
Soft drinks are available in glass bottles, aluminum cans and PET bottles for home
consumption. Fountains also dispense them in disposable containers Non-alcoholic soft
drink beverage market can be divided into fruit drinks and soft drinks. Soft drinks can be
further divided into carbonated and non-carbonated drinks. Cola, lemon and oranges are
carbonated drinks while mango drinks come under non carbonated category.
The market can also be segmented on the basis of types of products into cola products and
non-cola products. Cola products account for nearly 61-62% of the total soft drinks market.
The brands that fall in this category are Pepsi, Coca- Cola, Thumps Up, Diet Coke, Diet
Pepsi etc. Non-cola segment which constitutes 38% can be divided into 4 categories based
on the types of flavors available, namely: Orange, Cloudy Lime, Clear Lime and Mango.
OPERATING GROUP:The Operating Group of Coca-Cola. The map is segmented into Coca Cola Operating
Groups: Africa, Eurasia, European Union, Latin America, North America, Pacific, Bottling
Investments. Certain prior year amounts have been reclassified to conform to the current
year presentation.
1) In 2007, Coca Cola adopted Financial Accounting Standards Board (FASB)
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" and recorded an
approximate $65 million increase in accrued income taxes in their consolidated balance
sheet for unrecognized tax benefits, which was accounted for as a cumulative effect
adjustment to the January 1, 2007 balance of reinvested earnings.
2) In 2006, Coca Cola adopted Statement of Financial Accounting Standards (SFAS)
No.158, "Employers' Accounting for Defined Benefit Pension and Other Postretirement
Plans -- an amendment of FASB Statements No. 87, 88, 106, and 132(R)."
3) Coca Cola adopted FASB Staff Position (FSP) No. 109-2, "Accounting and Disclosure
Guidance for the Foreign Earnings Repatriation Provision within the American Jobs
Creation Act of 2004" in 2004. FSP No. 109-2 allowed the Company to record the tax
expense associated with the repatriation of foreign earnings in 2005 when the previously
unremitted foreign earnings were actually repatriated.
4) Coca Cola adopted FASB Interpretation No. 46(R), "Consolidation of Variable Interest
Entities," effective April 2, 2004.
INTRODUCTION
OF
COMPANY
2. INTRODUCTION OF COMPANY
If we Indians recall our memory there was a time when one was asked for a soft
drink, the brand that comes and gave a knock on our mind was Coca-Cola. Coca-Cola, the
word most admired trademark has maintained its special a sense of belongingness to India,
which had resulted some sort of its monopoly throughout the Indian soft drink market. It has
been said that the internal environment of the industry has been greatly effected from its
internal environment. The same thing was also happen with this famous company. When
the Government policy were in introduce and forced this MNC's to go outside from the India
market. Hence, it was thrown out of India in the year 1977. A lacuna was created at that
time in the country's soft drinks market. How ever after a gap of 17 years, the Coca-cola
has reappeared in the soft drinks market of India, by making itself more strong and
confident in this field.
In today's market, the cola's (Coke, Thumsup, Pepsi, etc.) had a 70% share, Lemon
10% and Orange 20%. There appears to be a concentrated rush to bag a share in the soft
drinks market. Due to a manifold increase in the demand of soft drinks large number of
company has entered into this competitive market scenario.
In India two major companies engaged in soft drinks market are Pepsi and CocaCola. While RC cola is still a novice in the Indian Market, although it being the world oldest
soft drinks manufacturer.
Pepsi-Cola attacked Coca-cola before World War-II. Coca-Cola dominated the
Americans soft drinks industry. Pepsi-Cola was a drink
costing less to manufacturers and with a less satisfactory taste than coke.
During the Second World War Pepsi and Coke, both of them enjoyed a huge sale.
After the war the Pepsi sales started to fall relatively to Coke. The factors which were
responsible for the decline in Pepsi sales were poor image, poor task force, poor quality
control and dull packaging.
It was a momentous day when Coca-Cola staged its reliance in India. Coca-Cola
was relaunched again in India in Sep. 1993 at Hathras near Agra, where the first bottling
facility of Coca-Cola in India was switched on. The Indian people welcomed the come back
of their most loved cola in the country with great enthusiasm and vigor. Coca-Cola market
its relaunching acquiring 5 Parle Exports Ltd. Top Selling products Viz-Thums up, Sprite,
Limca, Fanta, Mazza, K. Soda,Kwater,Coke.
In 2000, the company opened a new bottling plant at Dasna in Agra distt. For the
supply of 300 ml Bottle and 1.5 liter Bottles. This plant is more settled equipped than the
plant at Ghaziabad.
RED, IN INDIA:Hindustan Coca Cola Beverages Pvt.Ltd., India division under Eurasia Operating Group
has been working on RED i.e. Right Execution Daily since FEB 2006. Coca Cola Company
believes that its success depends on their ability to connect with consumers by providing
them with a wide variety of choices to meet their desires, needs and lifestyles choices.
Company success further depends on the ability of their people to execute effectively, every
day.
COMPANY GOAL:Company goal is to use the Company’s asset –company brands, financial strength,
unrivaled distribution system, global reach and talent and strong commitment of our
management and associates-to become more competitive and to accelerate growth in
manner that creates value for our shareowners. Company wants to increase his profit
and sells.
Coca Cola Company manufactures and sells beverage concerates, sometimes referred to
as “beverages bases” and syrups, including fountain syrups, and finished beverages.
“THANDA MATLAB, COCA COLA”
A 100 YEARS OF THE SURVY GLASS BOTTLE OF COCA-COLA:-
Coca-Cola Company marks a mile stone on Wednesday, 24th March 1899 Chattanooga;
Tenn where its first bottling plant was started 100 year ago by two men struck one of the
most lucrative business deals in US history. Joseph Whitehead and Benjamin Thomas
offered Coca-Cola Company owner Asia Candler a dollar for the right to bottle soft drinks in
1899. Today I billion soft drinks are sold each day in more than 200 countries around the
world.
Candler had purchase what would become the Cola Company for $2,300 eight years earlier
from John Pemberton, an Atlanta Phamacist who astonished the world. Candler thought
the bottling Venture would never succeed, but he signed the contract with White Head And
Thomas and way, "and the rest is history", Bob Lovell, vice president of marketing for CocaCola bottling company, United Inc., said in telephone interview from Chattanooga.
Lovell said Thomas had seen Cuban Fields hand drinking Pina Fria a Pineapple beverages,
from bottles while he was stationed in Cuba during Spanish American War. When he
returned to Chattanooga, he decided to pitch the idea of bottle soft drinks to coke, which
was then sold only as a fountain beverage.
"It occurred to him that Coca-Cola in bottles would be very popular", Lovell said, "Mr.
Candler did not see any future in it because the containers were not sound, but that's how it
all came about. "Thomas and Whitehead promised to pay one dollar for the right to bottle
Coca-Cola, but legend has it that no money changed hands.
THE IMAGE:-
The image is communicated all around the world in advertisement on media such as
newspaper, magazines, radio and televisions. The list goes on....
However, image is much than just advertising every person working within the coca-cola
system is part of the image whether one is involved in creating its advertising, making it's
quality products, or selling, merchandizing and distributing its beverage their hard work and
attitude will say something to the people about its product.
COCA-COLA SYSTEM FLOW CHART
Raw Material
Coca-Cola
Company
Bottler
Customer
Consumer
In today's market, the cola's (Coke, Thumsup, Pepsi, etc.) had a 70% share, Lemon 10%
and Orange 20%. There appears to be a concentrated rush to bag a share in the soft drinks
market. Due to a manifold increase in the demand of soft drinks large number of company
has entered into this competitive market scenario.
COCA COLA: THE STORY BEHIND:-
Coca-Cola was formulated in 1886 by Dr. John Pemberton, a Pharmacist in Atlanta,
Georgia. The drink was sold ad refreshing elixir at the fountain counter of Jacob's
Pharmacy of which Dr. John Pemberton was part owner, unaware that the pharmacist had
given birth to a caramel colored syrup which is now the chief ingredient of the worlds
favorite drink. Today the white-on-red flow of Coca-Cola is familiar sight in more then 195
countries. The syrup combines with the carbonate water to fuel a $ 16.2 billion corporation
that has captured a 46% Slice of the global soft drinks market. The company estimates that
the drink is served more than 773 million times every day and if all Coke ever produced
were filed in standard bottles and placed end to end it would wrap around the equator 21,
161 times.
The story of Coca-Cola is a story of a drink and its charm with the consumer. The of
ecstasy and again that the drink has caused to those dedicated to its growth Pemberton
first managed to sell and average of 9 drinks per day, though a shop called Jacob's
pharmacy, in 1891, Candler bought Coca-cola company with four companies he formed the
coca-cola company with the initial stock of $100,000. Coca-Cola was registered at the US
patent office in 1893, and began selling at soda fountains for 5 cents a glass of therapeutic
refreshment 1894, I got into bottles, courtesy a candy merchant Joseph Boedenharn of
Mississippi.
Five years later; the drink was being bottled on a regular basis under a region wise
franchising system; and its first competitor Pepsi cola, Coca-Cola's first bottling plant
opened in Chatanooga, Tennessee followed by another in Atlanta in 1900. The unique taste
of cola was an outstanding success. Over the next two decade the number of plants
crossed 1000. In a bit to difference the prodect, the company adopted 6.5 ounce, pale
green countor bottle designed by the root glass company of Terri Haute, Indiana. Today it is
an intrinsic part of the brand.
The company broadened its horizons when Robert Woodruff the son of a banker who
acquired to Company for $25 million in 1919, assumed charge in 1923. He began by
ungrading bottling operations, brought in innovations like a six-bottle carry home carton,
and gear up advertising support. It was under Wood Ruff that the brand. Known
affectionately as coke by now associated it self with sportive events. By the early 1940's the
brand was selling as the "real thing" to set it self apart from "me to" cola's.
As a time went by the company brought out some new aerated drinks. The first one "Fanta"
appeared in the selves in 1960.
Its birth was an accident, the company's German name is an attempt to produce Coca-Cola
without some key ingredients, turned out into an orange flavored drink instead. its
strategists who feared the dependence on just one put a cap on growth welcomed it. While
Fanta was being rolled out the company bought minute made cosrp. Which in 1967 was
combined with Duncan foods to pave way for the Coca-Cola foods. Several beverages
followed the most notable being 'sprite', a lemon drink developed in the late 1950 and
formally launched in 1961.
Coca-Cola had diversified the company into businesses and it even had a steam generator
and boi8ler making division. Robert C Goizueta, Cuban born 27 years veteran took over as
the Coca-Cola unlike Pepsi company depended on a single brand. The best insurance
policy that he figured was to let coke evolve to the summer slacking it with variants, even
reinventing if needed. In 1982, the company launched what is now considered among the
world's most successful brand extensions 'Diet Coke', under the leadership of Sergio
Zyman, the head of us marketing. The idea was to retain the loyalty for the health
conscious drinker who loved the taste but hated the calories. After this it came out with
cafeeine free versions of its main drinks. yet in the US the company kept losing ground to
Pepsi. zyman, a former Pepsi marketer argued that the correct strategy was to replace 98
year old with better tasting cola, label it as "New Coke" and blare the news which is exactly
what the company did more a decode age in 1985. But when placed on the shelves it did
not budge. On wide spread protest it was recalled after 79 days.
The company has about 100 brands in its portfolio but coke, Fanta and sprite account for
most of its sales. In 1994, the real thing's coke sold over 52.5 billion liters. For the taste of it
diet coke along with Coca-Cola light sold 8.5 billion liters, which makes it the world's two top
non cola drinks sold over 6.5 billion liters each. Which sprite aimed at the independent
youngster two does not care what as others drink (the as line "obey you're a thrust"). In
1993, Coca-Cola reentered India after a 16 years ling exile, four years Pepsi made its debut
India. While Coke plays on brand nostalgia. Pepsi address the young crowd, which unlike a
in America is a dominate ort if the population here.
THE COCA-COLA COMPANY:-
The Coca - Cola Company is the world's largest beverage company. Along with Coca Cola, recognized as the world's best - known brand, The Coca - Cola Company markets
four of the world's top five soft drink brands, including diet Coke, Fanta and Sprite, and a
wide range of other beverages, including diet and light soft drinks, waters, juices and juice
drinks, teas, coffees and sports drinks. Though the world's largest distribution system,
consumers in more than 200 countries enjoy The Coca - Cola Company's products at a rate
exceeding 1 billion servings each day. For more information about the Coca - Cola
Company, please visit our website at http: // www.coca- cola.com/.
Forward - Looking Statements:This press release may contain statements, estimates or projections that constitute "forward
- looking statements" as defined under U.S. federal securities laws. Generally, the words
"believe," "expect," "intend," "estimate," "anticipate," "Project," "will" and similar expressions
identify forward - looking statements, which generally are not historical in nature. Forward looking statements are subject to certain risks and uncertainties that could cause actual
results to differ materially from The Coca - Cola Company's historical experience and our
present expectations or projections. These risks include, but are not limited to, changes in
economic and political conditions, changes in the non - alcoholic beverages business
environment, including actions of competitors and changes in consumer preferences;
product boycotts; foreign currency and interest rate fluctuations; adverse weather
conditions; the effectiveness of our advertising and marketing programs; fluctuations in the
cost and availability of raw materials; our ability to achieve earnings forecasts; regulatory
and legal changes; our ability to penetrate developing and emerging markets; litigation
uncertainties; and other risks discussed in our Company's filings with the Securities and
Exchange Commission (the "SEC"), including our Annual Report on Form 10-K, which
filings are available from the SEC. You should not place undue reliance on forward - looking
statements, which speak only as of the date they are made. The Coca Cola Company
undertakes on obligation to publicly update or revise any forward - looking statements.
ORGANIZATIONAL STRUCTURE
CHAIRMAN
PRESIDENT
VICE PRESIDENT
R.G.M.
A.G.M.
I.S.M
.
S.M.
F.M.
M.O.E.
P.M.
A.S.M.
S.E.
S.E.
H.R.M.
S.E.
S.E.
Where,
R.G.M.
:
Regional General Manager
A.G.M.
:
Area General Manager
I.SM.
:
Information System Manager
F.M.
:
Finance Manager
S.M.
:
Sales Manager
P.M.
:
Production Manager
H.R.M.
:
Human Resource Manager
A.S.M.
:
Area Sales Manager
M.O.E.
:
Marketing Operation Executive
C.D.E.
:
Cold Drink Executive
S.E.
:
Sales Executive
PRODUCT PROFILE OF COCA COLA:The product range of the coke has listed brands:
Coke : 200ml, 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt
Thumps UP: 200ml, 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt.
Limca: 200ml, 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt.
Fanta: 200ml, 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt.
Sprite: 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt.
Mazza: 250 ml, Tetra Pack
Diet Coke: 330ml, 1.5 lt, 2lt.
Kn. Soda: 300ml, 500ml,
Kn. Water: 500ml, 1lt, 2lt,
Some facts About Coca Cola Pvt Ltd:Head office
Atlanta (U.S.A)
Corporate office
Enkay Towers,
Udyog viharV,
Gurgaon,Haryana
Chief Executive officer
Alex von Behr
Total Investment
Rs.3200 Crore
Owned Bottling Plants
35
No. of Franchisees
16
No. of Employees
6000
THE FUTURE OF COCA-COLA:While dong business overseas offers Coke wonderful growth opportunities it also has its
own disadvantages. The economic slowdown in various overseas markets and the strong
dollar had their impact on Coca-Cola revenues and bottom line in 1999. But the company
optimistic about the future.
Mc-Douglas Investor, The Chief Executive Officer of the Coca-Cola Company says, "This
past year 1999 has been a challenging period for the Coca-Cola Company as economic
environment became more uncertain in the later part of 1999, we strongly believe that our
fundamental opportunities for long term growth have not changed".
As long as maximization of share holder wealth remain coke's focus for its future4 is
assured Goizueta had stated and proven to the world that focus on shareholder wealth
does more good to the company than focus on revenues and it is not hat coke does not
enjoy volumes for it is world's No. 1 soft drink manufacture. It is not content with this title
and is aiming at higher volumes year after year. Surely coke will continue to grow. Point on
Roberto had reduced the company basically to its trademark and the returns are so
astronomical as to be off the boards. It just absolutely added a jet engine to their
performance.
COKE'S BOTTLING STRATEGIES:In the soft drink business the bottlers are responsible significant extent for ensuring the
availability of the products. Bottlers are supplied with concentrate to which they add aerated
water and bother ingredients before packing and sealing either cans or bottles. Bottlers play
a strategic role in the success of soft drinks companies and this was not far from Goiueta's
mind.
In 1986 the company merged some of its company owned bottling operations with two large
ownership groups that had been put up for sale. All these bottling activities were combined
to from its own subsidiary Coca-Cola Enterprises (CCE) to handle bottling operations. The
Coca-Cola Company took 49 percent equity stake in Coca-Cola Enterprises enabling it to
retain its own balance sheet.
MARKET PLACE:More than a billion times everyday, thirsty people around the world reach for Coca-Cola
products for refreshment. They deserve the highest quality-every time. Our promise to
deliver that quality is the most important promise we make. And it involves a worldwide, yet
distinctively local, network of bottling partners, suppliers, distributors and retailers whose
success is paramount to our own. Our investment in local communities in over 200
countries totals billions of dollars in jobs, facilities, marketing, the purchase of local goods
and services, ands local business partnerships, always and everywhere, we pursue
continuous innovation in the products we offer, the processes we use to make them, the
packages we develop and the ways we bring them to market.
COMPETITOR:The biggest and perhaps the only serious for the coca-cola worldwide has an already
been Pepsi. In India, as per as the Cola segment is concerned the with the biggest
competition to coke comes from its brands of Pepsi viz. Pepsi and Mirinda. Thums-up,
which was the leading brand of Parley product, was acquired by Coca-Cola just over a year
ago to bolster its market share in India. Today, Thums-up along with coke, the leading
brand of the Coca-Cola Company, other still competition to Pepsi, which despite this stiff
competition is still by far the single most popular Cola drink in India
With both the companies being backed fully by the parent concerns based in the
united state, the fight to become the dominant player in the huge Indian Soft drink market
continues unabated. Aggressive ad campaign's, sale-promotion, schemes for retailers are
just some of the strategies being adopted by the two companies to outwit each other and
grab and large share of the market.
In the Cola segment, which occupies by far the largest chunk of the soft drink market
in India, the market share of Coke is 60%while the market share of Thums-up is 32.16%.
The market share of Coke in this Cola Segment is 27.84%. The remaining market share is
occupied by the other brands, which constitute about 14% of the Cola market share.
So Coca-Cola with its two brand clubbed together i.e. Thums-up + Coke occupies a
combined market share of 60% (32.16% + 27.84%)
which is just higher than the market share occupied by Pepsi on the all India basis.
The market share for the Cola segment of different in India is given in Graph below:
The fight between the Rs. 1,000 Crore Pepsi co. India. Pepsi and Coca-Cola India,
The fully owned subsidiary of the $ 18.55 Billion Atlanta based "The Coca-Cola' company to
become India's No. 1 player seems likely to continue unabated over the next four years".
PEPSI PROFILE:Pepsi Co. Inc. was founded in the year 1965. Major products of the new company are Pepsi
Cola. Diet Pepsi and Mountain Dew. Pepsi entered the Indian market in 1992 and now is
the market leader with a market share of 26.5 percent in the cola segment. Pepsi is in
between the two of it's closet competitors as far as marketing strategies are concerned.
Pepsi is an international drink with Indian imagery in it's communication Traditional focus of
Pepsi has been on the early teenager with a gender skew more to the female.
Pepsi is by far the more aggressive player in the market. With in your face advertising
continuous event marketing targeting the new generation and eye catching merchandising.
It's got its selling strategy well mapped out.
The company has always been innovating it's ad campaigns which has helped the
company to get top of the mind recall. From "The choice of the new generation" to the
"Freedom" campaign the company has been able to Indianise the brand. With the help of
promotional schemes Pepsi has managed to keep the brand alive and has not let it become
old. During 1995 the total ad spent by the company was Rs. 6.98 crore only on television
Pepsi has set aside Rs. 8 crore for its advertising programme in the run up to and during
the cricket world cup.
Product lines of Coke& Pepsi are as follows:-
Pepsi Brand Name
pepsi
pepsi Diet
mirinda
mirinda lime
7 up
Slice
pepsi
pepsi Diet
mirinda lime
mirinda
Slice
7 up
FLAVOUR
COKE BRAND
PEPSI BRAND
Cola
Coca-Cola
Pepsi
Thums-up
Pepsi diet
Coke diet
Orange
Fanta
Mirinda
Limca
Mirinda lime
Clear lime
Sprite
7up
Mango
Maaza
Slice
Cloudy
Lemon
COMPETITIVE AREA:The soft drink market all over the world has been witnessing a neck to neck battle between
the two major players, Coca-Cola and Pepsi since the very beginning. The thirst quenchers
are trying hard to have to major chunk of the pie of carbonated soft drink market. Both the
players are spending their energies in building capacity, infrastructure, promotional
activities etc.
Coca-cola being 11 years older than Pepsi has dominated the scene in most of the soft
drink markets in the world and enjoying leadership in terms of market share. But the CocaCola people are finding it hard to keep away Pepsi, which has been narrowing the gaps
regularly. The two are posing threats to each other in every nook and corner of the world.
While Coca-Cola has been earning most of its bread and butter through beverage sales,
Pepsi has a multi products portfolio with some portion from the same business.
The two warriors are face to once again here in India with different strategies and tactics to
attack the rival. Coca-Cola is focusing upon the joint ventures with the existing bottlers
(FOBO) franchise owned bottling operations to enhance its control on manufacturing
and marketing of its products range and attain the quality standards of its class.
Countering it Pepsi has taken the battle its own hands by floating as investment of $ 95
billion to set Pepsi Company. India holdings, as subsidiary for (COBO) Company owned
bottling operations. Both the companies are following different path to reach the same
destiny i.e. to fetch the bigger portion of aerated soft drink market. Both consider India
a huge potential market, as per capita consumption here is a mere 3 serving annually
against the world average of 80. Therefore, they are putting in their best efforts to woo the
Indian consumer who has to work for 1.5 hours to buy a bottle of soft drink. In comparison
to the international norms minutes, a major hurdle to cross over for both the athletes for
getting No. 1 position comparison tot he inter. Coca-Cola is well set with its 53 bottling sites
through out the country giving tit an edge over competition by processing a well-built
bottling and distribution set-up. On the other hand, Pepsi, with two more years in India, has
been able to set an image of a winner in India and has been able to get the pulse of the
India soft drink market. The soft drink giants are leaving on stone unturned and her for the
long terms.
Coca-Cola has been penetrating the market through its wide product range with a
determination to change consumption pattern of soft drink in India. Firstly, they upgraded
the whole industry by introduction 300 ml bottles, which in turn had given the industry a
booming growth of 20% as compared to the earlier 5%. They want to develop a coca
culture here and are working on a strategy to offer soft drink in every possible package. In
Coca-Cola camp, the idea of competition has not come from Pepsi, but from the other
beverages such as tea, coffee, Nimbu Pani, water etc. Pepsi is quite aggressive in its
approach to Indian Consumer. They are desperately working on the strategy to be winners
in the hot cola war between two big barons. According to Pepsi philosophy, it's the
madness that encourages executive to think, to conjure up those creative tactics to knock
the fizz out their competition. Pepsi had plumbed a large on the visibility of its blue red and
white logo. They have been going with aggressive marketing by putting Sachin Tendulkar,
Akshay Kumar and now Shahrukh Khan in their advertisement to endorse their brand, the
role models for its targeted consumer the teenagers. They have increased the fizz in the
market place by
introducing the dispensers called Fountain Pepsi and has been enjoying a lead over its rival
there.
Coca-Cola on the other hand, has been working on the saying slow and steady wins the
race's side by retailing to every more of its competitor. They have procured the shield of
Thums-Up with a handsome market share in Indian soft drink market.
Countering Pepsi's international commercial that used two chimpanzees to cock a snoop at
coke, Thums-up come with the ad line, Don't be Bandar, taste the Thunder. Also ThumsUp has been positioned now very near to that young image of Pepsi and giving it a though
time.
These cool merchants have put everything on fire. It Coke got the status of the
official drink of wills. World Cup, Pepsi blushed as nothing official about it. As
Thums-Up projected as 'Saaree Jahan Se Achcha' Pepsi was passionate enough with
'Freedom to be' and now the "Yeh Dil Mange More" when Thums-Up came with Thunder
Blast, the other offered 'Pepsi Stuff Card'. If Red is meant for coke, Pepsi has chosen to
be blue.
MAIN COMPETITORS
COCA-COLA V/s PEPSI
Total Investment in India
New Investments
Number of Employee
Number of owned bottling Plants
Number of Franchisees
Number of Fountain
Total Investment by bottlers
New Plants Planned
(Year of 2010-11 )
Coca-Cola
Pepsi
Rs. 250 Crores
Rs. 2400 Crores
140
9
54
1500
Rs. 125 Crores
Nil
Rs. 500 Crores
Rs. 300 Crores
2400
11
15
4000
Nil
6
Overall volume of Coca-Cola products have increased by 40% whereas the industry growth
rate is 20%. Last year total sale of soft drink Industry in India was approximately 170 million
crates. Out of these around 60% was of Cola and other 40% was of non-Cola Brands.
Sources of Data :- This Last Year data is provided by Sales Executive of
Company.
MARKETING MIX:-
Prof. Neil H Barden defines marketing mix as 'the appointment of effort, the combination,
the designing and integration of the elements of the marketing into a programme of mix
which will best achieve the objective of the enterprise at the give time."
Marketing mix is the set of marketing tools that the firm uses to pursue its marketing
objective of in the target market. The marketing problems are analyzed:
1. By utilizing the important forces emanating from the marketing operation of an
enterprise.
2. By adopting producer & for an efficient marketing programme.
ELEMENTS OF MARKETING MIX :The marketing mix denotes a combination of various elements which in their totally
constitute affirms marketing system. McCarthy popularized a four factor classification of the
se tools called the four P"s, product, price, place promotion.
PRODUCTS:
Product variety
Quality
Design product
Brand name
Feature
Packaging
Size service
Warranties
Returns
PRICE:
List Price
Discounts
Allowances
Payment period
Credit teams
PLACE:
Channels
Coverage
Place assessments
Locations
Inventory
Transports
PROMOTION:
Sales promotion
Advertisement
Sales Forces
Public relations
Direct marketing
The particulars marketing variable under each P are shown below:
4 Ps
PRODUCT
PRICE
PLACE
PROMOTION
4 Cs
CUSTOMER NEED
AND WANTS
COST TO THE
CUSTOMER
CONVENIENCE
COMMUNICATION
DISTRIBUTION IN THE COCA-COLA SYSTEM:GETTING PRODUCTS TO MARKET
One of the value of the coca-cola system is presence that coca-cola should exist
everywhere. In the words of former CEO-India operations - Richard Nichoilas, "Our goal
is to have coke available within an arm's reach of desire". To fulfill this gool, coca-cola
not only produces products, but also has an effective systems to distribute them all over
India.
DISTRIBUTION:Distribution Sales + Delivery + Merchandising + Local Account Managemetn.
Distribution of Coke's products includes the activities of sales, delivery merchandizing and
local accounts management. These are two major types of distribution systems.
(i) Direct and Indirect:-
In direct distribution, the bottler partner direct control over the activities of sales,
delivery, merchandizing and local account management.
In indirect distribution, an organization which is not a part of the coca-cola system
has control of one or more of the distribution elements (Sales, Merchandizing and local
accounts managements).
With Direct distribution there are two types of sales:-
Advanced sales and conventional sales. :In conventional sales, all the distribution activities (Sales, Delivery, Merchandizing and
Local Accounts Management) are performed by the same persons.
In advanced sales, sales and delivery are performed by different people within the cococola system.
Difference between a Customer and a Consumers.
A consumer is some one who drinks coca-cola products.
A customer is a business location which sells or serves coca-cola products to
consumers.
MERCHANDIZING:One the products are delivered to the customer's they are promoted at the point-ofpurchase to maximize the company's sales opportunities, merchandizing involves looking at
the presentation of the products through the eyes of the consumers. It is an on-going
process that help the company present its products properly to the consumers in the market
place for instance, is the display attractive? Are the product neatly organized.
PRESENTING THE PRODUCTS:Coca-Cola presents its products for sale in four different ways. They are as follows:
Secondary Display
Coolers
Vending Machines
Post Mix / Pre Mix
INDIA'S RELATIONSHIP WITH COCA-COLA:Just after independence, the Maharaja of Patiala oversaw his coca-Cola-Cola hoarding
from his huge, ornate palace, Coca-Cola export representative Frank Harrold, was awed by
the Maharaja's opulent life style. In 1993 after Coca-Cola returned to India after a 16 years
absence (beorge Fernandes threw the company out of the country in 1977 on the pre text
that it had refuse to divalge its formula to Indian officials), CEO of the Coca-Cola Company,
Robesto boirueta "Salivated over a virtually untapped market of 840 million people".
PROMOTION : THE COCA-COLA WAY
Goal for the 90's :"To place coca-cola within an arm's reach of desire.
Consumer activity clusters:-
Grocery shopping
Other shopping & services
Eating and drinking Entertainment/ Recreation. Leisure
Travel / Transportation/ Hospitality
Educational
At Work
The 3A's:The strategy for reaching in creasing numbers of consumers in India is based on the belief
that consumers will buy our products it they are Available, Affordable and Acceptable.
Strategies for the 3A's:
Focus on the consumer and customer,
To provide quality customer services, and caring about the quality of performance in
respective jobs.
Caring enough about what we do, to it the best we know how.
The 3A's is Coca-Cola underlying strategy for meeting its goal to reach increasing numbers
of consumer's. How does coke position its limited resources to help meet its good. Let us
explore the specific ways in which the Coca-Cola system addresses each of the 3A's.
AVAILABILITY:Some of the way sin which the Coca-Cola Company hopes to increase availability of its
product include improved or innovative packaging, dispensing systems, distributions
system, marketing.
AFFORDABILITY:The ways to address affordability include pricing decisions, as well as resource
management. To make its product available at a price affordable to the consumer.
Continually processes more efficient and therefore more cost-effective.
ACCEPTABILITY:Making coca-Cola brand products the beverage choice for any occasion's depends on a
variety of strategies to reach the target audience. The common strategies adopted to effect
acceptability were though sponsorships, promotion youth market activities, community
programs, and other activates.
Coca Cola mission, vision and values outline who they are, what they seek to
achieve, and how they want to achieve it. These provide a clear direction for the Company
and help ensure that they are all working toward the same goals.
MISSION:•
Everything Coca Cola do is inspired by their enduring Mission:
•
To Refresh the World...in body, mind, and spirit.
•
To Inspire Moments of Optimism...through their brands and their actions.
•
To Create Value and Make a Difference…everywhere they engage.
VISION:To achieve sustainable growth, Coca Cola has established a Vision
with clear goals: Planet : Being a responsible global citizen that makes a difference.
Portfolio: Bringing to the world a portfolio of beverage brands that
anticipate and satisfy Peoples' desires and needs.
Partners: Nurturing a winning network of partners and building mutual loyalty. Profit:
Maximizing return to shareowners while being mindful of our
VALUES:Coca Cola is guided by shared Values that they will live by as a company and as
individuals:
•
Leadership
:
“The courage to shape a better future”
•
Passion
:
“Committed in heart and mind”
•
Integrity
:
“Be real”
•
Accountability
:
“If it is to be, it's up to me”
•
Collaboration
:
“Leverage collective genius”
•
Innovation
:
“Seek, imagine, create, delight”
•
Quality
:
“What we do, we do well”
RESEARCH
METHODOLOGY
3. RESEARCH METHODOLOGY
3.1 TITLE OF THE STUDY:All the findings and conclusions are based on the survey done in the working area within
time limit. I tried to select a sample representative of the whole group during my job training.
I have collected data from 200 respondents for studying (Consumer Buying Behavior
With reference to “Coca Cola”) Market Segmentation, selected randomly from different
areas in Ghaziabad.
3.2 DURATION OF THE PROJECT:16th May 2011 to 30 June 2011 (45 DAYS)
3.4 OBJECTIVES OF STUDY:PRIMARY OBJECTIVES:•
To find out to which extent merchandising assets are being used by the retailers in
promoting the product of coca-cola
•
To find out Market demand of Coca Cola and Thums up vis-à-vis Pepsi
•
To study marketing strategies adopted by coca-cola.
•
To study customer satisfaction about coca-cola products.
•
To study the effect of RED on boosting sales of coca-cola products
•
To find out Market demand of Fanta vis-à-vis Mirinda-O
•
To find out Market demand of Limca, Sprite vis-à-vis Mirinda-L and 7up
•
To find out Market demand of Maaza vis-à-vis Slice.
SECONDARY OBJECTIVES:•
To find out Market comparison of all the available brands of the soft drinks in the
market.
•
Brands availability of Coca-cola and its brands vis-à-vis Pepsi and its brands.
3.5 TYPES OF RESEARCH:Date sources: sources of information are as follows:(1) Primary sources:Who’s the primary source??
Retailers are the primary source.
(2) Secondary sources:Researcher collected secondary information from Journals of Company, News
papers,Magazines.
Research Approach:-
Researcher followed one approach to collect the information
(1) Survey – Researcher contacted the retailers in the market place to gather the relevant
information.
(2) Number of Retailers contacted – 200 Retailers.
•
Survey Area: Kanpur & NEAR BY AREAS
1) Kanpur, Station road
2) Kanpur,Main market
3) Bhaguwala Market ,Kanpur Road
4) Kotwali market ,Lucknow road
5) Shanpur, Main Market
6) Raipur Market, Nagina Road
7) Haridwar road, Chidiapur
8) Kiratpur Market
9)
Researcher began his survey with route riding, i.e. traveling along with the sales persons on
his daily trip to service the retailers. Researcher asked the retailers about their uses of
Coca-cola merchandises and try to Asses the market share of the Coca-cola’s different
brands. This is very important point as it gave me an inside view of the whole setup and
further on during the planning of any of the promotions. Researcher was aware of the
limitations and strengths of the environment he would be working in. The various methods
and principles adopted are listed below:
3.5 SAMPLE SIZE AND METHOD OF SELECTING SAMPLE:Sample size:The number of sample is 110 from Ghaziabad city, which fulfills the requirement. Each
respondent is treated as a case of detailed analysis.
Sampling design:Convenience sampling is used for this study. Convenience sampling is used in exploratory
research where the researcher is interested in getting an inexpensive approximation of the
truth. As the name implies, the sample is selected because they are convenient. This non
probability method is often used during preliminary research efforts to get a gross estimate
of the results, without incurring the cost or time required to select a random sample.
Data collection method:For the accumulation of data the sources were primary and secondary data.
Primary Data:These data are raw material. They are the measurement observed and recorded as a part
of original study. They are original in character. The investigator or researcher directly
collects this data. The basic form of obtaining this data is by observing and questioning.
The Primary data was a detailed interview schedule with the help of a detailed
questionnaire. The samples were drawn purposively from various areas for the relevance of
the study. Discussions were held with the general, branch manager and executives of the
company to design and execute the research
Secondary Data:They are not originally drawn by the researcher as fresh data. These are collected by some
other person for this purpose and published. These types of data can be collected through
various sources.
For this study the secondary data were collected from magazines ,journals , references and
websites and manuals of the Idea.
Tools and techniques of analysisPercentage analysis and statistical tools were used in the study. The statistical tools used
for data analysis are Rank correlation and hypothesis testing. ANOVA and t – test had
applied for hypothesis testing.
Rank Correlation =
If Rank Correlation is negative we can say that there is no correlation between the variable,
if rank correlation is positive we can say that there is a relation between the variable, if the
Rank correlation is less than.06 we can say that there is a low degree of relation between
the variable, if rank correlation greater than .06 we can say that there is high degree of
relation between the variables and if Rank Correlation is very nearer to 1 such as .99 we
can say that there is very high degree of relation between the variable.
3.6 SCOPE OF THE STUDY:Study of Management of RED helps the management in the following ways:-
•
It improves management’s ability to plan and control the sales of Coca Cola.
•
It will certainly help the strategies for survival and growth of the Company.
•
It avoids wastage and underutilization of resources which can be employed
profitably.
•
It is relevant to inflows and outflows conditions of the Company.
3.7 LIMITATION OF THE REPORT:I found the following limitations during my actual project execution:•
More stress was given on the primary data.
•
The finding of the survey will be strictly based on the response of the consumers,
since it is difficult to ascertain the authenticity of the statements.
•
All the observation and recommendation will be made on the feedback obtained
from the survey.
•
The sample for the survey covered subscribers from India only.
•
The time for the research was limited.
•
The result is limited to the reliability of method of investigations, measurement and
analysis of data.
•
People were not interested in filling questionnaire properly.
•
It is very small research, which may be insufficient to give the real picture.
FACTS
&
FINDINGS
4. FACTS & FINDINGS
•
It improves management’s ability to plan and control the sales of Coca Cola.
•
It will certainly help the strategies for survival and growth of the Company.
•
It avoids wastage and underutilization of resources which can be employed
profitably.
•
It is relevant to inflows and outflows conditions of the Company
•
More stress was given on the primary data.
•
The finding of the survey will be strictly based on the response of the consumers,
since it is difficult to ascertain the authenticity of the statements.
•
All the observation and recommendation will be made on the feedback obtained
from the survey.
•
The sample for the survey covered subscribers from India only.
•
The time for the research was limited.
•
The result is limited to the reliability of method of investigations, measurement and
analysis of data.
•
People were not interested in filling questionnaire properly.
•
To find out to which extent merchandising assets are being used by the retailers in
promoting the product of coca-cola
•
To find out Market demand of Coca Cola and Thums up vis-à-vis Pepsi
•
To study marketing strategies adopted by coca-cola.
•
To study customer satisfaction about coca-cola products.
•
To study the effect of RED on boosting sales of coca-cola products
5. ANALYSIS & INTERPRETATION
FIGURE 1
Out of Coca-Cola and Pepsi Beverages India Limited
whose GSBdo you have ?
PBI
11%
Coca-Cola
14%
PBI
Coca-Cola
Both
5%
Both
None
None
70%
Out of the sample size which has been covered only 11 % of the shops had Pepsi’s
GSB’s vis a vis to 14 % of Coca-Cola’s GSB’s.
14 % of the sample size had the GSB’s of both the major players of the soft drink
industry.
70% of the sample size didn’t have any of the GSB’s displayed.
FIGURE 2
Ranking according to visibility - Pepsi ?
Ranking according to visibility - Coca Cola ?
13%
14%
14%
Rank 1
Rank 1
Rank 2
49%
Rank 3
Rank 2
Rank 3
38%
72%
72% of the shops having Pepsi GSB’s got the 1st rank according to their visibility
status on the other hand only 14% of the retailers got the rank 2nd and 3rd each. This
shows that retailers who got the GSB as display material from the company are
using them satisfyingly.
49% of the shops having Coca-Cola GSB’s got the rank 1st according to their
visibility status on the other hand 38% of the retailers got the rank 2nd and only 13%
of the retailers got the rank 3rd. This shows that in comparison to Coca-Cola,
Pepsico.’s GSB are being used in more proper way.
FIGURE 3
Out of Coca-Cola and Pepsi Beverages India Limited
whose DPSBoard do you have ?
PBI
27%
PBI
Coca-Cola
Both
Coca-Cola
8%
None
62%
None
Both
3%
Out of the sample size which has been covered 27 % of the shops had Pepsi’s DPS
Boards vis -a -vis to 8 % of Coca-Cola’s DPS’s.
3 % of the sample size had the DPS Boards of both the major players of the soft
drink industry.
62% of the sample size didn’t have any of the DPS Boards displayed.
*DPS-DISTRIBUTOR PROMOTINAL SIGNAGE* FIGURE 4
Ranking according to visibility - Pepsi ?
Ranking according to visibility - Coca Cola ?
0%
12%
18%
Rank 1
18%
Rank 1
Rank 2
Rank 2
Rank 3
Rank 3
70%
82%
82% of the shops having Pepsico. DPS Boards got the rank 1st according to their
visibility status on the other hand 18% of the retailers got the ranks 2nd and nobody
got the 3rd. This shows that retailers who got the DPS Boards as display material
from the company are using them satisfyingly.
70% of the shops having Coca-Cola DPS Boards got the rank 1st according to their
visibility status on the other hand 18% of the retailers got the rank 2nd and only 12%
of the retailers got the rank 3rd. This shows that in comparison to Coca-Cola,
Pepsico.’s DPS Boards are being used in far more satisfyingly.
FIGURE 5
EMBED Excel.Chart.8 \s
25%
27%
11%
PBI
37%
COCA-COLA
BOTH
OWN
Out of the sample size, which has been covered 37% % of the shops, had
CocaCola’s refrigerator vis a vis to 25 % of Pepsi’s refrigerator. This shows that
percentage distribution of the refrigerators of Coca-cola co. is more than Pepsico. .
11 % of the sample size had the refrigerator of both the major players of the soft
drink industry.
27% of the sample size didn’t have any of the company’s refrigerators; they are
using their own refrigerators for the chilling purpose.
FIGURE 6
Ranking according to visibility - Pepsi ?
Ranking according to visibility - Coca Cola ?
0%
8%
33%
24%
Rank 1
Rank 1
Rank 2
Rank 2
Rank 3
Rank 3
67%
68%
68% of the shops having Pepsico. refrigerators got the rank 1st according to their
visibility status on the other hand only 24% of the retailers got the ranks 2nd and 8%
of the retailers got the rank 3rd. This shows that retailers who got the refrigerators as
display material from the company are not using them satisfyingly.
Only 33% of the shops having Coca-Cola refrigerators got the rank 1st according to
their visibility status on the other hand 67% of the retailers got the rank 2nd and none
of the retailers got the rank 3rd. This shows that in comparison to Coca-Cola,
Pepsico.’s refrigerators are being used in far more proper way.
FIGURE 7
How many Bottles of PBI/ Coca-Cola do you have in
your fridge
PBI, 4260
4500
4000
3500
3000
2500
2000
1500
1000
500
0
FIGURE 8
Coca-Cola, 3368
PBI
Coca-Cola
PBI
Coca-Cola
Availabity Comparision between Pepsi and Coca-Cola at the
Outlets - using Coca-cola Merchandising Asset
Coca-Cola
44%
PBI
Coca-Cola
PBI
56%
In the CocaCola’s refrigerators 56% of the Pepsi bottles were found. This shows
that CocaCola’s refrigerators are not being used to optimum by the retailers in
promoting CocaCola’s products.
FIGURE 9
Reasons for not optimum use of Refrigerator / Ice Box
at outlets ?
Shortage
13%
Other
36%
Problem of the
Empty bottle
17%
Irregularity of the
Salesman
34%
Shortage
Problem of the Empty
bottle
Irregularity of the Salesman
Other
While giving the reasons for not using the Coca-Cola’s refrigerators 34% of the
retailers blame it to the lack of regular services from the company (irregularity of the
salesman), 17% of the retailers voted to the problem of the empty bottles of
Hindustan Beverages India, 13% voted for the shortage of the different packing.
Despite of all the above reasons a huge segment 36% blame it to different other
reasons for below optimum use of refrigerators.
Out of the 36% other major reasons low demand (33%) and lesser capacity
refrigerators (34%) got the maximum share.
Despite of all the above there are even major number of retailers who blame it to the
unfulfilled promises from the company professionals.
FIGURE 10
Approximate sale of the retailer
100
90
80
70
60
50
40
30
20
10
0
0.5 to 2
FIGURE 11
3 to 5
6 to 10
More Than 10
Approximate sale of the retailer
More Than 10
18%
0.5 to 2
8%
3 to 5
46%
6 to 10
28%
The sample size shows that maximum portion (around 46 %) of the retailers whose
sale are between 3 to 5 crates daily and only 8 % are the ones who are selling less
that two crates.
FIGURE 12
How the retailler gets display material from the
company ?
70
60
50
40
30
20
10
0
Schemes
FIGURE 13
Gift
Sharing / Draft
Other
How the retailler gets display material from the
company ?
Gift
40%
Sharing / Draft
21%
Schemes
33%
Other
6%
The sample size gives us the brief idea about the pattern of distribution of
merchandising assets by the companies. Most of the retailers (around 73%) are
getting the display material through different schemes or as the gifts.
FIGURE 15
Market Demand of different packings of Soft-Drinks
2lt
26%
200ml
30%
2lt
1lt
500ml
1lt
7%
300ml
200ml
500ml
14%
300ml
23%
This gives us an indication, where the better prospects lies. In which particular type
of packing little innovation can do wonders. This provides us with an idea where we
should concentrate.
The sample size shows that there is huge demand of 2lt pack (26%) and 200ml
bottles (30%).
300ml bottles with 23% shares the 3 rd position and 500ml. Shares the 4th position of
the demand total demand with the market demand of 14%
FIGURE 16
Market Demand of Softdrink ( Cola )
500
400
Pepsi
300
Coca-Cola
200
Thums-up
100
0
S1
Pepsi
Coca-Cola
Thums-up
FIGURE 17
Market Demand of Softdrink ( Cola )
Thums-up
24%
Pepsi
39%
Pepsi
Coca-Cola
Thums-up
Coca-Cola
37%
Sample size shows the comparison between the market demands of each of cola
drink.
Pepsi is on the top, shares the demand of 39% from the market.
Coca-Cola seconds with the shares of the demand of 39% from the market beating
Thumps up with the remaining 24%
FIGURE 18
Market Demand of Softdrink ( Orange )
290
280
270
260
250
240
Fanta, 285
Mirinda-O, 260
Mirinda-O
S1
Fanta
FIGURE 19
Market Demand of Softdrink ( Orange )
Mirinda-O
48%
Fanta
52%
Sample size shows the comparison between the market demands of each of Orange
drink.
Mirinda and Fanta are almost head to head with 48% and 52% market demand.
Though Fanta is having 4% more share than Mirinda Orange.
FIGURE 20
Market Demand of Softdrink ( Lemon )
Sprite
9%
7 Up
5%
Mirinda-L
27%
Mountain Dew
28%
Limca
31%
FIGURE 21
Market Demand of Softdrink ( Lemon )
1000
800
Limca, 865
Mountain Dew,
Mirinda-L, 735
400
770
Sprite, 235
200
7 Up, 123
0
Mirinda-L
Limca
Mountain
Sprite
7 Up
Dew
600
S1
Sample size shows the comparison between the market demands of each of Lemon
drinks available in the market
Limca in the lemon flavour with the market demand share of 31% is beating all the
giants.
Pepsi’s two products Mirinda Lemon and Mountain Dew together with the market
demand share of 55% are competing with the Limca.
The new entrant to the market, Mountain Dew is gaining the market share more
dynamically than its competitor brands.
Sprite and 7 up are lacking behind with just the share of 14%.
FIGURE 22
Market Demand of Softdrink ( Mango )
Slice, 300
300
295
Mazza, 290
Series
1
290
285
Slice
Mazza
FIGURE 23
Market Demand of Softdrink ( Mango )
Mazza, 290
Slice, 300
Sample size shows the comparison between the market demands of each of Mango
drinks available in the market Slice and Mazza is almost head to head with 52% and
48% market demand. Though Slice is having 4% more share than Mazza.
SURVEY REPORT CONDUCTED BY INDIVIDUAL AGENCY:-
FOR THE MONTH
APRIL
MAY
JUNE
MARKS
34.5
22.3
30.1
Coca Cola India has been working on RED (Right Execution Daily) since 2006. In Patna
Region RED was introduced in FEB 2006. RED is an integration of Sales Management &
Marketing Execution Plan. By this, company not only has been increasing its Sales &
Market Shares but it also has proved as a media for the company to come closer to its
Customers & Shoppers.
This case of Coca Cola Company is related to the Patna Region where the company is the
leader in the both the Market Shares & the Sales Volume. After RED was introduced in
Patna, the Company continuously tried to improve its RED Score Card.
Its RED Score Card shown in April 2008, in Patna Region (especially Exhibition Road,
Pirmohani, Goriatoli & New Market) was 34.5% (Approx), which was not near to the
Standard i.e. 50, fixed for the month.
The Standard for the month May was fixed 60 by the Sales Management for this Region.
But the result was negative for this month i.e. 22.3%(approx). The RED Score declined by
63% in this month as it was fixed by sales management.
It put extra pressure on Sales Execution Team to uplift this Score in the month of June. So,
it was the challenge for the Sales Execution Force to regain its prestige but still they didn’t
achieve the minimum Standard of 60% but somehow manage the score 31.1% which was
increased from the previous month.
On the basis of Urge(“ Prefer More Often”)
OPERATING GROUP:The Operating Group of Coca-Cola. The map is segmented into Coca Cola Operating
Groups: Africa, Eurasia, European Union, Latin America, North America, Pacific, Bottling
Investments. Certain prior year amounts have been reclassified to conform to the current
year presentation.
5) In 2007, Coca Cola adopted Financial Accounting Standards Board (FASB)
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" and recorded an
approximate $65 million increase in accrued income taxes in their consolidated balance
sheet for unrecognized tax benefits, which was accounted for as a cumulative effect
adjustment to the January 1, 2007 balance of reinvested earnings.
6) In 2006, Coca Cola adopted Statement of Financial Accounting Standards (SFAS)
No.158, "Employers' Accounting for Defined Benefit Pension and Other Postretirement
Plans -- an amendment of FASB Statements No. 87, 88, 106, and 132(R)."
7) Coca Cola adopted FASB Staff Position (FSP) No. 109-2, "Accounting and Disclosure
Guidance for the Foreign Earnings Repatriation Provision within the American Jobs
Creation Act of 2004" in 2004. FSP No. 109-2 allowed the Company to record the tax
expense associated with the repatriation of foreign earnings in 2005 when the previously
unremitted foreign earnings were actually repatriated.
8) Coca Cola adopted FASB Interpretation No. 46(R), "Consolidation of Variable Interest
Entities," effective April 2, 2004.
DATA COLLECTION AND RELIABILITY OF DATA:-
For this research work there is need of both Primary & Secondary data. Here I have
taken the Primary data which was collected from the Customers.
The secondary data are those, which have already been collected by someone else for
other purpose. The data, which are secondary in the hands of one, may be primary for
others. Here the Secondary data is collected from the company’s R&D department.
ANALYZING THE DATA:The next step in the research process is to extract pertinent findings from the data. The
researcher tabulates the data and uses various financial tools to assess the financial
soundness of the company.
•
Research instrument:-
Researcher used questionnaire as his instrument for conducting the survey.
• Sampling Plan
(1) Sampling unit – Retailers
(2) Sampling procedure- Simple Random Sampling Procedure.
• Contact Method
Researcher personally contacted the retailers.
Where f = Feed Back (Help in Controlling the Sub System to Which it is transmitted )
Ff = Feed Forward (serves the vital function of providing criteria for evaluation)
MARKETING STRATEGIES:-
1) Coca-Cola sales club:This club is for the retailers. In this approach retailers are given some points once in a
month depending upon how they are using the display material provided by the
company to them. This material consists of Fridges, DPS Boards, Glow Sign Boards,
Display Bottles (500ml. 1lt. 2lt, Commodity Packs, Stands, Posters etc. Depending
upon these points retailers are rewarded by certain gifts from the company.
The retailers are participating in these schemes curiously. But few of the retailers found
furious and angry because they had lost the points because of miscommunication or
lack of guidance. Therefore they need some kind of guidance from the company. It
would be a better idea that our salesman who are distributing the beverages to the
retailers can be equipped by the appropriate training so that they can guide the retailers
about how to use their display material to 100% of their strength and able to tell about
the new schemes convincingly.
2) Schemes:Hindustan Beverages India comes out with the schemes on their different products many
times in a year. Most of these schemes are made to benefit the retailers. Some of the
schemes are as follows:
•
1 bottle of 2lt. free with one 2lt bottle pack.
•
1 bottle of 1lt. free with one 1lt bottle pack.
•
2 bottles of 500ml free with one 500ml bottle pack.
•
6 bottles of Kinley free with one pack of Kinley.
These schemes keep on changing depending upon the stock. Beverages companies are
giving these schemes despite of acute shortage of soft drink in every segment to meet the
competition, to make sure the availability their brands and sometimes to satisfy and benefit
the retailers and the end consumers.
3) Advertising:Through the consumers survey it has been proved that the T.V. commercials and sinages
affect the consumer buying behaviour by approximately 70%. May be only Cococola. is
investing huge finances in the T.V. commercials and other sinages, big names of Indian film
industries and sports hero’s are being proposed to become the brand promoters and brand
ambassadors. Amir Khan, Akshay Kumar, Hritik Roshan, Riya Sen and more are being
offered huge amount for carrying out the promotions.
•
Posters
•
DPS boards
•
Glow Sign boards
•
Date calendars
•
Cinema hall tickets
•
Radio commercial
4) Promotion through restaurants and cinema hall holdings:-
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca, Sprite, Maaza etc. these
restaurants are authorized to keep and use the merchandising assets of Pepsi. Usually
these kinds of restaurants and fast food chains are in contract with the Pepsi Co., so
that they cannot promote any other brand.
5) Merchandising assets:Coca-Cola also try to promote their brands by providing their retailers and dealers some
display items. Some of such items are as follows:
1. Fridges
2. Coca-Cola/Mazza stands
3. Display bottles
4. Posters
Coca-Cola provide the above things to the retailers to use them in promoting companies
brands and products, and provide refrigerators to the retailers in the hope that these
retailers only use these assets in promoting the Coca-Cola’s products and they will chill the
Coca-Cola’s products so that its products will always be available to the end consumers.
But it is not true in most of the cases. Retailers usually use the merchandising asset of one
company in such a way that it benefits another company. Sometime they do it unknowingly,
sometimes they do it knowingly and sometimes because of the deficiencies of the company
itself. These deficiencies are as follows: 1. Irregularity of the salesman to the retailers shop.
2. Shortage of the different products and different packages.
3. Sometimes because of the rude behavior of the salesman.
6) Strengthen distribution network and promotions through word of mouth through
sales man:Unlike the rival brand Pepsi, Coca-Cola co.. Basically depends upon its sales man for
promoting and launching the new as well as old brands because instead of doing the
business through dealer’s network like Pepsi, Coca-cola believes in making and
maintaining relations with retailers directly. Therefore salesman is the very important part of
Coca-cola co. marketing strategy.
INTRODUCTION OF REPORT:Every year with the start of summers in India the real race to quench the thirst of the
consumers begins in the soft drink beverages industry. Every year millions participate in it,
either in the hot sun or sitting at home watching their, sipping the soft drink and watching
the newly launched advertisements.
Lime n' lemoni Limca:Soft drinks manufacturers in India face a number of major problems, such as distribution
difficulties.
Access to the 500,000 villages is limited due to the poor road network.
Inconsistent tax policies, the prevalence of duplicates, hefty packaging costs and India's
seasonal nature are other factors holding back growth.
During New Year the two of the largest soft drink giants in India Pepsi and Coca-Cola start
experiments with products, packages, flavors and prices in an effort to boost their market
share. For this the biggies make huge investments in terms of advertising, setting up new
and more productive and modernized plants, improving the distribution network to get better
reach to the end consumer.
One of the areas where these companies are making huge investments is merchandising.
This is the area where companies try to get the maximum display in the consumer’s eyes at
the retailers shop through refrigerators, glow signboards, DPS boards, stands, posters,
display bottles etc. But the question arises that whether these retailers are making the
proper use of these materials, which the company is providing them. Are they using these
materials to their optimum level in promoting the product of the company that has provided
them the
merchandising material? Are the companies getting the optimum results of the investments
they are making in this area?
Researcher have tried to find out answers to the above questions in his research work,
which researcher has conducted during his summer training during the partial fulfillment of
his BBA programme.
Under the Activation, the attention is given to ensure the following points at the
purchase point: -
Prices of HCCBPL products communicated in a clear & visible manner.
DPS/Flex Board/Glow Sign Board, Flange, or Road Standee, at least 1, should be in
a proper condition.
Ariel Mobile Hanger with at least 4 mobiles displayed at stores front in Convenience
Stores.
OBM/Drinking Shot Communication present at each store.
Table Top display unit/Hanging Rack, at least 1 should be pure & should be at least
50% charged in Convenience Stores.
Self Display Rack in which minimum 8 facings of any PET displayed & visible in
Grocery.
Rack should be pure & should be at least 50% full in Grocery.
Combo Communication should be present in E&D.
Branded Menu Cards with KO (cola) Beverages Menu (at least 5 Menu Cards)/Menu
Board (at least 1) with KO beverages listing.
ORGANIZATIONAL STRUCTURE:Coca Cola in India
SWOT ANALYSIS
6. SWOT ANALYSIS
STRENGTHS:-
Coca Cola competitive strengths include leading brands with a high level of consumer
acceptance, a worldwide network of bottlers & distributors of company products,
sophisticated marketing capabilities; & a talented group of dedicated associates.
Coke Company has a good market reputation and a strong distribution network.
Coke is having a multi brand strategy ad is looking for a great volume opportunity in
India.
Coke is presently no. 1 player in Indian Carbonated soft drinks market.
Coke was born 11 year before Pepsi (in 1987) ad a century later still maintains that
pioneering least.
Pepsi and coke both have good brand image.
WEAKNESS:-
Sales of Coca Cola ready-to-drink nonalcoholic beverages are somewhat seasonal, with
the second & third calendar quarters accounting for highest sales volumes. The volume of
sales in the beverages business may be affected by weather conditions.
Coke has less no. of retailers
Less force - it has less no. Have owned bottling plant.
It has not planned for setting up of any new plants where their competitor has
planned to set up several new plants.
OPPORTUNITY:Over the next several years Soft Drinks Industry’s growth is expected to out pace the
growth of the world economy. By 2010 is projected to eclipse $650 billion in total revenue.
There is tremendous opportunity to grow our sparkling beverages in both developed &
emerging markets.
A rapidly growing market, which is expanding @ 205 every year.
It can take the market very well with the new investment of Rs. 2400 corers.
It can give a big jerk to its major competitor Pepsi it can increase its number of
fountain to a sizeable amount.
Increasing trend of cold drink of different brands.
THREATS:Coca Cola Company competes in the nonalcoholic beverages segment of the commercial
beverages industry. Based on internally available data & a variety of industry sources, Coca
Cola believe that in 2007, worldwide sales of Company products accounted for
approximately 10% of total worldwide sales of nonalcoholic beverages products. The
nonalcoholic beverages segment of the commercial beverages industry is highly
competitive, consisting of numerous firms.
It has a continuous threat from Pepsi as well as various other local soft drinks.
Coke has a major market than Pepsi between the teenager as well as the student
due to advertisement of world cup cricket.
A large amount of expenses on the advertisement.
There is no proper policy of distributing the merchandising assets of the company to
the retailers.
LIMITATION:-
Despite the possible efforts in conducting the research, there were some unavoidable
situations, which limited the scope of the project.
Considering the population, the sample taken for present study seems small and
hence further investigation may be required.
The sample taken for study was not of equal distribution so a comparative study
cannot be made.
Some of the retailers were non-cooperative in giving information, which hampered
the actual calculation.
Time available for research was very short so certain aspects have been overlooked.
Retailers were hesitant to provide the complete information due to fear of misuse of
information.
Respondents may sometimes misinterpret the questions, leading to a different
answer.
CONCLUSION
7. CONCLUSION
After conducting the research, Researcher found that there are two categories of retailers.
The first one is of those retailers, which just want to increase their assets, for them the sale
doesn’t matter according to them they can only increase the sale if the company will invest
in them or in their shops. These types of retailers will only work for the company, which
invest in them hugely. And if at any moment they found company has lost or lowered their
interest in them they will again shift to other major player. Other kinds of retailers are those
who are more bothered about working hard and build their reputation in the market. These
types of retailers are using the merchandising assets to their optimum level. And sometimes
if they are unable to do so it’s because of the irregularity of the salesman (when the
salesman on the route gets changed) or because of the shortage of the different
products/packing.
•
There is a requirement of the company professionals to visit these retailers
continuously. So, that they can understand the market.
•
Suggest changes accordingly. Despite of this, salesman and other company
professionals who visit these retailers must not do the false promises. Due to this
retailers loose their confidence in the company.
•
There is also the need of the transparent schemes and marketing mix that the
retailers can understand more properly.
•
But all these services can be delivered when a company retain its customers and
biggest loophole in retaining customer for Market. And market is the foremost thing
that customer wants.
•
This case of Coca Cola Company is related to the Patna Region where the company
is the leader in the both the Market Shares & the Sales Volume. After RED was
introduced in Patna, the Company continuously tried to improve its RED Score Card.
•
Most of the respondents prefer to take the beverage on the basis of taste.
•
Out of the whole lot of the Coca Cola products most of the people prefer to take
Maaza in Large quantities.
•
Majority of the people know the beverages of Coca Cola thru advertisements.
•
It is heartening to notice that the availability of the Coca Cola Product is excellent.
•
The Coca Cola products are always found in its optimum condition in which it is
expected to be.
•
It has come to my notice that most of the customers are unsatisfied with the price of
the beverages.
•
Almost all the respondents take the beverages on the basis of personal judgment.
•
Also it is good to observe that most of the people are aware of the promotional
schemes offered by the Company.
•
All the products in the Visicooler are kept in a systematic way(CLOJ).
•
It has been observed that most of the people visualize the activation boards properly
in front of the Outlets.
RECOMMENDATIONS
&
SUGGESTION
8. RECOMMENDATIONS & SUGGESTIONS
1.
Company should do something to meet its demand in the market. Because there is an
acute shortage of Coca-Cola 2Lts party pack and tin pack because of the shortage, CocaCola is not only loosing the present market share but also providing way to the rivals. For
this either plant size can be expanded or some more production equipments can be
installed.
2.
Since the market capacity is huge salesman needs time at every retailer to satisfy him
and tell him about the different products, packaging, schemes etc. it’s quite difficult for him
to visit every shop on his route everyday. Therefore, there is necessity to divide his route
into two parts and increase the total number of routes.
3.
Sometimes salesman for different routes keeps on changing very frequently (in a very
short period). This should be prohibited because every sales man needs time to get
adjusted to a particular route and even to know all the shops on the route.
4.
Salesman is working for 15 to 16 hours regularly during the peak season at very low
reimbursement, which may sometimes kill his interest. Therefore there is a need of fixing
up his working hours. Delivery van should be ready when he comes into the depot in the
morning. There should be different labour for shipping or de-shipping the delivery vans.
5.
Company professions must not make the false promises about the merchandising
assets with the retailers. These retailers must get the proper information and guidance
about the company policies on the merchandising assets. So that there must be no
frustration generated.
6.
Though the GSB’s and DPS Boards are being used by the retailers satisfyingly but still
there is need of the guidance for the retailers.
7.
Schemes should be transparent and made clear to the retailers.
8.
As maximum number of retailers are selling around 3 to 5 crates daily. Our schemes
should be revolving around this percentage only. And while formatting the different
schemes this should be kept in mind.
9.
For this salesman can be provided with some kind of guidance/ training, so that they
can clear the queries of the customers about the different schemes/ proposals
10.
Retailer benefit schemes, which the company launches time by time during the whole
year, must be made clear to all the retailers.
11.
12.
Customers can be informed about the schemes through the broachers.
Broachers can be distributed to all the retailers for the schemes that are being
launched once in a year. And for the daily schemes which get change on daily bases and
which depends on the stock availability providing details about the day's schemes/ after a
paper/ pamphlet on different products can be sticked to the delivery van signed by the ASM
or anybody authorized. So that every retailer if needed/ required can verify himself about
the daily schemes.
13.
Company professionals should visit the field more regularly and they must try to visit
every retailer at least once in a month.
14.
A proper trust and relationship building process is required with the retailers, which
need to be worked on.
15.
Above figures shows the market demand comparison between the different products
of all the flavors available in the market. Which show that we can gain market share through
Coca-Cola’s Limca and Sprite. So we should concentrate more in completing the market
demand of these products.
16.
Above figures shows the market demand comparison between the different packs
available in the market. Which show that we can gain market share through concentrating
more on 2Lt. and 200ml. pickings. So we should concentrate more in completing the market
demand of these packing
17.
Other products and packing like Sprite and 300 ml. Whose demand is going down
require proper attention and strategy.
18.
Most of the respondents wants to increase the flavours of the Coca Cola Ionized
beverages as they have been consuming the same flavor over a period of time.
19.
Promotion and promotional schemes need to be propagated in the rural areas so as to
tap the unsaid and unclaimed potential of the rural life and habitat.
20.
Well, I would advise the Company to reduce the price affixed to each and very of
beverages so that all the classes and categories of the people can have the pleasure of
drinking the Coca Cola product.
APPENDIX
9. APPENDIX
Name of the SHOP ______________ Tel No.__________________
ADDRESS _____________________________________________
1 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE GSB DO YOU HAVE?
a. PEPSI
B COCA-COLA
C BOTH
D NONE
RANKING ACCORDING TO VISIBILITY?
1
2
3
2 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE DPS BOARD DO YOU HAVE?
a. PEPSI
B COCA-COLA
C BOTH
D NONE
RANKING ACCORDING TO VISIBILITY?
1
2
3
3 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE REFRIGERATOR DO YOU HAVE?
a. PEPSI
B COCA-COLA
C BOTH
D NONE
RANKING ACCORDING TO VISIBILITY?
1
4
2
3
HOW MANY BOTTLES OF COCA-COLA DO YOU HAVE IN YOUR FRIDGE?
COCA-COLA __________________ TOTAL ________________
5
WHAT ARE THE REASONS THAT YOU ARE NOT USING THE REFRIGERATOR / ICE BOX TO ITS FULL
STRENGTH?
A.SHORTAGE
[ ]
B. EMPTY PROBLEM [ ]
C . IRREGULARITY OF THE SALESMAN [
]
D. OTHER
[ ]
6 APPROXIMATELY HOW MANY CRATES DO YOU SALE?
a. 0.5-2 [ ]
B. 3-5 [ ]
C. 6-10 [ ]
7
D.
MORE THAN 10 [ ]
HOW DO YOU GET THE DISPLAY MATERIAL FROM THE COMPANY?
a. SCHEMES [ ]
B GIFT [ ]
C SHARING / DRAFT [ ] D OTHER [ ]
8 PLEASE RANK THE FOLLOWING ACCORDING TO THE MARKET DEMAND?
( ) 2 LT . ( ) 1 LT
( ) 500 ML ( ) 300 ML ( ) 200 ML
9 PLEASE RANK THE FOLLOWING ACCORDING TO THE MARKET DEMAND?
A. ( ) PEPSI
( ) COCA-COLA ( ) THUMS-UP
1
B. ( ) MIRINDA-O ( ) FANTA
C.
( ) MIRINDA –L( ) LIMCA
( ) 7-UP
D.
( ) SLICE
( ) MOUNTAIN-DEW ( ) SPRITE
( ) MAAZA
Thanks
If you Have Any Suggestion…………………………(
)
Signature
10.BIBLIOGRAPHY
Name of the books used for the reference and their authors.
•
1). Kotler, Philip, Marketing Management, Delhi, Pearson education Pvt. Ltd.,
2004
•
2). Kothari, C.R., Research Methodology, New Delhi, Wishwa Prakashan Pvt.
Ltd., 2003,pg.14-26.
•
Ramaswamy, “Marketing Management”,
Websites Referred:http://www.coca-cola.com
www.financialexpress.com
www.businessworld.com
www.cocacolacompany.com
www.cocacolaindia.com
http://www.google.com
MAGAZINES:Time Education Magazine
Business Today
