Post on 09-Sep-2014
A
PROJECT REPORT
ON
“Analyzing the opportunities for horizontal expansion of coca cola company”
SUBMITTED TO
UNIVERSITY OF PUNE
MANEESH CHAUHAN
( BATCH-2010-2012)
UNDER THE GUIDANCE OF
PROF. RAMDAS KENDRE
SKNSSBM, VADAGAON,PUNE-411041
HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
ACKNOWLEDGEMENT
Some Says “Managers are born and some says managers are made”. I was also in some
dilemma before commencing my summer internship. But after the successful completion of
my summer internship I came to know that managers are made if they are guided properly
and are motivated to work willingly towards fulfillment of specific goal.
It is with a sage sense of gratitude, I acknowledge the efforts of whole hosts of well -
wishers who have in some way or other contributed in their own special ways to the
success and completion of this project.
First of all, I would like to thank Mr. Mayur Tiwari (RSM dehradun) , from the bottom of
my heart, without his help it would have been a dream only to carry out the project work. He
is the only person who takes all decisions by considering everyone’s view. He is the person
who takes care of the sales of Coca Cola of Uttrakhand state always motivates people to
increase sales. He also makes new strategies time and again to give Coca Cola some edge
over competitors. One can say he is the one-man army of Coca Cola , Dehradun branch.
My profound sense of obligation goes to Mr. Sachin Pachauri (ASM ) who takes care of the
supply . He also gives proper guidance to all management trainees and staff.
All the sales officers of Coca Cola ,Dehradun who have helped me a lot during the course of
my project. They were of great help to me in every aspect and enlivened us to win the
problem head that I faced during this project.
At last I convey my sincere thanks COCA COLA, DEHRADUN for their helping hand that I
always found extended to me whenever I needed.
With Sincere Thanks
Maneesh Chauhan
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
C E R T I F I C A T E
This is to certify that the Project Report titled “”Analyzing the opportunities for
horizontal expansion of coca cola company” in HINDUSTAN COCA COLA
BEVERAGES Ltd is the bonafide work carried out by Mr. Maneesh Chauhan of SKNSSBM ,
Vadagoan for the fulfillment of M.M.M degree of the University of Pune.
He has worked under our guidance and direction. His Work is found to be satisfactory and
complete in all respect.
Signature of Guide
Date:
Place:
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
DECLARATION
I declare that the project entitled’ Coca Cola Ltd. In Dehradun is a record of independent
research work carried out by me during the academic year 2010 -2012 under the able
guidance of my project guide Prof. Ramdas kendre of Sinhgad Institute of Management,
Vadagaon .
I also declare that the project is the result of my effort and has not been submitted to any
other University or Institution for the award of any degree, or personal favor whatsoever. All
the details and analysis provided in the report hold true to the best of my knowledge.
COMPANY CERTIFICATE
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
TABELS OF CONTENTS
S. NO. CONTENTS PAGE NO.
1. Executive Summary 08-16
2. Introduction 17-17
3. Objectives of the study 18-20
4. Need & Scope 21-22
5. Research methodology 23-29
6. Limitations 30-43
7. Analysis & findings 44-44
8. 45-46
9. Recommendation & suggestions 47-48
10. Suggestions & Conclusion 49-63
11. Questionnaires 64-65
12. Exhibit 66-68
13. Bibliography 69-69
company Name
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
HINDUSTAN COCA COLA BEVRAGES PVT. LTD.Industry: Consumer product / FMCG products HINDUSTAN COCA COLA BEVRAGES PVT. LTD.Types of Company: Private Limited Company, Foreign Based CompanyLocation: HYDERABADSales Office:
Plant: Ameenpur Village, patancheru Mandal, Medak Dist – 502319.
INTRODUCTION
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
“Marketing is a social and managerial process by which individuals and groups
obtain what they need and want, through creating, offering and exchanging
products of value with others”.
- Philip Kotler.
Marketing includes all those activities having to do with effecting changes in
the ownership and possession of goods and services. It is that part of economics
which deals with the creation of time, place and possession utilities and that
phase of business activity through which human wants are satisfied, by the
exchange of goods and services for some valuable consideration.
- American Marketing Association.
Marketing is the process of discovering and translating consumer wants into
product and service specifications and then in turn helping to make it possiblfor
more and more of consumers to enjoy more and more of these products and
services.
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
Marketing consists of analyzing marketing opportunities, researching and
selecting target markets, designing marketing strategies, planning marketing
programs and organizing, implementing and controlling marketing effort.
Companies have to identify long and short term marketing opportunities and
research the selected market by measuring and forecasting attractiveness of the
given market. Having selected the market, the companies need to develop a
differentiating and positioning strategy for the target market.
The marketing strategy must be transformed into marketing programs by
deciding on marketing expenditures and the marketing mix. The final step is
organizing the marketing resources and implementing and controlling the
marketing plan.
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
FEW WORDS ABOUT THE COMPANY
Every person who drinks a Coca-Cola enjoys a moment of refreshment and
shares an experience that millions of others have served. All of those individual
experiences combined have created a worldwide phenomenon – a truly global
brand. On the distribution front, 10-tonne trucks, open-bay three wheelers
that can navigate the narrow alleyways of Indian cities, ensure availability of
our brands in every nook and corner of the country. The company-owned
Bottling arm of the Indian Operations, Hindustan Coca-Cola Beverages Private
Limited is responsible for the manufacture, sale and distribution of beverages
across the country. A career at Hindustan Coca-Cola Beverages Pvt. Ltd. is truly
a one-of-a-kind experience. Come taste life at Coca- Cola .
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
HISTORY
Coca-Cola Company, nourishing the global community with the world’s largest
selling soft drink since 1886, returned to India in 1993 after a gap of 16 years
giving a new thumbs-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, our brands have assumed an iconic status in the minds of
the consumers. Coca-Cola serves in India some of the most recalled brands
across the world including names such as Coca-Cola, Diet Coke, Sprite, Fanta,
Thums Up, Limca, Maaza and Kinley (packaged drinking water), Minute Maid ,Pulpy Orange.
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
Objectives of the study:
1. To understand & explain the Horizontal Expansion Concept with respect to HCCB operations at retail end.
2. To enlist the benefits of Horizontal Expansion for the company at retail end.
3. To develop the business, expand the market coverage, acquisition of retailers, retention strategies and maintaining customer relations
4. To identify if there exists any training requirement for the improvement of sales to its sales team?
5. To study the behavior of sales man and distributer towards shopkeeper.
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SCOPE OF STUDY
Horizontal merger provides the following advantages to the companies which are merged:
1) Economies of scope The notion of economies of scope resembles that of economies of scale. Economies of scale principally denote effectiveness related to alterations in the supply side, for example, growing or reducing production scale of an individual form of commodity. On the other hand, economies of scope denote effectiveness principally related to alterations in the demand side, for example growing or reducing the range of marketing and supply of various forms of products. Economies of scope are one of the principal causes for marketing plans like product lining, product bundling, as well as family branding.
2) Economies of scale
Economies of scale refer to the cost benefits received by a company as the result of a horizontal merger. The merged company is able to have bigger production volume in comparison to the companies operating separately. Therefore, the merged company can derive the benefits of economies of scale. The maximum use of plant facilities can be done by the merged company, which will lead to a decrease in the average expenses
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The important benefits of economies of scale are the following:
Synergy
Growth or expansion
Risk diversification
Diminution in tax liability
Greater market capability and lesser competition
Financial synergy (Improved creditworthiness, enhancement of borrowing power, decrease in the cost of capital, growth of value per share and price earning ratio, capital raising, smaller flotation expenses
Motivation for the managers
For attaining economies of scale, there are two methods and they are the following:
Increased fixed cost and static marginal cost
No or small fixed cost and decreasing marginal cost
One example of economies of scale is that if a company increases its production twofold, then the entire expense of inputs goes up less than twofold.
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Significance of the study
Through this study company can know about its growth compared to its
major competitor
PepsiCo.
This study will also help to the company to know about their new concepts
position in the market
This study will also help to the company to know about its promotional
activities involved in advertising.
Through this study company will know about the availability of its products
in the market.
This study is helpful to find out the sales trends of the Coke products and its
effect on consumers value and satisfaction.
This study is helpful to find out the number of outlets coming under RED
concept
This study is also helpful to find out the outlets efficiency which are coming
under RED.
This study directly deals with interaction of different kinds of people in the
organization which helps me to understand the corporate communication
system.
This study also helps me to understand how the marketing strategy like Pull
and Push works in the corporate. (For push – at the time of pulpy promotion,
for pull at the time of more demand of sprite.)
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Research Methodology:Research Design:
Once the problem is identified, the next step is the research design.
Research design is the basic framework of rest of the study. A research design
specifies the methods and procedures for conducting particular study.
In this project we are following descriptive research design.
Source of Data:
There are two types of data:
1. Primary data
2. Secondary data
Primary Data:
The primary data is fresh information collected for a specified study. The
primary data can be gathered by observational, experimentation and survey
method. Here the entire scheme of plan starts with the definition of various
terms used, units to be employed, type of enquiry to be conducted, extent of
accuracy aimed etc.,
The methods commonly used for the collection of primary data are:
1. Direct personal investigation, where the data is collected by the
investigator from the sources concerned.
2. Indirect oral interviews, where the interview is conducted directly or
indirectly concerned with subject matter of the enquiry.
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
3. Information received through local agencies, which are appointed by
the investigator.
4. Mailed questionnaire method, here the method consists in preparing a
questionnaire (a list of questions relating to the field of enquiry and
providing space for the answers to be filled by the respondents.),
which is mailed to the respondents with a request for quick response
with in the specified time.
In this project mailed questionnaire method is used to collect the primary
data.
Secondary Data:
The secondary data refers to data, which already exists. The secondary data
collect from internal records, business magazines, company websites and
Newspapers.
Research instruments:
For the collection of primary data a structured questionnaire was prepared
covering various aspects of the study.
The questionnaire contains closed-ended and dichotomous questions.
Sampling Procedure:
It is a procedure required from defining a population to the actual selection of
the sample.
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PROSESS
The study is based on Primary data and Secondary data. Secondary Data was collected from the Company’s website and MD’s Sales Presenter as well as Primary Data was collected through structured questionnaire. The questionnaire was designed by keeping all the objectives of the study in mind.
The type of research which is used to conduct survey was.
Sample Unit:
Sampling units are outlets owners/ shopkeepers selling soft drinks.
Sample Size:
Sample Size of 50 outlets.
Sample Technique:
Sample Technique is Simple Random Technique.
Method of data collection:
Method of data collection is survey method.
Universe:
Dehradun.
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Limitations
1. The training was for shorter period of time that is why it was not possible to carry out a detail study.
2. The sample size was limited.
3. The strategies of the company changes very frequently it is difficult to make exact recommendation.
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What is Horizontal Expansion?
Expansion of business capacity through the absorption of facilities or buildings as well as through the acquisition of new equipment to handle an increased volume in sales in which the business is already engaged. In microeconomics and strategic management, the term Horizontal Expansion describes a type of ownership and control. It is a strategy used by a business or corporation that seeks to sell a type of product in numerous markets. Horizontal Expansion in marketing is much more common than Vertical Expansion is in production. Horizontal Expansion occurs when a firm is being taken over by, or merged with, another firm which is in the same industry and in the same stage of production as the merged firm,
E.g. Pepsi has adopted strategy of Vertical Expansion by which Pepsi wants to improve it’s sale from Coke monopoly outlets, means Coke’s monopoly outlets are being taken over by Pepsi now in this condition to improve it’s sale Coke need to open new outlets which is called Horizontal Expansion Strategy. A monopoly created through Horizontal Expansion is called a Horizontal Monopoly.
This is the expansion of a firm within an industry in which it is already active for the purpose of increasing its share of the market for a particular product or service.
Horizontal Expansion:
It is defined as expanding a business beyond what is presently known as its core functions. Best illustrated by example, a typical case of horizontal expansion was when ProBlogger decided to introduce their Job Boards. While ProBlogger’s core functions was providing bloggers with tips on how to make money through their blogs, the team behind the site identified that a job board could compliment what they already provided their “customers” (readers) with, and at the same time create a new cash flow and increase their revenue (by charging for the listings on the job board).
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This is a type of horizontal expansion where you expand on your already existing brand and go beyond your core activity in order to create new and (hopefully) rewarding cash flows that by calculation will, at some point, make your business more profitable.
Another type of Horizontal Expansion is to create a completely new section of your company, and only tie them together under an umbrella. In the world of small, independant online publishers a feasible example would be that if you run a popular blog on a certain videogame, you can start a completely new blog on another videogame, and tie them together only by a company/network blog or website. Of course, the other method of expanding horizontally would be to simply extend the topic of your current blog to include the additional new videogame.
When developing an market business you will always be looking for ways to maximize your revenue, and expanding your fields of operation is often a possibility that surfaces when you are evaluating the future of your businesses. While common to most of those who have formally studied business management, the concepts of Vertical Expansion and Horizontal Expansion are not always recognized by small time internet entrepreneurs such as myself.
Generally when facing the option of expansion, you will have two initial paths to choose from, and the way we usually seperate them is by classifying them as horizontal or vertical. So what separates these two options?
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Vertical Expansion:
It is often referred to as Vertical Integration as well, but as I will point out shortly, for independant online publishers, expansion is a far more accurate word than integration. When you expand your business vertically, you try to increase your profits by expanding and improving on your existing core activities, and moving tasks you’ve previously outsourced inhouse.
For larger companies an example of vertical expansion could be to purchase or merge (hence the term Vertical Integration) with the company that handles their logistics. Similarly a possible vertical expansion for a blogger could be to sell his own ads instead of using adsense, but seeing how buying adsense off of Google is probably not very likely, the term expansion makes more sense in this case than integration.
Common to both types of expansions are that they both involve a certain amount of risk, horizontal even more so than vertical. When expanding horizontally as an online publisher you will be required to either outsource the information you will provide, or climb a steep curve of learning in order to gain the proper insight in order to be able to provide quality content on the new subject.
When expanding vertically, the curve of learning can be equally steep, or even steeper, because often it means that you will have to learn a completely new trade that you don’t have any prior experience with what so ever. Your already existing access to knowledge, whether it is in yourself or already employed people, should therefore be considered when considering either forms of expansions
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Objective of horizontal expansion plan OF COCA COLA
A plan which is intimately connected to horizontal merger is horizontal expansion. This refers to the expansion or growth of a company in a sector that is presently functioning. The aim behind a horizontal expansion is to grow its market share for a specific commodity or service.
The objective behind this type of mergers is to achieve economies of scale in the production procedure through carrying off duplication of installations, services and functions, widening the line of products, decrease in working capital and fixed assets investment, getting rid of competition, minimizing the advertising expenses, enhancing the market capability and to get more dominance on the market.
1. to increase the market share2. to develop new markets for the expansion of coca cola3. to identify new opportunities for the new market4. to get rid of competition and reduce cost
The objective should be thought from different perspective point Of view as mentioned below
coca cola vertical integration
coca cola soft drink
BCG matrix of coca cola
Product life cycle of coca cola
Coca cola competitor
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
ACCORDING TO COCACOLA COMPANY:
When we will entered into the market then to approach the outlet we have to observe the type of outlet before we visited the outlet they have been using from which kind of products like as pepsi. If they are being used to display the pepsi products. After we should visited the pepsi outlet then we need to introduce our coca cola products to that outlet. After we should introduce our products to explain the profits then we can interact closely with them. We need to observe which type of outlet they are using after we observed the outlet models. If it is the grossory, convenience, E&D models. What type of cooler is expecting from our company? We should provided our cooler to satisfy them as well as simantaneuously, to expand our market business respectily.
Reason Of Horizontal Expansion?
The ultimate objective of coke is to acquire more customer and serve them properly. While doing Horizontal Expansion take care to the competitor’s strategy. The main competitor is PEPSI, who has opted Vertical Expansion to generate more sell however Coke do not believe on Vertical Expansion because Vertical Expansion has limited preview so COKE is great believer in Horizontal Expansion and this strategy helped to the company to maintain its leadership in the soft drink industry.
India is a big country having diversified taste and appearance and same character is reflected in their demography. Horizontal Expansion helps the company to serve the more people and more customers touch point because in the waste country many customers commutes.
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How to Do Horizontal ExpansionTo do Horizontal Expansion more efficiently we made a profit story and talk to the shopkeepers according to that story.
Story
Salesperson – hello sir, I am from Coke and I have a proposal that will surely increase your income. May I present you?
Shopkeeper – yes please present it
Salesperson - Sir if you will start to sell coke then your overall sale will be increased and it is not tough to sell coke because Coke is the leader in beverage industry and a very well known brand.
Shopkeeper- yes, but how it can increase my overall sale?
Salesperson - Sir, you are selling Chips, Pastry and snacks. And these products have a very good combination with cold drink. If a person wants to purchase any of these products then it is quite possible that he will purchase Coke and vice versa.
Shopkeeper – But how Coke can increase my profit?
Salesperson – Sir if you are really interested to explore through Coke, you may be able to sell 2 cases of 200ml, 1 case of 300ml, 1 case of 600 ml and 1 case of 2 liter. And for start selling Coke you need to invest only Rs. 420. We will provide you 3 empty carets
Weight of Product (ML)
Rate of case(Rs.)
QTY.
M.R.P.(Rs.)
Revenue(Rs.)
Profit(Rs.)
200 168 24 8 192 24300 214 24 10 240 26600 488 24 22 528 402000 455 9 55 495 40
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Sir your daily profit from coke (in Peak season) = Rs. 154
Profit per month (in Peak season) = Rs. 4620
Profit of whole season = Rs. 13860
(Because the peak season for Coke is only of 3 months)
Profit of rest of the 9 months = Rs. 20790
(Because as per the Coke assumption income in the off season is decreased by half in comparison to the Peak season)
Profit of whole year = Rs.34650
Your investment = Rs. 1913
Your ROI = 34650 * 100/1913
= 1811.29%
Shopkeeper – But I do not think this much will work what about those stuffs that needs to support trading of Coke and I have to provide them like electricity, ice etc.
Salesperson – Sir that’s a really nice question, we can understand your anxiety and we have to offer much more for this. We have minimum Rs. 10 offer on 200 and 300 ml and Minimum Rs. 20 on Pet bottles. More over if you are keeping your refrigerator for the storage purpose of Coke if will be all right as the refrigerator can work by consuming power as low as 2 units per day which will cost you Rs. 8 per day.
So, what you have to say about our offer?
Shopkeeper – Yes, I think it will be a nice idea to accept your offer.
Salesperson – Thank you sir and Congratulation (Shaking Hands) I will be dropping my products within 10 minutes as I have the carrying vehicle with me and within next 15 minutes you are all set to go for selling Coke.
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On some shops we set refrigerators and to keep a refrigerators we need to collect 1 photo copy of Voter ID card or Rashen Card, 1 photo copy of electricity bill and 1 passport size photo of shopkeeper.
Benefits of horizontal expansion:
Through this study company can know about its growth compared to its
major competitor
PepsiCo.
This study will also help to the company to know about their new concepts
position in the market
This study will also help to the company to know about its promotional
activities involved in advertising.
Through this study company will know about the availability of its products
in the market.
This study is helpful to find out the sales trends of the Coke products and its
effect on consumers value and satisfaction.
This study is helpful to find out the number of outlets coming under RED
concept
This study is also helpful to find out the outlets efficiency which are coming
under RED.
This study directly deals with interaction of different kinds of people in the
organization which helps me to understand the corporate communication
system.
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This study also helps me to understand how the marketing strategy like Pull
and Push works in the corporate. (For push – at the time of pulpy promotion,
for pull at the time of more demand of sprite.)
Provides Incremental Volume & Revenue for Business
By horizontal expansion there will be more outlets of our product In
the market which will sell our product in more quantity. This will
generate incremental revenue for the business.
Helps Improve Route Productivity
Increase in market power over supplier and downstream market
channels
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Advantage of horizontal expansion over vertical
expansion:Both expansion techniques are meant for increasing sales volumes. But in
horizontal expansion company can earn more profits by spending less. Let’s
see the profit story of horizontal expansion
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Impact of New Outlets on Business
Vertical Growth by
RED Execution
Horizontal Growth
by New Outlet
Opening
Measure 2008 2009
Number of Existing Outlets 10000 10000
Total Volume (in Lac Phy Cases) 50 55
VPO in Phy Cases 500 550
Number of New Outlets 2000
New Outlet VPO 125
Incremental Volume (in Lac Phy Cases) 2.5
Grand Total Volume in Lac Cases) 50 57.5
HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
Above tables clearly indicate the importance of opening new outlets. By
doing vertical expansion only growth in profit was not very effective but
because of opening just 200 new outlets sales increased to a large extent.
Total profit margin and return on investment also increased.
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Impact of New Outlets on Distributors
Better Margin
More Returns
Increased ROI
Measure 2008 2009
Number of Existing Outlets 1000 1000
Total Volume (in Lac Phy Cases) 3 3.5
VPO (in Phy Cases) 300 350
Numer of New Outlets 200
New Outlet VPO 150
Incremental Volume from New Outlets(in lac Phy Cases)
0.3
Grand Total Volume 3 3.8
Margin Per Case 12 12
Gross Total Margin (in Rs 000's) 3600 4560
Operating Expense (in Rs 000's) 7 6.5
Net Total Return (in Rs 000's) 1500 1925
Investment (in Rs Lac) 80 85
ROI 19% 23%
HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
OUTCOME OF THE PROJECTApart from the other benefits of horizontal expansion, its main benefit is to generate incremental revenue for the company. During the project I studied strategies and analyzed the market. My major job was to use different tools provided by the company for horizontal expansion like refrigerator, ice box etc. and to open outlets for coca cola products. With my other team mates I targeted the market of Dehradun and our outcome is as follows:-
No. of New outlets in Patel nagar , BHEL = 10
No. of New outlets in clementown = 5
No . of New outlets In Rajpur road = 10
No. of New outlets in other areas = 25
INCREMENTAL REVENUE GENERATED FOR THE COMPNAY:Avg. Sales at each outlet = 3 cases per outlet
Total Sales = 50*3 = 150 cases per day
Avg price per case = 200 Rs( assumed)
Total Revenue = 200*150
= Rs. 30,000 per day
(Note: see appendices for the list of outlets)
Hence we can see the huge revenue generated by the horizontal Expansion. It also increased the visibility and market share of the coca cola products.
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INDUSTRY PROFILE
Carbonated Soft Drinks
At the core of the beverage industry is the carbonated soft-drink category. The
dominant players in this area (Coca Cola, Pepsi, and Cadbury-Schweppes) own
virtually all of the North American market’s most widely distributed and best-
known brands. They are dominant in world markets as well. These companies’
products occupy large portions of any supermarket’s shelf space, often covering
more territory than real food categories like dairy products, meat, or produce.
As with many mature retail industries, the beverage giants have a problem –
growth in the sales of their flagship carbonated products are at a near standstill
in the key U.S. market, with 1% growth or less. After years of rapid growth, it
seems that the average American can’t drink any more flavored, fizzy soda
water. To remedy that, these three companies are rapidly expanding both
globally as they enter and promote new markets for existing products and
locally, as they add products from adjacent beverage categories in the
supermarket, in categories that are still expanding. We'll talk about these areas
in a later posting.
The prototype of all marketing and branding struggles, the “Cola Wars” keep
expanding. The Pepsi and Coca Cola keep rolling out the big guns: dueling pop
stars, and new branded products in the form of “Vanilla Coke” and “Pepsi
Blue.” . They are fighting on the TV, in the fast-food restaurants, and in the
supermarkets; they are also dueling in the schools. One of the biggest pushes of
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the last few years has been convincing school districts, universities, and other
institutions to go all-Coke or all-Pepsi, in return for a (small) cut of the gross
sales.
Selling costly sugared water and building an increasing demand for it, even in
Third World countries, involves marketing in its purest form, unsullied by any
preexisting need or local tradition. Markets in Eastern Europe, China, India, and
Mexico, among others, are expanding fast, and both Coke and Pepsi are finding
local partners (bottlers) in these countries to keep extending their reach. And
while the American market may be mature, there’s still an opportunity
worldwide to replace hot beverages like coffee and tea that require some
preparation with these cold, iconic.
All this worldwide activity can’t disguise an unpleasant core reality for the
vendors: U.S. carbonated soft drink sales increased only 0.5% in the year 2002.
Although total sales for the industry was up slightly, per capita consumption
was down for the third year in a row In other words, domestic soft drink growth
is not keeping pace with population growth.
Overall soda market
In fact, Coke and Pepsi have a third major rival on the bottled soft drink
shelves, namely Cadbury-Schweppes. The big three carbonated
beverage makers now exist in a stable oligopoly those changes only by small
increments and which controls over 90% of the market. Over the years,
Cadbury-Schweppes (the result of a merger between a British candy company
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
and a British beverage company) has improved its position by acquiring key
brands in the US, namely Dr. Pepper and Seven-Up, along with A & W and
Canada Dry.
In past decades, the carbonated beverage section had been the beneficiary of an
amazing record of growth, where consumption has more than doubled over the
past 25 years. Americans consume twice as much soda as they did 25 years ago,
up from 22 gallons per person per year to over 56.
In 2000, these three companies had almost exactly the same share of the U.S.
market they had in 1999, namely:
CompanyPercentage
Brands
Coca Cola 44.1% Coke, Sprite, Barq, Fanta, Mello Yello,
etc.
PepsiCo 31.4% Pepsi, Mountain Dew, Mug, Slice, etc.
Cadbury/
Schweppes
14.7% Seven-Up, Dr. Pepper, Schweppes, A &
W, Canada Dry, Sunkist, Squirt, etc.
While individual flavors go up and down, the relative market share of the big
three changes at a glacial rate. The next biggest North American soda company,
the Canadian-based Cott Beverage Company, had only a little over 3% of the
market and that company specialize in supplying private label soda to
supermarkets and other chains.
In 2001, however, Cadbury acquired moribund RC Cola, giving it a cola drink
to battle against the big guys. This gave the company more shelf position and
immediately gave the RC Cola brand, long a distant also-ran with weak
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marketing muscles, more sales and market presence. Pepsi gave itself a small
boost because of the popularity of newly introduced Mountain Dew Code Red,
a hyper-caffeinated soda. Coke’s numbers declined slightly. The market share
figures in 2001.
Company Percentage Coca Cola 43.7%
PepsiCo 31.6%
Cadbury/Schweppes 15.8%
It’s pretty indicative of this mature market that the only major move in market
share comes through a takeover. Moreover, the takeover targets that are left are
so small that the biggest remaining brand doesn’t make more than 1%
difference in total volume.
New age beverages
In the last part of our look at the beverage business, we noted that oligopolies
Coca Cola, PepsiCo, and Cadbury Schweppes had "flooded" a mature market,
so that there was minimal growth potential in the carbonated beverages
category. So, how can these companies grow, something all oligopolies are
compelled to do? First, by expanding internationally. Second, by acquiring or
adding new products in other beverage areas, which show both faster growth
and less well-defined competition. In fact, other beverage types have only in the
last decade come into focus as separate, important categories.
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So the search for new beverage footholds has become the second front of the
Cola Wars. There is a scramble for new territories in beverage shelf space, and
Coke and Pepsi are investing heavily. These alternative beverages areas were
established by startup or small cap companies, including Snapple and Arizona
Iced Teas, Ocean Spray and Nantucket Nectars, SoBe and Calistoga. The
emerging categories began to look like both a threat and an opportunity for the
big three.
In 2001, according to Beverage Age Magazine. The segments of alternative or
"New Age" beverages ranked by order of sales, were:
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Company Profile
In general, The Coca-Cola Company (TCCC) and/or subsidiaries only produces
(or produce) syrup concentrate which is then sold to various bottlers throughout
pharmacist John Stith Pemberton in 1886. The Coca-Cola formula and brand
was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company
in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers
nearly 400 brands in over 200 countries or territories. The company operates a
franchised distribution system dating back to 1889 where TCCC only produces
syrup concentrate which is then sold to various bottlers throughout the world
who hold an exclusive territory. The Coca-Cola Company is headquartered in
Atlanta, Georgia. Its stock is listed on the NYSE and is part of DJIA and S&P
500
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
All India Division COBO’s are now ISO 14001 certified
All 25 of the Divisions Company-owned bottling plants have gained the international standard ISO 14001 Environment Management System certificate.
The ISO 14001 certificate is the internationally recognized standard of Environmental Management.
A company must demonstrate management commitment, the total involvement of all employees and a compliance with applicable regulatory and internal company standards.
Strict division compliance with eKO system ensured that the bottling plants were ready to meet the tough evaluation criteria and standards of the ISO auditors.
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
PRODUCTS AND BRANDS
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Thums UpType Cola
Manufacturer The Coca-Cola Company
Country of origin India
Introduced 1977
Related products Coca-Cola, Pepsi, Campa Cola
Thums Up is a carbonated soft drink (cola) that is very popular[citation needed] in India, where its bold, red thumbs up logo is common. It is similar in flavor to other colas but has a unique taste reminiscent of betel nut. Introduced in 1977 to offset the expulsion of The Coca-Cola Company and other foreign companies from India, Thums Up, Limca, and Campa Cola gained nationwide acceptance. The brand was bought out by Coca-Cola who later re-launched it to fight against Pepsi after unsuccessful attempts at brand killing.
Background
During late 1970s, the American cola giant Coca-Cola was banned by the Indian government. Following this, the Parle brothers, Ramesh Chauhan and Prakash Chauhan, along with then CEO Bhanu Vakil, launched Thums Up as their flagship drink, adding to their portfolio of older brands Limca (lime flavour) and Gold Spot(orange flavored). Thums Up was basically a cola drink, but the company never claimed it as such. The formula was just as closely guarded as the famous Coke formula. During the same time, the owners of Coca-Cola’s bottling plant, Pure Drinks Ltd., launched Campa Cola and Campa Orange, both of which had a higher dose of carbon dioxide.
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The Thums Up logo was a logo showing a red thumbs up hand gesture with a slanted white serif typeface. This would later be modified by Coca-Cola with blue strokes and a more modern-looking typeface. This was mainly done to reduce the dominant red color in their signage.
The picture shows the thums up mountain or thums up pahaad(in Hindi)manmad hills which has a natural top like thums up logo and is a popular sight from trains .Its famous caption until the early `80s was, “Happy days are here again”, coined by then famous copywriter Vasant Kumar, whose father was spiritual philosopher U. G. Krishnamurti. Later it was changed to "Taste the thunder!”.
Market
sIn 1990, when Indian government opened the market to multinationals, Pepsi was the first to come in. Thums Up went up against the international giant for an intense onslaught with neither side giving any quarter. With Pepsi roping in major Indian movie stars like Juhi Chawla, to thwart the Indian brand, Thums Up increased its spending in the Cricket sponsorship. Then the capacity went from 250ml to 300ml, aptly named MahaCola. This nickname gained popularity in smaller towns where people would ask for "Maha Cola" instead of Thums Up. The consumers were divided where some felt the Pepsi’s mild taste was rather bland.
In 1993 Coca-Cola re-entered India after prolonged absences from 1977 to 1993. But Coca-Cola’s entry made things even more complicated and the fight became a three-way battle. That same year, in a move that baffled many, Parle sold out to Coke for a meagre US$ 60 million (considering the market share it had). Some assumed Parle had lost the appetite for a fight against the two largest cola brands; others surmised that the international brands seemingly endless cash reserves psyched-out Parle. Either way, it was now Coca-Cola’s, and Coke has a habit of killing brands in its portfolio that might overshadow it. Coca-Cola soon introduced its cola in cans which was all the rage in India, with Thums Up introduced alongside, albeit in minuscule numbers. Later Coca-Cola started pulling out the Thums Up brand which at that time still had more than 30% market share.
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Limcas
Type Lemon-lime sodaManufacturer The Coca-Cola CompanyCountry of origin IndiaIntroduced 1977
Limca is a lemon and lime flavored carbonated soft drink made in India andcertain parts of the U.S. It is less bubbly than its American counterparts likeSeven Up and Sprite, and it has a slight flavor of ginger.
In 1992, when the government allowed Coca-Cola to return, at the same time as it admitted Pepsi for the first time, Coca-Cola bought Limca, Thums Up,Maaza and other drink brands.
Like other sodas, Limca is generally sold in glass bottles within India, which are returned to the store or restaurant after the contents have been drunk. The bottles are sent back to the manufacturer, washed and reused, because they are more expensive than the soda itself.
Rates and sizes
2 ltr. plastic bottles cost Rs.55600ml plastic bottles cost Rs. 22300ml glass bottles cost Rs. 10200ml glass bottles cost Rs. 8350 ml pet bottles cost Rs. 15
Limca also publishes the Limca Book of Records, a record book similar to theGuinness Book of Records. The Limca Book of Records details feats, records and other unique statistics from an Indian perspective.
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SpriteType Lemon-limeManufacturer The Coca-Cola CompanyCountry of origin GermanyIntroduced 1961
Sprite is a clear soda, lemon-lime flavored, caffeine free soft drink, produced by the Coca-Cola Company. It was introduced to the United States in 1961. This was Coke's response to the popularity of 7 Up, which had begun as "Lithiated Lemon" in 1929. It comes in a primarily green and blue can or a green transparent bottle with a primarily green and blue label.
HistoryOriginating in Germany as Fanta Klare Zitrone ("Clear Lemon Fanta"), Sprite was introduced to the United States in 1961 to compete against 7-Up. In the 1980s, many years after Sprite's introduction, Coke pressured its large bottlers that distributed 7 Up to replace the competitor with the Coca-Cola product. In large part due to the strength of the Coca-Cola system of bottlers, Sprite finally became the market leader position in the lemon-lime soda category in 1989Global naming Sprite, as a lemon-lime soda, is referred to by consumers around the world in a variety of ways. It is called lemonade in Australia and New Zealand. In Ireland and Canada, Sprite and 7-up are interchangeable and, when asked, a person may say Sprite or 7-up to mean the same drink. In South Africa, Sprite and Schweppes Lemonade are almost interchangeable. In some parts of Switzerland, Sprite (or any other type of lemonade) is also known simply as citra.
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FantaType Soft drinkManufacturer The Coca-Cola CompanyCountry of origin GermanyIntroduced 1940
Fanta is a global brand of fruit-flavored soft drink from the Coca-Cola Company. There are over 115 flavors world-wide; however, most of them are only available in some countries. The brand was originally introduced in Germany in 1940, and was purchased by Coca-Cola in 1960. Today it is available in 180 countries.
HistoryIn 1940 Fanta was created by the German chemist Schetelig during
World War II in Germany, by the German Coca-Cola bottling company in Essen. Due to war time restrictions on shipping between Germany and the United States, the German bottling plant could not get Coca-Cola syrup. The CEO of the plant, Max Keith, needed a product to keep the plant in operation and devised a fruit flavored drink made from available ingredients.
Using apple fiber remaining from cider pressing and whey, a byproduct from cheese manufacture,
Fanta was created and became quite popular. The original German Fanta had a yellow color and a different flavor from that of Fanta Orange. The flavor varied throughout the war, depending on the ingredients used.
The name 'Fanta' was coined during an employee contest to name the new beverage. Keith told them to let their Fantasie (German for "imagination") run wild. On hearing that, salesman Joe Knipp spontaneously arrived upon the name Fanta. s
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maazaType Fruit juiceManufacturer The Coca-Cola CompanyCountry of origin IndiaIntroduced 1976Variants Maaza Orange, Maaza PineappleRelated products Slice, Frooti
Maaza is a Coca-Cola fruit drink brand marketed in India and Bangladesh, the most popular drink being the mango variety, so much that over the years, the Maaza brand has become synonymous with Mango. Initially Coca-Cola had also launched Maaza in orange and pineapple variants, but these variants were subsequently dropped. Coca-Cola has recently re-launched these variants again in the Indian market.
Mango drinks currently account for 90% of the fruit juice market in India. Maaza currently dominates the fruit drink category and competes with Pepsi's Slice brand of mango drink and Frooti, manufactured by Parle Agro.
While Frooti was sold in small cartons, Maaza and Slice were initially sold in returnable bottles. However, all brands are also now available in small cartons and large PET bottles. Of late, the Indian market is witnessing the entry of a large number of small manufacturers producing only mango fruit drink.
Maaza has a distinct pulpy taste as compared to Frooti and tastes slightly sweeter than Slice. Maaza claims to contain mango pulp of the Alphonso ariety, which is known as the "King of Mangoes" in India.
HistoryMaaza was launched in 1976 in India. The Union Beverages Factory, based in the United Arab Emirates, began selling Maaza as a franchisee in the Middle East and Africa in 1976. By 1995, it had acquired rights to the Maaza brand in these countries through Maaza International Co LLC Dubai. In India , Maaza was acquired by Coca-Cola India in 1993 from Parle-Bisleri along with other brands such as Limca, Citra, Thums Up and Gold Spot. As for North America, Maaza was acquired by House of Spices in 2005.
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Minute MaidMinute Maid is a product line of beverages, usually associated with lemonade or orange juice, but now extends to soft drinks of many kinds, including Hi-C. Minute Maid was the first company to market orange juice concentrate, allowing it to be distributed throughout the United States and served year-round.The Minute Maid company is now owned by The Coca-Cola Company, and is he world's largest marketer of fruit juices and drinks. It is headquartered in Houston, Texas, and employs 2,200 people. In 2002 the Houston Astros baseball team sold the naming rights for their venue, subsequently anointed Minute Maid Park, and the company now owns 8.5% of the team.History
The National Research Corporation (NRC) of Boston, Massachusetts, developed a method of concentrating orange juice into a powder using a "high-vacuum process" in 1945. The US Army had a need for 500,000 lb (227,000 kg) for the war, so NRC created a new branch, the Florida Food Corporation. Led by John M. Fox, the company won the government contract for $750,000.
The war ended and the contract was canceled before the factory could be built, but with investment, the company moved forward with a product.
Rather than selling powder to the public market, the company decided to create frozen orange juice concentrate. A Boston marketing firm came up with the name Minute Maid, like Minutemen, implying the juice was quick and easy to prepare.
With limited funds for advertising, Fox himself went door to door giving free samples, until demand skyrocketed. The ability to purchase fresh-tasting orange juice at any time of year, far from where oranges are grown, proved popular, and led to the company's national success.The Minute Maid company was purchased by Coca-Cola in 1960.
In 1973, the company released the first ready-to-drink, chilled orange juice product in the United States.
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KINLEY
Water, a thirst quencher that refreshes, a life giving force that washes all the toxins away. A ritual purifier that cleanses, purifies, transforms. Water, the most basic need of life, the very sustenance of life, a celebration of life itself.
The importance of water can never be understand. Particularly in a nation such as India where water governs the lives of the millions, be it as part of everyday ritual or as the monsoon which gives life to the sub-continent.
Kinly water understands the importance and value of this life giving force. Kinley water thus promises water that is as pure as it is meant to be. Water you can trust to be truly safe and pure.
Kinley water comes with the assurance of safety from the Coca- Cola Company. That is why they introduced Kinley with reverse-osmosis along with latest technology to ensure the purity of their product. That’s why they go through rigorous testing procedures at each and every location where Kinley is produced. Because they believe that right to pure, safe drinking water is fundamental. A universal need, that can not be left to chance.
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ChannelsGrocery – Outlet primarily engaged in retailing of food & various household items. It includes Grocers (Outlets dealing mainly in grains, provisions, spices, edible oil, vanaspati etc.) and General Stores (Outlet selling items of day to day requirements & stocking a variety of branded products)
E&D types 1 – Outlet selling items of eat which are being consumed primarily standing in the outlet or being taken away for Future Consumption. Does Not Have Place To Sit. It includes bakery / sweet shops/ QSR / juice centers / soft drink shops/ Tea shops etc.
E & D type 2 – Outlet selling items of eats which are being cooked/made within outlet possibility of consuming those products within the outlet. The Outlet Should have A Place To Sit. It includes Sit down restaurants / Bars / Dhabas / Cafes etc.
Convenience- includes outlets which are small stores, generally accessible locally. These are often located alongside busy roads. It includes Chemists / STD Booths / PAN – Beedi shops, etc.
ClassBronze- Those outlets, which sells <= 200 carets per year.
Silver- Those outlets, which sells 201 - 499 carets per year.
Gold- Those outlets, which sells 500-799 carets per year.
Diamond- Those outlets, which sells more than 800 carets per year.
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Data Interpretation
1) What Type of Channel do you hold?sa) E & Db) Groceryc) Convenienced) Other
E & D 30%Grocery 40%
Convenience 20%Other, Please specify 10%
E&D Grocery Convenience Other0
5
10
15
20
25
30
35
40
Channels
INTERPRETATION:
By knowing the above graph, E&D is 30 %, Grocery is 40 %, Convenience is 20 % , Others is 10 %.
Here, GROCERY having highest % and OTHER’S having lowest %.
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2) If there are no drinks in the outlet, Are you willing to sell soft drinks ?
a) Yes
b) No
Yes 90%No 10%
YES NO0
102030405060708090
90
10
Response
INTERPRETATION:
By knowing above graph, willing to sell soft drinks, YES is 90 %, NO is 10 %.
Here, YES is more than NO
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3)Is threr any chilling equipment present?
a) Cokeb) Pepsic) Own fridged) Others
BRANDS RESPONDENTSPepsi 30%
Own fridge 50%Others 20%
PEPSI OWN FRIDGE OTHER05
101520253035404550
HOLD
INTERPRETATION:
By knowing the above graph, PEPSI is 30 %, OWN FRIDGE is 50 %, and OTHERS is 20 %.Here, OWN FRIDGE having Highest %, OTHERS is Lowest %
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4) The first and mostly preferred soft drink company?
a) Coca cola b) Pepsi c) Parled) Others
COMPANY PREFERRENCECoca Cola 70%
Pepsi 20%Parle 10%
Preference
PEPSICOCACOLAPARLE
INTERPRETATION:
By knowing the above graph, COCACOLA is 70 %, PEPSI is 20%, PARLE is 10 %.
Here Coca cola having highest percentage, Parle is the lowest percentage
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5) why did you give more preference to Coca Cola ?
a) Brand name
b) Customer loyalty
c) Best offers
d) Above all
Brand name 20%Customer loyalty 20%
Best offers 10%Above all 50%
Brand name Customer loyalty Best offers Above all0
5
10
15
20
25
30
35
40
45
50
INTERPRETATION:
By knowing above graph, BRAND NAME is 20%, CUSTOMER LOYALTY is 20%, BEST OFFERS is 10% and ABOVE ALL is 50%.
Here ABOVE ALL is having highest percentage, BEST OFFER is having lowest percentage.
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6) If the preference is Coke co. then which product you prefer more
a) Coca cola b) Thumbs-up c) Sprite d) Limca
e) Fanta f) Mazaa g) Pulpy orange h) Kinley
Coca cola 10%Thumbs-up 40%
Sprite 10%Limca 8%Fanta 2%Mazaa 10%
Pulpy orange 5%Kinley 15%
Coca cola Thumbs-up Sprite Limca Fanta Mazaa Pulpy orange Kinley0
5
10
15
20
25
30
35
40
Respondance
INTERPRETATION:
By knowing above graph, Coca cola is 10%, Thumbs-up is 40%, Sprite 10%, LImca is 8%, Fanta is 5%, Mazaa is 10%, Pulpy orange is 2%, Kinley is 15%.
Here THUMBS-UP is having highest percentage and FANTA is having lowest percentage.
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
A) If the preference is Pepsi which product you prefer morea) Pepsi b) 7-upc) Sliced) Mirindae) Mountain Dew
Pepsi 25%7-up 5%Slice 20%
Mirinda 15%Mountain Dew 35%
Pepsi mountain Dew Slice Mirinda 7 -up0
5
10
15
20
25
30
35
INTERPRETATION:
By knowing above graph, Pepsi is 25%, Mountain dew is 35%, Slice is 20%, Mirinda is 15%, 7 up is 5%.
Here MOUNTAIN DEW is having highest percentage and 7-Up having lowest percentage.
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B) If the preference is Parle then which product is you prefer morea) Frootib) Appy
Frooti 60%Appy 40%
Frooty Appy0
10
20
30
40
50
60
INTERPRETATION:
By knowing above graph, Frooti is 60 % , Appy is 40% .
Here, FROOTI is more then that of APPY.
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7) Which pack attracts the retailers to open the outlet
a) R G B
b) Pet Bottles
c) Tetra Packs
d) Cans
R G B 50%Pet Bottles 40%
Tetra Packs 2%Cans 8%
R G B Pet Bottles Tetra Packs Cans0
5
10
15
20
25
30
35
40
45
50
INTERPRETATION:
By knowing above graph, R G B is 50%, Pet bottles is 40%, Tetra packs is 2% and Cans is 8%. Here R G B is highest percentage and TETRA PACKS having lowest percentage
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8) Which of the following promotions affect the opening and retaining of outlets
a) Schemes
b) Case re-fund
c) Price pack
Schemes 40%Case re-fund 35%Price pack 25%
Scheme Case re-fund Price pack0
5
10
15
20
25
30
35
40
INTERPRETATION:
By knowing above graph, Schemes is 40%, Case re-fund 35% and Price pack is 25%.
Here SCHEMES is having highest percentage and PRICE PACK is having lowest percentage.
9) Do you think that the business of these soft drinks is seasonal
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a) Yes
b) No
c) Neutral
Yes 45%No 35%
Neutral 20%
Yes No Neutral0
5
10
15
20
25
30
35
40
45
INTERPRETATION:
By knowing above graph, Yes is 45%, No is 35% and Neutral is 20%.
Here YES is having percentage and NEUTRAL is lowest percentage
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
10) Are you able to access the different kinds of offers provided by the company every day
a) Yes
b) Not regularly
c) Not at all
Yes 50%Not regularly 30%
Not at all 20%
yes Not regularly Not at all0
5
10
15
20
25
30
35
40
45
50
INTERPRETATION:
By knowing above graph, Yes is 50%, Not regularly is 30% and Not at all is 20%.
Here YES is having highest percentage and NOT AT ALL is lowest percentage.
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
11) According to you which of the following offers will benefit your business
a) Free bottles
b) Less MRP on purchase
c) Gift vouchers
Free bottles 45%Less MRP on purchase 50%
Gift vouchers 5%
Free bottles Less MRP on purchase Gift vouchers0
5
10
15
20
25
30
35
40
45
50
INTERPRETATION:
By knowing above graph, Free bottles is 45%, Less MRP is 50% and Gift vouchers is 5%.
Here LESS MRP ON PRICE is having highest percentage and GIFT VOUCHERS is having lowest percentage.
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
12) Are you satisfied with the margins given by the company
a) Yes
b) No
Yes 60%No 40%
Yes No0
10
20
30
40
50
60
INTERPRETATION:
By knowing above graph, Yes is 60% and No is 40%.
Here YES is having is highest percentage and NO is having lowest percentage.
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
13) Is company providing satisfied service, if any problem comes?
a) Yes
b) No
c) Neutral
Yes 50%No 30%
Neutral 20%
Yes No Neutral0
5
10
15
20
25
30
35
40
45
50
INTERPRETATION:
By knowing above graph, Yes is having 50%, No is having 30% and Neutral is having 20%.
Here YES is having highest percentage and NEUTRAL is having low percentage.
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
14) What is the present position of the Coca cola in the market
a) Excellent
b) Good
c) Average
d) Poor
Excellent 60%Good 40%
Average 0%Poor 0%
Excellent Good Average Poor0
10
20
30
40
50
60
INTERPRETATION:
By knowing above graph, Excellent is 60%, Good is 40% and Average and Poor is 0%.
Here EXCELLENT is having highest percentage.
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
15) Kindly rate the behavior of salesman towards the retailers
a) Highly satisfied b) satisfiedc) dissatisfiedd) Highly dissatisfied
Highly satisfied 25%satisfied 60%
dissatisfied 10%Highly dissatisfied 5%
INTERPRETATION:
By knowing above graph, Highly satisfied is 25%, Satisfied is 60%, Dissatisfied is 10% and Highly dissatisfied is 5%.
Here SATISFIED is having highest percentage and HIGHLY DISSATISFIED is having low percentage.
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Hiighly Satisfied Satisfied Dissstisfied Hiighly dissatisfied0
10
20
30
40
50
60
Respondence
HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
Delivery (timeliness)
I. Kindly rate the behavior of sales man (Overall year) towards:
a) Highly satisfied b) Satisfiedc) Dissatisfiedd) Highly dissatisfied
Highly satisfied 30%Satisfied 40%
Dissatisfied 20%Highly dissatisfied 10%
Highly satisfied Satisfied Dissatisfied Highly dissatisfied0
5
10
15
20
25
30
35
40
INTERPRETATION:
By knowing above graph, Highly satisfied is 30%, Satisfied is 40%, Dissatisfied is 20% and Highly dissatisfied 10%.
Here SATISFIED is having highest percentage and HIGHLY DISSATISFIED is having low percentage.
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CommunicationII. Kindly rate the behavior of sales man (Overall year) towards:
a) Highly satisfied b) Satisfiedc) Dissatisfiedd) Highly dissatisfied
Highly satisfied 30%Satisfied 50%
Dissatisfied 20%Highly dissatisfied 0%
Highly satisfied Satisfied Dissatisfied Highly dissatisfied0
5
10
15
20
25
30
35
40
45
50
INTERPRETATION:
By knowing above graph, Highly satisfied is 30%, Satisfied is 50%, Dissatisfied is 20% and Highly dissatisfied 0%.
Here SATISFIED is having highest percentage and HIGHLY DISSATISFIED is having low percentage.
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Visit Frequency
III. Kindly rate the behavior of sales man (Overall year) towards:o Highly satisfied o Satisfiedo Dissatisfied
d) Highly dissatisfied
Highly satisfied 40%Satisfied 50%
Dissatisfied 10%Highly dissatisfied 0%
Highly satisfied Satisfied Dissatisfied Highly dissatisfied0
5
10
15
20
25
30
35
40
45
50
INTERPRETATION:
By knowing above graph, Highly satisfied is 40%, Satisfied is 50%, Dissatisfied is 10% and Highly dissatisfied 0%.
Here SATISFIED is having highest percentage and HIGHLY DISSATISFIED is having low percentage.
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
Findings:
It is found that Coca-Cola is market leader compared with Pepsi the market challenger. The market share of Coca-Cola is 65% and that of Pepsi is 35% only according to the areas where the researcher had surveyed
It is found that 11% are exclusive, 30 % are shared and 40% are neither co and pc. It is found that 40% of outlet are needed to horizontal expansion.
Volume of consumption 200ml co is higher then others it is necessary to launch 200ml products more. Even though during the survey consumers demand more 200ml products of co for business expansion in service industry.
It is found that there is 44% outlet where there is no sales growth assets
It is found that 39% are not using any vernacular freeze so there is a chance to provide freeze in these area to give business or develop business and increase market share
It is found that thumps up is leading brand with sales 26% brands among the brand
In the survey it is found that in gacchibowli , hitch city there is a lot of chance to develop business
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
It is found that major survey was focused on service industry to make horizontal expansion of coca cola
It is found that there is a lot of chance in gaccchi bowli, hi-tech city to make expansion
Through the research it is found that boards are best display for outlets
Researchers found that coca cola is No.1 One in brand customer demand more equity, brand equity is better measure of firms performance
Researcher found that gap between demand and supply is not good
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
SUGGESTIONS
The following are the some suggestions that can be implemented to increase
the customer satisfaction and the profitability of the company for the horizontal
expansion of coacola
Supply distribution should improve in area like kukatpally, gachhibowli,
Training should be given to encourage marketers to promote coke at new
areas where there is not yet competitors involved
Overall services should be improved for getting more sales and being
remained the market leader.
They should deepen the partnership arrangement with suppliers and
distributors and make them feel as a part of the company.
At every retail outlet there is limited products of coke product line, so the
distributor should supply every coke product line
CONCLUSIONPage 71 of 75
HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
In the present competitive world the success of the company
depends on satisfying the customers as well as channel members. This is the
area of retail business and to win the race and be on the top companies are out
performing by spending more on trade promotions. The channel members play a
key role in increasing the sales of FMCG products. So the company has to pay
more attention on distribution, promotion and availability of brand to win sales
in the market.
The study concludes that the Hindustan Coca Cola Beverages Pvt. Ltd has to strengthen its product line by introducing new flavors and new sizes. It also has to increase the stock holding and availability of cock brands through motivating channel members by offering attractive schemes and incentives
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
Bibliography
Reference:
www.coca-cola.co.in
www.cocacolaindia.com
www.oligopoly.com
Books:
Marketing Management : Philip Kottler
Market Research (Naresh K. Malhotra)
HORIZONTAL EXPANSION
1. What type of channel did you hold ?
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
. E&D . Grocery . Convenience . Other
2. If there are no drinks in the outlet, are you willing to sell soft drinks ?
. Yes .No
3. How many number of customers did you hold per day?
<100 <200 <300 <400
4. Is there any chilling equipment present ?
.coke . Pepsi co. . Own fridge . Others
5. The first and mostly preferred soft drink company
. Coke co . Pepsi co . Parle . Others
6. Why did you give the preference coke co ?
. Brand name . customer loyalty . best offers . above all
7. a. If the preference is Coke Co. then which product you prefer more
. Coca cola . Thums up . Sprite . Limca . Fanta
. Mazaa . Pulpy orange . Nimbu fresh
b.. If the preference is Pepsi Co. then which product you prefer more
Pepsi . 7 Up . Slice Mirinda . Mountain dew . Tropican
c. If the preference is Parle Agro then which product you prefere more
. Frooti . Appy
8. Which packs attracts the retailers to open a outlet?
. RGB . Tetra packs . Pet bottles . Cans
9. Which of the following promotions affect the opening and retaining of outlets?
. Schemes . Case refund . Price pack . Any other
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HINDUSTAN COCA-COLA BEVRAGES PVT.LTD.
10. Are you able access the different kinds of offers provided by the company every day
. Yes . Not regularly . Not at all
11. According to you which of the following offers will benefit your business
. Free bottles . Less MRP on purchase . Gift vouchers . SMS offers
12. Do you think that the business of these soft drinks is seasonal
. Yes . No . Neutral
13. Is company providing satisfied service, if any problem comes ?
. Yes . No . Neutral
14. After opening the outlet how does the company response?
. Satisfied . Highly satisfied . Dissatisfied . Highly dissatisfied
15. Kindly rate the behavior of sales man toward
. Highly satisfied . Satisfied . Dissatisfied . Highly dissatisfied
I. Delivery
II. Communication
III. Visit frequency
Area :
Name of the outlet :
Addres :
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