Post on 16-Nov-2014
“MARKET SURVEY OF RIGHT EXECUTION FOR COCA COLA“
PROJECT REPORT
2009
Submitted for the partial fulfillment of the requirement for the award
Of MASTER OF BUSINESS ADMINISTRATION
SUBMITTED BY
NITIN TYAGI
0823170410
UNDER THE SUPERVISION OF
External: Mr. Alok Agarawal (Area Sales Manager)
Internal: Mr. Neeraj Kumar (Lecturer)
Department of Management
R.D.ENGINEERING COLLEGE, DUHAI,
GHAZIABAD
1
DECLARATION
I here by declare that this project report prepared in lieu of a compulsory paper for the
partial fulfillment of Management of Business Administration (HR and Marketing) is my
original work which I have submitted in Coca Cola to my guide Mr. Neeraj Kumar. No
part of it has been submitted to any other university or organization.
All the information and data in my project are authentic to the best of my knowledge and
taken from reliable sources.
Nitin Tyagi
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ACKNOWLEDGEMENT
Survey is the team project, while my name is on the
cover page of this project, literally many of people have
contributed to this summer training Project report. Every
work requires a commitment but this commitment goes
in rain when there is no guidance.
I am extremely thankful to Mr. SAMEER MANDAL (Sr. Sales Executive) under whose able guidance I have worked on this survey & for his willing and every available cooperation through out the project. Last but not the least; I acknowledge with thanks the valuable suggestions of Mr. Sandeep Yadav & all my friends and all of my wishers.
NITIN TYAGI
3
PREFACE
Summer Training in any organization is an attempt to provide the student a practical
Input and Exposure to the Real world situation in which he has to work in future.
My training in COCA-COLA was an attempt in this regard. The project work provided
to me was a survey titled based on R.E.D. it was to find out the Effect of
Merchandising and Route Assessment on Productivity/Sales, Availability of
product, MKT. Condition, Demand & supply of product, Distribution Channel,
Cooler display, warm display, across various outlets under 7 distributors in Ghaziabad
City.
The Extract of the work is presented in this report under various headings as,
Introduction, Company’s Profile, Project Introduction, Methodology, Data analysis,
Suggestions and Conclusions.
This report provides me a chance to study and analyze the practical aspects of the topic
(Market Survey of Right Execution for Coca Cola). It enhanced my knowledge in the
field of marketing. This project also gave me the chance to improve logical thinking and
interacting patterns.
While working on the project, we came to know about the latest marketing strategies and
trends prevailing in the market. The way of selling and distribution network of Coca
Cola was different.
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CONTENTS
Chapter 1- Introduction
1. Company Profile 6
2. Research Objective 14
Chapter 2- Research Methodology 21
Chapter 3- Organization Information
1. Market Survey of Right Execution Daily Pure Outlet
Chapter 4-Descriptive work of subtopics of study
1. Area of Distribution 26
2. Marketing Strategy of Coke Famous ads of Coke 32
Chapter 5- Data Analysis and Interpretation
1. SWOT Analysis 113
2. Field Experience 115
Chapter 6- Conclusion, Suggestion and Limitation of Research 116
Questionnaire 120
Bibliography 124
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COMPANY PROFILE
History of Coca-Cola
On May 8, 1886, Atlanta druggist Dr. John smith Pemberton (former confederate
officer) Invented "coca cola" syrup, It was mixed in a 30 gal. Brass kettle hung over a
backyard fire. It was marketed as a "brain and nerve tonic" in drugstores. Sales averaged
nine drinks per day.
Frank M. Robinson, Pemberton's bookkeeper, was the person who suggested the
name "coca cola", which was chosen because both words actually named two ingredients
found in the syrup. Robinson also thought that two "C's" Would look well in advertising.
The first year's gross sales were $ 50 and advertising costs were $ 73.96.
The original formula included extracts of the African kola nut and coca leaves
both strong stimulants. "Coca Cola" was one of thousands of exotic patent medicines sold
in the 1800s that actually contained traces of cocaine. Coca-Cola was first sold for 5cent
a glass as a soda fountain drink at Jacob's Pharmacy in Atlanta Georgia.
In 1888, As Griggs Candler bought the company from Dr. Pemberton. Later that
same year, Dr. Pemberton died. By 1914, Candler had acquired a fortune of some $50
million. Baseball hall of Famer TyCobb, a Georgia native was another early investor in
the company.
In 1894, Joseph A. Biedenharn owner of the Biedenharn Candy Company in
vicksvurg, Mississippi, first bottled "Coca Cola".
By 1903 the use of cocaine was controversial and "coca cola" decided to use only
"spent coca leaves" It also stopped advertising "coca cola" as a cure for headaches and
other ills.
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In 1929 after his death Griggs Candler's family sold the interest in 'interest in
"coca cola" to a group of businessmen led by Ernest woodruff for $25 million. Woodruff
was appointed president of "coca cola" on April 28, 1923 and stayed on the job until
1955.
The name was extended to a new U. S. soft drink, Minute Maid orange.
Coke Brands in Indian Origin
COCA-COLA:
Developed in a brass pot in 1886, Coca-Cola is the most
recognized and admired trademark around the globe. Not to
mention the best selling soft drink in the world.
SPRITE:
In 1961, a citrus-flavored drink made its U.S. debut, using
"Sprite Boy" as inspiration for its name. This elf with silver hair
and a big smile was used in 1940s advertising for Coca-Cola.
Sprite is now the fastest growing major soft drink in the U.S.,
and the world's most popular lemon-lime soft drink.
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FANTA:
The name "Fanta" was first registered as a trademark in
Germany in 1941, when it was used for a few years for a soft
drink created from available materials and flavors. The name
was then revived in 1955 in Naples, Italy, when it was used for
the "Fanta" orange drink we know today. It is now the trademark name for a line of
flavored drinks sold around the world.
DIET COKE :
The extension of the Coca-Cola name began in 1982 with the
introduction of diet Coke (also called Coca-Cola light in some
countries). Diet coke quickly became the number- one selling
low-calorie soft drink in the world.
VANILA :
It is an Ice Cream in taste. Launched in 2004.
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LIMCA:
This is thirst-quenching beverage features a fresh and light
lemon-lime taste and a lighthearted attitude. The Limca brand
was introduced in 1971 and acquired by the Coca-Cola
Company in 1993.
MAAZA :
Maaza, launched in 1984 and acquired by The Coca-Cola Company
in 1993, is a non carbonated mango soft drink with a rich, juicy m
natural mango taste.
Thumps Up :
In 1993, The Coca-Cola Company acquired this brand, which was
originally introduced in 1977. Its strong and fizzy taste makes it
unique carbonated Indian Cola.
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KINLEY WATER:
This is thirst-quenching beverage features fresh the fresh water
with the saturated oxygen level.
Vision
The long-term vision of Coca-Cola in India is to provide exceptional strategic
lead to the Coca-Cola in India.
Through Coca-Cola system resulting in consumer & customer preference and
loyalty through Coca-Cola is commitment to them and in a highly profitable
Coca-Cola Corporate branded beverage system.
Mission
The mission of coca cola in India is:
Increase in shareholder's value over time.
To achieve the above by working with business partners to deliver satisfaction
and value to customers and consumers through world wide system of superior
brand and services thus increasing the brand equity.
To achieve the mission the company seeks the contribution from each of the given
areas:
People working in the company.
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Commitment of the company.
Goals & objectives of the company.
Environmental policy.
Internal control.
Policy & producers.
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Hindustan Coca-Cola Beverages Pvt. Ltd
In the network of the Coca-Cola system, Coca-Cola has either of the two bottling
operation done far the company.
1. COBO (Company Owned & Operated Bottling Operation).
2. FOBO (Franchise Owned & Operated Bottling Operation).
After 1993, when coca cola re enters Indian market, done a lot of changes in the existing
system of the soft drink market prevailing in India, by acquiring the major brands and the
bottling operations from Parle. After this company founded some of it’s own bottling
operation in India.
In year 1997, company did a major investment of $700 million in India by purchasing
other bottling operations, all around India and introduces new technology in them. These
bottling plants are called Company Owned and Operation Bottling Operation. Company
has full ownership and operational right for these type of operations. The other type of
bottling operation for the company are called Franchise Owned and Operated bottling
Operation, to these, the company has given the right to produce the product for the
company and to supply with in the territory assigned by the company. Company has no
ownership or operational right/control over these.
In India Company have 26 COBO and 14 FOBO operations for the production and
control of the whole operation in India. These are divided in to various zones that are
given in the marketing mix section of this report.
Hindustan Coca-Cola Beverages Pvt. Ltd. First established plant is Hathras in
India, second largest plant is Dasna, The largest one is in Bangalore. Hathras plant has 3
RGB filling lines. The RGB line operating at mechanical efficiency of 90% . Company
doesn't have the facility for filling Mazza (RGB and Tetra Pack) a Mango flavor drink of
Coca-Cola , pet bottling ,water plant.
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SUMMER TRAINING
I am NITIN TYAGI MBA IIIrd Sem. R.D. Engineering College, Ghaziabad I
am doing summer training 6 to 8 weeks under the Mr. Sameer Mandal Sr. Sales
Executive in Kavinagar Depo.
Mr. Alok Jain Mr. Alok Agarwal
Owner of Depo. Area Sales Manager
Mr.Smeer Mandal Mr. Venish Priyadarshi
Sr. Sales Executive Sales Manager
Market Developers :-
Mr. Manoj Sharma Mr. Lalit Sharma
Mr. Rajeev Singh Mr. Jitender Singh
Mrs. Sushma Kashyap Mrs. Bobby Dutt
Mrs. Sangeeta
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RESEARCH OBJECTIVE
Any project work to be carried out in any organization or in any fieldwork in the market
has certain per decided and specified objective, which is to be attained. The whole survey
or fieldwork is designed in accordance with that objective .The whole survey is broken
down in two various parts, which individually contribute to that project's objective. The
objective laid down helps to solve the problems that exist in the organization. This
problem provides the foundation for the project and the projective.
The various things that are to be done in any survey, the various components of the
problem and the project objective provide the base for deciding the scope of the project.
The scope of the project varies from project to project, the scope are the limit with in
which the person carrying out the project has to work. It provides the person various
things that are to be done. Under project it is basically the subdivision of the project
objective. The project provided me by the company is titled as :
"Market Survey of Right Execution for Coca Cola "
By R.E.D. survey, we mean that, other than doing the fresh marketing activities, creating
new consumer & customer, doing new promotion and Adventuring is done in relation to
the 4 P's of marketing that is Product, Price, Place, Promotion. There exist some
opportunity in the marketing activity done by the company in the past. In R.E.D. rather
than doing fresh marketing activities gaps are found in the alerting system for product,
place, and promotion activities done by the company in the past and corrective actions
are taken accordingly .In R.E.D. survey While doing the trade in its present manner,
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opportunities are found for tilling up the gaps in the existing system, and efforts made in
order to remove the deficiency by doing the marketing activities.
Effect of merchandising on sales.
Merchandising as a sales promotion tool.
Effect of route on productivity/sales.
Comparison of different Brands.
Contribution of different Brand in market.
Packed wise contribution.
Brand wise contribution.
To check the Display.
To know the relation ship in Demand & Supply condition
To improve in marketing mix
To check the cooler purity in outlets and to remove impurity.
To check the POS material display in different outlets across the market.
The data collected includes both the major companies operating the industry, Coca-Cola
and PEPSI. Under the project work the data to be collected through the Questionnaire
was basically related to four things: - Cooler Purity, Cooler Display, Warm & Outside
Display, POS Display and Product availability.
Cooler Purity & Cooler Display: Here cooler purity means whether the products
available in the cooler / fridge is of the same company to which the fridge belongs or of
any other company's product is also available. It is measured in the (%) terms i.e. 0%,
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50%, 75% and 100% purity. The other thing includes display of the products on the top
of the cooler, product inside the cooler on top shelf, 2nd shelf and 3rd shelf.
Warm and Outside display: The warm displays represent the display of the product in
various packs and flavours inside the outlet, whereas the outside display is the no of
crates present outside the store. In the project the warm display is considered according to
the various flavors in which Coca-Cola product is available. The COLA brands, non -
cola brands, focus brand and water display so considered for inside / warm display. For
outline display minimum no. of crates to be present is considered as 4. .
POS Display: For POS Display, POS material is material from the company provided for
advertising like glow signs, posters, dangles, banners, scheme publicity material,
calendars and others POS materials. he data collected through the close ended
Questionnaire about the venous heads explained is answered as yes or no for various
things weather it is there or not.
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RESEARCH METHODOLOGY
Operational Setup-
The success of any survey is depends upon resources, quality and timing and integrity of
the surveyor who compiles the primary data. So it is a very important task is to manage
all the available resources which make impact on the quality of survey.
Approach-
The approach behind a surveyor the project varies with the purpose of the survey. Under
this report, "quantitative" approach is used which is concerned with the objective
assessment of the availability and display that is clearly visible and can be easily
quantified. No subjective assessment is involved in this report.
Place-
The survey was conducted at 60 retailer outlet in Ghaziabad city.
Area of survey-
Kavi Nagar, Shashtri Nagar, Govind Puram, Rakesh Marg, Ghantagarh, Dadri, Nehru
Nagar in Ghaziabad City.
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Planning:
For a successful compilation and best result within a limited time the planning was must.
In this way the first step was to design an appropriate data form we can say it
questionnaire that covers all the mandatory areas of information that is to be analyzed.
The data form which I was used to collect data was designed by me and my immediate
supervisor.
Schedule:
To achieve the desired goal it was necessary to make schedule of tasks which were
handed over to us. So keeping in view the original objective, the content of the schedule
was prepared. Then I and my group members collected data from the desired field. Since
the data form distribution and collection was an official work so it was a time taking
process. In the meantime it was our work to keep in touch with our fields.
Sampling Design :
Design is the plan, structure & strategy of investigation conceived so as to attain answer
to questions' to survey and to control the variances. According to this project's / survey's
purpose the analytical, interpretive/objective design was chosen.
Data Collection Method :
The two sources for data collection are documentary or secondary and field or primary is
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used. Because I have to collect the information, which is fickle in nature, the availability
and display of the product changes even each and every day, therefore questionnaire is
selected as the survey instrument. The forms used for the survey were close-ended
questionnaire consisting of various items.
I have covered Ghaziabad city & took data of different it was great to visit company like
"Coca-Cola", season like "Summer" and product like "Cold Drink", combining all the
factors together make the sample design for the project very important for the real extract
from the market. According to my judgment and to cover all the major areas the sample
was selected.
Statistical Tools:
Representation of statistical data by diagram, graphs, charts or pictures is more effective
than tabular representation being easily intelligible to a layman, indeed diagrams is most
essential whenever it is required to convey any statistical information to the general
public.
The more important types of diagram which are use in statistical work are:-
1. Bar Diagram :
Mode of diagrammatic representation of data is the bar diagram. In this method bar of
equal width are taken for the different items of the series. The length of the bar represents
value of the variables concerned.
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2. Pie Chart :
It is a circle whose area is divided proportionately among the different components by
straight lines drawn from the center to the circumference of the circle. When statistical
data are given for a number of categories and we are interested in the comparison of
various categories or between a part of the whole, such a diagram is very helpful in
effectively displaying the data.
Sample Size : 100
Type of Sampling : Random Sampling.
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MERCHANDISING
1. The exchange of goods for an agreed sum of money
2. Engage in the trade of
Definition-A (Webster's) :
Merchandising-
N. 1. (Commerce) The activities associated with selling products, such as
identification of the market{7}, advertising at the right time in the right media{7}, and
creating attractive packaging and displays; also, the study of the best methods to
accomplish such goals.
merchandising - the exchange of goods for an agreed sum of money
Synonyms: marketing, selling
Definition-B (Encyclopedia) :
Merchandising is a marketing practice in which the brand or image from one product or
service is used to sell another. It is most prominently seen in connection with films,
usually those in current release, and with television shows oriented towards children.
Trademarked brand names, logos, or character images are licensed to manufacturers of
products such as toys or clothing, who then make items in or emblazoned with the image
of the license, hoping they'll sell better than the same item with no such image.
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MERCHANDISING STRATEGY (All Services) :
Assess your company's overall strategy to win customers, from point of discovery to
exploration, testing and validation. Make additional recommendations on retail store
efficiencies, cost savings, and overall performance.
Assess strategic direction and financial plan of merchandising efforts. Work to develop
and implement retail partnering programs (and new product lines), where applicable.
Develop in-store events and vendor co-sponsorship programs.
Create additional awareness and distribution channels through strategic
partnerships leveraging print, TV, radio, live events (tours, festivals, etc.) and
more.
Where no retention program exists, work with management to rapidly adopt a
system to increase repeat purchases, build upon average order size, lower related
costs, and maximize customer loyalty.
MERCHANDISING TYPES :
Retail Merchandising
Visual Merchandising
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VISUAL MERCHANDISING :
Years ago, Visual Merchandising was referred to as Window Dressing because a store's
window was the main area where merchandise was displayed. Today the Visual
Merchandising team displays merchandise in:
Windows
Shop Interiors
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ROUTE PRODUCTIVITY
Many product distributors find themselves with a delivery route system that has evolved"
over the years into - well, let's just say a state of relative inefficiency. When was the last
time your distributor operation completed a thorough, bottom-up review of its route
system efficiency? When was the last time the entire company was re-routed?
If the answer to these two questions is years, the business may have considerable room
for route efficiency improvement.
In a re-route of a product distributor's delivery system, it is commonly-believed that sales
routes need to be developed first - with delivery routes developed later to support sales.
The theory driving this approach is that to be a "sales-driven" organization, one must
develop sales routes first to ensure the company is matching resources optimally to meet
market needs. This approach is unsound and likely results in a route system that is:
inefficient from an operations standpoint, and does not optimally meet customer
demands.
The delivery system is the most expensive component dealt with in an entire company re-
route. Therefore, from a strictly financial sense, it is logical to begin the re-routing
process with an optimization of this more expensive component. Sales routes,
merchandising routes, etc. can be developed secondarily to match the optimized delivery
routes.
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Does a Focus on Delivery Optimization Compromise the "Sales-Driven"
Organization?
By definition, the re-routing of an entire distributor operation requires balance and
compromise. While at first glance, an initial focus on delivery optimization may seem to
be a contradictory objective to developing a true "sales-focused" route system, the
analysis is not so simple.
By ensuring maximum efficiency in the delivery route system, wholesalers free up
resources within the organization that can be re-directed into the sales effort. A properly
designed and executed re-route can be one of the most important things a wholesaler can
do to increase both its delivery system productivity and efficiency measurements - and to
provide financial resources to focus on driving increased revenues in the business.
When was your last re-route? Is your business missing opportunities because of route
inefficiencies? How do you know if delivery routes, sales routes, merchandising routes,
are optimally-designed?
Delivery operations in a distributor operation primarily focuses on the task of "getting the
product to market". Delivery can mean different things to different distributor
environments, however. Some distributors view delivery as just that - nothing more than
driving the product from one location to another. In other distributor environments,
delivery drivers are expected to provide additional services such as the construction of in-
store displays, the putting up of point-of-sale materials, product rotation, product pull-up,
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and product facing. In some distributor operations, delivery drivers are, in fact, referred
to as Customer Service Representatives (CSRs) which conveys the expectation that
drivers will, in fact, provide additional services viewed by the customer as having value
beyond just the dropping of product at the back door.
The type and level of services expected by the delivery department will, of course, have
direct impacts on issues such as the:
- type and quality of individual sought for delivery positions;
- methods used for compensating delivery driver positions;
- interaction of the delivery driver with other facets of the distributor operation;
- productivity measurements expected and produced.
Delivery Productivity
Productivity in the delivery department can be measured in two major ways. One method
focuses on asset utilization. A typical measurement providing information on asset
utilization is to develop some type of product movement ratio on a per-route basis. The
most common product movement ratios are:
- unit volume sold per year;
- annual revenues;
- annual gross profits.
For example, a business generating $10,000,000 in annual revenues utilizing 20 delivery
routes has a ratio of $500,000 of revenues per route. In this calculation, a single route is
defined as one five-day per week full-time equivalent. In other words, one route going
out only 2 days a week is considered to be only .4 of a full-time equivalent route [2/5].
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AREA OF DISTRIBUTION
Shastrinagar Market
M.D. Mr. Jitandra Singh
Jai P.S. [Convenience] 9KC
Suraj Departmental Store [Grocery] 9KC
Laxmi Provision Store 9KC
Shivam Provision Store 9KC
Arushi Provision Store 9KC
Ashish General Store 9KC
Preet General Store 9KC
Radhey Confectionery 9KC
Pooja Departmental Store 9KC
Mishraji Department Store 30KC
Malik Provision Store 30KC
Ahuja Confectionery 10KC
Chancellor Club 20KC
Pooja Departmental Store 20KC
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Ghanta Ghar Market
MD. Lalit Sharma
Pandit Hotel 30KC
New Madhurima 20KC
Neel Kamal Confectioner 20KC
Aggarwal Ghantaghar 30KC
Thakur Tea Stal 9KC
Kanti Prasad 30KC
New Bharat 9KC
Gol Hatti 9KC
Aggarwal Electronics 4KC
Shivam Sweets 7KC
Harsawn Govindpuram Market
MD Rajeev Singh
Monu Restaurant 9KC
Radhika Provision Store 20KC
Rainbow Provision Store 9KC
Balaji 9KC
Aggarwal Sweets 30+30KC
Ajay Kumar Garg 30KC
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Nahru Nagar Rakesh Marg Market
MD Mrs. Sushma Kasyap
K.K. Super store 9KC
Ambika Provision Store 9KC
Rahul Confectioners 4KC
Amba Confectioners 20KC
Prince Juice 9KC
Banwari Lal 9KC
Gupta General Store 9KC
Madan Sweets 9KC
Madan Sweets – II 9KC
Jain Ice 9KC
Yashoda Canteen 9KC
Royel Regency 9+9KC
Kavi Nagar Market
MD Mrs. Bobby Dutt
Vindyachal Provision Store 9KC
Krishna Departmental Store 9KC
Sharma Pan Bhandar 9KC
Palm Glow 9KC
Kapoor Confectioners 9KC
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Hari Om 20KC
Garhwal Paneer 20KC
Lalit Pan 20KC
Arun Pan 20KC
Goel Confectioners 30KC
Mushkan Confectioner 30KC
Ice Word 30KC
Dadri Route
Mr. Manoj Sharma
Vishal Pan Bhandar 7KC
Anu Farm 7KC
Vishal Mega Mart 20KC
Bril Restaurant 9KC
Anuj Korma 9KC
Radhay Radhay 9KC
Arun Sweets 9KC
Samtal – I 9KC
Samtal – II 9KC
Aggarwal Sweets 9KC
Pramod Juice 9KC
Ajay Restaurant 9KC
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Maliwara Market
MD Mrs. Sangeeta
New streets and confectionery 30KC
Bubbles Confectionery 20KC
Kwality Store 20KC
Gaytri Super Store 9KC
Laxmi Sweets 9KC
Janta Milk & Sweets 9KC
Poonam Sweets 9KC
Lala ji Kirana Store 9KC
Gupta Tea Stall 9KC
Pavitra General Store 9KC
Moti Tea Stall 9KC
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MARKETING STRATEGY OF COKE
As millions of rural Indians reach for a cold soft drink in the hottest summer in years,
Coca-Cola India seems to have discovered the consumers who could rescue its dismal
sales record. Coca-Cola India totally misjudged rural India, home to two-thirds of the
country's 1 billion population, when it re-entered the country a decade ago.
Yet as the country side emerges as the fastest-growing source of demand for consumer
products, the local arm of the US soft drinks giant seems to have learnt its lesson. "We
were just not addressing the masses, that were the problem," says Mr. Sanjeev Gupta, Coca-
Cola's operations chief.
The company's new strategy of smaller bottles, price cuts and advertising that straddles
cities and villages pushed turnover last year up by a quarter to nearly Rs.5000 crore. And
Thumbs Up, a local brand that Coca-Cola bought and then ran down, is also recovering
spectacularly. The success of Thumbs Up, whose market share is now roughly equal to
that of marker leader Pepsi at 23 percent, is an embarrassment for Coca-Cola, which is in
third place with 16.5 percent (from 12 percent three years ago) in India's Rs.8000 crore
soft drinks market. Coca-Cola returned to India after being kicked out by the government
in the mid-1970s. It paid a high price for the then market leader, Thumbs Up, and tried to
kill it off in the mistaken belief that this would pave the way for Coca-Cola's rise.
Extravagance, unoptimistic and naive reading of the market and mismanagement of its
new bottling assets led Coca-Cola to write down Rs.2000 crore of its Indian assets in
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2000. The greatest indignity is that India is one of the few markets where Pepsi has
outsmarted Coca-Cola.
"Coca-Cola came in blazing but mishandled itself and Thumbs Up. That makes its
recovery all the more remarkable." says Mr. C. Srinivasan, chairman of business
consultant AT Kearney India. Coca-Cola's Indian management, now stable after recent
flurry of departures, persuaded the US parent to persist with India, and won $100 m to fix
problems such as poor distribution. Its Atlanta headquarters was won over because of
India's potential. India's per capita consumption of carbonated drinks is less than hall the
level in Pakistan and about 8 percent of China's. Mr. Gupta argued that closing the gap
would only come by chasing the rural consumer.
"We had to address the 75 percent (that lives in rural areas) and not just the 25 percent (in
cities) and that meant using small-pack innovations," says Mr. Gupta. "The only
consumer goods companies that make it in India are those that sell micro-sized products
at low prices."
Coca-Cola's 200 ml bottle (down from 300 ml) sells for Rs.5, half the price of a
conventional sized bottle. To achieve a return on this "low margin, high volume"
strategy. Coca-Cola had to shrink its ballooning costs, while raising output in a market
growing at just 8-9 percent per year. Coca-Cola added 30 assembly lines, including five
plants; cut costly staff; revamped transport; shrunk bottles and made them lighter and
packed in smaller crates to increase a truck's carrying capacity; added distributors and
expanded the number of outlets in towns and villages by a fifth to about 1 m. Coca-Cola's
aim was to "lock in" retailers in villages of at least 1,000 people connected to usable
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roads. One method was to help those with no savings or access to formal credit to buy
their costliest asset: a fridge. The company negotiated big discounts from fridge
producers, placing an order equivalent to two months' output of the domestic fridge
industry. Discounts were passed on to the retailers, cutting the average purchase price by
Rs.3,000 more than three months' wages in a village.
Finally, Coca-Cola dumped a global advertising campaign that was irrelevant to the
Indian market and adopted one featuring Bollywood stars. "The campaign is finally
speaking to the right market." says marketing consultant Mr. Alok Jain. The adverts also
loudly proclaimed the Rs.5 price benchmark, meaning retailers could not overcharge.
The re-localization of Coca-Cola :
A glance at the 1999 Annual Report of The Coca-Cola Company leaves you with a strong
impression of two words that seem to be very deeply-etched in every statement made by
the company - 'Consumer* and 'Localization'. The Chairman Douglas Daft states in his
address to shareholders that, " If there's one thing that I've learned in my 30 years at Coca
Cola it is - Think locally and act locally." Coca -Cola's localization drive appears to be
partly spurred by the adverse impact on the image of the company, due to the various
issues that cropped up last year in different parts of the world. Like the product
contamination in Belgium and France, the problems with regulators in Europe, the racial
discrimination lawsuit in United States.
In a recent article in The Financial Times, Mr. Daft talks of how Coca-Cola whose basic
success emanated from its strength of being a 'multi-local' business relying heavily on the
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insight of local business partners, quite forgot the secret of its success and veered on the
path of centralization. He has staled in this article that Coca-Cola wandered off the right
path and endured a year of dramatic setback, by ignoring the changing global scenario
and continuing to believe that a strategy that was once successful will always yield
results. As he puts it "As the Century was drawing to a close, the world had changed, and
we had not. The world was demanding greater flexibility, responsiveness and local
sensitivity, while we were further centralizing decision making, standardizing practices
and were moving away from our traditional 'multi-local' approach".
The company in the 80's and 90's had focused on centralizing its operations for enabling
effective management of a vast global enterprise that was being spread over 200
countries. It has now woken up to the fact that the world is changing very fast today and
that a localized management that can quickly respond to the challenges and needs of the
relevant market will be critical to success, rather than a unified management at the center.
And that is precisely what Coca-Cola has set out to do. It appears to be handing out a
greater degree of freedom and responsibility to the frontline managers in their respective
areas of operations. It has decided to cut jobs and convert itself into a leaner structure. In
India too, the complex holding structure has been broken down and converted into a
simplified structure. A single holding company Hindustan Coca-Cola Holdings Pvt. Ltd
and one downstream subsidiary - Hindustan Coca-Cola Beverages - formed by the
merger of 4 bottling subsidiaries of Coca Cola and that of Schweppes now operate in
India. The parent has performed a comprehensive review of its Indian bottling operations
and has announced that it will be writing off $400mn worth of assets in India in the first
quarter of this year.
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The meeting hosted last week by the company to update investors on its business
strategies and outlook for the future also sang the same tune of how members of the
global Coca-Cola management team are implementing their "Think Local Act Local"
philosophy. The company's focus, according to the management, will be to encourage
higher consumption of non alcoholic beverages and the Coca-Cola brands in every
country. This will be achieved through an intense focus on consumers, communities,
customers, the Coca-Cola system and Coca-Cola people. The Consumer focus strategy
involves using innovative and tailored marketing programs based on local consumer
insights to enable the company to keep growing. "We want to ensure that we have a
tailored nonalcoholic beverage portfolio in every community that touches consumers in
locally relevant ways." states the annual Report of the company. It gives the example of
the company's innovative marketing strategy in India, which leveraged on the Diwali
Festival and the entrenched family values in the Indian society to connect to the Indian
consumer at a personal level. In Mr. Daft's words "The 21st Century has taught us one
important powerful lesson - that the next big evolutionary step in going global has to be
going local".
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Marketing Mix and Strategy:
Marketing mix of any organization consists of 4 P's i.e. product, price, place and
promotion having its own significance, which varies from one organization to the other.
In Coca-Cola the information about all the 4 P's that can be available to me is given here:
Product:-
Product mix of Coca-Cola consists of the various brand packs and flavors given in
the table. Product strategy of the Coca-Cola is to promote all the brands available in all
the brands packs and to introduce the product in new flavors and. even new product.
Regarding this Kinley soda is introduced. Fanta in green apple flavor is also introduced.
PRICE:
Regarding the pricing policy or the price to the distributor is not disclosed to me,
but as done for the different product of the company, company has priced the product
same as that of its major competitor or the market leader.
PLACE:
The Coca-Cola Company in India is governed from its corporate office located at
Ghaziabad. It governs the working of five zones covering whole India these zones are: -
Northern zone, Eastern zone, Western zone, Southern zone and Andhra Pradesh zone.
These zones are divided in to various, plants, which govern the area assigned to them.
The areas are the various distribution centers called distributors and C&F agents. Then
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comes the retailers/customer for the company's product, they receive goods from
distributors and C&F agents. Finally consumer is there, having the product from the
customer's shops or delivered to their home, it is more clearly visible through this chart.
The Coca-Cola Company, which gave its reach to the mouth of billions of people all
around the world having a wide distribution, network. In India, the pace and speed at
which Coca-Cola has widened its business is really amazing. Distribution network is the
biggest strength of the company.
Promotion:
This part of the marketing is playing a very vital and important role in the current
situation in India. Looking at the competition and promotion and advertising budget of
both the companies coca cola and Pepsi, one can easily estimate the importance of this.
The promotion mix of Coca-Cola is divided in to Top line promotion and below the
line promotion.
Top line promotion includes the promotion designed and done by the company's
corporate office of Gurgaon and the office of Bombay TV ads, design of banners, and
other POS done by the company simultaneously all around India with no Difference in
designs etc. fall in this category. Below the line promotion includes the promotion
schemes, publicity material, POS display done by the company from zonal, plant, sales
manager and area sales manager level. . At the sales manager and area sales manager
level the promotion done exclusively for the cities in their respective area and other POS
display.
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COMPETITORS :
Since there is only one major competitor of the Coca – Cola i.e. Pepsi. There is
some information about the Pepsi Company.
Pepsi Cola, Headquartered N.Y., is the refreshment beverage unit of Pepsi Co.
Beverages and Foods, a division of Pepsi Co. Inc. Pepsi Co. Beverages and Foods at
North America also comprise Pepsi Co`s Tropicana, Gatorade and Quaker Foods
businesses in the United States of America and Canada also.
Pepsi-Cola non-carbonated beverage portfolio includes Aquafina, Which is the
number one brand of bottled water in the United States, Dole single serve juices and
some, which offers a wide range of drinks with herbal ingredients. The company also
makes and markets North America’s best-selling, ready to drink iced teas and coffees via
joint venture with Lipton and Starbucks, respectively.
Pepsi Co, Inc. is one of the world’s largest food and beverage companies.
The company’s principle business includes:
Frito-Lay snacks
Pepsi-Cola beverages
Gatorade sports drinks
Tropicana juices
Quaker Foods
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Pepsi Co Inc. was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay.
Tropicana was acquired in 1998. In 21001 Pepsi Co merged with the QUAKER Oats
Company, creating the world’s fifth largest food and Beverage Company, with 15 brands-
each generating more than $1million in annual retail sales. Pepsi Co's success is the result
of superior products, high standards of performance, distinctive competitive strategies
and the high level of integrity of their people.
Soft drink business is built on two pillars - Brands and Distribution. We present
below comprehensive conceptual coverage of these and other key marketing concepts
1. Branding
2. Valuation of brands
3. Distribution
4. Marketing
5. Market Research
6. Market segmentation and positioning
7. Advertising and promotions
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1. BRANDING :
What is a brand ?
A brand is name, term, sign, symbol or design or a combination of them which is
intended to identify the goods or services of one seller or group of sellers and to
differentiate them from those of competitors'
A Trade mark is "a brand or a part of brand that is given legal protection because
it is capable of exclusive appropriation."
Manufacturers can use their own brands (known as Manufacturers' brands) or
brands of their distributors (Distributors' brands).
Why branding?
Manufacturers/ distributors use brand names for a variety of reasons from simple
identification purposes to having legal protection for unique features of the products from
imitations and help consumers recognize certain quality parameters. In some cases,
brands are just used to endow the product with unique story and character which itself
can be a basis for product differentiation.
Special importance of brands for soft drink products
While brands can represent all types of goods or entities, they have special
importance for products. Brand equities are stronger in soft drink products as the
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consumer is reluctant to try unknown brands/ unbranded products for the following
reasons
These products individually account for a small part of household spending.
Most of these products are for personal use.
In many cases, it is difficult to differentiate a product on technical or functional
grounds and therefore the consumer is reluctant to switch to an unknown brand.
Successful brands generate strong cash flows, which enable the owner of the
brand to reinvest a part of it in the form of aggressive advertisements/ promotions.
This reinforces the perceived superiority of a brand.
How a brand is created?
Soft drink companies spends enormous sums on building a brand equity by way
of
- advertisements/publicity
- free samples -low entry price
- promotions (schemes for dealers, consumers etc)
Advertisement and promotion can induce trials but for sustained loyalty, the
manufacturer has to offer superior quality and value for money. Most successful brands
are founded on a chance discovery of a new product/ process or assiduous research and
development work. Major players invest in R&D on their existing brands and improve
the product quality continuously to maintain their edge over competitors.
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Branding strategies :
a) Individual brands Vs Umbrella brands-
Individual brand has its own identity and the corporate or common name is not
used to promote its equity. In case umbrella brand, there is a generic brand with
association of some values. For instance, Hindustan Lever follows individual branding
strategy and has several brands in the same category such as Lux, Liril, Rexona soaps etc.
Competitor Nirma has mainly followed the umbrella branding strategy such as Nirma
Bath, Nirma Beauty, Nirma Super, Nirma Shikakai soap etc. Only recently, the company
for the first time diverted from its strategy of umbrella branding with the launch ofNima.
Advantages of Individual branding strategy are
Some of the products which flop in the market do not have negative spill over
impact on other brands. For example, Nirma is associated with popular end of
products, which becomes a major deterrent for its expansion in the premium
segment.
Consumers looking for a change are offered distinctly new brands by the same
manufacturer.
But individual branding requires expensive advertisements and brand building
exercises. Also, each new brand does not benefit from the positive perceptions of earlier
brands.
In umbrella branding, manufacturers have advantage of
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Establishing a new product quickly with association of quality/ benefits of the
mother brand, (a classic case in Indian context has been Godrej)
No need for name research, expensive advertisement for creating brand names,
recognition and preference.
b) Brand extensions-
Brand extensions are used for a group of products such as Clinic Plus Shampoo,
Clinic All Clear, Clinic Plus hair oil or Close Up Renew, dose Up Oxyfresh, Close Up
Sensation, etc. The brand has some unique USP and there are cosmetic/ functional
variations in the extensions. The strategy is to build upon initial success of a brand entry
by creating flanker items and minor variants of the basic brand. Brand extensions may be
used within product categories (In some products like shampoos, there can be natural
variants such as shampoo for normal hair, dry hair or for specific problem solving like
anti-dandruff). It may also be used for different product segments (e.g. Suns ilk brand
being extended to hair oil)
c) Multi brands-
Marketer introduces brands mostly in large markets, which compete with each
other in almost the same segment. In multi branding, there is cannibalization but overall
result is greater market share. Net incremental market share is enough to justify the
investment in the new brand. For instance Hindustan Lever has several brands (Lux,
Breeze, Hamam, Rexona, etc) in the same category i.e. toilet soaps.
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Accounting for brand expenses :
Expenses incurred by way of advertisements, free samples, promotions etc are
treated as revenue expenditure by accountants, as they do not create any tangible assets.
The intangible assets created in the form of a brand pays back in the form of repeat
buying and pricing power over a long period of time. An established brand is a precious
asset and when sold, fetches a price several times the value of tangible assets required to
manufacture the product.
There is no generally accepted methodology for valuing and accounting for
brands. Also, all methods recommended for valuing brands suffer from lack of objectivity
and consistency. There is considerable risk as expenses incurred on a unsuccessful brand
has to be written off almost entirely. But the same are paid back several times in case of
successful brands. In case of FMCG companies, assets are considerably understated as
they do not include value of brands. Inclusion of brands in assets will
- dilute return on net worth
- reduce gearing ratio.
It can be argued that high return on net worth shown by established companies is
overstated as assets (i.e. Brands) are understated. Similarly, in case of companies in
investment phase, making extensive investment in new brands, would exhibit depressed
return on net worth as investment in brands is being written off, pulling down the profits.
Some companies defer writing off a part of the expenditure for brand building.
The expenditure not written off in the year is treated as deferred revenue expenditure.
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2. VALUATION OF BRANDS :
Value of a brand is represented by the incremental cash flow resulting from a
product with a brand versus a product without a brand name or with weaker brand name.
Brand valuation is a complex process and involves a lot of subjectivity. There are
no widely accepted techniques of brand valuation. There are several considerations which
cannot be standardized or quantified such as
To pre-empt competition from taking over a brand
• Synergy with the company acquiring existing brands/ businesses
• Strategic entry into a new product category
Prevent damage to existing brands. Many a times stiff competition results in price
cutting, aggressive promotions, lower margins for all the competing brands.
Confidence in the acquirer of the brand to rejuvenate a languishing brand.
Value of an acquired brand :
In case of an acquired brand, price paid for the brand over and above the value of
tangible assets, represents value of the brand. For accounting purposes consideration paid
for the brand is typically broken up as follows:
Goodwill
Trademark and patents
Technology and know-how
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Non compete agreement
Some of the popular methods for valuation of brands are discussed below
Bert technique (Intra-brand Pic) values brands based on following factors. It
gives scores on each factor and values the brand as multiple of sales/ earnings based on
the aggregate score.
- USP's of the brand
- Stability of the brand
- Markets namely the industry in which the brand is in use.
- International of the brand commanding a higher weightage than a local brand.
- The long term trends of the brands
- Brands receiving consistent investment are more valuable.
- Legal protection commanded by brands through registration and trade mark laws.
- Quality of support received by the brands.
Cost basis - The valuation is done by aggregating all costs incurred on a brand
from the conception stage. These costs include market survey, research & development,
launch and subsequent advertising expenditures. These costs are adjusted for inflation
and present values are calculated. Then adjustments are made to provide for discount in
case of a declining trend in the product life cycle or premium in case of ascending trend
in market share and product life cycle.
Market value - Valuation at market price (the best bidder quote) can be at
divergence from the fundamental value of the brand. For instance, a large company may
47
pay an abnormally high price to protect its major brand or remove a nuisance from the
market or derive synergies in its existing business. Such valuations are subjective.
Earnings model - In this method, valuation is done by identifying, separating and
quantifying earnings that can be attributed to the brand and capitalizing these earnings at
a suitable discounting rate. The multiple would depend on several factors such as
category growth prospect, emerging competition and brand's relative position, edge in
terms of technology, strength of loyalty to the brand etc.
3. DISTRIBUTION :
Marketing or Distribution channel refers to the set of marketing intermediaries
which manufacturer's link together to reach their products to the ultimate consumers.
Depending on the product, nature of market and manufacturers' resources/strategy, there
can be one or more links between the manufacturer and consumer.
Manufacturer – Retailers
Manufacturer - Wholesalers – Retailers
Manufacturer - Stockists - Wholesalers - Retailers.
Why use distribution channels-
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There are several benefits for a manufacturer particularly in case of consumer
goods to rely on these marketing intermediaries rather than develop one's own
distribution network.
Efficiency in performing the basic marketing task by these intermediaries who
through their experience, specialization, knowledge of local conditions, contacts
and scale, offer services.
Which manufacturers can scarcely do on their own.
Cost advantage most of these intermediaries in India are family owned outfits.
Their cost of operations and overheads are substantially lower.
Focus: Manufacturers can concentrate on their core activity and optimize return
on assets.
Retailing :
In India, there are over 5 million retail outlets dispersed all over the country. The
retailing industry provides employment to over 18mn people. 1 out of every 25 families
in India is engaged in the business of retailing. Ownership and management are
predominantly family controlled. However in sharp contrast to developed countries, unit
average size of a retail outlet in India is very small.
Organized retailing, however, has been a recent phenomenon and is relatively
undeveloped. There are no large super market chains/ shopping malls. Consumers are
unwilling to pay a premium for convenience shopping as their counterparts in the western
countries do. While small chain stores called Apna Bazaars and Sahakan Bhandaars,
49
which offer products at reasonable prices, have been fairly popular, Department Stores
and Food Stores are slowly gaining popularity. A large number of corporates have
recently ventured into retailing.
The retail outlet in India can be broadly categorized as follows:
- Grocery stores
- General purpose stores
- Food stores
- Pan bidi shops
- Chemist/ drug stores
- Cold chains
The relative share of grocers dropped from over 50% in the early 90's to 35% in
the late 90's. Chemist outlets on the other hand, have been expanding their product range
to include high margin FMCG products from shampoos to ketchup. Pan-wallas are also
emerging as full fledged consumer product outlets.
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Table : Growth in retail outlets
Year Urban Rural Total
1978 0.58 1.76 2.35
1984 0.75 2.02 2.77
1990 0.94 2.42 3.36
1996 1.80 3.33 5.13
Composition of urban outlets
Grocers 34.7%
Cosmetic stores 4.0%
Chemist 6.3%
Food Stores 6.6%
General Stores 14.4%
Pan – stores 17.0%
Others 17.0%
Composition of rural outlets
Grocers 55.6%
Cosmetic stores 13.5%
Chemist 3.3%
Others 27.6%
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04. MARKETING :
Direct marketing :
In direct marketing manufacturers reach the consumers directly. Direct marketing
can be undertaken in several ways such as mail order, own retail outlets, mobile vans etc.
A new innovative approach to direct marketing viz multilevel marketing is becoming
increasingly popular. Also gaining ground slowly is E-tailing i.e. selling products through
the internet.
Multilevel marketing model :
Multi level marketing refers to direct marketing through an ever-increasing
number of direct distributors. Independent distributors sell products directly to the
consumers and appoint new distributors and train them. The distributor earns commission
at two levels; one is his/ her own commission and two a proportion of commission earned
by other distributors appointed by him/ her. None of these distributors are employees of
the company.
Distributors are not allowed to sell these products to retailers. The company saves
about 25% of realizations by eliminating retail channel, which is shared with distributors.
The company insists that the distributors should take prior appointment with the
consumer. Personal interaction is not only convenient but adds value as customer get
valuable advice on the product and how to use it.
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This helps in creating awareness and removing misconceptions like cosmetics are
harmful for the skin.
Direct marketing (multi level approach) in persona care products is extremely
popular abroad. In Brazil, about 60% of personal care products are sold through direct
marketing. In India, direct marketing has been slowly growing. Word of mouth has a
strong impact on purchase decision of a consumer, specially in personal care and
cosmetic products. Direct marketing has mainly been undertaken by the new MNC
entrants (notably Oriflame, Avon). Hindustan Lever has also recently launched a new
personal product brand Aviance which is sold directly to consumers exclusively by
trained beauty specialists. Direct marketing has also been extensively used in marketing
of household appliances like Vacuum cleaners. However given the widely spread
geographical area in India, direct marketing cannot be easily used to build an extensive
national reach and is more likely to be used as a supplementary channel.
5. Market Research :
Market research activities encompass studies on:
- market characteristics
- measurement of market potential and size,
- market share analysis,
- competitive products,
- new products acceptance/ product preference,
- sales (region wise, consumer wise etc) analysis,
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- short/ long term sales forecasting,
- advertisement effectiveness
- post-shipment data (actual shipment by manufacturers),
- retail stores audit (actual sales at sample outlets)
- trade feedback and distribution,
- brand recall, point of sale material etc.
It requires skilled people for data collection as well as analysis. Several large
consumer companies have in-house MR department. Most others retain specialized and
professional MR agencies.
The significance of market research has increased considerably in the recent times
as:
- Size of operations of major players has increased to national and international
markets.
- Marketing executives are physically away from the market and hence the need for
flow of information.
- In the environment of increasing competition and multiple products competing for
consumers' preference information about the market has tremendous utility.
- Information is required for segmenting the market and appropriate pricing and
positioning of the products.
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Market research approach :
Typically, a market research activity involves the following 5 steps,
Problems definition This forms the basis of research and failure to identify the
problem precisely will result in finding a correct solution for a wrong problem.
Research design: The next step is to set out objectives of research clearly,
determined data collection methods to finalize research instruments and sampling plan.
Field work: After finalization of research design, the actual data collection
begins. It can be done by the agency on its own or through subcontracting to third parties.
Data is collected by questionnaires/ direct interviews, telephonic interviews, simple
observation etc.
Data analysis: The next step forms the heart of research activity. It involves
extracting meaningful information from the data collected and analyzing the information
statistically and also from business perspective. Statistical techniques include simple/
multiple linear programming models, time series, exponential series, regression analysis,
simulation, Marko chain process etc.
Report preparation: The final step is to prepare a report, present major findings in
a manner amenable to managerial decision taking. There may be some follow up and
revalidation required.
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Test mark eting :
Test marketing refers to testing out product and marketing mix with a small
number of well chosen consumers which are representative of the target segment. Test
marketing is frequently used by consumer companies, in contrast to industrial companies
which prefer feedback through informal channels. Test marketing improves knowledge of
target consumers, potential sales and is an effective tool to pre-test alternative marketing
plan. In most products, it is important to check trial rates as well as re-purchase rates.
Consumer's panels :
Consumer panels refer to a set of consumers with different demographic
characteristics (so as to be representative of target population) who agree to co-operate in
market research, typically for a consideration. Market research agencies and companies
try to collect information on buyer's characteristics by introducing a new product to the
consumer panels. The firm estimates trials as well as the repeat purchasing by this
method. There are statistical models to forecast market shares, demand, brand switching
etc.
7. ADVERTISING AND PROMOTION :
Advertising consists of non-personal form of communications. The
communication is conducted through trade media under player sponsorships. Advertising
aims at providing information about the product arouse demand for the product and
emphasize on superior features of the advertised product over others. Players have to
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decide on overall advertisement budget, message and mode of presentation, type of
media, timing etc. They invariably do post audit of advertising efficacy.
Promotions are of two types viz. pull promotions where consumers are incentives
and push promotion where dealers/ retailers are incentives. There are several forms of
promotion such as distributing free samples, discount coupons, gift offers for consumers
and target based incentives and display schemes etc for retailers. Marketers also sponsor
charity programmes, sports etc to promote corporate/ brand image.
Consumer demographics :
Get a feel of the Indian consumer markets. Data on population, states, income
levels, penetration, media reach and more
Population-
Metropolitan cities
States - Rural and Urban
Population distribution (Religion-wise)
Population distribution- (Language wise)
Dispersion by population strata
Population distribution age-wise
Occupation-wise distribution
Population projections
Demographic projections (Age-wise)
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Indian States-
Population - Rural and Urban
Number of villages
Per capita and net domestic product
Literacy
Media Reach-
Population - Rural and Urban
Urban 1998
Rural 1998
State-wise- 1999 (Urban & Rural)
Demographic Profile
Socio-Economic class
Education wise (Urban & Rural)
Age Group (Urban & Rural)
Media Reach - Satellite Penetration (Urban + Rural)
Media Reach - Satellite Penetration (By region)
Media Reach - Satellite Penetration (State wise)
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Penetration of Consumer Expendables-
Penetration rates - Rural & Urban
Penetration rates – Urban
Penetration rates - Rural
Key statistics-
Indicators of economic growth
Key statistics of Indian Economy
Demographic profile of India
Snap shot of India
I
Private consumption expenditure on food-
PFCE: Food, Beverages & Tobacco
PFCE: Food
PFCE: Cereals & Bread
PFCE: Milk & Milk products
PFCE: Coffee, Tea & Cocoa
PFCE: Beverages, Pan & Intoxicants
PFCE: Beverages
PFCE: Tobacco and Its Products
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DISTRIBUTION MANAGEMENT
Distribution management is a logistics control process that applies situational
understanding from both the operational and logistical common operating pictures in
order to dynamically control and synchronize the flow of materiel through the
distribution pipelines, including retrograde and lateral distribution. The last part of the
definition - retrograde and lateral distribution - is critical to future success and is often
overlooked in distribution management schemes. Our ability to move materiel in any
direction through the pipelines provides an economy of effort that actually becomes a
force multiplier. In this manner, distribution management becomes a key enabler of
logistics transformation, by reducing materiel requirements to only those that are needed
and by leveraging stockage positioning to reduce the total cost of sustainment.
Distribution Management: - When you're operating multiple plants over a large
geographical area, knowing exactly what you have and where it's located can be a
tremendous competitive advantage. Frontier's Distribution Management components
allow you to access real-time inventory and shipping information across your enterprise,
as well as historical audits that can help with planning for the future.
With Frontier, you'll always know your inventory requirements and availability
for every product, at every plant. You can instantly find transit status for parts and
finished goods. Frontier helps you plan more efficient truck loading and shipping routes.
You'll also enjoy shipping and billing that is tightly integrated from the initial sale
through Accounts.
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A definition of dynamic control is also required before we go further. Dynamic
control is the distribution manager's ability to rapidly set and change priorities and modes
of transportation in response to the war fighter's requirements. If Quartermasters cannot
dynamically control the delivery of supplies and materiel, we remain at the mercy of the
transportation system and will be forced into the comfort and expense of a stockage-
based supply system.
DISTRIBUTION MANAGEMENT PRODUCT MODULES
Advanced Forecasting
Advanced Pricing
Advanced Stock Valuation
Agreement Management
Bulk Stock Valuation
Enterprise Facility
Planning Inventory Management
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DAILY SHIPPING ACTIVITIES AT COCA-COLA
BSR-
(Bonded storage area)
1. Daily report
2. Physical stock verification
3. Full movement report
4. RG 1
5. Leakage and Breakage Report
6. Stock covered with tarpaulin
7. Shipping office house keeping
EMPTY-
1. Check for pending ERA
2. Breakage report
3. Physical stock verification
4. Breakage handing over to store
5. House keeping of empty yard
DPG-
1. Physical stock verification
2. 2. DOD & BOD Report
3. Housekeeping of DPG
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INDIA DIVISION
The Head quarter of India is at Enkay Towers, Udyog Vihar,Gurgaon .Coca Cola became
3rd largest FMCG from zero in India in just 8 years. There are 40 producing units across
the country.
There are 5 regions in India viz., North, South, West, East & Andhra Pradesh.
The company operates in two types of Bottling operations viz.,
1. COBO (Company Owned Bottling Operations) - In COBO, the Company owns
the unit and is a property of India.
2. FOBO (Franchisee owned Bottling Operations) - FOBO is operated by Bottlers,
who are given license by the Company to bottle its products on their behalf.
THE NORTH REGION :
The headquarter of Northern Region is at JMD Towers, Regent Square, Gurgaon.
It comprises of Delhi, Western UP, Eastern UP, Jammu & Jaipur units. It has 9
production units viz, Delhi, Jaipur, Kanpur, Ghaziabad, Dasna, Najibabad, Jammu, Delhi
FOBOs & East-West UP FOBO. It is the largest region in India with 1313 employees.
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PRODUCTS OF COMPANY
It has brown colour with high content of C02 (Carbon di-oxide) which makes its
COLA flavour heavy. It is available in different volumes in market like :
1. 200 ml glass bottle
2. 300 ml glass bottle
3. 500 ml pet bottle
4. 600ml pet bottle
5. 1 Liter glass bottle
6. 2.25 Liter pet bottle.
It has dark brown color with very high content of CO2 which makes the Cola
flavor is very strong. It is available in different volumes in market like:
1. 200 ml glass bottle
2. 300 ml glass bottle
3. 500 ml pet bottle
4. 600ml pet bottle
5. 1 Liter glass bottle
6. 2.25 Liter pet bottle
It comes in many flavors like orange, with light content of CO2 that makes its
make its flavor delicious. It is available in different volumes in market.
1. 200 ml glass bottle
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2. 300 ml glass bottle
3. 500 ml pet bottle
4. 600 ml pet bottle
5. 1 Liter glass bottle
6. 2.25 Liter pet bottle
Limca has light grey colour with light content of CO2 that makes its flavour tasty.
It is available in market in following packs of quantities:
1. 200 ml glass bottle
2. 300 ml glass bottle
3. 500 ml pet bottle
4. 600 ml pet bottle
5. 1 Liter glass bottle
6. 2.25 Liter pet bottle
It is colourless with packing in green coloured bottle. It has normal content of
CO2. It has a nice flavour available in market in following packing:
1. 200 ml glass bottle
2. 300 ml glass bottle
3. 500 ml pet bottle
4. 600 ml pet bottle
5. 1 Liter glass bottle
6. 2.25 Liter pet bottle
65
It is of yellow colour with decent taste of mango. It doesn't contain CO2. Its
available packing in market are:
1. 250 glass Bottle
2. 200 ml Tetrapack
It is a newly launched brand of Coca Cola
It is actually a Minute Made powder, which is very easy to prepare by mixing
water in it. It is available in three flavours viz., mango, lemon & orange and its packing
in the market are:
1. 25gm packet
2. 200 gm packet
Soda- It is colourless & available in market in 300 ml glass bottle in the market.
K -Water it is a mineral water available in following volumes in the market:
1. 500 ml pet bottle
2. 1 liter, pet little
3. 2 liter, pet little
66
DEPARTMENTATION IN Hindustan Coca Cola Beverages Pvt. Ltd.
The Ghaziabad Unit is divided into many departments for their smooth working.
The Plant is basically COBO for 200 ml, 300 ml & 1 Liter packing and rest of the
products are sourcing from other its COBO & FOBO unit. All the departments and their
workings are briefly described as follows:
FINANCE :
Finance department performs the activities in management of Accounts
Receivables, Claims and expenses, Fixed Assets management & their depreciation,
Transportation, arrangement of raw material as through supply chain, computer
networking management, Taxation, etc. Above all these functions checking authority
verifies all these activities and approves it for final actions.
HUMAN RESOURCE (HR) –
HR department works in Recruitment & selection, Training & Development,
Performance Appraisals, objective setting leading to management Incentive plan, wages
& salary administration, Disciplinary Actions, Statutory compliance, ISO documentation,
assisting in civil & criminal litigation, handling of contract labour and worker related
issues, employee welfare, community development projects, policy implementation,
internal & external environment etc.
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PRODUCTION –
The manufacturing of different types of Brands of soft drink comes under the
Production department. It comprises the process of Water Treatment, Syrup preparation,
Container Washing, Mixing & Proportioning, Filling & Crowning and then the Final
Inspection of the product.
SHIPPING –
This department is also termed as Dispatch Section. Goods are received and
dispatched from shipping. It works in receiving of products from other unit, transferring
of fulls from production, Inventory Management of finished products in First In First Out
(FIFO) method, dispatch of finished goods to distributors, empty received and dispatch to
other units.
SALES & MARKETING –
Sales department takes care of placement of all brands in right proportion in right
time at right place. Sales executive always dispatches in proportion of empty receiving
and payment terms. The main aim of this department is that all the brands should be at
distributor's end and must not be any deficiency of any brand.
All the activities that help in enhancing the sales come under marketing. In this,
company gives glow sign boards to distributors, Table, chairs & Umbrellas,
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advertisements, T-shirts, Caps, posters, banners, seasonal schemes, product keeping
containers like Fridge, ice-box etc.
STORES –
All kinds of material are handled in stores either it can be of raw material for
production or materials used in the office. A proper sequence is followed. At very first,
Purchase requisition is prepared by each department and then materials are purchased
form the fixed vendors after this the material are distributed as per the requirement.
In broader terms, we can say that the activities performed in this process are receiving of
materials, issuing of materials, rejection handling, scrap handling.
69
QUALITY ASSURANCE (QA) –
QA department ensures the total quality in each and every aspect of the
organization. This quality is not only concerned with individual department like
production of goods but it is concerned with every functioning of the organization such as
hygiene in the organization like providing the nutrious food from the canteen, cleanliness
in the bathrooms, not polluting the environment, etc. One of the major functions of QA
department is pre and post manufacturing tests which ensures zero defect so that
consumers can get right quantity and quality of products. All the procured materials have
to undergo a rigorous quality check. Even before procurement the quality of the material
has been ensured by the sample check of material.
OBJECTIVES -
1. Total Cost - The first and foremost objective is to bring down overall cost. The
costs involved in Logistics Operations:-
a. Transportation of supplies to the plant and distribution of finished goods
through distribution system.
b. Processing customer orders.
c. Packaging.
d. Providing customer services.
e. Maintaining warehouses.
These functions are directly not responsible for sales. But they do support the
sales activities. So, the total cost approach refers to evaluation of all logistics cost
70
expanded for any given sales revenue. By using the cost approach the manager would try
to maintain total logistics cost as compared to the historical performance of the firm and
in comparison with other firms of the same industry.
2. Sub-Optimization - It is a term applied to a situation in which one department's
objective or function is optimized without considering the affect of action on
other departments. The goal of logistics is to manage the system to provide
designated levels of manufacturing supply service at the least possible cost.
3. Cost Trade-off- This occur when a change in destination system causes some
costs to increase and other cost to decrease.
4. Customer Service - Elements of Customer Service are :-
a. On time delivery.
b. Proper handling of merchandise.
c. Quantity assembled should be according ti invoice.
d. On time service which includes after sales service, etc.
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TRANSPORTATION LOGISTICS –
The distribution function has to perform two functions: it has to generate demand
for the product and secondly, it has to make sure that demand thus created is matched by
adequate and time supply. While all the members of the channel will have to take part in
dual functions, the transporter has primary responsibility. A logistics plan can be drawn
by considering the following points:
1. What are the alternative modes of transport, viz., road, rail, air, etc. available for
transporting the goods from the point of manufacture to the point of purchase?
2. What is the mode which is optimal from the standpoint of total distribution cost?
3. Is there any need for warehousing arrangements, keeping in view the product and
marketing characteristics'?
In fact, the first two points are important enough to be considered even at the time
of selection of markets. The non-availability of required type of transportation facility
can outweigh all other marketing advantages that a company may have. The perishable
nature of product demands that must reach the consumers within the shortest possible
time.
Therefore, unless the potential markets are served, delivery of such items cannot
be undertaken.
To consider the second aspect, namely, selection of the appropriate mode of
transport, it is necessary first to identify the elements that taken together constitute the
72
total distribution costs. In a study carried out in the US it is found that the total
distribution costs are allocated over the various components in the following proportion:
Administration 11.0%
Transportation 29.4%
Receiving and Shipping 7.8%
Packaging 11.9%
Warehousing 17.0%
Inventory carrying costs 17.04%
Order processing 5.5%
The proportion obviously will vary form product to product, but all the cost
components, with the sole exception of warehousing, will have to be considered for
determining the total distribution costs of each and every product. It is, therefore, obvious
that the selection of the mode cannot be taken only on the basis of the freight element,
which at best will be only an important segment of total distribution costs. But the
decision will depend on the total incidence of costs for alternative modes of transport. In
general, the criteria that should be taken in mind in deciding on the proper modes of
transport are: cost, speed, frequency, reliability, safety and appropriateness with regard to
the product.
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FACTORS AFFECTING CHANNEL DECISION :
a. Unit Value- In general, direct sales are preferred for items of high unit value and
wholesalers are approached for items of low value.
b. Bulk and weight- If Bulk transportation is possible, direct exporting is preferred..
c. Technical nature- Technologically, complex and specialized products are usually
sold direct.
d. Perishability- The more perishable the product, the shorter should be the channel.
Leasing is usually adopted for technologically perishable products.
e. Standardization- Indirect channels are possible for standardized products.
f. Stage of market development- New products are promoted by direct sales.
Indirect channels may be adapted for established products.
LOGISTICS IN coca cola :
1. The Company in Ghaziabad does its business in full fledge between
March and June in Eastern U.P. Approx 60% of the business of the year is done in
these 4 months of period.
2. The Company's 80% of business depends on Returnable Glass Bottles.
Company always try to receive same amount of empty bottles as it has been
dispatched to distributors because if the organization will not do so then its
production will hamper and that ultimately effect the sale.
74
3. Company always sends two-way vehicles instead of one-way vehicles.
The concept of two-way is that the vehicle will distribute the full bottles to
distributors and return back by taking empty bottles from them.
The one-way vehicles cost much higher than two-way vehicles and are also
returned to enable further production.
This is beneficial for both Company and Distributor because company gives glass
bottles and crates on loan to distributors and their money is returned after receiving the
bottles in the plant.
4. The Company pays freight according to Distance & Load. It has a policy
of paying freight according to Load Slabs & Destinations, (a table is given
below showing hypothetical rates Load - wise).
75
Coca-cola In India
Famous Ads of Coke
76
Famous Ads of Thums-up
Famous Ads of Fanta
77
Famous Ads of Sprite & Limca
Famous Ads of Maaza
78
Table- I
Prefer to have cold drinks
Response No of Respondent Percentage ( %)
Yes 100 100%
No 00 00%
Total 100 100%
Analytical Interpretation:
The given Chart & Table show that the most no. of respondent like to
take cold drink because it gives the full satisfaction in the hot and humid
day. It was found that 100% of respondent likes to take the soft drinks and
00% respondent don’t want to take cold drinks. The people who don’ts
prefer are because of their taste and preference. They are of the perception
that Lassie and Nimbu pani are beneficial than the carbonated soft drinks.
79
0%100% Yes
No
GRAPH-1
Prefer to have cold drinks
80
Table- II
Consumption of cold drinks in a day
Response
(Time a day)No of Respondent Percentage (%)
Less than 2 54 54%
2 – 4 35 35%
More than 4 + 11 11%
Total 100 100%
Analytical Interpretation:
The given diagram & table show the frequency of taking cold drinks in a
day. It was found that 54% of respondent takes the less than 2 cold drink a day, 35% of
respondent takes 2 – 4 cold drinks a day. And 11% of the respondent likes to takes more
than 4 cold drinks in a day. The people who consume more than two cold drinks have a
habit of a high consumption. For them a change in price doen`s changes their demand to
a great extent. They also maintain a brand loyalty in the brand they are regularly
consuming.
81
54
35
11
0
10
20
30
40
50
60
Less than 2 2 – 4 More than 4 +
Graph IIConsumption of cold drinks in a day
82
Table- III
Preference of flavours
Flavour No of Respondent Percentage
Cola 41 41%
Citric 26 26%
Orange 21 21%
Lemon 10 10%
Others 02 02%
Total 100 100%
Analytical Interpretation:
The given graph & table show the most popular flavour in cold drinks is Cola. It
was found that the 41% respondent likes the Cola Flavoured, 21% of respondent likes the
Orange flavoured, 26% of respondent likes the citric flavour, 10% likes the lemon flavour
and only 2% likes the other flavoured.
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41%
26%
21%
10%
2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Cola Citric Orange Lemon Others
GRAPH-III
Preference of flavours
84
Table- IV
Preference of B rand name
Response No of Respondent Percentage (%)
Yes 56 56%
No 39 39%
Can’t Say 05 05%
Total 100 100%
Analytical Interpretation:
The graph & table clear view regarding the importance given to a brand name
while choosing the cold drinks. It was found that the 56% of Respondent says Yes and
39% of respondent say No and the only 5% of respondent not in a position to say
anything.
85
56%
39%
5%
Yes
No
Can’t Say
Graph IV
Preference of Brand name
86
Table- V
Factors Influences choosing particular Brand
Response No of Respondent Percentage (%)
Brand 28 28%
Flavour 48 48%
Advertisement 06 06%
Chilled 18 18%
Total 100 100%
Analytical Interpretation:
The chart and diagram shows that the way respondent likes the particular brand of
cold drinks. It was found that 48% of respondent likes the because of flavour, 28%
respondent likes the cold drinks because of brand, 18% of respondent likes because of
chilled and only 6% of respondent likes because of advertisement.
87
GRAPH-V
Factors Influences choosing particular Brand
88
Table- VI
Opinion towards Popular Brand
Brands No of Respondent Percentage (%)
Coke 58 58%
Pepsi 21 21%
Others 21 21%
Total 100 100%
Analytical Interpretation:
The given diagram gives the view regarding the most popular and demanded
brand. It was found that the 58% of respondent preferred the .Coke as most popular
brand, 21% of respondent say Pepsi as most popular brand, 16% of respondent referred
the coke as the popular brand and the only 21% of respondent say others was a the most
popular brand.
89
Graph VIOpinion towards Popular Brand
0%
10%
20%
30%
40%
50%
60%
Coke Pepsi Others
Series1
90
Table- VII
Availability in retailer’s shop
Response No of Respondent Percentage (%)
Cola 61 61%
Citric 30 30%
Fruit flavoured 9 9%
Total 100 100%
Analytical Interpret ation :
The given chart table shows that the most available flavour on the respondent
retailer’s shops. It was found that the 61% of respondent (Consumers) say that they find
Cola flavour on their retailer’s shop.30% of respondent found the citric flavor on their
retailer’s shop. Science cola flavour is a Universal flavour in India, with consumers of
all age, sex and preference accepting it whole heartedly.
91
61%
30%
9%
0%
10%
20%
30%
40%
50%
60%
70%
Cola Citric Fruit flavoured
Graph VIIAvailability in retailer’s shop
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Table- VIII
Availability in C ollege
C anteen/ L ocality/ C olony
Brand No of Respondent Percentage (%)
Coke 51 51%
Pepsi 47 47%
Others 02 02%
Total 100 100%
Analytical Interpretation:-
The graph & table gives the information regarding the available the available
brand on their college canteen or a colony or a locality. It was found that 51% of
respondent found the Coke brands of cold drink highly available while 47% of
respondent said that they found Pepsi brand as highly available and only 02% of
respondent said that they found other brand like Frooti or others brands highly available.
This difference in the response is because of the consumption of different brands in
different segments.
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51%47%
2%
Coke
Pepsi
Others
Graph VIIIAvailability in College Canteen/Locality/Colony
94
Table-IX
Opinion towards T aste
(i) In a cola flavor.
Brand No of Respondent Percentage (%)
Coke 75 75%
Pepsi 25 25%
Total 100 100%
Analytical Interpretation:
The given table and diagram gives the idea of the respondent opinion regarding
the Cola flavour drink. It was found that the 75% of respondent likes the Coke and the
only 25% respondent likes the Pepsi flavour.
95
(ii) In Citric flavoured?
Brand No of Respondent Percentage (%)
Sprite 41 41%
Mountain Dew 30 30%
7`Up 29 29%
Total 100 100%
Analytical Interpretation:
The given table and Diagram gives the idea of the respondent opinion regarding
the citric flavour drink. It was found that the 41% of respondent likes the Sprite, 30% of
respondent likes the Mountain Dew and the only 29% of respondent likes the 7`up in
Citric flavoured. The consumers of Sprite say that it has a better and genuine taste than
the Mountain Dew flavoured of Pepsi. On the other side the consumer of Mountain Dew
are of the opinion that it has a less strong taste and also has an appealing light green
colour.
96
(iii) In orange flavoured?
Brands No of Respondent Percentage (%)
Fanta 64 64%
Miranda Orange 28 28%
Others 08 08%
Total 100 100%
Analytical Interpretations:
The above given table and chart show the opinion of the respondent regarding
Orange flavour. It was found that the 28% of respondent likes the Miranda Orange of
Pepsi brand, 64% of respondent likes the Fanta of the Coke brand and 8% of respondent
likes the other soft drinks of orange flavour. The consumers of the Fanta brand are high
as compare to Mirinda due to a bigger consumer segment of females and children. On the
country although Fanta is a well established brand not only in India but across the world
for more than last fifty years it is at the second position in India. It is because a major
segment of children and females prefer an orange flavour with a soft taste. Fanta has a
strong taste as compared to Miranda.
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(iv) In Mango flavour?
Brands No of Respondent Percentage (%)
Mazza 37 37%
Slice 22 22%
Others 41 41%
Total 100 100%
Analytical Interpretations:
The above shown table and chart gives the view regarding the opinion of respondent
about the Mango flavour. It was found that the 41% of respondent likes Frooti, 37% of
respondent like Mazza of Coke and only 22% of respondent likes the Slice of Pepsi
brand. One of the greatest advantages with Frooti is that it comes in tetra pack which is a
one way pack. People find it convenient to take it home for consumption. Even coke and
Pepsi have introduced tetra pack in the Mango drink recently but it will definitely take
some time take away market from the market leader. Also Frooti is a well established
brand has available in tetra pack for a long time.
98
46%
29%
25%
Thumps up
Coke
Pepsi
Graph IXOpinion towards Taste
( I ) IN A COLA FLAVOR
99
41%
30%
29%
Sprite
Mountain Dew
7`Up
Graph IX
Opinion towards Taste
(II) IN CITRIC FLAVOURED?
100
64%
28%
8%
Fanta
Miranda Orange
Others
Graph IXOpinion towards Taste
(III) IN ORANGE FLAVOURED
101
37%
22%
41%
Mazza
Slice
Others
Graph IXOpinion towards Taste
IN MANGO FLAVOUR?
102
Table-X
Cause of Choosing Brand
Subject No of Respondent Percentage (%)
Blend 20 20%
Brand Image 38 38%
Availability 26 26%
Advertisement 16 16%
Total 100 100%
Analytical Interpretations:
The graph & table above say that why the respondent like their favoured brand. It
was found that 38% of respondent likes his brand because of brand Image, 26% of
respondent likes because of availability, 20% of because of Blend and only 16% of
advertisement. Brand image refer to the perception of the customers regarding the choice
of a particular brand. It comes with the kind of advertisement brought by the company .
Blend over here refers to the taste of the flavour demanded.
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20%
38%
26%
16%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Blend Brand Image Availability Advertisement
(IV) Graph XCause of Choosing Brand
104
Table-XI
Most appealing Brand advertisement
Brands No of Respondent Percentage (%)
Coke 52 52%
Pepsi 48 48%
Total 100 100%
Analytical Interpretations:
The given chart shows that the respondent about the most appealing brand
advertisement. It was found that the 52% of respondent says that Coke advertisement is
most appealing, 48% of respondent says Pepsi advertisement is most appealing one. The
advertisement of Coke features Bollywood star like Aishyarwa Rai, Hritik Roshan,
Karishma Kapoor and Amir Khan who are highly acceptable by the public. The
advertisement of Coke featuring Amir Khan with a punch line
“Thanda Matlab…………….Coca-Cola”
It was a super hit which took Coke not only to the rural markets but also
overturned the market of Pepsi.
105
52%
48%
Coke
Pepsi
Graph XIMost appealing Brand advertisement
106
Table-XII
Most appealing Brand P unch L ine
Brand No of Respondent Percentage (%)
Coke 68 68%
Pepsi 32 32%
Total 100 100%
Analytical Interpretations:
The chart shows the opinion regarding the most effective punch line in respondent
view. It was found that 68% of respondent feel that Coke punch line is most effective,
32% of respondent feels Pepsi ‘Punch line is most effective, Major no. of people thinks
that the most effective punch line is ‘Thanda Matalab……….Coca-Cola” and Punch
“Matlab ……Chota Coke”, Then “Ye pyass hai Badi” and “yeh dil mange more”
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38%
32%30%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Coke Pepsi Thumps up
Table XII
Most appealing Brand Punch Line
108
Table- XIII
Opinion towards product, which is promoted by celebrity
Response No of Respondent Percentage (%)
Yes 40 40%
No 32 32%
Can’t say 28 28%
Total 100 100%
Analytical Interpretations:
The group & table show that the people like the product of it promoted by a
celebrity. It was found that 40% of respondent said that they the product because of the
celebrity shown in the advertisement consuming it,32% of respondent says No about the
celebrity promotion, 28% respondent not in a position to say anything. In India people
have a great craze for their favorite celebrities’ They have a lot of love for their favorite
celebrities they want to imitate by doing what they do as shown in the advertisement.
109
40%
32%
28%
Yes
No
Can’t say
Graph XIII
Opinion towards product, which is promoted by celebrity
110
Table XIV
Opinion towards Pricing Strategy
Response No of Respondent Percentage (%)
Yes 64 64%
No 22 22%
Can`t Say 14 14%
Total 100 100%
Analytical Interpretations:
The given table & diagram shows that how effective the companies facility the
consumer. It was found 64% of respondent says yes. 22% of respondent says No and
14% respondent can’t say anything. India is a mass market for the consumer product but
at the same time it is also a very “Price Sensitive” Market. So with a small decrease in
price results in a drastic increase in the demand. Since soft drink is a consumer product,
the price has a great influence on the demand of the product.
111
64%
22%
14%
Yes
No
Can`t Say
Table XIVOpinion towards Pricing Strategy
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FINDINGS AND ANALYSIS
SWOT ANALYSIS
STRENGTH:
Coca-cola Potential brands position in the market.
Good quality and innovation of product for long term customer relationship.
Good advertising campaign, and brand ambassador.
Advertisement campaign more effective and change punch line make. Emotional
touch with customer and retail.
High investment in research and development.
Coca-cola has a good market share.
Segment of coke product to every age group.
To satisfy of retail or through schemes SGA, display.
WEAKNESS:
Lack of proper distribution in many areas.
Lack availability 1 it & 1.5 it product pack.
Lack supply of Kinley water in the market.
Rising No. of date dealers that will wrong effect in market condition.
Retailers are not getting schemes at the time.
No distribute enough signage to retailers.
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OPPORTUNITY:
Coke is able to capture large mkt. Share.
More monopoly counters of coke brand.
To improve market mix (Product, price, promotion, place).
To increase the sale of Kinley water.
THREATS:
Pepsi is the major competitors, that means watch myopia in the market every
time.
Pepsi have captured major market of 500 ml, 1.5 & 2 lt.
Retailers divert to pepsi because they are getting good schemes and SGA
signage. Increase local brand in the market.
114
FIELD EXPERIENCE
The success of any survey depends upon the quality and integrity of the surveyor who
collect the basic data by expressing the subject under the study and on the respondents
who provides the data required by filling up the questionnaire .The accuracy of the data
collected solely depends upon the cooperation and truthfulness of the person who is being
interviewed.
Keeping this in mind i have tried my best to collect the reliable data. During this process I
came across a Variety of experiences some interesting and some bitter one’s.
After knowing the utility of the survey some of the respondents filled up the
questionnaire sincerely whereas some of the other were not interested in it . How ever,
most of respondents were friendly and cooperative and willingly filled up the
questionnaire with utmost sincerity and to best of their knowledge.
Barring few exceptions I had a pleasant time with respondents. I hope that the
respondents did not feel the interview insipid and boring.
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SUGGESTIONS&
RECOMMENDATIONS
Doing a survey on consumers market provided a lot of insight into the
dynamics of the market place and with it valuable insights were also
gained into the psyche of consumer and owners.
1. SUPPLY
The demand of Thums up & Maaza far exceed the supply especially in
case of 200ml and pet bottles. Few shop owners’ clamed that many a
times no supply is made for 3 days and some times even more.
Sometimes the delivery vans of Coca-Cola starts late from the distribution point
and that of rivals reach early .so eateries, which generally serve soft drinks in the glass,
buy the soft drinks from the delivery van which arrives first.
Salesman at the delivery van to be inconsistent on certain meters likes the concept of
broken bottles. When dealing with the shop and the eatery owners some salesman do
exchange bottles while some do not?
All flavors and all size of bottles are kindly available in the market.
116
2. COMPANY REPRESENTATION
Owners confirmed that Company representatives DON’T COME
WHEN CALLED REPEATEDLY.
The Company must ensure that the representatives do visit an outlet at
least once in 3 days to listen and to attained to complaints, if any.
3. SALES PUSH BY EAT & DRINK OUTLET
The Company easily influenced many eatery owners, which provide them with better
facilities. There was a tendency to push the product of the Company which ever offered
them better scheme or benefits.
117
CONCLUSION
From this summer training and project titled "Market Survey of Right Execution
for Coca-Cola” I have learned a lot about real practical work being done in the market I
have also watched & learned the practical applicability of the various things that we have
studied theoretically.
I observed on the basis of survey in GHAZIABAD city that Coca-Cola lay
emphasis on merchandising in order to become the No.1 brand in soft drink industry the
report was finds out the availability of different flavor and packs.
Cola-Cola adopt a good customer relationship management, it is focus on the,
segment of the product because each segment is affected by different sets of factor which
hamper or enhance sales. Each segment had its own Pros & Cons. So we have to
understand the various segment of soft drink industry that which flavor is existing more
in the market, Such as Thums-up strong brand of coke which is more popular in young
generation. I also observe about fate dealer, sub dealer, monopoly counter & its
marketing strategy. Such as fate dealer is influence wrong direction to the market. They
are supply product at high margin with low scheme.
As we know till now since ill soft drink industry the concept of brand loyalty is not in
that shape in which it is in countries. So company could take some steps to be to have a
good report with the retailers why supply them regularly and provide them with other
monetary benefit.
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LIMITATION OF RESEARCH
1.The area of study is limited to the Market Survey of Right Execution for Coca Cola
aspects of the system, while the marketing has other crucial areas too which were left
uncharted
2. The study is limited to eastern region of coca cola which is a multinational company,
so the area plays as a constraint in the study.
3. The time period allotted for the study was only of two months, which may provide a
deceptive picture in comparison of the study based on long run.
4. The study was based on both primary and secondary data but the relevance of the
secondary data may not be justified.
5. The success of any survey depends upon the quality and integrity of the surveyor who
collect the basic data by expressing the subject under the study and on the respondents
who provides the data required by filling up the questionnaire .The accuracy of the data
collected solely depends upon the cooperation and truthfulness of the person who is being
interviewed.
6. Interaction skills as well as the behaviour of the respondents also played as a
constraints during the research.
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QUESTIONNAIRE
1. Name of the shop :- …………………………
2. Address: - …………………………
1. Educational Background
(a) Matric & Below
(b) Intermediate
(c) Graduation
(d) Post Graduation
2. Sale of requirement?
(a) Pepsi (b) Coke
(c) Other
3. If yes how frequently? (Daily)
(a) Pepsi (b) Coke
(c) Other
4. Do you give importance to brand name while choosing your cold
drink?
(a) Yes (b) No (c) Can’t Say
120
5. Which brand you prefer most?
(a) Coke (b) Pepsi (c) Both
(d) Others
6. You like the particular brand of cold drink because of?
(a) Brand (b) Flavor (c) Advertisement
(d) Chilled
7 In your opinion which brand of cold drink is most demanded or
popular?
(a) Coke (c) Pepsi (d) Others.
8. Which brand is more available in your retailer’s shops?
(a) Cola (b) Citric (c) Fruit Flavored.
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9. Which brand of cold drink do you find most in your college
canteen/colony/locality?
(a) Coke Brand (b) Pepsi Brand (c) Others.
10. In your opinion which soft drink is better taste?
(i) In Cola Flavor
(a) Coke (c) Pepsi
(ii) In Citric Flavoured.
(a)Sprite (b) Mountain Dew (c) 7`Up
(iii) In Orange flavoured.
(a) Fanta (b) Miranda Orange
(c) Others.
(iv) In mango Flavoured.
(a) Mazza (b) Slice (c) Others.
11. Why do you like your brand?
(a) Blend (b) Brand Image (c) Availability
(d) Advertisement
12. Which brand advertisement appeals you most?
(a) Coke (b) Pepsi (c) Others.
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13. Most effective punch line in your opinion of?
(a) Coke (b) Thumps up
(c) Pepsi (d) Others.
14. You like the product which is promoted by the celebrity?
(a) Yes (b) No (c) Can’t Say
15. Do you think that the pricing strategy adopted by the cola companies
fascinate the consumer?
(a) Yes (b) No (c) Can’t Say
16. Any Suggestion:-
………………………………………………………………………………
………………………………………………………………………...
………………………………………………………………………………...
....
Thank You,
Signature
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BIBLIOGRAPHY
1. Research Methodology, Kothari. C.R., Research Methodology Methods
& Techniques, New-Delhi, Wishwa Prakashan, edition 2003.
2. Multi Level & Direct Marketing, Branding, Kotler, Philip., Marketing
Management, Delhi, Pearson Education (Singapore) Pte. Ltd, 11th edition.
3. Marketing Strategy, Varshney, R.L. & Bhattacharya, B., International
Marketing Management, New-Delhi, Sultan Chand & Sons edition 2003.
4. Company Profile, Web-Site:- www.coca-cola.com <http://www.coca-
cola.com>
5. Merchandising & Route Productivity, www.ask-jeeves.com,
www.distributing-company.com.
6. Retailing, Company Souvenirs.
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