Post on 28-Jan-2016
description
DETAILS OF SPLASH BARWeight(Splash Bar) 34 Kg
Weight(whole unit – with cabinet) 102Kg
Power input 178W
Power consumption 2.5 Units/24h
Dimensions in mm(HXWXD) 1930X700X590
Margin Structure(Rs)MRP per bottle – 2.25Litre 80
Cups per bottle 22
Cups per case 198
Cost of beverages per case 654.50
Cost of cups per case 137.50
Total cost 792.00
Selling price per serve 5
Buying price per serve(incl. cup price) 4
Selling price per case 990
Buying price per case 792
Percentage per margin 25%
Ideal outlets for splash bar installation
• Telecom outlets• Textile outlets• Tailor shops• Outlets near construction sites• Any non-beverages selling outlet with good
footfalls• Outlets with free beverages serving to
customers like jewelry, showrooms, temple outlets
HCCBPL Provide
• Splash bar machine• Cabinet• Tap nozzles• Beverages stock with paper cups on purchase• Marketing elements• Training
Outlet selection basis quality criteria• Outlet must be situated in a clean and hygienic
environment with no off odors in the surroundings.
• There should not be any chances of cross contamination through dust generated by nearby facility i.e. chalk plant, concrete, cement or chemical plant.
• Outlet must not be near(60ft.)butchery/ open sewage drains/ waste disposable area/ chemical storage spaces etc.
• Outlet must not be near(20 ft.) open/ uncovered water stagnant area.
• Outlet must have a valid electrical connection and a standard 6A socket which could be used for plugging in the PCSB equipment.
• Outlet must have adequate space for installation.
• Outlet must be legally authorized commercial place and should be physically secure.
Purpose of introducing of Splash Bar
This concept is introduced by HCCBPL for mainly rural areas for recruitment of those consumers who are not able to taste the coca–cola product mainly because of price barrier but now they can taste the Coca-Cola product in just Rs 5 and also for making habitual to those people of Coca-Cola products
Pros and Cons of Splash Bar
• Pros• First mover advantage • It’s a newly invented machine by Coca-Cola, it’s very
simple to operate.• Comes in different variants of 100, 200 and 300 ml
at affordable price of Rs5, 10 and 15.• At same time the consumer can taste two brands of
Coca-Cola.• In comparison to normal fridges of 200-250 watt,
this fridge is of only 80 watts. Thus, consumes very less electricity just 2-2.5 units in a day.
• The machine (Splash Bar) is very eye-catching.• Machine (splash bar) is given free of cost to
outlet owners.• Gives high profit margin to outlet owners.• Can be a substitute for tea and coffee• Will give a stiff competition to soda fountain
machine.• Easier for the company to penetrate the rural
market, as it is a cost effective proposal for the rural customers
• Cons• The machine can be used to keep only 5
bottles at a time in chilling mode.• Demands cleaning every day and great
amount of maintenance. • Security issues: Like fridges, Cabinets are
not given • If the machine is not handled carefully
there is a chance of gas leakage.• Hygiene issues.• Changing the bottles.
• Required one person specially for serving• Only 20 glass can be served from 2.25 liters of bottle• Only two brands of Coca-Cola can be served at a time• Can affect the RGB sells.• In same amount soda fountain provides double
quantity as of splash bar• Soda fountain also provides 5 and 7 variants of soda
drink.• If the machine is not handled properly by the
shopkeeper, taste of beverage may get hampered which ultimately may affect the brand image of the company
Methodology• In phase 1, First of all I gathered all the knowledge
regarding the machine by discussing with my industry mentor, by talking to the persons who were already working on it and by seeing the machine which is already installed, after that I did a proper mapping of Patna market.
• Phase 2, Started visiting the ideal dry outlets and convincing them by explaining about the splash bar, margin on a bottles of 2.25litre of coke and others benefit related with the splash bar.
• Phase 3, On very next day of visiting the outlet, I used to call them up and revisit them for their response.
• Phase 4, If they were agreed to install, then I collect documents from them and submit it to the office.
• Phase 5, Prepared questionnaire to do survey on splash bar that how it is successful from consumer perspective as well as retailer and interviewed them.
• Phase 6, collected data through questionnaire and analyzed it.
Recommendation• As 46% of retailer installed splash bar machine only
because of profitability and only 48% of retailer is extremely satisfied with the profitability because of they were not able to earn as much profit stated by the company due to only 20 cup of cold drink could be served from a 2.25litre of bottle. So, company should convey them the exact cup of cold drink that can be served from a 2.25litre of bottle and margin on that.
• Only 54% of retailer is extremely satisfied with the space occupied by the splash bar machine. So, company can provide detachable machine to which they can keep the cabinet anywhere in shop.
• 6% of retailer is not satisfied with the training provided by the company because they were not able to remember all things stated by the company. So, company can provide them a small book related to the training and handling of machine.
• Only 42% of consumer is extremely satisfied with quantity of cold drink (100ml) being served in splash bar and also 90% of consumer agree that it is batter than 10 rupees RGB. So, company can also introduce 200ml in Rs 10 in splash bar as 200ml of RGB is being sold in market in 12 rupees.
• 23% of consumer is drinking splash bar cold drink because of brand availability and another 23% of consumer because of easy to consume(need not to consume it by standing there because glass is to be return). So, company can offer more variants instead of only two is being offered to which consumer can taste more brands in just Rs 5.
Limitation• Although there are around 4000 retail outlets in Patna,
but we were able to cover only few of them due to time constraints.
• I couldn’t give equal amount of time to all the shopkeepers for discussions. Some of the shopkeepers I met quiet and had a long discussions with them while some of them being situated at very distant locations (normally far away from my usual market visits) were not given ample time.
• Some of the retailers I interviewed were not so co-operative and open-minded and refrained from engaging in a healthy discussion with me unlike many others who were quite supportive.
• I was not able to visit outlets in mid of my project due to stay on the installation of splash bar machine for 15 days because of hygiene issues.