coca cola marketing annalysis

ABRIEF STUDY

ON

Hindustan Coca-Cola Beverages Pvt. Ltd., Patna

2009-2011

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE MBA

DEGREE FROM :-

B. S. Anangpuria Institute of Technology & Management Faridabad-121 004 (Haryana)

SUBMITTED TO SUBMITTED BY

Controller of Examination RUPESH KUMAR

M.D University, M.B.A (3rd sem)

Rohtak 09/MBA/048

http://www.thecoca-colacompany.com/index.html

PREFACE

With open and economically liberalized policies, the Indian economy has taken a

turn around for the betterment. The post liberalization age era has witnessed the emergence of

free enterprise and manufacturers are coming up to participate in the liberalization boom. This

has resulted in stiff competition than ever before.

There are several changes in the competitive and structural character of soft drink

market in the last few years. Seller's market has turned in to buyer's market. This has thrown up

enormous challenge in entire gamut of marketing. New companies are having with each other to

draw the attention to special quality and special feature of their brand. At times price exists and

prices are quoted for below the normal level. It is in this context, that there is acute need to

evolve innovation and dynamic marketing strategies in the areas of price, distribution, sales

promotion etc.

The channel of distribution means the product will have to reach to the customer

through a proper system. These days mostly producers don't have a link directly with the

customers. There is a long chain system available. The decision to choose a system of

distribution for product is part of the marketing mix strategy of this firm in the dealing with its

market. Since a decision is to be made of the alternative available marketing structure of

economy. It is important to gain importance of the part of this structure before we take the

factors of distribution system. From cost point it is also important channel system has to be

properly co-ordinate with other marketing decision like product range, decision, pricing,

advertising and sales promotion etc.


Coca-Cola developed a new technique of sales promotion. This new technique is

known as RED concept. In this concept the marketer concentrates and activates the outlets by

RED Norms. In this technique the marketer considers mainly these three points (i)

VISICOOLER (ii) AVAILABILITY (iii) ACTIVATION.

Coca-Coal is also a biggest soft drink producing company. If the channel system

will be wrong the soft drink will not reach to customers on time and at actual rate. If there is a

suitable link to the customer will get the foods, in time and it will kill the scope of black

marketing.


ACKNOWLEDGEMENT

This project is a sincere attempt to carefully and systematically gather fact's about and

evaluate the RED of Hindustan Coca-Coal Beverages Pvt. Ltd. As a part of the course

curriculum of Master of Business Administration (MBA) degree, from B.S. ANANGPURIA

INSTITUTE OF TECHNOLOGY & MANAGEMENT, FARIDABAD (HARYANA) which is

based on 8 week duration. For the completion of my project report many person directly or

indirectly assisted me.

I am highly obliged to all staff of the training department where I was placed for my

training for their full co-operation in spite of their busy schedules.

In my project report I have written every thing on the basis of information provided by

the authority after carrying necessary market survey during my training.

At last, I thank all my friends who have helped me directly or indirectly in the

preparation of this project.

(Rupesh Kumar)


CONTENTS

1. INTRODUCTION OF THE COMPANY

History of Organisation Historical Background

History of Soft Drink in India

2. INTRODUCTION OF THE TOPIC

PRE SALE CONCEPT (A Theoretical Aspect )RED (Right Execution Daily)

Introduction of REDClassifications of RED OutletsRED Scoring Chart

3. Research MethodologyObjective of the studyScope of the studyMethodology used in the studyLimitation of the study

4. DATA COLLECTION & ANALYSIS

5. Importance and Relevance of the study

6. CONCLUSION, SUGGESTION, BIBLIOGRAPHY

7. QUESTIONNAIRE


CHAPTER — 1

INTRODUCTION OF THE COMPANY


HISTORY OF ORGANISATION

Coca-Cola began to lay plans to seek government approval for its entry over the objections of

both domestic soft drink companies and anti-multinational legislators. Coca-Cola saw the

solution to lie in making an offer that the Indian government would find hard to refuse. Coca-

Cola offered to help India export some of its agricultural product in a volume that would more

than cover the cost of importing soft drink concentrate. Coca-Cola also promised to focus

considerable selling effort on rural areas to help there economic development. Coca-Cola offered

to transfer food processing, packaging and water treatment technology to India. Clearly, Coca-

Cola strategy was to bundle a set of benefits that would win the support of various interest

groups in India.

Thus, Coca-Cola marketing problems went beyond the normal four P's of operating effectively in

a market to enter India a six P's marketing problem, with politics and public opinion constitution

the two additional P's.

When Coca-Cola returned back to India with a slogan of "Old Wave Have Come Again", joining

the hand with Parle Export (Pvt.) Ltd. The Coca-Cola tried their best to regain prestige which it

had before. The Hindustan Coca-Cola Beverages Pvt. Ltd. of Patna, Bihar on lease for 20 years

in 1997-98. The first product lunched by Hindustan Coca-Cola Beverages Pvt. Ltd. of Patna was

Coca-Cola and after that all the remaining products came in the Bihar Market.


HISTORICAL BACKGROUND

A soft drink is a non-alcoholic beverage. It is artificially flavoured contains no fruit juice or pulp.

The first brand soft drink Gold Spot launched 55 years ago. Empowering Coca-Cola entered the

country to dominate the scene, much later.

The history of soft drink in India is quite old. Down the ages people consumed soft drink to give

them a refreshing feeling. It was mostly consumed in first form of "Jal Jeera" lassi etc. Gold Spot

is considered as first branded soft drink in India. It was introduced in India in 1965. Coca-Cola

made a very good beginning and dominated the whole market. It faced no enhance competition

from the domestic market.

Pure drink was marketing Coca-Cola product till 1977. If found itself burdened with their well

equipped bottling plants and a distribution network, all going to be at no use after the exit of

Coca-Cola. It tooks them a year to develop a new formula to survive and they gradually came up

with their own products named above.

In 1988 when Late Sri Rajeev Gandhi Govt. granted permission to multinational company to

enter Indian market. Then on 4th March 1990, Pepsi enter and then in 1993 the Coca-Cola was

launched in Agra again with a slogan of "OLD WAVE HAVE COME AGAIN" joining the hand

with Parle Export (Pvt.) Ltd. The Coca-Cola is trying their best to regain prestige which it has

before. Now a day most of the companies could not compete with them and their product

disappeared. In present only Coca-Cola and Pepsi Food are giving tough competition to each

other. Though the companies with Tetra pack are also present in the market but they have less

Marketing Share.


HISTORY OF SOFT DRINK IN INDIA

Quenching a consumer thirst is the basic purpose which soft drink seems to serve. In the post

immemorial, people used to quench his thirst by taking water. But the down of civilization show

people becoming more and more affluent and advanced and there was felt a need for more

sophisticated means of thrust, which gave birth to the modern soft drink.

The development of soft drink is really a classic example of today's marketing theory which says

"The real Marketing spirit of Marketing man lies behind the fact of identifying a need, a real

need of consumer and providing him the product to fulfill his need".

The Gluco-Cola is said to be first soft drink introduced in India (Mumbai) during first part of

40's since Glucose Biscuit was popular biscuit than in Mumbai so a Cola was lunched with the

initial name "Gluco" from glucose.

Searching from the point of origin of India soft drink was first document "Gold-Spot" which

introduced by "PARLE" during later 40's. Coca-Cola was the first foreign soft drink came in

India in 1965. Coca-Cola made a very good beginning as soon dominated in the whole market. It

faced no competition. The marketing people did not even required to advertise Coca-Cola. This

extra ordinary success of soft drink could be attributed to following factors.

Absence of contemporary competitive brand.

Euphoric image built up in western countries proceeded the entry into Indian market.

Indian are very found of nature of foreign goods, services etc. due to pro-longed foreign

rule.


CHAPTER — 2

INTRODUCTION OF THE TOPIC


PRE SALE CONCEPT- A THEORETICAL ASPECT

Pre sale is a part of marketing strategies implemented by Coca Cola to promote RED

concept. It is a new concept implemented in Bihar and is still in experimental stage. Pre Sale

Concept itself defines its meaning, It means simply taking orders before fulfilling the demand. It

is just opposite to the traditional manner in which the order was used to be taken hand to hand

with the stock in the carrier standing in front of the dealer or seller.

The importance of pre sale is that as orders are taken before hand so the supply chain can be

organized properly so that not a single counter is left as there is less availability of material in the

carriage van as the order is placed before hand . As in the traditional manner the quantity of the

material which a carriage van could carry was almost supplied to the counter irrespective of

demand . The major quantity of products were exhausted in counters on main roads only where

the van used to reach first others used to have no stock so the other companies used to take

advantage of it.

Pre Sale concept is a part of marketing strategy implemented by Coca Cola to Promote RED

concept and channelise the distribution system so that the the supply and demand is in

euqillibrium. So we need to understand what is market strategy first of all.

A marketing strategy serves as the foundation of a marketing plan. A marketing plan contains a

list of specific actions required to


successfully implement a specific marketing strategy. An example of marketing strategy is as

follows: "Use a low cost product to attract consumers. Once our organization, via our low cost

product, has established a relationship with consumers, our organization will sell additional,

higher-margin products and services that enhance the consumer's interaction with the low-cost

product or service."

Marketing strategies serve as the fundamental underpinning of marketing plans designed to

reach marketing objectives. It is important that these objectives have measurable results.

A good marketing strategy should integrate an organization's marketing goals, policies, and

action sequences (tactics) into a cohesive whole. The objective of a marketing strategy is to

provide a foundation from which a tactical plan is developed. This allows the organization to

carry out its mission effectively and efficiently.

One used the following techniques to device the Marketing Strategy for the product/service:

Segmentation

Targeting

Positioning

Segmentaion:

Market segmentation is the process in marketing of grouping a market (i.e. customers) into

smaller subgroups. This is not something that is arbitrarily imposed on society: it is derived from

the recognition that the total market is often made up of submarkets (called 'segments'). These

segments are homogeneous within (i.e. people in the segment are similar to each other in their

attitudes about certain variables). Because of this intra-group similarity, they are likely to

respond somewhat similarly to a given marketing strategy. That is, they are likely to have similar

feeling and ideas about a marketing mix comprised of a given product or service, sold at a given

price, distributed in a certain way, and promoted in a certain way.

http://en.wikipedia.org/wiki/Marketing_mix

http://en.wikipedia.org/wiki/Marketing_strategy

http://en.wikipedia.org/wiki/Attitude_(psychology)

http://en.wikipedia.org/wiki/Society


Market segmentation is widely defined as being a complex process consisting in two main

phases:

- identification of broad, large markets

- segmentation of these markets in order to select the most appropriate target markets and

develop Marketing mixes accordingly.

Everyone within the Marketing world knows and speaks of segmentation yet not many truly

understand its underlying mechanics, thus failure is just around the corner. What causes this? It

has been documented that most marketers fail the segmentation exam and start with a narrow

mind and a bunch of misconceptions such as "all teenagers are rebels", "all elderly women buy

the same cosmetics brands" and so on. There are many dimensions to be considered, and

uncovering them is certainly an exercise of creativity.

Identify and name the broad market

You have to have figured out by this moment what broad market your business aims at. If your

company is already on a market, this can be a starting point; more options are available for a new

business but resources would normally be a little limited.

The biggest challenge is to find the right balance for your business: use your experience,

knowledge and common sense to estimate if the market you have just identified earlier is not too

narrow or too broad for you.

Identify and make an inventory of potential customers' needs

This step pushes the creativity challenge even farther, since it can be compared to a

brainstorming session.

What you have to figure out is what needs the consumers from the broad market identified earlier

might have. The more possible needs you can come up with, the better.

Got yourself stuck in this stage of segmentation? Try to put yourself into the shoes of your

potential customers: why would they buy your product, what could possibly trigger a buying

decision? Answering these questions can help you list most needs of potential customers on a

given product market.


Formulate narrower markets

Try to form sub-markets around what you would call your "typical customer", then aggregate

similar people into this segment, on the condition to be able to satisfy their needs using the same

Marketing mix. Start building a column with dimensions of the major need you try to cover: this

will make it easier for you to decide if a given person should be included in the first segment or

you should form a new segment. Also create a list of people-related features, demographics

included, for each narrow market you form – a further step will ask you to name them.

There is no exact formula on how to form narrow markets: use your best judgement and

experience. Do not avoid asking opinions even from non-Marketing professionals, as different

people can have different opinions and you can usually count on at least those items most people

agree on.

Identify the determining dimensions Carefully review the list resulted form the previous step.

You should have by now a list of need dimensions for each market segment: try to identify those

that carry a determining power.

Reviewing the needs and attitudes of those you included within each market segment can help

you figure out the determining dimensions.

Name possible segment markets You have identified the determining dimensions of your

market segments, now review them one by one and give them an appropriate name.

A good way of naming these markets is to rely on the most important determining dimension.

Evaluate the behavior of market segments

Once you are done naming each market segment, allow time to consider what other aspects you

know about them. It is important for a marketer to understand market behavior and what triggers

it. You might notice that, while most segments have similar needs, they're still different needs:

understanding the difference and acting upon it is the key to achieve success using competitive

offerings.


Estimate the size of each market segment

Each segment identified, named and studied during the previous stages

should finally be given an estimate size, even if, for lack of data, it is only a rough estimate.

Positioning

Simply, positioning is how your target market defines you in relation to your competitors.

A good position is:

1. What makes you unique

2. This is considered a benefit by your target market

Both of these conditions are necessary for a good positioning. So what if you are the only red-

haired singer who only knows how to play a G minor chord? Does your target market consider

this a good thing?

Positioning is important because you are competing with all the noise out there competing for

your potential fans attention. If you can stand out with a unique benefit, you have a chance at

getting their attention.

It is important to understand your product from the customers point of view relative to the

competition.

Environment

In order to begin positioning a product, two questions need to be answered:

1.What is our marketing environment?

2.What is our competitive advantage?

The marketing environment is the external environment. Some things to consider:


How is the market now satisfying the need your software satisfies?

What are the switching costs for potential users for your market?

What are the positions of the competition?

The competitive advantage is an internal question. What do you have that gives you advantage

over your competitors. Some things to consider:

Is your company small and flexibility?

Do you offer low cost and high quality?

Does your product offer unique benefits?

Are you the first on the market with this product (First mover advantage)?

Positioning Strategies

There are seven positioning strategies that can be pursued:

Product Attributes: What are the specific product attributes?

Benefits: What are the benefits to the customers?

Usage Occasions: When / how can the product be used?

Users: Identify a class of users.

Against a Competitor: Positioned directly against a competitor.

Away from a Competitor: Positioned away from competitor.

Product Classes: Compared to different classes of products.

Targeting:

Target Marketing involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments.

INTRODUCTION TO RED


RED i.e. Right Execution Daily is a platform of Coca-Cola by which its products as well as

outlets interact with customer and makes a bond with each other.

RED is a special designed program in which Coca-Cola give some assets to its retailer by which

the retail outlet automatically interact with the customers. In RED concept Coca-Cola provide

each and every thing to his retailer which is essential to know anyone that Coca-Cola product is

sold here.

In RED programe assets which are given to outlets are:

1: VISICOOLER

RED OUTLETS

E & D GROCERY CONVENIENCELOW/MEDIUM

INCOMEHIGH

INCOMELOW/MEDIUM

INCOMEHIGH

INCOMELOW/MEDIUM

INCOMEHIGH

INCOME

Diamond 9/20 cs 20/30 cs 9/20 cs 20/30 cs 20/30 cs 9/20 csGold 7/9 cs 9/20 cs 7/9 cs 9/20 cs 9/20 cs 7/9 csSilver 4/7 cs 7 cs 4/7 cs 7 cs 7 cs 4/7 cs

2: COMBO COMMUNICATION

3: COMBO STANDEE

4: COMBO WALL HANGING

5: MENU BOARD WITH COMBO COMMUNICATION

6: BRANDED TABLE MATS

7: BRANDED MENU CARDS

8: TABLE TOP VINYLS

9: FLANGE


10: ROAD STANDEE

11: GLOW SIGN BOARD

12: TABLE TOP DISPLAY

13: HANGING RACK

14: DPS FLEX BOARD

15: AERIAL MOBILE HANGER

16: DISPLAY RACK SELF DISPLAY

Coca-Cola set some rules for RED outlets which are as :

1. Visicooler will be placed on the Prime Position

2. Always visicooler will be 100% pure

3. Brand Order will be maintained in Visicooler which is as follows:

o Cola : Thumps Up/Coca-Cola

o Lime : Sprite/Limca

o Orange : Fanta

o Juice : Mazza

o Nimu Fresh: Nimu Fresh

o Dite Coke Dite Coke


CLASSIFICATION OF RED OUTLET

In RED programe, selection of any RED outlet depends on three factor

1. CHANNEL

2. INCOME

3. VOLUME

By CHANNEL outlets are divided in three parts

E & D outlets

CONVENIENCE outlets

GROCERY outlets

By INCOME outlets are divided in three parts

HIGH INCOME outlets

MEDIUM INCOME outlets

LOW INCOME outlets

By VOLUME outlets are divided in four parts

DIMOND outlets (Who sell 800+ Crt)

GOLD outlets (Who sell 500-800 Crt)

SILVER outlets (Who sell 200-500 Crt)

BRONZE outlets (Who sell below 200 Crt)


Eating & Drinking

Grocery

Convenience

Diamond Gold Silver Bronze

High/Medium

Low

Evolution of RED: 2006-2007-2008-2009

Introduction of RED (Right Execution Daily)

Started with segmentation in 3 x3 = 9 clusters and RED Standard for each

of these 9 clusters

Initially

Income Class

Variable was

Not used for

Outlet

Segmentatin

to keep

simplicity in

RED

standard

Based on consumption occasion

Annual KO VPODiamond > 800 csGold : 500-799 csSilver : 200-499 csBronze : <200 cs

Income level of locality


RED 2010 standard : Bonus and penalty Points

Availability of chilled brand Coke : 5 Bonus Points

To be continued throughout the year

Min 1facing of RGB and 600ml inside the visicooler

Min 6 bottles of RGB and 4 bottles of mobile per facing

Promotion/NPD Activation : 5 Bonus Points

Promotion/NPD activation of the month would be announced on monthly basis

Only standardized elements/display will qualify (to be comn by Trade Mktg-Team)

All pertaining communication artworks to be circulated by trade mktg. team

In case cooler Purity is less than 50% for consecutive 2month,5 penalty Points would be deducted from the month’s overall RED Score

Applicable at ALLEVELS


Salient Modifications in Availability standards

o Weightage increased from 50% to 60%, except in E&D-2 channel

o One RGB strategy : 300ml in E&D-2, 200ml in other channels

o Fridge Pack and Xpress Pack are included in availability norm

o Focus on Chilled facing of RGB pack of Lead Cola, Lead Flavor and Maaza

o Bonus points for Chilled Coke availability

Activation standards simplified

o Simplified and weightage reduced from 20% to 15% except in E&D-2 channel

o In E&D-2, weightage increased to 25% to focus on driving incidence

RED Norms 2010Modifications in availability and activation standards to drive segmented to drive segmented execution


Outlet segmentation model redefined

o Income Class variable is introduced as third dimension of

segmentation model

o 2 sub segments of income class : High+Med clubbed, and Low

o 4 channels X4 VPO Classes X2 Income Classes = 32 clusters of

outlets

Key Changes in Visi Cooler Stancards

o Weightage reduced from 30% to 20%

o Additional Still-Cooler is mandatory in all Hi-Med IC Diamond outlets (except

E&D-2)

o For Hi-Med IC, Gold POI (except E&D-2),cooler standard is increased to 15

caser

o Working cooler is a qualifying requirement besides having cooler present

o Impure Cooler attracts Penalty Points

RED Norms 2010Modifications in segmentation and visi-cooler ; answer to evolving BPPC


Target marketing can be the key to a small business’s success.

The beauty of target marketing is that it makes the promotion, pricing and distribution of your

products and/or services easier and more cost-effective. Target marketing provides a focus to all

of your marketing activities.

So if, for instance, I open a catering business offering catering services in the client’s home,

instead of advertising with a newspaper insert that goes out to everyone, I could target my

market with a direct mail campaign that went only to particular residents.

While market segmentation can be done in many ways, depending on how you want to slice up

the pie, three of the most common types are:

Geographic segmentation – based on location such as home addresses;

Demographic segmentation – based on measurable statistics, such as age or income;

Psychographic segmentation – based on lifestyle preferences, such as being urban

dwellers or pet lovers.

So from the above it is clear that what all things have to be kept in mind before making a

market strategy. Pre sale concept has been made keeping all the above discussed factors in

mind .


DiamondQ.no

E&D Grocery Convenance

VISICOOLER

1Is a coca-cola cooler present? If ans is no skip 2-8.

2 Is the cooler as per standard? 4 4 4

3Is the visicooler in the prime position?

10 10 10

4Is the visicooler in a working condition?

3 3 3

5 Is the visicooler light working? 2 2 26 Is the cooler 100% pure? 10 10 10

7Is the cooler brand-order compliant?

6 6 6

TOTAL 35 35 35

AVAILABILITY

8 CSD 300 ML (Cola+3) 14 14

9CSD mobile PET 500/600 ML (Cola+3)

13 16 13

10 Mazza RGB (200-250 ML) 4 411 Mazza TP 200 ML available 2 212 Mazza Mobile 600 ML 3 4 313 Mazza PET 1.2 ltr. 414 Can (Diet Coke+1) 4 415 Large PET 1.5/2 Ltr (Cola+2) 16TOTAL 40 40 40

ACTIVATION

E & D

16Combo communication combo standee/wall hanging/menu board with combo communication

10

17Branded table mats/Menu cards/table top vinyls.

5

18Flange, Road Standee or glow Sign Board

5

Grocery

19Display rach.3 tier rack with header

5

20Is the rack pure and charged (50% full)

10

21Shelf display min & 8 facing of any pet display and visible

5

Convenience

22Table top display unit/hanging rack (atleast 1, pure & 50% charged)

10

23DPS/Flex Board, Glow Sign board, Flange or road standee (atleast 1 or the above)

5

24Aerial Mobile hanger (With atleast 4 mobile display at store front)

5

ALL Channels

25Are price of HCCBPL products communicated in clear & visible manner

5 5 5

TOTAL 25 25 25GRAND TOTAL 100 100 100


GoldQ.no


VISICOOLER




10 10 10


3 3 3



6 6 6

TOTAL 35 35 35

AVAILABILITY

8 CSD 300 ML (Cola+3) 14 14


13 16 13


ACTIVATION

E & D


10


5


5

Grocery

19Display rack 3 tier rack with header

5


10


5

Convenience


10


5


5

ALL Channels


5 5 5



SilverQ.no


VISICOOLER




10 10 10


3 3 3



6 6 6

TOTAL 35 35 35

AVAILABILITY

8 CSD 300 ML (Cola+3) 14 14


13 16 13


ACTIVATION

E & D


10


5


5

Grocery

19Display rack 3 tier rack with header

5


10


5

Convenience


10


5


5

ALL Channels


5 5 5



RED Norm for Visi-Cooler High=Med / LowD G S B

Is a Coca Cola Visi/Chest present and working?

Qualifying Question

Is the Visi/Chest-Cooler as per standard? [ Still Cooler is mandatory in all H/MIC Diamond Outlets except E&D Type-2]

5 5 5 5

Is the Visi/Cooler in the prime position?5 5 5 5

Is the Visi/Chest-Cooler 100% pure?10 10 10 10

Is the visi/Cooler Brand & Shelf-order compliant?

5 5 5 5

Sub Total 25 25 25 25

Cooler Standard 2010VPO Class--> Diamond Gold Silver BronzeIncome class

High + Med Low High+ Med Low High+ Med Low High + Med Low

Convenience 15 15 15 9 7 7 4 4

E&D Type 1 15 15 15 9 7 7 4 4

Grocery 15 15 15 9 7 7 4 4

E&D Type 2

15 15 9 9 7 7 4 4

Low Income Silver outlets can have 7 caser Rural coolers For outlets having more than one cooler coolers size sparkling cooler should be

as per standard

RED 2010 standard: Cooler Score Card & Cooler StandardTotal score reduced from 30 to 25


Salient Modifications in Availability standards

o Weightage increased from 50% to60%, except in E&D-2 cannel

o One RGB strategy : 300ml in E&D-2, 200ml in other channels

o Fridge pack and Xpress Pack are included in availability norm

o Focus on Chilled facing of RGB pack of Lead Cola, Lead Flavor and Maaza

o Bonus points for Chilled Coke availability

Activation standards simplified

o Simplified and weightage reduced for 20% to 15% except in

E&D-2 channel

In E&D-2 weightage increased to 25% to focus on driving incidence

RED Norms 2010Modifications in availability and activation standards to drive segmented execution


RED Norm for Availability Hi+ Med Inc Class Low Inc Class

Channel : E&D Type-1 VPO-> D

G S B D G S B

Sparkling Soft Drink (SSD) 200ml[Diamond/Gold(Cola+3)];Silver/Bronze (Cola+2)-Min 6 bottles of each SKU Chilled

20 20 26 30 25 25 30 30

Sparkling Soft Drink (SSD) Xpress 350ml[Diamond/Gold(Cola+2)];Silver(Cola+1)-Min 6 bottles of each SKU Chilled

5 5

Sparkling Soft Drink (SSD) 600ml[Diamond(Cola+3)],Gold (Cola +2);Silver/Bronze (Cola+1)-Min 4 bottles of each SKU Chilled

14 14 14 15 15 15 15 15

Any Juice RGB (200 or 250 ml)- Min 6 bottles

5 5 5 5 5 5 5 5

Juice Mobile [ Diamond / Gold (2 flavors); Silver/ Bronze (1 flavor)]Min 6 bottles of each SKU

5 5 5 5 5 5 5 5

RED 2010 standard : Availability Score Card for E&D Type-1

Weightage on availability increased to 60% in this channel


Chilled

Fridge Pack 1.25 ltr [Diamond (Cola+2), Silver (Cola+1)Min 4 bottles of each SKU Chilled if the VC size > =9 caser

4 4 5 5 5

Water Mobile 500 ml –Min 6 bottles Chilled

2 2

Chilled Facings of RGB- Lead Cola, Flavor and Maaza (Min 3 facings of each in Diamond/ Gold, Min 2 facings of each in Silver /Bronze

5 5 5 5 5 5 5 5

Sub Total 60 60 60 60 60 60 60 60


RED Norm for Availability Hi+ Med Inc Class

Low Inc Class

Channel : E&D Type-1 VPO->

D G S B D G S B

Sparkling Soft Drink (SSD) 300ml RGB or, Fountain sups [Diamond (Cola+4), Gold (Cola +3) Silver/ Bronze (Cola +2)]- Min 6 bottles of each SKU Chilled

30 30 30 34 34 34 34 34

Any Juice RGB (200 or 250 ML)- Min 6 bottles Chilled

9 9 9 10 10 10 10 10

Water Mobile 500ml or PET 1ltr- Min 6 bottles Chilled

5 5 5

Chilled Facings of RGB- Lead Cola, Flavor and Maaza (Min 3 facings of each in Diamond/ Gold,Min 2 facings of each in Silver/ Bronze)

6 6 6 6 6 6 6 6

Sub Total 50 50 50 50 50 50 50 50

RED 2010 standard : Availability Score Card for E&D Type-2

Weightage on availability maintained at 50% in this channel


RED Norm for Availability Hi+ Med Inc Class Low Inc Class

Channel : E&D Type-1 VPO-> D

G S B D G S B

Sparkling Soft Drink (SSD) 200ml[Diamond/Gold(Cola+3)];Silver/Bronze (Cola+2)-Min 6 bottles of each SKU Chilled

20 20 26 30 25 25 30 30

Sparkling Soft Drink (SSD) Xpress 350ml[Diamond/Gold(Cola+2)];Silver(Cola+1)-Min 6 bottles of each SKU Chilled

5 5

Sparkling Soft Drink (SSD) 600ml[Diamond(Cola+3)],Gold (Cola +2);Silver/Bronze (Cola+1)-Min 4 bottles of each SKU Chilled

14 14 14 15 15 15 15 15

Any Juice RGB (200 or 250 ml)- Min 6 bottles

5 5 5 5 5 5 5 5

Juice Mobile [ Diamond / Gold (2 flavors); Silver/ Bronze (1 flavor)]Min 6 bottles of each SKU

5 5 5 5 5 5 5 5

RED 2010 standard : Availability Score Card for Convenience

Weightage on availability increased to 60% in this channel


Chilled

Fridge Pack 1.25 ltr [Diamond (Cola+2), Silver (Cola+1)Min 4 bottles of each SKU Chilled if the VC size > =9 caser

4 4 5 5 5

Water Mobile 500 ml –Min 6 bottles Chilled

2 2

Chilled Facings of RGB- Lead Cola, Flavor and Maaza (Min 3 facings of each in Diamond/ Gold, Min 2 facings of each in Silver /Bronze

5 5 5 5 5 5 5 5

Sub Total 60 60 60 60 60 60 60 60


CHAPTER — 3

RESEARCH METHODOLOGY


OBJECTIVE OF THE STUDY

Objective of the study is to fill the gap between theoretical and practical aspect of

the Marketing Management. In this period student know how to apply the theoretical knowledge

in a practical life of Marketing Management.

This study offers an opportunity to the student of management to develop the

required skill and in sights for making the best use of experiment and judgment to practical life.

So, the main objective of my study was to know implications of Pre Sale concept

of HINDUSTAN COCA-COLA BEVERAGES PVT. LTD., and various steps that can be taken

for the betterment of the company. Various Pre Sale steps like Outlets classification, Visicooler,

Availability, product brand order etc. The main objective of Pre Sale concept is to influence the

sales promotion. There are some important objectives of this study :-

To know about the demand for soft drink in Muzaffarpur Market

To determine the marketing strategy of soft drink.

To determine the RED activities of HCCBPL.

To analyse the impact of Pre Sale norms in sales.

To increase the existing demand for the product.

Last and not the least the pre sale concept isbeing introduced in the market to focus on the

proper channelisation of demand and supply equilibrium.


SCOPE OF THE STUDY

The main scope of this study is to ascertain the advantages of pre sale concept over

the traditional method and to maintain the proper flow of products in the market.

The methods include regular product information to the buyer's creating a brand

position in the market and taking measures to make the brand position in the

market and taking measures to make the brand remain in its position. One of the

important aspects of this study is also to increase the sales. During my six weeks

training in the company, I had the privilege to asses their marketing programmes

and there by sharpen my skills and also given management my humble suggestion.


METHODOLOGY USED IN THE STUDY

First the questionnaire was prepared and then sample was collected from 2

Distributors. and 60 retailers (consisting of semi wholesalers) with the help of

questionnaire and personal interview.

List of 500 retailer (consisting of semi wholesalers) was preapared and divided into

three categories.

1) High Income outlet

2) Medium Income Outlet

3) Low Income Outlet

Out off these three category 20 were randomly selected without any bias from each

group to conduct the survey with the help of questionnaire prepared. Personal

Observation and personal interview must be kept in mind while furnishing the

questionnaire.

Other information like the marketing plan various types of advertising figure,

category of visicooler, RED outlet name were collected by sales executive,

Muzaffarpur.

Some Secondary data of Hindustan Coca -Cola Beverages Pvt. Ltd. were used in

this study.


LIMITATION OF THE STUDY

Due to short time and other unavoidable reasons, a number of limitations came

before me in the source of the preparation of the report. A few important

limitations is as follows.

More stress was given on primary data. It was difficult to collect the secondary data

from the organization.

Time factor was the most important limitation in preparing this report, the time

period for the training was too short to collect the require information


CHAPTER — 4

DATA COLLECTION & ANALYSIS


PRODUCTION PROCESS

High grade sugar is mixed with treated water to give simple syrup. Concentrate of

required brand is than added and mixed with simple syrup to give syrup of the

brand then carbonated water is mixed with it to give finish beverages.

BOTTLING PLANT

The bottling process is carried out with the help of a fully automated bottling plant.

The detail functions of the different part of the bottling plant are given below.

WATER TREATMENT

Water is chemically treated to remove the bacteria and harm sang and graved filter

removes all odours. Treated water is absolutely pure tasteless and odourless better

than the best city drinking water any where.

SYRUP ROOM

Simple syrup and group of required brand is prepared in all stainless steel

equipment.

BOTTLE ROOM

Bottle washer and sterilized in best castic solution and rinsed with treated water.


SYRUPER

Measured quantity of syrup of required brand is poured in to each bottle.

MIXER

Syrup of required brand carbonated water is poured into each bottle.

FILLER

Each quantity of carbonated water is poured into bottle.


CARBONATOR

Chilled treated water is brought into contact with purified carbon dioxide to make

carbonate water.

CROWNER

Each bottle is crowned with a metal gap to protect the purity containers are cleaned

by jets of water beginning to end the entire operation is untouched by human

hands. When the bottles are sealed they are lifted to the line and hand placed in

case.

The bottling of the beverage in this plant is carried at the rate of 240 bottles per

minute. So the producing capacity in 4800 cases (24 bottles each case) in the shift

of 8 hours in a day.

Inspection points are located at all important stages of bottling process to safeguard

the standard of quality and cleanliness. There is a quality control section under the

production department which is headed by the plant chemist. The trained ways in

quality control are follows:

The purity and normality of water is leasted.

The pressure of gas and temperature of filled up bottle are measured which

should be accurate.


The sugar syrup is tested with the hydro meter to find out whether it is

standard or not. Store section of production department is headed by store

in charge who directly reports to the plant superintendent. This section is

concerned with the storage of raw materials only. Inventory raw material

is maintained for each month for inventory of raw material 10% extra

stock is added in comparison with the consumption data of raw materials

in the help of sales and production department calculated the month wise

consumption of raw materials for the whole year. In the some month

management makes an agreement with the different outside suppliers to

send their materials which is procured from the local market and

purchased when required.

The store section maintains "Daily stock report and it is send to the

Managing Director every day. Maintenance of "daily stock report" helps

the management in placing in inventory of raw materials. The production

department does not own warehousing facilities for sealed bottle is filled

by shipping department which is just beside the plant. The production

reach its peak during the month of April to July. During this period it

produces nearly 75% of its total annual production.


MARKET SHARE OF DIFFERENT FLAVOURS

Market share of Cola


Market share of Orange

Market share of Clear Lime


Market share in Mango


Organisation setup of Coca-Cola Industry

Company CEO

President sales/marketing

President Finance

PresidentH.R.

Vice President

G. Manager

Sales. Manager

Area Sales Manager

Sales Excutive

Sales Officer

Marketing DeveloperRural Developer


CHAPTER 5

IMPORTANCE AND RELEVANCE OF THE STUDY


IMPORTANCE AND RELEVANCE OF THE STUDY

Pre Sale concept is a new concept which is still in experimental stage in Muzaffarpur . Before

implementing it the company has to look for it advantages and disadvantages. The added

advantages which it can give to the company against its competitors. whether alone it will be

sufficient to channlise the market and gain position over its competitors. Or the company has to

follow mix of pre sale concept with the traditional method in which the counters were asked for

the orders while keeping the carriage van in front of them.

The study of pre sale concept is a vauge topic keeping in mind the practical advantages

and its disadvantages. As marketing is not a theoretical part but it’s a practical part of any

company’s strategy. Before implementing it needs to be studied in detail.

Pre Sale Concept itself defines its meaning, It means simply taking orders before

fulfilling the demand. It is just opposite to the traditional manner in which the order was used to

be taken hand to hand with the stock in the carrier standing in front of the dealer or seller.

The importance of pre sale is that as orders are taken before hand so the supply chain can

be organized properly so that not a single counter is left as there is less availability of material in

the carriage van as the order is placed before hand . As in the traditional manner the quantity of

the material which a carriage van could carry was almost supplied to the counter irrespective of



advantage of it.

Even the right quantity of different flavours could not be carried on the carriage van

according to the needs without the pre sale concept.


PRE SALE CONCEPT- A THEORETICAL ASPECT

Pre sale is a part of marketing strategies implemented by Coca Cola to promote RED

concept. It is a new concept implemented in Bihar and is still in experimental stage. Pre Sale

Concept itself defines its meaning, It means simply taking orders before fulfilling the demand. It

is just opposite to the traditional manner in which the order was used to be taken hand to hand

with the stock in the carrier standing in front of the dealer or seller.

The importance of pre sale is that as orders are taken before hand so the supply chain can be

organized properly so that not a single counter is left as there is less availability of material in the

carriage van as the order is placed before hand . As in the traditional manner the quantity of the

material which a carriage van could carry was almost supplied to the counter irrespective of



advantage of it.

Pre Sale concept is a part of marketing strategy implemented by Coca Cola to Promote RED

concept and channelise the distribution system so that the the supply and demand is in

euqillibrium. So we need to understand what is market strategy first of all.

A marketing strategy serves as the foundation of a marketing plan. A marketing plan contains a

list of specific actions required to successfully implement a specific marketing strategy. An

example of marketing strategy is as follows: "Use a low cost product to attract consumers. Once

our organization, via our low cost product, has established a relationship with consumers, our

organization will sell additional, higher-margin products and services that enhance the

consumer's interaction with the low-cost product or service."

Marketing strategies serve as the fundamental underpinning of marketing plans designed to

reach marketing objectives. It is important that these objectives have measurable results.


A good marketing strategy should integrate an organization's marketing goals, policies, and

action sequences (tactics) into a cohesive whole. The objective of a marketing strategy is to

provide a foundation from which a tactical plan is developed. This allows the organization to

carry out its mission effectively and efficiently.

One used the following techniques to device the Marketing Strategy for the product/service:

Segmentation

Targeting

Positioning

Segmentaion:

Market segmentation is the process in marketing of grouping a market (i.e. customers) into

smaller subgroups. This is not something that is arbitrarily imposed on society: it is derived from

the recognition that the total market is often made up of submarkets (called 'segments'). These

segments are homogeneous within (i.e. people in the segment are similar to each other in their

attitudes about certain variables). Because of this intra-group similarity, they are likely to

respond somewhat similarly to a given marketing strategy. That is, they are likely to have similar

feeling and ideas about a marketing mix comprised of a given product or service, sold at a given

price, distributed in a certain way, and promoted in a certain way.

Market segmentation is widely defined as being a complex process consisting in two main

phases:

- identification of broad, large markets

- segmentation of these markets in order to select the most appropriate target markets and

develop Marketing mixes accordingly.

Everyone within the Marketing world knows and speaks of segmentation yet not many truly

understand its underlying mechanics, thus failure is just around the corner. What causes this? It

has been documented that most marketers fail the segmentation exam and start with a narrow

mind and a bunch of misconceptions such as "all teenagers are rebels", "all elderly women buy

http://en.wikipedia.org/wiki/Marketing_mix

http://en.wikipedia.org/wiki/Marketing_strategy

http://en.wikipedia.org/wiki/Attitude_(psychology)

http://en.wikipedia.org/wiki/Society


the same cosmetics brands" and so on. There are many dimensions to be considered, and

uncovering them is certainly an exercise of creativity.

Identify and name the broad market

You have to have figured out by this moment what broad market your business aims at. If your

company is already on a market, this can be a starting point; more options are available for a new

business but resources would normally be a little limited.

The biggest challenge is to find the right balance for your business: use your experience,

knowledge and common sense to estimate if the market you have just identified earlier is not too

narrow or too broad for you.

Identify and make an inventory of potential customers' needs

This step pushes the creativity challenge even farther, since it can be compared to a

brainstorming session.

What you have to figure out is what needs the consumers from the broad market identified earlier

might have. The more possible needs you can come up with, the better.

Got yourself stuck in this stage of segmentation? Try to put yourself into the shoes of your

potential customers: why would they buy your product, what could possibly trigger a buying

decision? Answering these questions can help you list most needs of potential customers on a

given product market.

Formulate narrower markets

Try to form sub-markets around what you would call your "typical customer", then aggregate

similar people into this segment, on the condition to be able to satisfy their needs using the same

Marketing mix. Start building a column with dimensions of the major need you try to cover: this

will make it easier for you to decide if a given person should be included in the first segment or

you should form a new segment. Also create a list of people-related features, demographics

included, for each narrow market you form – a further step will ask you to name them.


There is no exact formula on how to form narrow markets: use your best judgement and

experience. Do not avoid asking opinions even from non-Marketing professionals, as different

people can have different opinions and you can usually count on at least those items most people

agree on.

Identify the determining dimensions Carefully review the list resulted form the previous step.

You should have by now a list of need dimensions for each market segment: try to identify those

that carry a determining power.

Reviewing the needs and attitudes of those you included within each market segment can help

you figure out the determining dimensions.

Name possible segment markets You have identified the determining dimensions of your

market segments, now review them one by one and give them an appropriate name.

A good way of naming these markets is to rely on the most important determining dimension.

Evaluate the behavior of market segments

Once you are done naming each market segment, allow time to consider what other aspects you

know about them. It is important for a marketer to understand market behavior and what triggers

it. You might notice that, while most segments have similar needs, they're still different needs:

understanding the difference and acting upon it is the key to achieve success using competitive

offerings.

Estimate the size of each market segment

Each segment identified, named and studied during the previous stages should finally be given

an estimate size, even if, for lack of data, it is only a rough estimate.

Positioning

Simply, positioning is how your target market defines you in relation to your competitors.


A good position is:

1. What makes you unique

2. This is considered a benefit by your target market

Both of these conditions are necessary for a good positioning. So what if you are the only red-

haired singer who only knows how to play a G minor chord? Does your target market consider

this a good thing?

Positioning is important because you are competing with all the noise out there competing for

your potential fans attention. If you can stand out with a unique benefit, you have a chance at

getting their attention.

It is important to understand your product from the customers point of view relative to the

competition.

Environment

In order to begin positioning a product, two questions need to be answered:

1.What is our marketing environment?

2.What is our competitive advantage?

The marketing environment is the external environment. Some things to consider:

How is the market now satisfying the need your software satisfies?

What are the switching costs for potential users for your market?

What are the positions of the competition?

The competitive advantage is an internal question. What do you have that gives you advantage

over your competitors. Some things to consider:

Is your company small and flexibility?

Do you offer low cost and high quality?

Does your product offer unique benefits?


Are you the first on the market with this product (First mover advantage)?

Positioning Strategies

There are seven positioning strategies that can be pursued:

Product Attributes: What are the specific product attributes?

Benefits: What are the benefits to the customers?

Usage Occasions: When / how can the product be used?

Users: Identify a class of users.

Against a Competitor: Positioned directly against a competitor.

Away from a Competitor: Positioned away from competitor.

Product Classes: Compared to different classes of products.

Targeting:

Target Marketing involves breaking a market into segments and then concentrating your

marketing efforts on one or a few key segments.

Target marketing can be the key to a small business’s success.

The beauty of target marketing is that it makes the promotion, pricing and distribution of your

products and/or services easier and more cost-effective. Target marketing provides a focus to all

of your marketing activities.

So if, for instance, I open a catering business offering catering services in the client’s home,

instead of advertising with a newspaper insert that goes out to everyone, I could target my

market with a direct mail campaign that went only to particular residents.


While market segmentation can be done in many ways, depending on how you want to slice up

the pie, three of the most common types are:

Geographic segmentation – based on location such as home addresses;

Demographic segmentation – based on measurable statistics, such as age or income;

Psychographic segmentation – based on lifestyle preferences, such as being urban

dwellers or pet lovers.

So from the above it is clear that what all things have to be kept in mind before making a market

strategy. Pre sale concept has been made keeping all the above discussed factors in mind .

Product logo of Coca-Cola


1)

2)



PULPY ORANGE


FANTA


THUMPS UP


LIMCA


SPRITE


KINLEY


GEORGIA GOLD NOT INTRODUCED IN MARKET


MAAZA


NIMU FRESH


COCA COLA


CHAPTER — 6

CONCLUSION, SUGGESTION&

BIBLIOGRAPHY


CONCLUSION

Pre sale concept is a new innovative and a calculative step to harness sales. It gives the comport

for a comfortable flow of flavours required in the market. So that no gap is left between the

supply chain and demand chain. If there lies a gap in demand and supply it gives the competitors

a way to enter into the market or cut the sales of Coca cola.

But only presale concept is not enough to be the leader in the market. It has to be adopted with

the old traditional manner. i.e. it has to be a mix of pre sale and traditional concept. So that the

company is in a position to enjoy advantages of both the concepts.

As business people have recognized that marketing is vitally important to the success of any

organization, a new philosophy of doing business has developed. Marketing has changed its

concept of customer satisfaction. Marketing emphasizes orientation and coordination of

marketing activities to achieve the organization desire objectives.

Marketing deals with identifying and meeting human and social needs. Marketing is an

organizational function and a set of processes for creating, communication and delivering

value to customers and for managing customer relationships in ways that benefit the

organization and its stake holders.

Thus, in overall prospective keeping in view the fact of study, it can be stated that the marketing

technique i.e. RED-Right Execution Daily, adopted by he Coca-Cola is very innovative in

Indian market. The project reveals that RED has been successful launch for Coca-Cola. This is

helping Coca-Cola in garnering a major chunk of market. Coca-Cola has certainly reached new

heights and will be getting more fizz in the coming year.


SUGGESTIONS

The following suggestion may be taken into consideration for implementations whenever found

suitable. It is hoped that these would further improve the distribution in particular and total

operations in general.

Coca-Cola product is in demand. Hence, make them available on all over outlet. Maintain

interrupted supply during peak season/month.

Company has to give something extra to retailer. Although Coca-Cola provided gift like

Key ring, Opener, Lighter etc., but it is not enough.

Company should provide salesman gift like T-shirt, caps etc.

Company should provide customers gift also. As: If should introduce buy one case get

two bottle free etc.

Make can pack available for urban young generation on prominent outlet of town area.

Sponsors tournament or event not only at national or international level but also at local

level.

Give special attention on underutilized rural market.


BIBLIOGRAPHY

WEBSITES:

WWW.COCA-COLAINDIA.COM

WWW.GOOGLE.COM

WWW.EN.WIKIPEDIA.ORG

BOOKS:

MARKETING MANAGEMENT - PHILIP KOTLER

RESEARCH METHODOLOGY - R.S. KOTHARI


CHAPTER — 7

QUESTIONNAIRE


QUESTIONNAIRE

(outlets)

1. Name of the Outlet……………………………………..……

Address ………………………………………………………

Tel. No./ M. No. …………………………………………….

2. Name of the Distributor ……………………………………

3. Exclusive / Shared

a) Yes b) No

4. Ever heard of Pre Sale Concept

a) Yes b) No

5. If heard would thy like to get it imlemented

a) Yes b) No

6. Would they prefer Pre sale to get their orders or the traditional one

a) Yes b) No

7. COLOZ pattern maintained or not

a) Yes b) No


8. IF NOT THE REASONS BEHIND IT

…………………………………………………………………….

…………………………………………………………………….

9. Daily Sales over

a) <100 carats b) >100 carats

c) < 50 carts d) < 10 carats

10. Which flavour enjoys highest sale

a) Thumps Up b) Coca Cola

c) Sprite d) Limca

e) Fanta f) Maaza

g) Pulpy Orange

h) Nimu Fresh

11. The Product in demand is in adequate supply or not

a) Yes b) No

12. Which product is more in supply

a) Thumps Up b) Coca Cola

c) Sprite d) Limca

e) Fanta f) Maaza

g) Pulpy Orange

h) Nimu fresh


13. Are the customers getting the products as per their demand

a) Yes b) No

14. Are the retailers in a position to push alternative product

a) Yes b) No

15. If yes which product and why

………………………………………………………………………………..

………………………………………………………………………………………………………

………………………………………………………

16. Which pack is in most preferred bootle/pet/can

a) bottle b) Pet c) can

17.. Which pack size is in more demand in bottle pack

a) 200 ml b) 300ml

18. Which pack size is in more demand in Pet Pack

a) 1.2litreb) 1.5 litre

c) 2.25 litre

19. Satisfied with distribution of the products.

a) yes b) No


QUESTIONNIARE

DISTRIBUTOR

1. Name of the Distributor ……………………………………

Address ………………………………………………………

Tel. No./ M. No. …………………………………………….

2. No. of AMC ………………………………………………..

3. No. of outlets ……………………………………………….

4. No of routes covered by them………………………………

5. No. of Sales Man ……………………………………….

6. No. of Carrier Van…………………….…………….…….

7. No. of Thelas ………………………………….…………..

8. Ever heard of Pre Sale Concept

a) Yes b) No

9. If heard would they like to get it imlemented

a) Yes b) No

If no why

…………………………………………………………….

10. Do they have enough man power to implement it

a) Yes b) No


coca cola marketing annalysis

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