“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

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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

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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.

35

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

37

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

41

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,

53

- 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.

55

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

56

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)

57

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.

67

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,

68

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.

71

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.

73

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

92

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.

93

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.

115

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.

118

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.

119

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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