Project Report m4- 13 & 27

A

PROJECT REPORT ON

ROUTE TO MARKET IN BEVERAGE INDUSTRY

PROJECT UNDERTAKEN

AT

ADVANCE SALES & SERVICES COCA-COLA, LUCKNOW

In partial fulfillment of

POST GRADUATE DIPLOMA IN MANAGEMENT

(2009-11)

UNDER THE GUIDANCE OF:

Mr. K.V. Rama Rao

Dy. Director (Training &Placements)

&

Mr.Vyom Srivastava

(RTM Manager)

By:

PAWAN RAM TRIPATHI

&

ASHISH DWIVEDI

Roll No. M4-27

SIVA SIVANI INSTITUTE OF MANAGEMENT, KOMPALLY, SECUNDERABAD-500014

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ACKNOWLEDGEMENT

I would like to express my heartiest gratitude to Ms. MEGHNA (HR Manager) of Advance

Sales & Services-Coca-Cola, Lucknow for giving me an opportunity to associate myself to the

world’s largest soft drink Co.

I am sincerely thankful to Mr. VYOM SRIVASTAVA (RTM Manager) of Advance Sales &

Services-Coca-Cola, Lucknow and also my faculty guide Mr. K.V.RAMA RAO under whose

guidance I have successfully completed this project. I thank him for his consent, encouragement,

and warm response and for filling every gap with valuable ideas that has made this project

successful.

I am also thankful to outlet holders to whom we visited for their support, information, cooperation,

advice to complete my project detail.

I would like to thank our Head of Marketing Department Dr. ANIL RAMESH (H.O.D.) and

Prof. K.V.S.KRISNAMOHAN for giving sound marketing concepts which helped me in

completing this Project.

Date: / / Pawan Ram Tripathi

&

Ashish Dwivedi

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DECLARATION

I, PAWAN RAM TRIPATHI, declare that this project report titled “Route To Market” has

been carried out by me under the guidance of Prof. K.V.RAMA RAO of Siva Sivani Institute

Of Management and Mr. VYOM SRIVASTAVA of Advance Sales & Services Pvt Ltd

Lucknow and it is my original work as part of my academic course.

Date: / / Pawan Ram Tripathi

&

Ashish Dwivedi

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CONTENT

TABLE OF CONTENT Page no.

Acknowledgement

Declaration

Certificate

List of tables

Chapter – 1 ………………………………………………………………………………………………… 02

Introduction

Significance of the Study

Objectives of the study

Literature Review

Chapter – 2 ………………………………………………………………………………………………... 09

Industry Profile

Company Profile

Chapter – 3 ………………………………………………………………………………………………… 39

Research Methodology

Research Design

Sample Profile

Tools and Methods Data Collection

Data Processing and Analysis

Limitations

Chapter – 4 ………………………………………………………………………………………………… 41

Data Analysis and Interpretation

Chapter – 5 ………………………………………………………………………………………………… 55

Findings and Recommendations

Bibliography ……………………………………………………………………………………………… 59

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Chapter 1 Introduction

Significance of the Study

Objectives of the study

Literature Review

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INTRODUCTION

Today India is one of the most sought after countries for foreign investments because of their

continually growing market opportunities. Since the early 1990’s Coca-Cola Corporation and

PepsiCo have been combating on what is known as the “Beverage Battlefield” in India. Other

major players in Indian soft drinks industry are Parle agro, Dabur, Balan natural food, Pioma

industries etc.

Coca-Cola being a global company has several brands throughout the globe. It has its operations

in more than 200 countries with 400 products and India is one of them. The company is leading

over rivalry companies with major market share and most preferred brands in India. The

company is having 9 major brands viz Coke, Thumbs-up, Sprite, Limca, Fanta, Maaza, Pulpy

Orange, MMNF and Kinley in India. Out of these brands the company is having 3 major juice

drinks which are Maaza , Pulpy Orange and Nimbooz Fresh( recently introduced in Indian

market). In India Coca-Cola does its business on franchise basis. This `RTM` project is done for

an area of Advance Sales And Service Pvt Ltd (Franchise in Lucknow). RTM stands for Route

To Market, helps in designing route and planning for distribution.

COCA-COLA ENTERPRISE INC.

Type : Public Founded : 1892

Headquarters : Atlanta Georgia USA

Chief Executing Officer : Muhtar Kent

Chief Financial Officer : Gary P.Fayard

Industry : Beverages

Revenue : US$31.0 billion

Operating income : US$8.23 billion

Net Income : US$5.82 billion

Total assets : US$48.7 billion

Total equity : S$24.8 billion

Employees : 92,000 (approx)

SIGNIFICANCE OF THE STUDY

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This study helps in developing new strategy for growth.

This study helps in evaluating the overall business process of a company.

This study helps the company to know their actual position in the market.

RTM helps to find out the promotion activities of the company and help to make

relevant changes according to their rivalry company.

This study ensures the availability of the product in the market.

The study also helps in the evaluation of the market developer.

RTM helps to decrease the expenditures by designing cost effective and efficient routes

for distribution.

This study helps in designing ROUTE MAP for seamless distribution.

RTM shows the importance of infrastructure (godown, stock, vehicle, manpower) and

helps in determining the appropriate infrastructure.

The project is also significant to the author in the following manner

I learnt the art of selling while doing this study.

I came to know about business operation of Coca Cola.

I learnt the organizational behavior.

Working on RTM, I learnt the distribution strategy adopted for different shops.

I learnt the importance of planning process and its effect and running effective

distribution process.

I learnt route mapping and differentiation of outlets for effective distribution.

I was able to apply our academic knowledge to do the study.

OBJECTIVES OF STUDY

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1. To find out the present status of Coke brands at the retail outlets in the area.

2. To check the performance of market developer by checking the condition of visi cooler.

3. To find out the ROI of the distributer and decide the map for route and channels.

LITERATURE REVIEW

The manufacturing of the soft drinks began in the 1830’s. However, evolution of the soft drinks

took place over a much longer period. The forerunners of soft drinks began more than 2,000 year

ago when Hippocrates, the “Father of Medicine”, first suspected that mineral waters could be

beneficial to our well being.

The soft drink industry was seasonal business in the early days, operating the primarily during

the summer months. Gradually, demand grew for soft drink to be consumed in the home.

Automatic vending machines began to appear in the 1920’s, one again changing the business of

soft drinks. Vending machines and fountain dispensers led the way to the expansion of soft drink

to industrial outlets. New technology helped soft drink bottlers meet going consumer demand by

significantly increasing the product availability. The mushrooming demand for the product

resulted in the growth of the soft drink industry. Inventors of the soft drinks spread their products

across by opening a few strategically placed bottling facilities so franchise agreements.

Responding to consumer demand, industry rolled out soft drinks in cans and introduces diet

beverages to the market. Carriers were develop for convenience and ease in taking soft drinks

from the store to the home. Development of new flavors, sale of cans products in vending

machines and invention of Poly Ethylene Tetra phthalate (PET) bottles followed.

The soft drinks market in India till early 1990’s was in hands of domestic players like Campa ,

ThumsUp, Limca etc but with opening up of the economy and coming of MNC players, Pepsi

and Coke, the market has come totally under their control.

RTM CONCEPT

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The full form of RTM is ROUTE TO MARKET. In this the researcher is given a area and the

researcher has to make a list according to the outlets he gets in that particular area side by side

the researcher has to make a map showing all the outlets which he has listed in his sheet . While

drawing map the researcher should plot the outlets as well as big landmark very clearly. RTM

helps organization to prepare strategy for effective and efficient distribution. It is the function

which starts the process of planning before distribution- directly by franchise and indirectly by

distributor. In the case of direct distribution, it involves the planning, developing new routes,

deciding appropriate vehicle and number of vehicle and making strategy for seamless

distribution. In the case of indirect distribution RTM helps the organization in selecting potential

distributor by evaluating available infrastructure of the distributor, deciding and suggesting

appropriate infrastructure for the distributor, planning seamless distribution in that area by

clubbing appropriate street, developing new routes and deciding which kind of vehicle will visit

a particular route.

RED CONCEPT

Red (right execution daily) is a tool to measure sale team and distributors’ performance in the outlets with respect to all parameters of execution.

RED lays down standards for visi-coolers, brand norms and in-outlet activation elements. It lays down specific norms and elements for enhanced in-out brand execution. It tracks brands and brand pack penetration in outlets.

TYPES OF OUTLETS

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The company has divided their outlets on the basis of the following criteria-

Volume

Channel

Income group

Volume:-

There are four types of outlets according to the volume of sales of the outlet-

Diamond - 800>C/s & above

Gold - 500-799C/s

Silver - 200-499C/s

Bronze - <200C/s

1. Types of outlet (Channel)

(A) Grocery store:-

Grocery (customer profile): Store stocking a variety of regular uses household items. The

channels provide an opportunity for penetration as it propels home consumption. It includes all

kirana stores,juice stall,cold drink stall, departmental stores, supermarkets, provision stores etc.

Necessary Availability - 2 liter and 300ml

(B) Eating & drinking channel (1):-

Eating and Drinking Channel: Outlets range from the high-end restaurants to the smaller dhabas.

These outlets offer multiple Opportunity to effect sales as people usually order something to

drink along With food. It includes

- Restaurants

- Bars and Pubs

- Dhabas

- Sweet shops

- Quick service restaurants

(C) Eating & drinking channel (2):-

It includes minimum 5 set table & chair outlets.

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(D) Convenience channel:-

Pan/bidi shops (customer profile):- This segment includes PAN BIDDI outlets that stock

cigarettes, mint, and confectionary. It covers STD/ISD phone booths, travel channel etc. These

are small outlets that mainly sell 200ml or 300ml bottles. They may also sell 600ml.

Income group:-

According to the income group of the area-

Low

Medium

High

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Chapter 2 Industry Profile

Company Profile

INDUSTRY PROFILE

Soft drinks industry in India:-

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Soft drink market size for FY05 was around 310 mn cases (7740mn bottles). The market

witnessed 5- 6% growth in the early‘90s. Presently the market growth has growth rate of 7- 8%

per annum compared to 22% growth rate in the previous year. The market size for FY08 is

expected to be 10400 mn bottles.

Soft Drink Production area:-

The market preference is highly regional based. While cola drinks have main markets in metro

cities and northern states of UP, Punjab, Haryana etc. Orange flavored drinks are popular in

southern states. Sodas too are sold largely in southern states besides sale through bars. Western

markets have preference towards mango flavored drinks. Diet coke presently constitutes just

0.7% of the total carbonated beverage market.

Growth promotional activities:-

The government has adopted liberalized policies for the soft drink trade to give the industry a

boast and promote the Indian brands internationally. Although the import and manufacture of

international brands like Pepsi and Coke is enhanced in India the local brands are being

stabilized by advertisements, good quality and low cost. The soft drinks market till early 1990s

was in hands of domestic players like “Campa, Thums Up, Limca” etc but with opening up of

economy and coming of MNC players Pepsi and Coke the market has come totally under their

control.

The distribution network of Coca-cola had 11.5 lakhs outlets across the country in FY05, which

the company is planning to increase to 15 lakhs by FY08. On the other hand Pepsi Co's

distribution network had 10.7 lakhs outlets across the country during FY05 which it is planning

to increase to 13 lakhs by FY08.

Types –

Soft drinks are available in glass bottles, aluminum cans and PET bottles for home consumption.

Fountains also dispense them in disposable containers Non-alcoholic soft drink beverage market

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can be divided into fruit drinks and soft drinks. Soft drinks can be further divided into carbonated

and non-carbonated drinks. Cola, lemon and oranges are carbonated drinks while mango drinks

come under non carbonated category.

The market can also be segmented on the basis of types of products into cola products and non-

cola products. Cola products account for nearly 61-62% of the total soft drinks market. The

brands that fall in this category are Pepsi, Coca-Cola, Thumps Up, diet coke, Diet Pepsi etc.

Non-cola segment which constitutes 36% can be divided into 4 categories based on the types of

flavors available, namely: Orange, Cloudy Lime, Clear Lime and Mango. Since the early 1990’s

Coca-Cola Corporation and PepsiCo have been combating on what is known as the “Beverage

Battlefield” in India. Today India is one of the most sought after countries for foreign

investments because of their continually growing market opportunities. However during Coca-

Cola and Pepsi’s attempts to broaden their global consumer bases both companies encountered

several obstructions on their pursuits of conquering the Indian soft drink market.

Initial difficulties:-

From a historical standpoint, Coca-Cola and Pepsi were facing obstructions even before entering

the market in the late 1980’s. Coca Cola’s past venture in India had ended on bad terms with the

Indian government BEVERAGES Alcoholic Non-Alcoholic Carbonated Non-Carbonated Cola

Non-Cola when they refused to offer up their trade secrets. During the absence of foreign

investment in the soft drink industry in India a local company, Parle, became the market leader.

Parle invested a great deal into their leading brand, Thumps Up, and played a dominant role in

the soft drink industry until the liberalization of the Indian economy in 1991. After this time

many of the political and legal obstacles facing Coca-Cola and Pepsi were lessened.

Political challenges:-

Other political challenges hindered the success of Coca-Cola and Pepsi in India as well. In 2003,

when the United States and Britain invaded Iraq, the All-India Anti-Imperialist Forum called a

boycott on goods from America and India. Indian’s protested American companies for the war

and specifically targeted Coca-Cola and Pepsi products. While the war was beyond control for

these two companies, management perhaps could’ve done more to not only attempt to predict the

backlash from Indian consumers due to the war, but also could’ve created advertisement

campaigns to address the situation. While political and legal factors produced problems for

Coca-Cola and Pepsi, both Coca-Cola and Pepsi did a lot of things to prevent that situation from

happening. Both companies heavily participated in the cultural festival of Navratri in western

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India to promote their products and create brand awareness in a culturally traditional setting. The

companies also produced television and print advertisements that linked important Indian themes

to their products by “building a connect using the relevant local idioms” Coca-Cola and Pepsi

both utilized popular Indian sporting events, athletes, and celebrities to endorse their products.

Both companies could’ve made the mistake of using American celebrities or already made

American commercials to advertise their products in India, but instead made the right move by

making advertisements to specifically target their foreign market.

Pricing policy for Indian market:-

Coca-Cola and Pepsi also made the right moves by adapting to cultural barriers in India. One

such barrier was the affordability of products for Indians. Because India is a country where

people are known to live on very little a day, the idea of getting people to spend what little they

have on a soft drink could be quite a stretch. However Coca-Cola India went with an aggressive

pricing policy and reduced the price of their soft drinks in 2003 from 15% to 25% nationwide.

To compete competitively in the market, Pepsi reduced their prices as well. This move allowed

both companies to offer products that were affordable to the target market in India but also

encouraged more Indians to consume Pepsi and Coca Cola products. Both companies also

created smaller sized bottles to allow for lower prices for Indian consumers. Coca-Cola and

Pepsi created bottles ranging in size from 200 ml to 500 ml to adapt to cultural needs and

increase their sales. By offering smaller sized bottles many consumers also increased the

frequency in which they were purchasing the soft drinks.

Coca-cola in India:-

Coca-Cola was the leading soft drink brand in India until 1977 when it left rather than reveals its

formula to the government and reduces its equity stake as required under the Foreign Exchange

Regulation Act (FERA) which governed the operations of foreign companies in India. After a

16-year absence, Coca-Cola returned to India in 1993, cementing its presence with a deal that

gave Coca-Cola ownership of the nation's top soft-drink brands and bottling network. Coke’s

acquisition of local popular Indian brands including Thums Up (the most trusted brand in

India21), Limca, Maaza, Citra and Gold Spot provided not only physical manufacturing,

bottling, and distribution assets but also strong consumer preference. This combination of local

and global brands enabled Coca-Cola to exploit the benefits of global branding and global trends

in tastes while also tapping into traditional domestic markets. Leading Indian brands joined the

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Company's international family of brands, including Coca- Cola, diet Coke, Sprite and Fanta,

plus the Schweppes product range. In 2000, the company launched the Kinley water brand and in

2001, Shock energy drink and the powdered concentrate Sunfill hit the market. From 1993 to

2003, Coca-Cola invested more than US$1 billion in India, making it one of the country’s top

international investors. By 2003, Coca- Cola India had won the prestigious Woodruf Cup from

among 22 divisions of the Company based on three broad parameters of volume, profitability,

and quality. Coca-Cola India achieved 39% volume growth in 2002 while the industry grew 23%

nationally and the Company reached breakeven profitability in the region for the first time.23

Encouraged by its 2002 performance, Coca-Cola India announced plans to double its capacity at

an investment of $125 million (Rs. 750 crore) between September 2002 and March 2003.24

Coca-Cola India produced its beverages with 7,000 local employees at its twenty-seven wholly-

owned bottling operations supplemented by seventeen franchisee-owned bottling operations and

a network of twenty-nine contract packers to manufacture a range of products for the company.

The complete manufacturing process had a documented quality control and assurance program

including over 400 tests performed throughout the process The complexity of the consumer soft

drink market demanded a distribution process to support 700,000 retail outlets serviced by a fleet

that includes 10- ton trucks, open-bay three wheelers, and trademarked tricycles and pushcarts

that were used to navigate the narrow alleyways of the cities.25 In addition to its own employees,

Coke indirectly created employment for another 125,000 Indians through its procurement,

supply, and distribution networks.

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Now the question is why is the soft drink industry so profitable?

An industry analysis through Porter’s Five Forces reveals that market forces are favorable for

profitability.

Defining the industry: - Both the concentrate producers (CP) and bottlers are profitable.

These two parts of the industry are extremely interdependent, sharing costs in procurement,

production, marketing and distribution. Many of their functions overlap; for instance, CPs does

some bottling, and bottlers conduct many promotional activities. The industry is already

vertically integrated to some extent. They also deal with similar suppliers and buyers. Entry into

the industry would involve developing operations in either or both disciplines. Beverage

substitutes would threaten both CPs and their associated bottlers. Because of operational overlap

and similarities in their market environment, we can include both CPs and bottlers in our

definition of the soft drink industry. In 1993, CPs earned 29% pretax profits on their sales, while

bottlers earned 9% profits on their sales, for a total industry profitability of 14%. This industry as

a whole generates positive economic profits.

Rivalry: - Revenues are extremely concentrated in this industry, with Coke and Pepsi, together

with their associated bottlers, commanding 73% of the case market in 1994. Adding in the next

tier of soft drink companies, the top six controlled 89% of the market. In fact, one could

characterize the soft drink market as an oligopoly, or even a duopoly between Coke and Pepsi,

resulting in positive economic profits. To be sure, there was tough competition between Coke

and Pepsi for market share, and this occasionally hampered profitability. For example, price wars

resulted in weak brand loyalty and eroded margins for both companies in the 1980s. The Pepsi is

Challenge, meanwhile, affected market share without hampering per case profitability, as Pepsi

was able to compete on attributes other than price.

Substitutes: - Through the early 1960s, soft drinks were synonymous with “colas” in the mind

of consumers. Over time, however, other beverages, from bottled water to teas, became more

popular, especially in the 1980s and 1990s. Coke and Pepsi responded by expanding their

offerings, through alliances (e.g. Coke and Nestea), acquisitions (e.g. Coke and Minute Maid),

and internal product innovation (e.g. Pepsi creating Orange Slice), capturing the value of

increasingly popular substitutes internally. Proliferation in the number of brands did threaten the

profitability of bottlers through 1986, as they more frequent line set-ups, increased capital

investment, and development of special management skills for more complex manufacturing

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operations and distribution. Bottlers were able to overcome these operational challenges through

consolidation to achieve economies of scale. Overall, because of the CPs efforts in

diversification, however, substitutes became less of a threat.

Power of Suppliers:- The inputs for Coke and Pepsi’s products were primarily sugar and

packaging. Sugar could be purchased from many sources on the open market, and if sugar

became too expensive, the firms could easily switch to corn syrup, as they did in the early 1980s.

So suppliers of nutritive sweeteners did not have much bargaining power against Coke, Pepsi or

from their bottlers. NutraSweet, meanwhile, had recently come off patent in 1992, and the soft

drink industry gained another supplier, Holland Sweetener, which reduced Searle’s bargaining

power and lowering the price of aspartame. With an abundant supply of inexpensive aluminum

in the early 1990s and several can companies competing for contracts with bottlers, can suppliers

had very little supplier power. Furthermore, Coke and Pepsi effectively further reduced the

supplier of can makers by negotiating on behalf of their bottlers, thereby reducing the number of

major contracts available to two. With more than two companies vying for these contracts, Coke

and Pepsi were able to negotiate extremely favorable agreements. In the plastic bottle business,

again there were more suppliers than major contracts, so direct negotiation by the CPs was again

effective at reducing supplier power.

Power of buyers: - The soft drink industry sold to consumers through five principal

channels: food stores, convenience and gas, fountain, vending, and mass merchandisers (primary

part of “Other” in “Cola Wars…”case). Supermarkets, the principal customer for soft drink

makers, were a highly fragmented industry. The stores counted on soft drinks to generate

consumer traffic, so they needed Coke and Pepsi products. But due to their tremendous degree of

fragmentation (the biggest chain made up 6% of food retail sales, and the largest chains

controlled up to 25% of a region), these stores did not have much bargaining power. Their only

power was control over premium shelf space, which could be allocated to Coke or Pepsi

products. This power did give them some control over soft drink profitability. Furthermore,

consumers expected to pay less through this channel, so prices were lower, resulting in

somewhat lower profitability. National mass merchandising chains such as Wal-Mart, on the

other hand, had much more bargaining power. While these stores did carry both Coke and Pepsi

products, they could negotiate more effectively due to their scale and the magnitude of their

contracts. For this reason, the mass merchandiser channel was relatively less profitable for soft

drink makers. The least profitable channel for soft drinks, however, was fountain sales.

Profitability at these locations was so abysmal for Coke and Pepsi that they considered this

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channel “paid sampling.” This was because buyers at major fast food chains only needed to stock

the products of one manufacturer, so they could negotiate for optimal pricing. Coke and Pepsi

found these channels important, however, as an avenue to build brand recognition and loyalty, so

they invested in the fountain equipment and cups that were used to serve their products at these

outlets. As a result, while Coke and Pepsi gained only 5% margins, fast food chains made 75%

gross margin on fountain drinks. Vending, meanwhile, was the most profitable channel for the

soft drink industry. Essentially there were no buyers to bargain with at these locations, where

Coke and Pepsi bottlers could sell directly to consumers through machines owned by bottlers.

Property owners were paid a sales commission on Coke and Pepsi products sold through

machines on their property, so their incentives were properly aligned with those of the soft drink

makers, and prices remained high. The customer in this case was the consumer, who was

generally limited on thirst quenching alternatives. The final channel to consider is convenience

stores and gas stations. If Mobil or Seven-Eleven were to negotiate on behalf of its stations, it

would be able to exert significant buyer power in transactions with

Coke and Pepsi, Apparently, though, this was not the nature of the relationship between soft

drink producers and this channel, where bottlers’ profits were relatively high, at $0.40 per case,

in 1993. With this high profitability, it seems likely that Coke and Pepsi bottlers negotiated

directly with convenience store and gas station owners. So the only buyers with dominant power

were fast food outlets. Although these outlets captured most of the soft drink profitability in their

channel, they accounted for less than 20% of total soft drink sales. Through other markets,

however, the industry enjoyed substantial profitability because of limited buyer power.

Barriers to Entry: It would be nearly impossible for either a new CP or a new bottler to enter the

industry. New CPs would need to overcome the tremendous marketing muscle and market

presence of Coke, Pepsi, and a few others, who had established brand names that were as much

as a century old. Through their DSD practices, these companies had intimate relationships with

their retail channels and would be able to defend their positions effectively through discounting

or other tactics. So, although the CP industry is not very capital intensive, other barriers would

prevent entry. Entering bottling, meanwhile, would require substantial capital investment, which

would deter entry. Further complicating entry into this market, existing bottlers had exclusive

territories in which to distribute their products. Regulatory approval of intrabrand exclusive

territories, via the Soft Drink Interbrand Competition Act of 1980, ratified this strategy, making

it impossible for new bottlers to get started in any region where an existing bottler operated,

which included every significant market in the US. In conclusion, an industry analysis by

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Porter’s Five Forces reveals that the soft drink industry in 1994 was favorable for positive

economic profitability, as evidenced in companies’ financial outcomes.

Compare the economics of the concentrate business to the bottling business. Why is

the profitability so different?

In some ways, the economics of the concentrate business and the bottling business should be

inextricably linked. The CPs negotiates on behalf of their suppliers, and they are ultimately

dependent on the same customers. Even in the case of materials, such as aspartame, those are

incorporated directly into concentrates, CPs pass along any negotiated savings directly to their

bottlers. Yet the industries are quite different in terms of profitability. The fundamental

difference between CPs and bottlers is added value. The biggest source of added value for CPs is

their proprietary, branded products. Coke has protected its recipe for over a hundred years as a

trade secret, and has gone to great lengths to prevent others from learning its cola formula. The

company even left a billion-person market (India) to avoid revealing this information. As a result

of extended histories and successful advertising efforts, Coke and Pepsi are respected household

names, giving their products an aura of value that cannot be easily replicated. Also hard to

replicate are Coke and Pepsi’s sophisticated strategic and operational management practices,

another source of added value. Bottlers have significantly less added value. Unlike their CP

counterparts, they do not have branded products or unique formulas. Their added value stems

from their relationships with CPs and with their customers. They have repeatedly negotiated

contracts with their customers, with whom they work on an ongoing basis, and whose

idiosyncratic needs are familiar to them. Through long-term, in depth relationships with their

customers, they are able to serve customers effectively. Through DSD programs, they lower their

customers’ costs, making it possible for their customers to purchase and sell more product. In

this way, bottlers are able to grow the pie of the soft drink market. Their other source of

profitability is their contract relationships with CPs, which grant them exclusive territories and

share some cost savings. Exclusive territories prevent intrabrand competition, creating

oligopolies at the bottler level, which reduce rivalry and allow profits. To further build “glass

houses,” as described by Nalebuff and Brandenberger (Co-opetition, p. 88), for their bottlers,

CPs pass along some of their negotiated supply savings to their bottlers. Coke gives 2/3 of

negotiated aspartame savings to its bottlers by contract, and Pepsi does this in practice. This

practice keeps bottlers comfortable enough, so that they are unlikely to challenge their contracts.

Bottlers’ principal ability is to use their capital resources effectively. Such operational

effectiveness is not a driver of added value, however, as operational effectiveness is easily

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replicated. Between 1986 and 1993, the differences in added value between CPs and bottlers

resulted in a major shift in profitability within the industry. Exhibit 1 demonstrates these

dramatic changes. While industry profitability increased by 11%, CP profits rose by 130% on a

per case basis, from $0.10 to $0.23. During this period, bottler profits actually dropped on a per

case basis by 23%, from $0.35 to 0.27. One possibility is that product line expansion in defense

against new age beverages helped CPs but hurt bottlers. This would be expected if bottler’s per

case costs increased due to the operational challenges and capital costs of producing and

distributing broader product lines. This, however, was not the case; cost of sales per case

decreased for both CPs and bottlers by 27% during this period, mostly due to economies of scale

developed through consolidation. The real difference between the fortunes of CPs and bottlers

through this period, then, is in top line revenues. While CPs was able to charge more for their

products, bottlers faced price pressure, resulting in lower revenues per case. These per case

revenue changes occurred during a period of slowing growth in the industry, as shown in Exhibit

2. Growth in per capita consumption of soft drinks slowed to a 1.2% CAGR in the period 1989 to

1993, while case volume growth tapered to 2.3%. In a struggle to secure limited shelf space with

more products and slower overall growth, bottlers were probably forced to give up more margins

on their products. CPs, meanwhile, could continue increasing the prices for their concentrates

with the consumer price index. Coke had negotiated this flexibility into its Master Bottling

Contact in 1986, and Pepsi had worked price increases based on the CPI into its bottling

contracts. So, while the bottlers faced increasing price pressure in a slowing market, CPs could

continue raising their prices. Despite improvements in per case costs, bottlers could not improve

their profitability as a percent of total sales. As a result, through the period of 1986 to 1993,

bottlers did not gain any of the profitability gains enjoyed by CPs.

. Why have contracts between CPs and bottlers taken the form they have in the soft

drink industry?

Contracts between CPs and bottlers were strategically constructed by the CPs. Although

beneficial to bottlers on the surface, the contracts favored the CPs’ long-term strategies in

important ways. First, territorial exclusivity is beneficial to bottlers, as it prevents intrabrand

competition, ensures bargaining power over buyers and establishes barriers to entry. But it is also

beneficial to CPs, who are also not subject to price wars within their own brand. The contracts

also excluded bottlers from producing the flagship products of competitors. This created

monopoly status for the CPs, from the bottler perspective. Each bottler could only negotiate with

one supplier for its premium product. Violation of this stipulation would result in termination of

Page | 21

the contract, which would leave the bottler in a difficult position. Historically, contracts were

designed hold syrup prices constant into perpetuity, only influenced by rising prices of sugar.

This changed in 1978 and 1986, as contracts were renegotiated, first to accommodate for rises in

the CPI, and then to give general flexibility to the CP (Coke) in setting prices. Coke could

negotiate this more flexible pricing because its bottlers were dependent on it for business. It

further ensured that its bottlers would be captive to its monopoly status by buying major bottlers

and then selling them into the CCE holding company, which would only produce Coke products.

Coke would capture 49% of the dividends from CCE, without the complications of vertical

integration.

Major players:-

Apart from Coca-cola, other major players are as follows:

Pepsi Co: - Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006.

During her time, healthier snacks have been marketed and the company is striving for a net-zero

impact on the environment. This focus on healthier foods and lifestyles is part of Nooyi's

"Performance with Purpose" philosophy. Their main product, Pepsi Cola, sells over 100 billion

cans a year. Besides the Pepsi-Cola brands, the company owns the brands Quaker Oats,

Gatorade, Frito-Lay, SoBe, Naked, Tropicana, Copella, Mountain Dew, Mirinda and 7-Up

(outside the USA).

PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab government-

owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture

marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo

bought out its partners and ended the joint venture in 1994. Others claim that firstly Pepsi was

banned from import in India, in 1970, for having refused to release the list of its ingredients and

in 1993, the ban was lifted, with Pepsi arriving on the market shortly afterwards.

Dabur India:- Dabur india ltd Dabur India Limited is the fourth largest FMCG Company in

India and Dabur had a turnover of approximately US$ 600 Million (Rs. 2,834.11 Crore fy09) &

Market Capitalization of over US$ 2.2 Billion (Rs 10,000 Crore), with brands like Dabur Amla,

Dabur Chyawanprash, Vatika, Hajmola and Real.

About real: - Real has been the preferred choice of consumers when it comes to packaged

fruit juices, which is what, makes India's No. 1 Fruit Juice brand. A validation of this success is

that real has been awarded ‘India’s Most Trusted Brand’ status for four years in a row.

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Today, real has a range of 14 exciting variants - from the exotic Indian Mango, Mausambi, and

Guava & Litchi to international favorites like Pomegranate, Tomato, Cranberry, Peach,

Blackcurrant & Grape and the basic Orange, Pineapple, Apple & Mixed Fruit. This large range

helps cater different needs and occasions and has helped real maintain its dominant market share.

Real active: - Real active is a range of unsweetened juices that contain no adder sugar colours

or preservatives. Real active juices are made from concentrated juices. After the juice is pressed

from the fruit, the water is removed to reduce transportation load.

Real burrst: - Real burrst, the latest addition to Dabur's Foods portfolio, has a range of light &

refreshing fruit beverage. Available in 4 exciting flavors of Mixed Fruit, Crispy Apple, Orange

Bytez and Mango Mania, Real burrst promises an experience that delivers refreshment through

lightness of fresh fruits to you. Real burrst comes in an attractive tetra pack highlighting the 'Lite

and Refreshing' qualities of fruits that it brings to you. All 4 variants are made available in 1 liter

and 200 ml packs, priced at Rs. 65 and Rs. 15 respectively.

Godrej India: - Godrej Hershey, Ltd. markets juices and fruit drinks, soymilk based drinks,

edible oils, packaged tea, and confectionery products. Godrej Hershey, Ltd. was formerly known

as Godrej Beverages and Food, Ltd. The company was founded in 2002 and is based in Mumbai,

India. It has a confectionery plant in the Chittoor. As of May 2007, Godrej Hershey, Ltd.

operates as a subsidiary of Hershey Co.

Parley agro:-Parle Agro is a trusted name in the Indian beverage industry and has been

refreshing India since two decades with leading brands like Frooti, Appy, Appy Fizz, LMN and

packaged drinking water, Bislery. As an industry pioneer, Parle Agro is the first to introduce fruit

drinks in a Tetra Pak in India, the first to introduce apple nectar and the first to introduce fruit

drinks in PET bottles. In 2007, Parle Agro forayed into the confectionery business. In the

confectionery division, Parle Agro has brands like Mintrox, Buttercup, Buttercup Soft ease and

Frewt Éclairs. The latest product from Parle Agro – Saint Juice was launched in 2008.

COMPANY PROFILES

History of coca-cola:-

The world has changed in many ways since pharmacist; John Styth Pemberton first introduced

the refreshing taste of Coca-Cola in Atlanta, Georgia. The name and the product mean so many

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things to hundreds of Millions of consumers around the globe. Coca-Cola products are served

more than 705 million times every day, quenching the thirsts of consumers in more than 195

countries in every climate. That's a long way to come after such a modest beginning... May 1886

- Pemberton concocted caramel-colored syrup in a three-legged brass kettle in his backyard. He

first "distributed" the new product by carrying Coca-Cola in a jug down the street to Jacobs

Pharmacy. For five cents, consumers could enjoy a glass of Coca-Cola at the soda fountain.

Whether by design or accident, carbonated water was teamed with the new syrup, producing a

drink that was proclaimed "Delicious and Refreshing." Dr. Pemberton's partner and bookkeeper,

Frank M. Robinson, suggested the name and penned, in the unique flowing script that is famous

worldwide today.

1886 - Sales of Coca-Cola averaged nine drinks per day. That first year, Dr. Pemberton sold 25

gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated

with the No. 1 soft drink brand ever since. 1891 - Atlanta entrepreneur As a G. Candler had

acquired complete ownership of the Coca-Cola business for $2,300. Pemberton was forced to

sell because he was in a state of poor health and was in debt. Within four years, Candler's

merchandising flair helped expand consumption of Coca-Cola to every state and territory.

1893 - In January "Coca-Cola" was registered in the U.S. Patent office.

1917 - 3 Million Coke's sold per day. ““Is the world’s most recognized trademark.

1919 - The Coca-Cola Company was sold to a group of investors for $25 million.

1923 - The Coca-Cola Company was sold after the Prohibition Era to Ernest Woodruff for 25

million dollars. He gave Coca-Cola to his son, Robert Woodruff, who would be president for six

decades. Woodruff's leadership took the business to unrivaled heights of commercial success,

making Coca-Cola an institution the world over. During the Woodruff era, Mr. Woodruff made a

promise to the armed forces of the United States to supply Coca-Cola to every serviceperson. He

said that costs and location did not matter; he supplied 5 billion bottles to the service.

1925 - 6 Million Coke's sold per day.

1927 - The first Coca-Cola radio advertisement.

1928 - Sales of bottled Coca-Cola surpassed fountain sales for the first time.

1943 - On June 29, an urgent cablegram arrived from General Dwight Eisenhower's Allied

Headquarters in North Africa, requesting 10 Coca-Cola bottling plants to serve American

servicemen overseas. Eventually, 64 plants were set up during WWII.

1950 - Advertising on the television began. Currently Coca-Cola is advertised on over five

hundred TV channels around the world.

1961 - Sprite was introduced.

1971 - The song "I'd like to buy the World a Coke" was released.

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1978 - The two liter bottle was introduced, and during that same year the company also

introduced plastic bottles

1982 - Diet Coke was introduced in July.

1985 - The Coca-Cola Company made what has been known as one of the biggest marketing

blunder. They stumbled onto a new formula in efforts to produce diet Coke. They put forth 4

million dollars of research to come up with the new formula. The new formula was a sweeter

variation with fewer tangs, it was also slightly smoother. The factor that influenced the change

was that Coke's market share fell 2.5 percent in four years. Each percentage point lost or gain

meant 200 million dollars. This was the first flavor change since the existence of the Coca-Cola

Company. The change was announced April 23, 1985 at the Vivian Beaumont Theater at the

Lincoln Center. Some two hundred TV and newspaper reporters attended this very glitzy

announcement. The change to the world's best selling soft drink was heard by 81 percent of the

United States population within twenty-four hours of the announcement. Within a week of the

change, one thousand calls a day were floo ding the company's eight hundred number. Most of

the callers were shocked and/or outraged, many said that they were considering switching to

Pepsi. Within six weeks, the eight hundred numbers was being jammed by six thousand calls a

day. The company also fielded over forty thousand letters, which were all answered and each

person got a coupon for the new Coke. Many American consumers of Coca-Cola asked if they

would have the final say. When Pepsi heard that the Coca-Cola Company was changing its secret

formula they said that it was a decision that Pepsi tastes better. Roger Enrico, the president and

CEO of Pepsi-Cola wrote a letter to every major newspaper in the U.S. to declare the victory.

Coca-Cola management had to decide: Do nothing or "buy the world a new Coke". They decided

to develop the new formula.

1985 - July 10, eighty-seven days after the new Coke was introduced, the old Coke was brought

back in addition to the new one. This was greatly due to dropping market share and consumer

protest. The market share fell from a high of 15 percent to a low of 1.4 percent. This was said to

be a classic marketing retreat. Coca-Cola executives admitted that they had goofed by taking the

old Coke off the market. The Coca-Cola Company eight hundred numbers received eighteen

thousand calls of gratitude. The comeback of old Coke drove stock prices to the highest level in

twelve years. This was said to be the only way to regain the lead on the cola wars.

1993 - Coca-Cola exceeds 10 Billion cases sold worldwide.

1996 - The Summer Olympics will be held in Atlanta, Georgia, the home of Coca-Cola. For

more than 65 years, Coca-Cola has been a sponsor of the Olympics.

CRS (company social responsibility):-

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One great earmark that the Coca-Cola Company has is helping the people of Atlanta. They

accomplish this through scholarships, hotlines, donations and contributions. Another large

accomplishment that the Coca-Cola has ‘is being the first company to make and use recycled

plastic bottles.

Coke in India:-

Coke India record 1800 crore soft drink makers is prominent. Coca-cola entered in India market

after 16 years from Hathras Dec 1993.Cocacola became the undisputed leader of the Indian soft

drink market because of their aquiring rights of Ramesh Chauhan aerated Parle drinks with one

stroke of pen and a bill of 140 crore, coke picked by five brands Thums up, limca, Goldspot,

Citra, Maaza with a combined rate of 65% with Thumsup alone accounting for 56% then 650

crore segment.

Benchmark:-

Coca-Cola ranks no.1 brand in the world by the business world survey followed by

companies like Microsoft and IBM.

Coca-cola is the market leader in the whole world in beverage industry.

Business week magazine ranks Coca-cola on 4th position in Indian FMCG industry.

Coca-Cola enjoys approx 60% market share in Indian beverage Industry.

Quality Assurance:-

Ever Since, Coca-Cola India has made significant investments to build and continually

consolidate its business in the country, including new production facilities, waste water treatment

plants, distribution systems and marketing channels. Coca-Cola India is among the country’s top

international investors, having invested more than US$ 1 billion in India within a decade of its

presence and further pledged another US$ 100 million in 2003 for its operations.

Coca-cola advertisements it’s the real thing:-

Advertising has played an important role in the success of company’s products since first

newspaper ad in 1886, which read, "Coca-Cola. Delicious! Refreshing! Exhilarating!

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Invigorating" The Company uses advertising to trigger desire as often and in as many ways as

possible. Throughout the years, slogans for Coca-Cola have always been memorable. Here are

some highlights:

2000 - Coca-Cola Enjoy

1993 - Always Coca-Cola

1990 - Can t Beat the Real Thing

1989 - Can t Beat the Feeling

1986 - Red, White and You

1982 - Coke Is It

1976 - Coke Adds Life

1971 - I d Like to Buy the World a Coke

1969 - It s the Real Thing

1963 - Things Go Better with Coke

1959- Be Really Refreshed

1944- Global High Sign

1942- It s the Real Thing

1936- It s the Refreshing Thing To Do

1929 - The Pause That Refreshes

Fine illustrations by noted artists, including Norman Rockwell and N. C. Wyeth, were the

hallmark of early campaigns in premier magazines. Artist Haddon Sundblom s portraits for

holiday ads, which began in the 1930s, helped mould the national image of a red-suited Santa

Claus. Fresh, creative and tasteful, advertising images for Coca-Cola have always set a high

standard of quality for other products around the world. The Company recognizes that Coca-Cola

belongs to the billions of consumers in every corner of the globe who have chosen it as their

favorite soft drink. Company’s advertising reflects that special relationship between consumers

and the simple moments of pleasure they have come to associate with Coca-Cola.

Know about company global bottling system:-

Today, coke products reach consumers and customers around the world through a vast

distribution network made up of local bottling companies. These bottlers are located around the

world, and most are independent businesses. Using syrups, concentrates and beverage bases

produced by The Coca-Cola Company, company’s global bottling system packages and markets

products, and then distribute them to more than 14 million retail outlets worldwide.

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The Coca-Cola Company is committed to assisting its bottlers with the functions of an efficient

bottling operation and initiating quality systems to ensure the highest quality products for our

consumers.

Know the bottling history of coca-cola:-

Coca-Cola began as a fountain product, but candy merchant Joseph A. Biedenharn of Mississippi

was looking for a way to serve this refreshing beverage at picnics. He began offering bottled

Coca-Cola, using syrup shipped from Atlanta, during an especially busy summer in 1894.

In 1899, large-scale bottling became possible when As a Candler granted exclusive bottling

rights to Joseph B. Whitehead and Benjamin F. Thomas of Chattanooga, Tennessee. The contract

marked the beginning of The Coca-Cola Company’s unique independent bottling system that

remains the foundation of Company soft drink operations.

Coca-cola bottles as memorable as the design:-

Back then, soda bottles were all very similar. And Coca-Cola had many imitators, which

consumers would be unable to identify until they took a sip. The answer was to create a distinct

bottle for Coca-Cola. As a result, the contour bottle for Coca-Cola with the shape now known

around the world was developed in 1915 by the Root Glass Company.

Brand Localization Strategy: - The Two Indians

India A: “Life ho to anise”

“India A,” the designation Coca-Cola gave to the market segment including metropolitan areas

and large towns, represented 4% of the country’s population. This segment sought social

bonding as a need and responded to inspirational messages, celebrating the benefits of their

increasing social and economic freedoms. “Life ho to anise,” (life as it should be) was the

successful and relevant tagline found in Coca-Cola’s advertising to this audience.

India B: “Thanda Matlab Coca-Cola”

Coca-Cola India believed that the first brand to offer communication targeted to the smaller

towns would own the rural market and went after that objective with a comprehensive strategy.

“India B” included small towns and rural areas, comprising the other 96% of the nation’s

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population. This segment’s primary need was out-of-home thirst-quenching and the soft drink

category was undifferentiated in the minds of rural consumers. Additionally, with an average

Coke costing Rs. 10 and an average day’s wages around Rs. 100, Coke was perceived as a luxury

that few could afford.

In an effort to make the price point of Coke within reach of this high-potential market, Coca-

Cola launched the Accessibility Campaign, introducing a new 200ml bottle, smaller than the

traditional 300ml bottle found in urban markets, and concurrently cutting the price in half, to Rs.

5. This pricing strategy closed the gap between Coke and basic refreshments like lemonade and

tea, making soft drinks truly accessible for the first time. At the same time, Coke invested in

distribution infrastructure to effectively serve a disbursed population and doubled the number of

retail outlets in rural areas from 80,000 in 2001 to 160,000 in 2003, increasing market

penetration from 13 to 25%.

Coke’s advertising and promotion strategy pulled the marketing plan together using local

language and idiomatic expressions. “Thana,” meaning cool/cold is also generic for cold

beverages and gave “Thana Mat lab Coca-Cola” delicious multiple meanings. Literally translated

to “Coke means refreshment,” the phrase directly addressed both the primary need of this

segment for cold refreshment while at the same time positioning Coke as a “Thana” or generic

cold beverage just like tea, lassi, or lemonade. As a result of the Thana campaign, Coca-Cola

won Advertiser of the Year and Campaign of the Year in 2003.

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Distribution system of Coca Cola Lucknow

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Brindavan Bottlers Pvt. Ltd.

Safedabad Barabanki

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Charbagh

Depot

Khurram Nagar

Depot

Chinhat

Depot

Distribution

Department

General Trade General Trade Dealers and agencies

General Trade Key Accounts

Route 1

Route 2

Route 3

Route 1

Route 2

Route 3

Route 1

Route 2

Route 3

Direct

Route

Various Districts

DIRECTOR

Vivek Ladani

G.M Sales &Mktg

Rajiv SaxenaSales Head

B.K.Srivastava

M.D

M.D. Ladani

Life at Coke

The secret of formula:-

Commitment, tempered by Passion and seasoned with a great deal of

Fun is the Coke way of life. Drawing upon company’s collective

energies, this Secret Formula drives to achieve greater results

collaboratively and thoroughly enjoy while doing it! The pace,

energy and passion of company people constitute the invisible glue

that make coke one of the most sought after workplaces.

Participative leadership:-

Right from coke interactions in the market, company Business

Planning and Brand launches, to company’s Employee

Engagement Programs, Values Agenda, and employee

processes, every system is available for continuous

improvement. A learning atmosphere, enabled by company’s

Manifesto for Growth, helps us seek and replicate the learning’s

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H.R Manager

Meghana

KEY A/L

Ashok Malhotra

RTM Manager

Vyom krishna

R.D Manager

Anil Nigam

MEM

Devender Srivastava

ASM (5)

from within and outside organization. Company Engagement programs enable to examine,

validate and improve, constantly. Company colleagues involve themselves in opportunities for

participative leadership volunteering for work groups that assist decision-making in critical

processes.

Corporate citizenship:-

The Coca-Cola Company believes business has always been based on the trust consumers

everywhere place in —trust that is earned by what we do as a corporate citizen and by our ability

to live our values as a commercial enterprise. There is much in world to celebrate, refresh,

strengthen and protect. Through actions as local citizens, company strives every day to refresh

the marketplace, enrich the workplace, preserve the environment and strengthen their

communities.

Mission

“To refresh the world... In mind, body and spirit. To inspire moments of optimism… through our brands

and our actions.To create value and make a difference… everywhere we engage.”

With the mission to refresh this world the coca cola company gear up the company to reach its potential;

mission is to create a growth strategy that bring good to the world by refreshing people every day and

inspiring them with optimism through the brands and our actions.

Vision

The company asks 150 of top leaders to re-imagine The Coca-Cola Company. This would result

to lead company to a holistic vision that the company is working to accomplish over the next 10

years.

“More than a billion times a day, consumer chooses our brand of refreshment because coca cola

is... ‘The Symbol of Quality Customers and Consumers Satisfaction”

SWOT Analysis of company:-

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The SWOT analysis is been done on The COCA COLA Company and following things has been

preferred in terms of company.

Strengths:-

Strong brand name.

Effective and efficient management.

Adaptability with changing market trend and demand.

Strong market strategy.

Strong distribution channels.

Weakness:-

Lack of proper sales man training.

Problem in the frequency of the delivery of goods

Opportunities:-

Diversification of juice products.

With growing juice market so handsome opportunity to increase sale and capture market.

Threats:-

Change in taste of people.

More competitors.

“BOTTEL” exchanging scheme

Unpredictable market conditions.

In terms of the product to be launch it could be the expected threat that the off season is at the

door step.

PRODUCT PROFILE

Different brands of company:-

The Coca-Cola Company offers a wide range of products to the customers including beverages,

fruit juices and bottled mineral water. The Company is always looking to innovate and come up

with, either complete new products or new ways to bottle or pack the existing drinks. The Coca-

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Cola Company has a wide range of products out of which the following products are marketed

by HCCBPL:

In the Cola Section :

In the Lemon Section

In the Orange & Apple section:

In the mango section:

In the juice section :

In the Soda Water and Bottled Mineral Water section:

Brands tagline:-

THUMS UP - Taste the thunder

COCACOLA - Open happiness

SPRITE - Seedhi baat no bakwaas ,clear hai

LIMCA – Maaza taazgi ka

FANTA – Dikhao apne asli rang

MAAZA - Bina guthli wala aam

MMNF- Bilkul ghar jaisa

MMPO - Refreshingly Orange

KINLEY - Boond-Boond Mein Vishwas

Brand ambassadors:-

THUMSUP -Akshay Kumar

COCACOLA -Imran Khan

SPRITE -Shahrukh Khan

FANTA -Genelia D’souza

LIMCA -Riya Sen

MMPO – Nikhil Chinnappa

Brand value:-

2008 Rank2007 RankBrandSector2008 Brand Value ($m) coca-cola Beverages 66,667 Coca-

Cola has once again retained its status as the world’s most valuable brand. Proving that it still has

a few tricks up its sleeve, current trends toward healthier diets have seen Coke shift focus to

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better-for-you drinks in the last year, with the launch of products like the vitamin and mineral

enriched Diet Coke Plus and the continued push behind Coke Zero, which is now available in

more than 80 countries. Coke has also worked hard to engage consumers, with innovative online

campaigns such as “Design Your Own” that invited people to design their own Coke containers

and share them with the world.

2008 66,6672007 65,3242006 67,0002005 67,5252004 67,3942003 70,4532002 69,6372001 68,945

ABOUT BRANDS

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Coca-cola - The world’s favorite and valuable drink and brand. Coca -cola has having truly

remarkable heritage. From a humble beginning in 1886, it is now the flagship brand of the largest

manufacturer, marketer and distributer of non – alcoholic beverage in the world. Coca-Cola

advertisement campaigns “jo chaho ho jaye” and “life ho to aisi” were very popular and had

entered the youth’s vocabulary. The campaign “thanda matlab coca-cola” make it India’s

favorite brand. Coca-cola had signed on various celebrities including stars such as Krishna

Kapoor, cricketers such as Srinath, Sourav Ganguly, its brand ambassadors are Amir Khan and

Hrithik Roshan. The competitor on the cola category is Pepsi.

Thums Up – Thums Up is leading sparking soft drink and most trusted brand in India.

Originally introduced in 1977, and acquired coca-cola company in 1993.thumps is known as for

its strong, fizzy taste and it’s confident, mature and uniquely masculine attitude. This brand

clearly seeks to separate the men from the boys. The competitor of the brand on same category is

Pepsi.

Sprite – In selling sprite is the rank no. 4 in world and is sold in more than 165 countries. It was

launched in year 1999 and today it has grown to be one of the fastest growing soft drinks,

leading the clear lime category. Today sprite is perceived as a youth icon. It’s clear crisp

refreshing taste encourages the today’s youth to trust their instincts, influence them to be true to

who they are and to be their thirst. Sprite is liked by all age groups & people. Jan 09 report of

“The times of India” claims sprite to be the second brand in sales after Thums Up.

Competitor: 7up & Mountain dew.

Fanta— It is the orange drink of the coca-cola company. It entered the Indian market in the year

1993.fanta stands for its vibrant color, tempting taste and tingling bubbles. Over the years fanta

has occupied a strong market place and is identified as the fun catalyst. Fanta has two flavors

apple & orange. This is very popular drink among females.

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Competitor: Mirinda, Parle’s Appy fizz.

Limca— Limca derived from nimbu+jaisa, hence lime sa limca has lived up to its promise and

has been the original choice of millions of consumer for over three decades. It born in 1971,

limca has remained unchallenged as the no, 1 sparking drink in the cloudy lemon segment. The

success formula of limca is its freshness power. Limca’s freshness is like no other-lime n lemoni

limca refreshes, reenergizes, rejuvenates not just your body but also your emotions. Freshness of

emotions, idea stemmed from the inside about our consumer—the desire to rejuvenate her/his

emotions which are constantly being dulled in the routine pursuit of success.

Competitor: Nimbooz.

Minute maid pulpy orange— This concept comes when the florida food corporation

developed orange juice powder. They branded it minute maid, a name connoting the convenience

and the ease of preparation (in minute).the lunch of minute made pulpy orange in India(starting

from the south of the country) is aimed to further extend the leadership of coca-cola in India in

the juice drink category. This contains no sugar & added flavor .This is a family drink.

Maaza:-Maaza is the most popular drink being the mango variety so much that over the years,

the Maaza brand has become synonymous with Mango. Maaza currently dominates the fruit

drink category and competes with Pepsi's Slice brand of mango drink and Frooti, manufactured

by Parle Agro. Maaza was launched in 1976 in India.Maaza was acquired by Coca-Cola India in

1993 from Parle-Bisleri along with other brands such as Limca, Citra, Thums Up and Gold Spot .

Maaza is popular among children and women.

Competitor: Slice, frooti.

Kinley:-The importance of water can never understand. Particularly in a nation like india

where water governs the lives of the millions, be it as part of everyday rituals or as the monsoon

which gives life to the sub-continent. Soft drink major Coca-Cola has launched a new marketing

initiative for its packaged drinking water brand; Kinley.The previous marketing campaign for

Kinley sported the tag line “Boond-Boond Mein Vishwas” (trust in every drop). This time

around the tag line, an extension of Kinley’s previous campaign, reads “Vishwas Karo.”

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“The latest communication ‘Vishwas Karo’ brings forward Kinley’s belief that a little bit of trust

can restore faith between people, within oneself and in the basic goodness of life at large,”

Avinash Pant, director – Still Beverages, Coca-Cola India said.

Minute made nimbu fresh:-

Riding on the success of Minute Maid Pulpy Orange, Coca-Cola in India today announced the

launch of its latest product variant under the Minute Maid brand umbrella.The new Minute Maid

Nimbu Fresh is a lemon juice-based drink with no added preservative or added colour, developed

for the Indian market. The lemon-flavoured drink is made out of fresh lemon juice concentrate,

emulating home-made 'nimbu pani', and casrries the tagline: 'Bilkul ghar jaisa' (just like home).

The product will be available in two pack sizes of 400 ml and 1 litre, priced at Rs15 and Rs40

respectively. The new drink is targeted at consumers across all age groups who are on the

lookout for a naturally refreshing juice drink.

BRAND NAME GLASS PET CAN FOUNTAIN

Coca-cola 200 ml, 300 ml600 ml, 1.25 L,500 ml + 100 ml

330 ml Various Sizes

THUMPS UP 200 ml, 300 ml

600 ml, 1.25 L500 ml + 100 ml 330 ml

Various Sizes

SPRITE 200 ml, 300 ml

600 ml, 1.25 L,500 ml + 100 ml 330 ml

Various Sizes

FANTA 200 ml, 300 ml600 ml, 1.25 L,500 ml + 100 ml 330 ml

Various Sizes

LIMKA 200 ml, 300 ml

600 ml, 1.5 L,330 ml

Various Sizes

MINUTE MAID PULPY ORANGE

400 ml, 1 L, 1.25 L

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MAAZA 200 ml, 250 ml, 250 ml, 600 ml, 1.2 L

POCKET MAAZA 200 ml

KINLEY 500 ml, 1000 ml

PACK NO. OF BOTTELS IN A CASE

300 ml 24

250 ml 24

200 ml 24

600 ml 24

1.2 L 12

2 L 9

Page | 41

Chapter 3 Research Methodology

Research Design

Sample Profile

Tools and Methods of Data Collection

Data Processing and Analysis

Limitations

Page | 42

Research Methodology:-

Type of Research : Exploratory Research Design

Method of Research : Data Collection method

Sampling method : Random Sampling

Sample Unit : Outlets

Sample Size : 165

Statistical Tool : Route Map

Method of data collection:-

1. Primary data collection: Data for the project is collected from the primary sources. The

sheet was filled by the author as a part of the survey.

2. Secondary Data: Data collected from the organization’s web site.

Research design:-

A descriptive research design has been chosen to study the assessment of market potential for juice segment in rural areas. The reasons for chosen descriptive research design are:-

To describe the extent of association between the variables under consideration.

Research design was pre-planned and structured.

Sampling plan:-

The study is conducted in Lucknow. For the purpose of study, a sample size of 165 numbers of outlets was taken. Simple Random sampling method has been used for the present study.

Limitation of the study:-

Secondary data might not be authentic enough for the correct representation of objective.

The project is conducted in Lucknow, so it is not possible to draw correct picture of

overall performance.

Page | 43

The study is only confined to retailers and so the preference of actual consumers could

not be taken.

The retailers may or may not reveal the true expected sales figures.

Chapter 4

Data Analysis and Interpretation

DESIGNED ROUTE WITH DATAROUTE NO.1=INDIRA NAGAR (MULAYAM NAGAR) SECTOR-13,17,16,11,14,10,19,20,25

S. CHAN OUTLET NAME CON. CONT. NO. ADDRESS CLUSTER RE COK PEP

Page | 44

NO.

NEL PERSON D OU

E INVE

SI INV

1 ED MISTHAN BHANDAR RAJAN NAGI INIDRA NGAR -13RAN LAXMI MEMORIAL COLLEGER YES 10 12

2 GRO RAJAT GEN STORE RAMESH 9450654250 13/235RAN LAXMI MEMORIAL COLLEGER 2 6

3 GRO SRI RAM JI GEN STORE AMAN 13/235RAN LAXMI MEMORIAL COLLEGER 0 8

4 GRO KANCHAN GEN STORE KANCHAN SECTOR 17 INDIRA NAGARRAN LAXMI MEMORIAL COLLEGER 0 18

5 GRO MOHEN GEN SOTRE MOHAN A.R. HOSPITAL INIDRA NAGAR

RAN LAXMI MEMORIAL COLLEGER 22 0

6 GRO MD. EGG STORE IMRAN 5223204876A.R. HOSPITAL INIDRA NAGAR

RAN LAXMI MEMORIAL COLLEGER 0 15

7 GRO NISHAD GEN STORE NISHAD 9026358125 SECTOR 17 INDIRA NAGAR AR HOSPITAL 6 0

8 GRO PURWANCHAL GEN STORE SABJIMANDI SECT-17 INDIRANAGAR SABJIMANDI 5 10

9 GRO SRI GANESH BAKERS GAURAV 937558313SABJIMANDI SECT-17 INDIRANAGAR SABJIMANDI 7 12

10 ED PANDIT JI JAL PAN GRAH RAMESH SECTOR 17 CAPTON MUKESH SRI MARG MUKESH SRI CHAURHA 4 0

11 GRO RAM PRO STORE RAM SECTOR 17 CAPTON MUKESH SRI MARG MUKESH SRI CHAURHA 0 20

12 EDCHANDRIKA MISTHAN BHANDAR BRJESH 9918463941 SECT-16 INIDRA NAGAR MUNSIPULIYA 8 8

13 GRO GUDDO STORE GUDOO 15 214 GRO ASHU GEN STORE HARISH 9415513921 INDIRA NAGAR PAM GOAN PLACE 0 1815 GRO JAKRUDDIN STORE JAKAROODIN 9453169150 INDIRA NAGAR NIHARIKA POODI CORNER 15 016 GRO SAI PRO STORE SANJAY 3216728 INDIRA NAGAR NIHARIKA POODI CORNER 0 1217 GRO NARAYAN BAKERS NARAYAN INDIRA NAGAR GAYATRI INTER COLLEGE 0 618 ED SHIV MISTHAN ASHISH 9984420532 INDIRA NAGAR GAYATRI INTER COLLEGE 22 0

19 ED GANPATI BHOG ANIL KUMAR 9839234886 GAYATRI MARKETSAHEED CAPTON MUKES MARG 0 8

20 ED OM SAI SWEETS SANDEEP 9236487941MADHAV NAGAR INIDRA NAGAR II MADHAV NAGAR 4 0

21 GRO BHARAT GEN STORE DEEPAK 9333665852MADHAV NAGAR INIDRA NAGAR II MADHAV NAGAR 8 0

22 CON BABA PATEEZ SARVER 9455280706POLICE CHOUKI TAKROHI INDIRA NAGAR POLICE CHOUKI 0 12

23 GRO ANNU TRADERS ANNU 9450054846POLICE CHOUKI TAKROHI INDIRA NAGAR POLICE CHOUKI 0 7

24 GRO OM BAKERY SUNIL 9839985910POLICE CHOUKI TAKROHI INDIRA NAGAR POLICE CHOUKI 20 0

25 GRO ANNU BHANDAR KIRANA ANNU TAKROHI MKT POLICE CHOUKI 10 026 GRO MAA SANTOSI PRO SOTRE NEAR ROYAL PLACE 14 ROYAL PLACE 20 827 GRO NEHA PRO STORE VINAY KUMAR 9336162972 INDIRA NAGAR SECT-14 NRT KOCHING IIT PMT 8 0

28 GRO VIJAY GEN STORE VIJAY 9336199908RANI LAXMI BAI COLLEGE INDIRA NAGAR RANI LAXMI BAI COLLEGE 20 6

29 GRO R.V. GEN STORE RAKESH 961652382RANI LAXMI BAI COLLEGE INDIRA NAGAR RANI LAXMI BAI COLLEGE 5 0

30 GRO ABHISEK GEN STORE ABHISEK RANI LAXMI BAI COLLEGE INDIRA NAGAR RANI LAXMI BAI COLLEGE 5 0

31 GRO MOHAN GEN STORE SECTOR 19 INDRA NAGAR WATER TANK YES 15 032 CON JAIN CORNER ANUP KUMAR 9415541695 TULSI MARKET WATER TANK 0 1533 CON JYOTI GEN STORE SHYAM 9935314743 19/202 INDIRA NAGAR WATER TANK 15 034 CON MISRA PCO PANKAJ 9307051989 19/201 TULSI MARKET WATER TANK YES 14 735 GRO THAKUR GEN STORE CHNDIS 9621919759 19/200 TULSI MARKET WATER TANK 15 936 GRO GOYAL PRO STORE 19/200 TULSI MARKET WATER TANK 8 237 GRO DAILY NEEDS CORNER ARSHAD 9336454793 19/46 WATER TANK 5 038 GRO ROHIT PROVI. STORE ROHIT 2345975 SECTOR-20 WATER TANK YES 18 039 GRO PARK SHREE RAI 9897169060 SECTOR-20 WATER TANK YES 0 2540 GRO MOHIT GEN STORE MOHIT 9415281856 MULAYAM NAGAR VAIBHAV AKADMI YES 14 041 GRO R.K. BUSINESS CENTER RAJESH 9450812230 MULAYAM NAGAR SARSWATI BALIKA VIDYALAY YES 18 1542 GRO RAMA GEN STORE SUNRESH 9580434451 MULAYAM NAGAR SARSWATI BALIKA VIDYALAY 10 443 GRO RAJ GEN STORE RAM SAHAB 9739969171 MULAYAM NAGAR AKHADA COMPLETE JIM YES 15 544 ED JAI BAKERY AND PROV MUKESH 9208598102 MULAYAM NAGAR AKHADA COMPLETE JIM 0 1845 GRO MAMA KA SHOP VIRENDRA 9793417999 MULAYAM MARKET LABOUR ADDA CHOURAHA YES 10 12

46 GROBHARAT BUSINESS CENTRE' BHATAT 9936141946 MULAYAM MARKET LABOUR ADDA CHOURAHA 10 4

47 GRO AGARWAL GEN STORE MULAYAM MARKET LABOUR ADDA CHOURAHA 15 748 GRO AYUSH GEN STORE AYUSH MUNSIPULIYA CHOURAHA MUNSIPULIYA CHOURAHA YES 18 6

Page | 45

SECT 16

49 CON PUPIL GALLERY MUNSIPULIYA CHOURAHA SECT 16 MUNSIPULIYA CHOURAHA 15 8

50 ED FAMILY RESTURENT MUNSIPULIYA CHOURAHA SECT 16 MUNSIPULIYA CHOURAHA 0 8

51 ED SRI BABI JAL PAN GRAH MANOJ 9795432457MUNSIPULIYA CHOURAHA SECT 16 MUNSIPULIYA CHOURAHA YES 9 15

52 ED RAJESH SCOOP MUNSIPULIYA CHOURAHA SECT 16 SUKHA COMPLEX YES 9 12

53 ED KRISHNA RADH KRISHNA MUNSIPULIYA CHOURAHA SECT 16 SUKHA COMPLEX 8 5

54 EDSOUTH INDIAN RESTURENT K.P 9451397648 MUNSHIPULIYA CHOURAHA MUNSHIPULIYA YES 7 2

55 GRO ARUN GEN STORE ARUN 9335297045 MUNSHIPULIYA CHOURAHA MUNSHIPULIYA 0 12

ROUTE NO.2= INDIRA NAGAR, KANCHNA VIHARI MARG PICNIC SPOTE ROAD

S. NO.

CHANNEL OUTLET NAME CON. PERSON CONT. NO. ADDRESS CLUSTERREDOUTLEDS

COKE INVEN

TRY

PEPSI INVENTRY

1 GRO GOLD TUSH GEN STORE DINESH PAL KANCHANA BIHARI MARGNEAR TRANSFORMER 5 10

Page | 46

2 Con CHUNMUN TEA STALL RAMESH KANCHANA BIHARI MARGNEAR TRANSFORMER 7 12

3 CON PAPA SWEET HOUSE SUBHAS 9648031660 KANCHANA BIHARI MARGNEAR TRANSFORMER 0 8

4 GRO HARI GEN STORE 9933570770 KANCHANA BIHARI MARGNEAR TRANSFORMER 8 0

5 GRO VISHTA GEN STORE DINESH PAL 9455669127 KANCHANA BIHARI MARGNEAR TRANSFORMER 0 12

6 GRO AJIT GEN STORE AJIT KANCHANA BIHARI MARGNEAR TRANSFORMER 0 15

7 GRO VISWA KIRANA STORE G.P. SONI 9145980283 KANCHANA BIHARI MARGKATIYAR TRADERS 6 0

8 GRO GAYATRI GEN STORE KANCHANA BIHARI MARGKATIYAR TRADERS 0 6

9 GRO HINDUSTAN KANCHANA BIHARI MARGKATIYAR TRADERS YES 18 6

10 GRO MAURYA GEN STORE HOSIL PRASAD 9451674271 KANCHANA BIHARI MARGKATIYAR TRADERS 4 0

11 GRO JAISWAL GEN STORE KANCHANA BIHARI MARGKATIYAR TRADERS 0 20

12 ED NIRALA CAFÉ AKCHAY AVRAR NAGAD KHURRAM NAGAR

KATIYAR TRADERS 8 8

13 GRO RANI HARDWARE RANI AVRAR NAGAD KHURRAM NAGAR

KATIYAR TRADERS YES 15 0

14 GRO NEW GEN STORE 9335233104AVRAR NAGAD KHURRAM NAGAR

KATIYAR TRADERS 0 18

15 GRO SHARMA STATIONER NAJMUL 9889745868AVRAR NAGAD KHURRAM NAGAR


16 GRO BHARAT GEN STORE CHOTU KALYANPURKATIYAR TRADERS 0 12

17 GRO MUNNA GEN STORE MUNNA KALYANPURKATIYAR TRADERS 0 18

18 GRO ANAND GEN STORE M. TOFID 9454278286AVRAR NAGAD KHURRAM NAGAR


19 GRO GANESH BISCUT BHANDAR AMIT 9026778224 KALYANPUR KATIYAR TRADERS 0 8

20 GRO RAM CHANDRA GEN STORE SHYAM KANCHANA BIHARI MARG 4 0

21 ED FRISKO FAST FOOD MO. JUBAID 9305051352KANCHANA BIHAR NEAR MASJID UMAR KALYANPUR MASJID UMAR YES 20 0

22 GRO HAIDRABAD GEN STORE MITHUN 9889362398 KANCHANA BIHAR MARG MASJID UMAR 5 023 ED SONI HOTEL RAJENDRA 9889322377 KANCHANA BIHAR MARG MASJID UMAR 0 724 GRO GANPATI TRADERS RAKESH 9889527084 KANCHANA BIHAR MARG SONI HOTEL YES 20 8

25 GRO BLUHUT COFFY KULDEEP 9935621101 KANCHANA BIHAR MARGMOUNTVERY SCHOOL 10 4

26 CON NEW PAN MISTAN BHADAR AMAR NATH 9729565967 KANCHANA BIHAR MARGMOUNTVERY SCHOOL 15 0

27 GRO NEW SHYAM DAIRY AMIT 9889254997 KAMAKHYA INTER COLLEGEKANCHAN BIHARI MARG 8 0

28 GRO DURGESH GEN STORE SHILA KAMAKHYA INTER COLLEGEKANCHAN BIHARI MARG 0 15

29 GRO GOSIA GEN STORE GULAM MUSTAFA 9988154340 KAMAKHYA INTER COLLEGEKANCHAN BIHARI MARG YES 15 0

30 GROMAA C HANDRIKA DEVI GEN STORE SHYAMA BAJRANG NAGAR

KANCHAN BIHARI MARG 5 0

31 ED OM SWEETS SUSHIL VERMA 9889964626 PRAGATI NAGARKANCHAN BIHARI MARG 15 6

32 GRO ARORA STORE PRADEEP 9450005411 PRAGATI NAGARKANCHAN BIHARI MARG 8 0

33 GRO SANJEEV GEN STORE SANJIV 9335934466 KANCHANA BIHARI MARGMETRO HOSPITAL 5 0

34 GRO SAI GEN STORE PRAVEEN 9919492009 KANCHANA BIHARI MARGMETRO HOSPITAL 14 0

35 ED GANGOTRI COFI SHOPE VIJAY KANCHANA BIHARI MARGMETRO HOSPITAL 15 0

36 GRORAJENDRA DEPARTMENTAL STORE MANISH 9956539177 FARIDI NAGAR MARG

VAN AVADH MOD 10 4

37 GRO SUNIL GEN STORE SUNIL 9794632671 FARIDI NAGAR MARGVAN AVADH MOD YES 15 0

38 GRO RANU BHANU GEN STORE SHEELA 8009412913 FARIDI NAGAR MARGVAN AVADH MOD YES 18 0

39 GRO MANISH GEN STORE MANISH FARIDI NAGAR MARGVAN AVADH MOD 6 12

40 ED BABA SWEETS STORE SANKAR 9838280533 FARIDI NAGAR MARG VAN AVADH 10 4

Page | 47

MOD

41 GRO BISMILLA GEN STORE FARIDI NAGAR MARGVAN AVADH MOD YES 18 15

42 GRO SACHIN GEN STORE RAM VILASH 9005168180 FARIDI NAGAR MARG VAN VIBHAG 0 2543 ED SHIV SWEETS NAMKIN SHIV SHANKAR 9415914118 FARIDI NAGAR MARG SAHU PALACE 14 044 GRO \ASHISRWAD GEN STORE RAMESH 9580210050 FARIDI NAGAR MARG SAHU PALACE 0 18

45 GRO SHRI BALAJI TRADERS S.K. GUPTA 9794497692 PICNIC SPOT ROAD BAL BIHAR MANDIR 12 12

46 GRO KANCHAN GEN STORE KANCHAN 2342325 PICNIC SPOT ROAD BAL BIHAR MANDIR YES 14 9

ROUTE NO.3=MUNSHIPULIYA CHOURAHA TAKROHI AMROHI RASHOOL PUL SURENDRA NAGAR SECTOR-8,9,12

S. NO.CHANNE

LOUTLET NAME

CON. PERSON

CONT. NO. ADDRESS CLUSTER RED OUTLETS

COKE INVENTRY

PEPSI INVENTRY

1 ED SHIVAM RESTURENT B.L. YADAV 9336966692 AMROHI TIRAHALAL BIDHYA MANDIR 10 7

2 ED B.N. YADAV SWEETS BAJNATH 9305561259 AMROHI TIRAHA LAL BIDHYA 10 6

Page | 48

HOUSE MANDIR

3 CON AURN DUTT SHUKLA ARUN 9305856737AMROHI GAON NEAR SHIV MANDIR SHIV MANDIR YES 12 0

4 EDNANY RAM SWEETS SHOP NONY RAM 9621564505

AMROHI GAON BAZAR MANDIR KE PASS MANDIR 5 8

5 ED SHANKER SWEETS SHANKER AMROHI GAON RASHOOL PUR

RASHOOL PUR ROAD 5 15

6 GRO RAHMAN MOBIL SHOP RAHAMAN 9336365858AMROHI GAON RASHOOL PUR


7 CON NATIONAL MOBILE SHOP SAMIR 9793161754AMROHI GAON RASHOOL PUR


8 CON SUMMER HAIR DRACER SAMER 8127369849AMROHI GAON RASHOOL PUR


9 ED TANISK BAKERY MANISH 9616516919AMROHI GAON RASHOOL PUR


10 ED SHANT MISTHAN RAM JII 9325764325

AMROHI RAOD TAKROHI NR. BANDAN VIHAR

AWADH BIHARI KANYA VIDHYALAY 12 0

11 ED KAMUL SWEETS SHATENDRA ELLAHABAD BANK

ELLAHABAD BANK 2 8

12 ED MUSKAN BHOJNALAY R.K. 9839104091

AMROHI RAOD CHITRA COMPLEX

CHITRA COMPLEX 2 17

13 ED AMAN SWEETS CORNER AMAN 9935575886

AMROHI RAOD TAKROHI BAZAR BAZAR 10 5

14 GRO SHANTOSH GEN STORE RAVINDRA 9336820194

AMROHI RAOD TAKROHI BAZAR BAZAR 8 0

15 ED DISHA GOODS BAKERY OM PRAKASH 9336452074

AMROHI RAOD TAKROHI BAZAR

SARKARI THIKA YES 43 17

16 ED SHEVANI SWEETS RAMU 9918125527

AMROHI ROAD HARI MANDAP

HARI MANDAP YES 50 0

17 ED MANISH SWEETS MANISH 9935345098

AMROHI ROAD DURGA MANDIR

DURGA MANDIR 12 0

18 ED SHANT MISTHAN DHIRENDRA 9208533290 SECTOR 11 TAKROHI BAZAR BAZAR 4 819 GRO PRAKSH GEN STRE OM PRAKASH 9506862498 SECTOR 11 TAKROHI BAZAR BAZAR 0 1120 CON ANNA BHANDAR SUNIL KUMAR 9919565825 SECTOR 11 TAKROHI BAZAR

SUMITRA CLINIC 0 3

21 ED OM BAKERY VIVEK 9839985922 YADAV STEEL

YADAV STEEL CEMENT YES 10 5

22 CON BABA PATAGE YADAV STEEL

YADAV STEEL CEMENT 0 12

23 ED MONA SRINAGAR HOTEL JAIN TIWARI 9455275274 MADHAV NAGAR

MADHAV NAGAR 0 12

24 GRO BHARAT GEN STORE DEEPAK 9336658525 MADHAV NAGAR

MADHAV NAGAR 14 0

25 ED OM SAI SWEETS SAMDEEP 9236488931 MADHAV NAGAR

MADHAV NAGAR 8 0

26 ED GURU NANAK MAKERY ADESING ANCHAL DENTAL CLINIC

OM SAI SWEETS YES 43 19

27 GRO

HANUMANT DEPARTMENTAL SURENDRA NAGAR

NAGAR NIGAM VIDHYALAY 20 0

28 ED SAGARIKA SWEETS PANKAJ 9454199989 MUNSIPULIYA CHOURAHAH

MAIN MUNSIPULIYA 0 30

29 GRO GINI PRO STORE RAJESH 2358290 NAVEEN MARKET

MAIN MUNSIPULIYA YES 18 0

30 ED GUPTA BAKERY KRISH 9307881029 NAVEEN MARKET


31 ED RASOI DAY POINT

KRISHNAMURARI 9451844000 MUNSIPULIYA CHOURAHAH


32 GRO KK GEN STORE KK MISRA 9415621681 MUNSIPULIYA CHOURAHAH


33 ED

SHRI GANESH BHOJNALYA AASHIS 9198411119 MUNSIPULIYA CHOURAHAH

MAIN MUNSIPULIYA YES 30 0

3 ED NEW SANGEETA SWEETS NAVAL KISHORE 9.45056E+1 MUNSIPULIYA CHOURAHAH MAIN YES 50 27

Page | 49

4 1MUNSIPULIYA

35 GRO UMESH KISHORE GUPTA UMA SHANKAR 9919313165 MUNSIPULIYA CHOURAHAH


36 ED FAMILY RESTURENT R.K. 993500148 INDRANAGAR 2616


37 ED PRIMAL CHATESWARI RAJA RAM 9450847908 PRIME PLAZA SHUK COMPLEX

SHUK COMPLEX 10 0

38 ED RAJ SCOOP AVINASH 9685766965 PRIME PLAZA SHUK COMPLEX

SHUK COMPLEX 15 0

39 GRO KRISHNA BAKERY

KRISHNAMURARI SHUKL COMPLEX

SHUK COMPLEX 0 12

40 ED

SHUDH INDIA RESTURENT K.P LAIR 9451397648 SHUKL COMPLEX

SHUK COMPLEX 3 14

41 GRO LOVELLY GEN STORE ANIL KUMAR 24634523

MAIN CHOURAHA MUNSIPULIYA

MUNSIPULIYA YES 20 0

42 ED MAHADEV BAKERS GULSAN 9235884547


MUNSIPULIYA 0 14

43 GRO BAKER'S SHOPPE


MUNSIPULIYA 12 0

44 ED RASHMI SWEETS MAHESH 2359827


MUNSIPULIYA 15 0

45 ED LUCKNOW FAST FOOD


MUNSIPULIYA 20 0

46 ED

MANS SWEETS RESTURENT SUDHIR 9839560332 INDRA NAGAR SECTOR-8

LEKHRAJ HOME YES 18 0

47 ED UMA GEN STORE MANOJ 9793800406 INDRA NAGAR SECTOR-8

RADIO COLONY 8 10

48 GRO STAR BRAKERS NADEEM 9307832292 INDRA NAGAR SECTOR-8

RADIO COLONY 15 18

49 GRO AASHEES GEN STORE AASHIS INDRA NAGAR SECTOR-8

TOO SMILE DENTAL CLINIC YES 15 0

50 GRO SONA GEN STORE RAJIV 9889656760 DEVENAGAR COLONY

AMTAS PLAZA YES 15 9

51 GRO

GAYATRI PUJAN BHANDAR MADAN 4013533 BLOW AMTASH PLAZA

AMTAS PLAZA 3 0

52 CON SONU BUISNESS CENTRE VIJAY 2700894 BLOW AMTASH PLAZA

AMTAS PLAZA 7 0

53 GRO SHRI HARI GEN STORE RETASH 9336525358 BLOW AMTASH PLAZA

AMTAS PLAZA 9 8

54 CON SHRI LAXMI DAIRY AASHES 9305960485 INDRANAGAR SECTOR 12

STATE BANK ROAD 7 9

55 GRO ALPI CORNER SUNIL 9453150485 SECTOR 12

KOHINOR PLAZA 3 0

56 GRO JAGDISH GEN STORE JAGDISH 9026451045

ISMAGI GANG POLICE CHOUKI POLICE CHOKI 6 18

57 ED FOOD FOR U S.P MATHUR 9305889991 INDIRA NAGAR SECT 9 TULSI PLAZA 4 058 GRO

MANOKAMNA GEN STORE DINESH 400529 INDIRA NAGAR SECT 9 TULSI PLAZA 5 0

59 GRO JANTA PRO STORE PANKAJ 9793468784 AARVINDO PARK

ARVINDO PARK 5 12

60 GRO SHIV SHKRI GEN STORE AARVINDO PARK

ARVINDO PARK 0 10

61 GRO HAPPY HOT AND COOL RETASH 9565991522

NITIN COCHING CENTRE SECTOR 12

NITIN COCHING CENTRE 16 23

62 CON ANGEL'S BAKERY J.P JAISWAL 9198022221

NITIN COCHING CENTRE SECTOR 12

NITIN COCHING CENTRE 5 50

63 GRO LADIS BAKERY AKIL AHMOD TULSI PLAZA TULSI PLAZA 10 864 CON SHIV INTO PRISES ASHOK SINGH 4006210 TULSI PLAZA TULSI PLAZA YES 10 4

Page | 50

Page | 51

TOTAL COCA COLA

SHOPS

THUMPS UP

SPRITE COCA-COLA

MAAZA KINLEY LIMCA FANTA MMPO

Series1 127 127 125 112 107 78 73 82 39

10

30

50

70

90

110

130

AVAILABILITY OF BRANDS OF COCA-COLA

In the total 127 coca-cola shops, the different brands thumps, sprite,coca cola, mazza, kinley, limca, fanta, mmpo are present in that numbers of outlets 127, 125, 112, 107, 78,73,82,39 respectively.

12

72

43

NO. OF COCA-COLA SHOPS=127TYPE OF OUTLETS

CON GRO E&D

In 127 shops, 72 shops are grocery, 43 shops are E&D and 12 shops are convenience.

Page | 52

VISI CONDITION CON0

2

4

6

8

10

12

NO.OF VISI AVALIABLE SHOPS IN COCA-COLA

=89

Series1

In 127 coca-cola shops,89 shops(con=10,gro=47,E&D=32) are having the visi cooler.

total no of visi present coca-cola shops

total no of pure visi coca-cola shops

total no of impure visi coca-cola shops

Series1 89 46 43

5

15

25

35

45

55

65

75

85

95

89

46 43

PURITY AND IMPURITY OF VISI

In total 89 visi available coca-cola shop only 46 are pure and rest is impure.

Page | 53

CON GRO E&D

PURE 7 27 12

IMPURE 3 20 20

2.57.5

12.517.522.527.532.537.542.547.5

7

27

123

20

20

PURITY& IMPURITY OF VISI COLLER IN DIFFERENT CHANNEL

In out of 10 visi available convenience shops 7 are pure and rest are impure. In out of 47 visi available grocery shops 27 are pure and rest are impure. In out of 32 visi available convenience shops 12 are pure and rest are impure.

janfeb

marapr

mayjunjul

augsepoct

novdec

250 750 1250 1750 2250 2750 3250 3750 4250jan feb mar apr may jun jul aug sep oct nov dec

PET SALE

175 1400 2100 2625 4200 2975 1575 1050 700 350 175 175

1751400

21002625

42002975

15751050

700350

175175

PET SALE

Page | 54

janfeb

marapr

mayjunjul

augsepoct

novdec

500 1500 2500 3500 4500 5500 6500 7500 8500jan feb mar apr may jun jul aug sep oct nov dec

RGB SALE

325 2600 3900 4875 7800 5525 2925 1950 1300 650 325 325

3252600

39004875

78005525

29251950

1300650

325325

RGB SALE

jan feb mar apr may jun jul aug sep oct nov dec

Sale(%) 1% 2% 8% 17% 24% 17% 8% 9% 7% 3% 3% 1%

3%

8%

13%

18%

23%

1% 2%

8%

17%

24%

17%

8% 9%7%

3% 3%1%

Sale(%)

Page | 55


-40000-20000

020000400006000080000

100000120000140000160000

Net profit in different months

Net profit

jan feb mar apr may jun jul aug sep oct nov dec0

5000

10000

15000

20000

25000

30000

35000

total expenditure, 20272.5

TOTAL EXPENDITURE ( in month )

Page | 56


Roi %

-0.66 -0.27 1.77 4.95 7.66 4.95 2.05 2.44 1.67 0.12 0.12 -0.66-1.00

1.00

3.00

5.00

7.00

9.00

-0.66 -0.27

1.77

4.95

7.66

4.95

2.05 2.441.67

0.12 0.12-0.66

RETURN OF INVESTMENT (%)

1 2 3 4 5 6 7 8 9 10 11 120

1000

2000

3000

4000

5000

6000

7000

8000

RGB SALE

RGB SALEPET SALE

The selling of RGB is more than the PET.

Page | 57

Chapter 5 Findings and Recommendations

Page | 58

FINDINGS

COCA-COLA is the market leader and the PEPSI is the market challenger in the major

portion in the area where I surveyed.

The 57% market is covered by coca-cola and 43% is covered by PEPSI.

In COCA-COLA, the most popular flavor in the market is THUMS UP and SPRITE.

“SPRITE” has the fastest grown up brand in the clear lime segment in the recent years

“KINLEY” was present in 61% outlets of the area, I surveyed.

The product of “COCA-COLA, MINUTE MAID PULPY ORANGE” is yet not

successful in that area.

RTM has been very effective in the terms of market reach and distribution. Earlier

company was covering just 50% of the outlets present in that area now after new design

of routes they are targeting total 165 outlets.

The marketing strategy of Advance Sales And Services Pvt Ltd depends on two types of

distribution one is direct and another one indirect.

The total number of outlets present in the area is 165. Out of 165, Coca-Cola is present in

127 outlets.

In 127 outlets ,Thumps up , Sprite, Coca-cola, Maaza, Limca, Fanta, MMPO, Kinley are

present respectively in 127,125,112,107,73,82,39,78.

In the market the supply of “PEPSI” is better than the “COCA-COLA” with more

schemes and retailers preferred billing process.

Many outlet owners have complaint on improperly working visi- cooler i.e. its cooling

and repairing and with the time duration involved in installation of VISI-cooler (i.e. more

than15 days after the completion of all the paper work).

The sale of RGB is more the PET.

March,April,May,June are the pick sale month of the soft drink industry.

Out of 127 outlets, 89 outlets are having visi cooler. Out of 89 outlets 46 are pure and 43

are impure.

Out of 127 outlets 12 are convenient, 47 are grocery and 32 are eating and drinking

outlets.

In 12 convenient outlets 10 are having visi. Out of 10 only 7 outlets are pure.

In 72 grocery outlets 47 are having visi. Out of 47 outlets 27 are pure.

In 43 E&D outlets 32 are having visi. Out of 32 visi only 12 are pure.

VISI-coolers, in many shops, are filled with personal things instead of company`s

products.

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Sometimes according to the demand, deliveries of products are not made available in the

outlets (supplies of LIMCA and MAAZA have been complained more.

Sales person are not well trained.

Some sales men are not providing bills after sales.

In many areas retailers give more preference to the “COCA-COLA” products like

“THUMS UP, SPRITE, MAAZA, AND FANTA” but due to absence of retailer friendly

schemes and improper distribution they have to keep products of PEPSI.

Retailers are not getting actual schemes and claims.

Advertisement materials are not available in the right time at the right place i.e. Different

Channels like “Grocery, Convenience, E&D”.

The stores are categorized on the basis of their sales, volume and channel.

CRM cases are not being responded properly by authorized person. (Such as complains

regarding discontinuity in distribution and scheme).

In many shops of the area where I surveyed there is no direct contacts of company with

the retailers.

In some area (Mushadganj, Muniopurwa, Musainabad, Barafkhana) retailers have to use

their own vehicle because company`s or distributor’s vehicles are not visiting those area.

The biggest threat of coca cola in the market is the distinctive “BOTTEL” exchanging

strategy of “PEPSI.

I found that distributors are using fewer infrastructures than required. Some distributors

are using drivers as sales man and as loader where driver as sales man is fine but when

drivers are also working as loader it is making late start of distribution because when all

the vehicles are loaded then only they start from godown.

RECOMMENDATIONS

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Delivery position should be maintained to get good return from the market.

The company must try to make all brands of Coca-Cola available at every retail outlet

whether it is large or small, otherwise the consumer may go for substitute.

Sales People and delivery persons should properly monitor the market whether stocks are

available and are properly utilized in the market or not.

We can provide retailers beautiful display racks, tablemats, menu-cards etc, containing

the trademark and brand name of the company.

Display material should be provided to the retailers on more regular basis to increase the

sales level.

Maintenance work of refrigerator; i.e. purity must be improved.

The company should take steps to replace damaged or unsellable Coca- Cola goods

frequently from the retailers.

The Company employees should make direct contact with the consumers, so that they

may aware with real situation of the market and consumers attitude towards the product.

For this they can arrange awareness camps in different locations and customer care

should be more responsive.

At every petrol-pump we should install Fountain Machine. It will be helpful in generating

impulse purchase and also as awareness about the products of the company among the

consumers.

Coca-cola can also adapt “BOTTEL EXCHANGE” strategy of PEPSI to provide more

comfort for retailers.

Market developer and Sales executives should be responsible for making retailers aware

about the new schemes and their work should be monitored by respective departments. It

can also be done by taking helps of Interns who are doing their projects but Sales

Manager should also take this responsibility by using new technology for example SMS.

Department heads should make sure that market developers and sales executive are

visiting the areas regularly.

For stopping SCHEME HIDING company should pay attention on the salary of market

developer and sales executive. It will also help in improving VISI conditions.

BIBLIOGRAPHY

The following things were helpful for the completion of the project:

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Web Sites:

Cocacolaindia.com

Cocacola.com

Domain-b.com

Wikipedia

http://www.megaessays.com/essay_search/Concentrate_Producers.html

Journals:

Marketing journals. (OCT. 2003)

Title:-Soft drink brand preference in India.

(Author - S.K.KATHIK & RAKESH LILA)

From case study:

Brand management vol.1 (249-257)

Studying in marketing vol. 3 (19-32)

Advertising strategies (Trends & Practices) (176-254)

Management case studies.

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Project Report m4- 13 & 27

Documents

Transcript of Project Report m4- 13 & 27