Professional Documents
Culture Documents
The objective of the project is to know the retailers preferences for Cola
Drinks, to a comparative study on rural and urban retailer satisfaction of
COCA COLA and the report contains a brief introduction of Coca Cola.
The company COCA COLA has interests in various sectors and they
provide consistent quality products to meet our retailers and costumer’s
requirement worldwide.
This report clearly mentions objective of the study and the research
methodology utilized. Both primary data and secondary data. The data
collection method used is structured non disguised questionnaire in which
the types of questions used are open ended, multiple choice and close
ended.
The report contains a detailed view of the tasks, which have been
undertaken to analyze the market of COCA COLA. Various sets of
questionnaire have been prepared to know the preference of retailers
about the COCA COLA. Some of the research areas in Guntur district.
This project reveals one of the important findings like more and more
displays of the window hiring and can be given to the retail outlets to
increase its consumption, more schemes like ‘Credit Schemes’ and other
schemes can be given to the Retailers.
A detailed survey of the retailers was carried to find out their preferences
for COCA COLA. The details of the methodology are stated below.
Areas are both rural and urban areas in Guntur district research design:
Exploratory and descriptive. Sources of information are primary and
secondary data. Data collection method structured designed by the
questionnaire.
1
Types of questions used open ended, multiple choice and close ended.
Sampling method is random sampling.
In this study I found that most of the retailers prefer their 1st preference to
COCA COLA.
To define the
impact of retailers satisfaction at every place in the marketing
management.
To know how
retailers are succeeded in the business organization.
To know how the retailers time utilizing in the business
organization.
To know how
the process going on the retailers management in the Hindustan
coca cola beverages private limited.
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1.2 OBJECTIVES OF THE STUDY
To identify the various rural & urban retailer problems and offer
solutions to those problems.
To study the views of the rural & urban retailers on various retailer
schemes followed by the company.
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1.3 LIMITATIONS OF THE STUDY
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1.4 RESEARCH METHODOLOGY
Data sources:
Primary Data:
Data observed or collected directly from first-hand experience is called
primary data.
• Company Websites.
• News papers.
• Journals.
• Textbooks.
Research Question: Retailers satisfaction on promotional schemes of
the Coke Company.
Sampling types:
Sampling technique: In this study the respondents sells through
Convenience sampling.
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Research tools:
• Chi square test
• Friedman test
In the study both the primary & secondary data source are used. The
primary data is collected through closed questioners and some data
collected from company website towards and text books are in the study.
In the study used tools are chi-square; weighted average and percentage
are used in data analysis.
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1.5. SIGNIFICANCE OF THE STUDY
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INDUSTRY PROFILE
Soft drinks industry profile:
The Soft Drinks in India industry profile is an essential resource for top-
level data and analysis covering the Soft Drinks industry. It includes
detailed data on market size and segmentation, plus textual and graphical
analysis of the key trends and competitive landscape, leading companies
and demographic information.
Scope
- Contains an executive summary and data on value, volume and/or
segmentation
- Provides textual analysis of the industry’s recent performance and future
prospects
- Incorporates in-depth five forces competitive environment analysis and
scorecards
- Includes a five-year forecast of the industry
- The leading companies are profiled with supporting key financial
metrics
- Supported by the key macroeconomic and demographic data affecting
the market
Highlights
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- Detailed information is included on market size, measured by value
and/or volume
- Five forces scorecards provide an accessible yet in depth view of the
market’s competitive
- Market shares are covered by manufacturer or brand.
- Spot future trends and developments
- Inform your business decisions
- Add weight to presentations and marketing materials
- Save time carrying out entry-level research
History:
Soft drinks trace their history back to the mineral waters found in natural
springs. Ancient societies believed that bathing in natural springs and/or
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drinking mineral waters could cure many diseases. Early scientists who
studied mineral waters included Jābiribn Hayyān, Alkindus, Rhazes,
Paracelsus, Robert Boyle, Friedrich Hoffmann, Antoine Laurent
Lavoisier, Hermann Boerhaave, William Brownrigg, Gabriel F. Venel,
Joseph Black, and David Macbride.
Carbonated drinks
In late 18th century, scientists made important progress in replicating
naturally carbonated mineral waters. In 1767, Englishman Joseph
Priestley first discovered a method of infusing water with carbon dioxide
to make carbonated water[6] when he suspended a bowl of distilled water
above a beer vat at a local brewery in Leeds, England. His invention of
carbonated water, (also known as soda water), is the major and defining
component of most soft drinks. Priestley found water thus treated had a
pleasant taste, and he offered it to friends as a refreshing drink. In 1772,
Priestley published a paper entitled Impregnating Water with Fixed Air in
which he describes dripping oil of vitriol (or sulfuric acid as it is now
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called) onto chalk to produce carbon dioxide gas, and encouraging the
gas to dissolve into an agitated bowl of water.
Phosphate soda
In the 1950s, a variant of soda in the United States called "Phosphate
Soda" became popular with the most popular of them being the orange
phosphate. The drink consists of 1 oz orange syrup, 1/2 teaspoon of
phosphoric acid, and the rest being carbonated water in a glass filed with
ice. This drink was commonly served in pharmacies.
Soda fountain pioneers
Artificial mineral waters, usually called "soda water," and the soda
fountain made the biggest splash in the United States. Beginning in 1806,
Yale chemistry professor Benjamin Silliman sold soda waters in New
Haven, Connecticut. He used a Nooth apparatus to produce his waters.
Businessmen in Philadelphia and New York City also began selling soda
water in the early 1800s. In the 1830s, John Matthews of New York City
and John Lippincott of Philadelphia began manufacturing soda fountains.
Both men were successful and built large factories for fabricating
fountains.
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Americans frequented the soda fountain on a daily basis. Due to problems
in the U.S. glass industry, bottled drinks were a small portion of the
market in the 19th century. (They were certainly known in England.
13
Soft drink production
Soft drinks are made either by mixing dry ingredients and/or fresh
ingredients (e.g. lemons, oranges, etc.) with water. Production of soft
drinks can be done at factories, or at home.
Ingredient quality
Of most importance is that the ingredient meets the agreed specification
on all major parameters. This is not only the functional parameter, i.e. the
level of the major constituent, but the level of impurities, the
microbiological status and physical parameters such as color, particle
size.
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Nutritional value
Unless fortified, they also contain little to no vitamins, minerals, fiber,
protein, or other essential nutrients. Soft drinks may also displace other
healthier choices in people's diets, such as water, milk, fruit juice, and
vegetable juice.
Sugar content
While the USDA recommended dietary allowance (RDA) of added
sugars is less than 10 teaspoons per day for a 2,000-calorie diet, many
soft drinks contain more than this amount. High caloric intake contributes
to obesity if not balanced with exercise, with a large amount of exercise
being required to offset even small but calorie-rich food and drinks.
Until 1985, most of the calories in soft drinks came from sugar or corn
syrup. As of 2010, in the United States high-fructose corn syrup (HFCS)
is used nearly exclusively as a sweetener because of its lower cost while
in Europe, sucrose dominates, because EU agricultural policies favor
production of sugar beets in Europe proper and sugarcane in the former
colonies over the production of corn.
Government regulation
In recent years, debate on whether high-calorie soft drink vending
machines should be allowed in schools has been on the rise. Opponents of
the (soft drink) machines believe that soft drinks are a significant
contributor to childhood obesity and tooth decay, and that allowing soft
drink sales in schools encourages children to believe they are safe to
consume in moderate to large quantities. Opponents note that children are
not always mature enough to understand the consequences of their own
food choices and should not be routinely exposed to the temptation of
readily available soft drinks. They also argue that schools have a
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responsibility to look after the health of the children in their care, and that
allowing children easy access to soft drinks violates that responsibility.
Vending machine proponents believe that obesity is a complex issue and
soft drinks are not the only cause. They also note the immense amount of
funding soft drink sales bring to schools.
Taxation
In the United States and elsewhere, legislators, health experts
and consumer advocates are considering levying higher taxes on the sale
of soft drinks and other sweetened beverages to help curb the epidemic of
obesity among Americans, and its harmful impact on overall health.
Higher taxes could help reduce soda consumption. Taxes could also fund
education to increase consumer awareness of the unhealthy effects of
excessive soft drink consumption, and also help cover costs of caring for
conditions resulting from overconsumption.
Pesticides in India
In 2003, the Delhi non-profit Centre for Science and
Environment published a disputed report finding pesticide levels in Coke
and Pepsi soft drinks sold in India at levels 30 times that considered safe
by the European Economic Commission. The Indian Health Minister said
the CSE tests were inaccurate, and said that the government's tests found
pesticide levels within India's standards but above EU standards.
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drink companies like Coca Cola and Pepsi have issued ads in the media
regarding the safety of consumption of the drinks.
Benzene
In 2006, the United Kingdom Food Standards
Agency published the results of its survey of benzene
levels in soft drinks, which tested 150 products and found
that four contained benzene levels above the World Health
Organization (WHO) guidelines for drinking water. The
agency asked for these to be removed from sale.
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COMPANY PROFILE
Coca-Cola (also known as Coke, a name that was trademarked by
The Coca-Cola Company after it was discovered many people called it by
that particular name) is a very popular cola (a carbonated soft drink) sold
in stores, restaurants and vending machines in more than 200 countries. It
is produced by the Coca-Cola Company (NYSE: KO), which is also often
referred to as simply Coca-Cola or Coke. Coke is one of the world’s
most recognizable and widely sold commercial brands; its major rival is
Pepsi.
Coke was originally intended as a patent medicine when it was
invented in the late 19th century, Coca-Cola was bought out by
businessman Asia Griggs Candler, whose marketing tactics led Coke to
its dominance of the world soft drink market throughout the 20th century.
Although faced with critiques of its health effects and various allegations
of wrongdoing by the company, Coca-Cola has remained a popular soft
drink to the present day It was initially sold as a patent medicine for five
cents a glass at soda fountains, which were popular in the United States at
the time thanks to a belief that carbonated water was good for the health.
The first sales were made at Jacob's Pharmacy in Atlanta, Georgia, on
May 8, 1886, and for the first eight months only nine drinks were sold
each day. Coca-Cola was sold in bottles for the first time on March 12,
1894, and cans of Coke first appeared in 1955. By 1888, three versions of
Coca-Cola - sold by three separate businesses were on the market.
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On February 7, 2005, the Coca-Cola Company announced that in
the second quarter of 2005 they planned a launch of a Diet Coke product
sweetened with the artificial sweetener sucra lose ("Splenda"), the same
sweetener currently used in Pepsi One.
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On the distribution front, 10-tonne trucks, open-bay three-wheelers
that can navigate the narrow alleyways of Indian cities, ensure
availability of our brands in every nook and corner of the country. The
term soft drink originally applied to carbonated drinks made from
concentrates, although it now commonly refers to almost any cold drink
that does not contain alcohol.
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One afternoon, he stirred up a fragrant, caramel-colored liquid and, when
it was done, he carried it a few doors down to Jacobs' Pharmacy. Here,
the mixture was combined with carbonated water and sampled by
customers who all agreed -- this new drink was something special. So
Jacobs' Pharmacy put it on sale for five cents a glass.
1893-1904
Beyond Atlanta
Coca cola hires first celebrity spoke person music hall performer Hilda
Clark Asia G. Candler, a natural born salesman, transformed Coca-Cola
from an invention into a business. He knew there were thirsty people out
there, and Candler found brilliant and innovative ways to introduce them
to this exciting new refreshment. He gave away coupons for
complimentary first tastes of Coca-Cola, and outfitted distributing
pharmacists with clocks, urns, calendars and apothecary scales bearing
the Coca-Cola brand. People saw Coca-Cola everywhere, and the
aggressive promotion worked. By 1895, Candler had built syrup plants in
Chicago, Dallas and Los Angeles.
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1905-1918
Safeguarding the brand
Coca cola enjoyed in 8 countries worldwide. To combat copycats
coca cola develops unique bottle Imitation may be the sincerest form of
flattery, but The Coca-Cola Company was none too pleased about the
proliferation of copycat beverages taking advantage of its success. This
was a great product, and a great brand. Both needed to be protected.
Advertising focused on the authenticity of Coca-Cola, urging consumers
to "Demand the genuine" and "Accept no substitute."
1919-1940
The woodruff legacy
Coca cola enjoyed in 53 countries worldwide. It introduced 6
packs. In 1925 6000000 drinks per day. Perhaps no person had more
impact on The Coca-Cola Company than Robert Woodruff. In 1923, four
years after his father Ernest purchased the Company from Asia Candler,
Woodruff became the Company president. While Candler had introduced
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the U.S. to Coca-Cola, Woodruff would spend more than 60 years as
Company leader introducing the beverage to the world beyond. Woodruff
was a marketing genius who saw opportunities for expansion everywhere.
1941-1959
The war and its legacy
Coca cola enjoyed in 120 countries worldwide. Introducing Coke.
In 1961 Sprite is introduced. 1963 Tab Company’s first diet soft drink is
introduced in 1941,
America entered World War II. Thousands of men and women were sent
overseas. The country, and Coca-Cola, rallied behind them. Woodruff
ordered that "every man in uniform gets a bottle of Coca-Cola for 5 cents,
wherever he is, and whatever it costs the Company." In 1943, General
Dwight D. Eisenhower sent an urgent cablegram to Coca-Cola,
requesting shipment of materials for 10 bottling plants. During the war,
many people enjoyed their first taste of the beverage, and when peace
finally came, the foundations were laid for Coca-Cola to do business
overseas. Woodruff’s vision that Coca-Cola be placed within "arm's reach
of desire," was coming true -- from the mid-1940s until 1960, the number
of countries with bottling operations nearly doubled. Post-war America
was alive with optimism and prosperity. Coca-Cola was part of a fun,
carefree American lifestyle, and his imagery of its advertising -- happy
couples at the drive-in, carefree moms driving big yellow convertibles --
reflected the spirit of the times.
1960-1981
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A world of customers
1982-1989
Diet coke and new coke
Coca cola enjoyed in 165 countries worldwide. In 1982 diet coke is
introduced. The 1980s -- the era of legwarmers, headbands and the fitness
craze, and a time of much change and innovation at The Coca-Cola
Company. In 1981, Roberto C. Goizueta became chairman of The Board
of Directors and CEO of The Coca-Cola Company. Goizueta, who fled
Castro's Cuba in 1961, completely overhauled the Company with a
strategy he called "intelligent risk taking." Among his bold moves was
organizing the numerous U.S. bottling operations into a new public
company, Coca-Cola Enterprises Inc. He also led the introduction of diet
Coke®, the very first extension of the Coca-Cola trademark; within two
years, it had become the top low-calorie drink in the world, second in
success only to Coca-Cola.
1990-1999
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COMPETITOR ANALYSIS
Indian soft drinks market is predominantly controlled by two major
multinationals namely Coca- Cola and Pepsi, which have carefully stifled
out the local competition here in India. Penetrating tough Indian
psychology and making their products feel accepted was the toughest
challenge in front of them. A brief overview of the soft drinks giant
biggest competitor will help in gaining a better insight of the soft drinks
market in totality.
• Price of the product: Price of the soft drinks also affects the
business. Due to perfect competition in soft drink market, price of a
product plays a major role in business.
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Company Profile
Coca‐Cola has the highest brand value with an ThumsUp is the #1 Colaes
timated $66 billion in 2008
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50districts of Andhra Pradesh Krishna, Gunturand people, including 30 P
rakasham through 171 distributors and 40000 physically challenged.outle
ts supported by 350 vehicles.
Planet:
Three Destinations Tree plantations Environment Focus Water
Steward ship Sustainable water resources management Sustainable water
resources management Protect water sheds Conserve Increase access to
clean drinking water Sustainable Packaging Sustainable Packaging
Sustainable Cleaner Leaders’ cling programs Packaging Energy
Implement new packaging practices Energy Saving Initiatives 3 E
SiIititi Water Conservation Project I Mangalagiri Court Complex
Rainwater Harvesting Project.
• Gram panchayati agrees to get all necessary clearances for the project
implementation Partnerships
• Nidukummala Village Committee (People)
• Nidumukkala Gram Panchayat (People)
• Thadikonda Mandal Praja Parishad (People)
• Andhra Pradesh Ground Water Dept (Govt)
• Andhra Pradesh Irrigation Department (Govt)
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1. 1 Need Assessment done by the Company with village community and
Gram Panchayati
2. Project idea was mooted by the community
3. Community shared the cost and pooled in with men and machinery
4. Gram panchayati ensured necessary clearances Partnerships
ORGANIGATION
STRUCTURE
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THEORETICAL FRAMEWORK
Marketing
Marketing is the planning and execution of the production, pricing,
promotion and distribution of goods and services to create exchanges
that achieve individual and business objectives. Put simply, marketing is
about matching every part of your business with your customers so that:
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If you don’t achieve these outcomes, customers won’t buy from you and
you will go out of business. It won’t matter if you make the best product
in the world or if you are very good at bookkeeping and administration -
poor marketers go out of business.
Items to consider
• Advertising.
• Price points.
• Website.
• Brochure.
• Promotions.
• Events.
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The Marketing Process
• Who your customers are, what their needs are and how much they are
prepared to pay.
• Who your competitors are what they sell and at what price/s. …can
you decide how to position your goods or services in your target
market/s and develop a Marketing plan to achieve your goals?
Price
Price relates to your pricing strategy which includes the setting of prices
for your products or services. Pricing should take into consideration how
much the market is prepared to pay (market demand pricing) and mark-
ups that are needed to cater for overheads, other costs and profit
margins. The provision of credit to customers, the costs of credit and
volume discounting are also aspects of pricing.
Promotion
Promotion relates to how you make your customers aware of your goods
or services and the benefits that they can receive by buying them.
Promotional activities include:
Distribution:
Commerce: Movement of goods and services from the source through
the distribution channel, right up to the final customer, consumer, or
user and the movement of payment in the opposite direction, right up to
the original producer or supplier.
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The distribution channel
Chain of intermediaries, each passing the product down the chain to the
next organization, before it finally reaches the consumer or end-user....
This process is known as the 'distribution chain' or the 'channel.' Each of
the elements in these chains will have their own specific needs, which
the producer must take into account, along with those of the all-
important end-user.
Channels
A number of alternate 'channels' of distribution may be available:
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• Advertisement typically used for consumption goods Distribution
channels may not be restricted to physical products alone. They may be
just as important for moving a service from producer to consumer in
certain sectors, since both direct and indirect channels may be used.
Hotels, for example, may sell their services (typically rooms) directly or
through travel agents, tour operators, airlines, tourist boards, centralized
reservation systems, etc. If we mention in a single sentence the
distribution channel is nothing but it is a process of transfer the products
or services from Producer to Customer or end user. There have also
been some innovations in the distribution of services. For example, there
has been an increase in franchising and in rental services - the latter
offering anything from televisions through tools. There has also been
some evidence of service integration, with services linking together,
particularly in the travel and tourism sectors. For example, links now
exist between airlines, hotels and car rental services.
In addition, there has been a significant increase in retail outlets for
the service sector. Outlets such as estate agencies and building society
offices are crowding out traditional grocers from major shopping areas.
Channel decisions
• Channel strategy
• Gravity & Gravity
• Push and Pull strategy
• Product (or service)
• Cost
• Consumer location
Managerial concerns
The channel decision is very important. In theory at least, there is a form
of trade-off: the cost of using intermediaries to achieve wider
distribution is supposedly lower. Indeed, most consumer goods
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manufacturers could never justify the cost of selling direct to their
consumers, except by mail order. Many suppliers seem to assume that
once their product has been sold into the channel, into the beginning of
the distribution chain, their job is finished.
Channel membership
• Channel motivation
• Monitoring and managing channels
Channel motivation
It is difficult enough to motivate direct employees to provide the
necessary sales and service support. Motivating the owners and
employees of the independent organizations in a distribution chain
requires even greater effort. There are many devices for achieving such
motivation. Perhaps the most usual is `incentive': the supplier offers a
better margin, to tempt the owners in the channel to push the product
rather than its competitors; or compensation is offered to the distributors'
sales personnel, so that they are tempted to push the product. Dent
defines this incentive as a Channel Value Proposition or business case,
with which the supplier sells the channel member on the commercial
merits of doing business together. He describes this as selling business
models not products.
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Effective management of distribution channel requires making and
implementing decision in these areas.
Retailing:
Definition: One who sells goods or commodities directly to
consumers? These items are purchased from the manufacturer or
wholesaler and sold to the end user at a marked up price.
Advantages:
There are no restrictions on whom, how or where an entrepreneur
should set up his/her business. The freedom to do what one wants to do
is the biggest advantage in this form of business. It can be extremely
fulfilling.
Etymology
Retail comes from the French word retailer, which refers to "cutting off,
clip and divide" in terms of tailoring (1365). It first was recorded as a
noun with the meaning of a "sale in small quantities" in 1433 (French).
In some parts of the world, the retail business is still dominated by small
family-run stores, but this market is increasingly being taken over by
large retail chains.
• Food products
• Soft goods - clothing, apparel, and other fabrics.
• Hard goods ("hard line retailers") - appliances,
electronics, furniture, sporting goods, etc.
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There are the following types of retailers by marketing
strategy:
• Supermarkets - sell mostly food products;
• Department stores - very large stores offering a huge
assortment of "soft" and "hard goods";
• Demographic
Some stores take a no frills approach, while others are
"mid-range" or "high end", depending on what income level they target.
Other types of retail store include:
Retailing process
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Successful retailers know that counting on past success to fuel future
growth does not work. Companies that continue to gain market share are
evolving with the changing marketplace and expanding into new areas.
Continuous improvement is the path to competitive advantage. But
many of these change initiatives are fraught with danger. New software
solutions can provide great returns but can also cost millions of dollars
and system implementations always contain some semblance of risk.
Has the collective knowledge of the more experienced members of the
team been distilled into an easy to follow step-by-step formula for
success?
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Process Excellence can be achieved by following four
steps:
1. Process Mapping
2. Process Improvement
3. Change Management
4. Success Measurement
Process Mapping
Process Excellence begins with understanding the current processes used
at your company. Through interviews and observation, the steps currently
taken to accomplish functional goals are documented. This Means
understanding not only the published standards, but learning how these
standards are individually applied across teams? An accurate
understanding of this variation often uncovers the largest opportunities
for improvement. Consistency – not creation of new processes – can
drive the performance of all teammates to the high levels of the best
performers.
Process Improvement
Process improvement is defined as identifying
gaps between the current processes and the desired process and
modifying the current process to more efficiently achieve the desired
outcome. It is a more subtle and less drastic cousin to process re-
engineering; t. Once functional representatives and project sponsors
agree on the desired process, gaps are identified on the Current process
map. These gaps are activities, decisions or resources that must change
to better match with the desired process flow. The identification of these
activities needing change leads us to change management, the next step
in the Process Excellence process. Change Management Documentation
45
of an improved process or executive recognition of inconsistent
execution in itself does not improve results. Real people need to make
changes to their workday efforts. Even the best designed process
provides little benefit when the team implementing the process chooses
to take a different path.
Success Measurement
Identifying and tracking key metrics serves two
purposes. Measurement of key activities quantifies the benefit realized
by the change and ensures the improved process is being followed. First,
the benefits of the change can be measured. This helps to justify the
time and expense incurred to effect the change. Identify metrics that
signify successful completion of the process and cannot be attributed to
other change efforts.
While this is often difficult, the ability to attribute success solely to
the Process Excellence effort enables you to claim the entire benefit.
Other higher level metrics such as sales or in stock % are easier to
measure, but their improvement often is a factor of several interrelated
efforts. Second, you can ensure that the processes remain consistently
applied by all team members.
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key deliverables such as current and desired process maps are already in
place, subsequent efforts can be achieved with less time and effort.
Types of retailing: Consumers today can shop for goods and services
in a wide variety of retail organizations. These are store retailers, non-
store retailers, and retail organization. Perhaps the best – known type of
retailer is the departmental store. Retail – store types pass through stages
of growth and decline that can be described as the retail life cycle. A
type emerges, enjoys a period of accelerated growth, reaches maturity,
and then declines.
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Product assortment and Procurement: The retailer’s product
assortment must match the target markets shopping expectations. The
retailer has to decide on product assortment breadth and depth. Thus a
restaurant can offer a narrow and shallow assortment (small launch
counters), a narrow and deep assortment (delicatessen), a broad and
shallow assortment (cafeteria) or a broad and deep assortment (large
restaurant). The real challenge begins after defining the stores product
assortment, and that is to develop a product differentiation strategy.
Price decision
Prices are a key positioning factor and must be decided
in relation to the target market, the product-and-service assortment mix,
and competition. All retailers would like to achieve high volumes and
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high gross margins, but the two usually do not go together. Most retailers
fall into the high-mark up, lower volume group (fine specialty stores) or
the low-mark up, higher volume group (mass-merchandisers and discount
stores). Retailers must also pay attention to pricing tactics. Most retailers
will put low prices on some items to serve as traffic builders or loss
dealers. They will run storewide sales. They will plan markdowns on
slower-moving merchandise.
Promotion decision
Retailers use a wide range of promotion tools to generate
traffic and purchases. They place ads, run special sales, issue money
saving coupons, and run frequent shopper-reward programmes, in-store
food sampling, and coupons on shelves or at checkout points. Each
retailer must use promotion tools that support and reinforce its image
positioning.
Place decision
Retailers are accustomed to saying that the three keys to
success are location, location, and location. Customers generally choose
the nearest bank and gas station. Department-store chains, oil companies,
and fast food franchisers exercise great case in selecting locations. The
problem breaks down into selecting regions of the country in which to
open outlets, then particular cities, and then particular sites. Retailers can
locate their stores in the central business district, a regional shopping
center, a community shopping center, a shopping strip, or within a large
store.
Trends in retailing
Following are the main development; the retailers and manufacturers
need to take into account, in planning competitive strategies.
1. New retail forms and combinations.
2. Growth of intertype competition.
3. Growth of giant retailers.
4. Growing investment in technology.
5. Global presence of major retailers.
6. Selling an experience, not just goods.
7. Competition between store based and non-store based retailing.
Retail sales
Which amounted to about Rs.7, 400 billion in 2002, expanded at
an average annual rate of 7% during 1999-2002? With the upturn in
economic growth during 2003, retail sales are also expected to expand at
a higher pace of nearly 10%. In a developing country like India, a large
chunk of consumer expenditure is on basic necessities, especially food
related items.
Government policy
There has been vigorous opposition to foreign direct investment
(FDI) in retailing from small traders who fear that foreign retailing
companies would take away their business, lead to the closure of many
small trading businesses and result in considerable unemployment. Given
the political clout of the small trading community, because of their
enormous numbers, the government has barred FDI in retailing since
1997. Hence, at present, foreign retailers can only enter the retailing
sector through franchising agreements.
Organizational characteristics
Given the traditional and underdeveloped state of the Indian retail sector,
the organizational characteristics of retail enterprises are rudimentary.
Most of them belong to independent enterprises in the form of small
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family businesses. Cooperatives have been present in India for several
decades, spurred by the encouragement given by the Indian Government,
which viewed the cooperative movement as an integral component of its
erstwhile socialist policies. However, since the 1990s, there has been a
reduction in government support for cooperatives.
Chi-Square Test
Chi-square is a statistical test commonly used to compare observed data
with data we would expect to obtain according to a specific hypothesis.
For example, if, according to Mendel's laws, you expected 10 of 20
offspring from a cross to be male and the actual observed number was 8
males, then you might want to know about the "goodness to fit" between
the observed and expected. Were the deviations (differences between
observed and expected) the result of chance, or were they due to other
factors. How much deviation can occur before you, the investigator, must
conclude that something other than chance is at work, causing the
observed to differ from the expected? The chi-square test is always
testing what scientists call the null hypothesis, which states that there is
no significant difference between the expected and observed result.
2
The formula for calculating chi-square = (o-e) /e
O = observed values
E = Expected values
53
The purpose of both is to determine whether the observed frequencies
(counts) markedly differ from the frequencies that we would expect by
chance.
When there are exactly two rows and two columns, the chi-square
statistic becomes inaccurate, and Yates correction for continuity is
usually applied. Statistics Calculator will automatically use Yates
correction for two-by-two tables when the expected frequency of any cell
is less than 5 or the total N is less than 50.
If there is only one column or one row (a one-way chi-square test), the
degrees of freedom is the number of cells minus one. For a two way chi-
54
square, the degree of freedom is the number or rows minus one times the
number of columns minus one.
A standard spreadsheet interface is used to enter the counts for each cell.
After you've finished entering the data, the program will print the chi-
square, degrees of freedom and probability of chance.
55
DATA ANALYSIS AND INTERPRITATION
The process by which sense and meaning are made of the data
gathered in qualitative research, and by which the emergent knowledge is
applied to clients' problems. This data often takes the form of records of
group discussions and interviews, but is not limited to this. Through
processes of revisiting and immersion in the data, and through complex
activities of structuring, re-framing or otherwise exploring it, the
researcher looks for patterns and insights relevant to the key research
issues and uses these to address the client's brief.
56
1. Which company drinks are available in the shop?
a) Pepsi b) coke c) Both
2 Coke 80 73%
3 Both 30 27%
80
80
70
60
50
40
avalibility
30 30
20
10
0 0
pepsi coke both
57
pepsi, 0
both, 27%
pepsi coke
both
coke, 73%
Interpretation:
From the above information we can understand that 73% of respondents
accepted that only coke brands are available in the retail outlets.
Remaining 27% of respondents accepted both coke and Pepsi brands are
available in the retail outlets. From this we can understand that majority
of retailers are preferring coke brands.
58
a) Thumps up b) maaza c) sprite d) coke e) all drinks
1 Thumps up 0 0%
2 Maaza 0 0%
3 sprite 0 0%
4 coke 0 0%
5 All drinks 110 100%
120
110
100
80
60
avalibility
40
20
0 0 0 0 0
thumsup maaza sprite coke all drinks
59
coke
thumsup
maaza
sprite
all drinks
pecentage,
100%
Interpretation:
From the above information we can understand that 100% of
respondents accepted that all the coke brands are available in their
retail outlets. From this we can understand that majority of the
retailers in Guntur district maintaining all the brands of coke.
60
a) Yes b) No
2 No 40 36%
70 70
60
50
40 40
30 credit schems
20
10
0
yes no
61
no
36%
yes
no
yes
64%
Interpretation:
From the above information we can understand that 64% of retailers
chosen ‘yes’ option. From this we can understand that retailers are aware
of the credit schemes of Coke Company. Remaining 36% of retailers
chosen ‘no’ option. From this we can understand that they don’t have
awareness of the credit schemes of Coke Company.
62
a) Yes b) No
1 Yes 80 73%
2 No 30 27%
80 80
70
60
50
40
30 incentives
30
20
10
0
yes no
63
27%
yes
no
73%
Interpretation:
From the above information we can understand that 73% of
respondents chosen the ‘yes’ option. From this we can understand that
retailers getting good incentives from the coke company. Retailers are
increasing the company sales percentage. Remaining 27% of
respondents chosen ‘no’ option. From this we can understand that
retailers are providing lesser sales to the company then company
providing lesser incentives.
1 Yes 70 64%
2 No 40 36%
70 70
60
50
40
40
30 stock maintain
20
10
0
yes no
65
36%
yes
no
64%
Interpretation:
66
a) Yes b) No
1 Yes 50 46%
2 No 60 54%
60 60
58
56
54
52
50 relishment
50
48
46
44
yes no
67
46%
54%
yes
no
Interpretation:
From the above information we can understand that 46% of respondents
chosen ‘yes’ option. This revels that most of the retailers are satisfied the
replenishment time of the coke company. And Remaining 54% of
respondents chosen ‘no’ option. This revels that most of the retailers are
not satisfied with replenishment time. From this we can understand that
Company is not offering sufficient replenishment timing to the all
retailers.
68
a) Yes b) No
1 Yes 75 68%
2 No 35 32%
80 75
70
60
50
40 35
good cr policies
30
20
10
0
yes no
69
32%
yes
no
68%
Interpretation:
From the above information we can understand that 68% of respondents
chosen ‘yes’ option. Remaining 32% of respondents chosen ‘no’ option.
From this we can understand that Majority of the retailers are increases
sales percentage of the company. Then company providing optimum
stock and gave the credit period to the retailers. Some of retailers don’t
have increased sales percentage of Coke Company.
1 Yes 40 36%
2 No 70 64%
70
70
60
50 40
40
discounts
30
20
10
0
yes no
71
36%
yes
no
64%
Interpretation:
1 Yes 60 55%
2 No 50 45%
60
60
58
56
54
52 50 maintenance
50
48
46
44
yes no
73
45%
55% yes
no
Interpretation:
From the above information we can understand that 55% of respondents
chosen ‘yes’ option because those retailers not satisfied with optimum
stock maintenance. And remaining 45% of respondents chosen ‘no’
option because retailers satisfied with coke optimum stock levels. From
this we can understand that majority of retailers outlets is longer distance
from distributor’s outlet.
74
10. Company is not maintaining good replenishment time?
a) Yes b) No
1 Yes 60 54%
2 No 50 46%
60 60
58
56
54
52 50
replenishment
50
48
46
44
yes no
75
46%
54% yes
no
Interpretation:
76
a) Yes b) No
1 Yes 35 32%
2 No 75 68%
80 75
70
60
50
40 35
30 good cr
method
20
10
0
yes no
77
32%
yes
no
68%
Interpretation:
1 0-10% 60 55%
2 11-20% 20 18%
3 21-30% 30 27%
60
60
50
40
30
30
20 discount range
20
10
0
0
0-10 20-11 20-30 >31
79
0
27%
0-10%
20-11%
21-30
more than 30%
55%
18%
Interpretation:
From the above information we can understand that 55% of respondents
chosen (0-10%) discount. And after 18% of respondents chosen (11-20%)
discount. And remaining 27% of respondents getting (21-30%) discount.
From this we can understand that those retailers increase sales then
company providing better discounts percentages to the retailers.
1 Yes 40 36%
2 No 70 64%
70
70
60
50
40 40
30 satisfing dis
20
10
0
yes no
81
36%
yes
no
64%
Interpretation:
From the above information we can understand that 36% of respondents
chosen ‘yes’ option. And the remaining 64% of respondents chosen ‘no’
option. From this we can understand that majority of respondents not
satisfied with discounts percentage of Coke Company.
82
14. Are you satisfied promotional schemes of the
company?
a) Yes b) No
1 Yes 75 68%
2 No 35 32%
80
75
70
60
50
40
35 promotional
30
schems
20
10
0
yes no
83
32%
yes
no
68%
Interpretation:
From the above information we can understand that 68% of respondents
chosen ‘yes’ option. And remaining 32% of respondents chosen ‘no’
option. From this we can understand that majority of respondents know
the promotional schemes of what actually coke company providing to
retailers.
84
CHISQUARE TEST
Retailer satisfaction on geographical background
and promotional schemes
NULL HYPOTHESIS (H0):
There is no significant difference on retailer satisfaction on
geographical background and promotional schemes of retailers in both
rural & urban areas.
INTERPRETATION:
H1: There is no significance difference between both
rural & urban areas, on rating for “promotional schemes and geographical
background of retailers” calculated chi-square value (x2) is 0.40 is less
than the chi square table value at 5% level of significance (df=2-1=1) is
3.84 hence null hypothesis is accepted.
85
Retailer satisfaction on geographical background
and promotional activity
INTERPRETATION:
H1: There is no significance difference between both
rural & urban areas, on rating for “promotional activity on discounts and
geographical background” calculated chi-square value (x 2) is 1.72 is less
than the chi square table value at 5% level of significance (df=4-1=3) is
7.82 hence null hypothesis is accepted.
86
Retailer satisfaction on geographical background
and stock maintenance
INTERPRETATION:
H1: There is no significance difference between both
rural & urban areas, on rating for “stock maintenance and geographical
background” calculated chi-square value (x 2) is 0.28is less than the chi
square table value at 5% level of significance (df = 2-1 =1) is hence 3.84
null hypothesis is accepted.
87
5.1. FINDINGS
88
• The study elicits that relation between geographical area &
promotional activity of discounts on both rural and urban areas from
Coke Company.
• The study reveals that relation between geographical area &
promotional activity of stock maintenance on both rural and urban
areas from Coke Company.
89
5.2. SUGGESTIONS
90
• It is better to the company to develop an effective add campaign in
rural areas so that rural retailers & customers may get good
awareness of the company brands.
5.3. CONCLUSION
It is also found that coke brands are having good brand image in
the market study also highlights the rural retailer’s problems like
awareness regarding retailer schemes.
91