INTRODUCTION

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.

1.1 NEED OF THE STUDY

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 Organization is made up of people and function to people
without people organizations cannot exists. The resources by themselves
cannot fulfill the objectives of organization. They need to be united into a
team. The main need of the study is

 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.

3
 1.2 OBJECTIVES OF THE STUDY

 To identify the various rural & urban retailer problems and offer
solutions to those problems.

 To study the retailer satisfaction towards various brands of the

company.

 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

1. Some of the respondents are refused to fill the questionnaires.

2. The responses may vary as some people did not want to come up
with real answers.
3. Due to the lake of time period for the collecting data.
4. The survey is conducted only in few areas of Guntur district rural
and urban areas hence the results may vary in other parts of the
Guntur city.
5. Some of the retailers refused to give the information that’s why
Taken very Small sample size.

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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.

• Responses through questionnaires

• Conducted personal interviews with the respondents.
Secondary Data:
Published data and the data collected in the past or other parties are called
secondary data.

Secondary data is collected through the

• 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.

Sample Size: Retailer’s samples are taken 110 samples only.

Samplings Areas: The study is conducted in various rural & urban

areas of Guntur district.

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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

This study will be a significant endeavor in promoting good work

environment in the workplace and motivations of its employees. This
study will also be beneficial to the students and instructors in retail
management,
This study will be helpful to the retail industry and business
practitioners in training and informing them in the area of marketing
management, objectives, and strategies. It will also serve as a future
reference for researchers on the subject of marketing and corporate
companies. And importantly, this research will educate clients in deciding
on whether an industry e.g. business industry is really fulfilling its
responsibility to the community or is just showing off to promote its
business.

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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

A soft drink (also referred to as soda, pop, soda pop,

coke or fizzy drink) is a drink that typically contains no alcohol,
though may contain small amounts (typically less than 0.5% by volume)
and is usually referred to as a sugary drink. Soft drinks are often
carbonated and commonly consumed while chilled or at room
temperature. Some of the most common soft drinks include cola, flavored
water, sparkling water, iced tea, sweet tea, sparkling lemonade (or other
lemon-lime soft drinks), squash, fruit punch, root beer, orange soda,
grape soda, cream soda, and ginger ale.

The term "soft" is employed in opposition to "hard", i.e. drinks

with high alcoholic content by volume. Generally it is also implied that
the drink does not contain milk or other dairy products. Hot chocolate,
hot tea, coffee, tap water, juice, schorle or spritzer and milkshakes also do
not fall into this classification.

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
10
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.

The earliest soft drinks were sherbets developed by Arabic

chemists and originally served in the medieval Near East. "Alkaline
Substances", "A kind of Saltwort" from which soda is obtained, probably
from Arabic suwwad, the name of a variety of saltwort exported from
North Africa to Sicily in the Middle Ages, related to sawad "black," the
color of the plant. These were juiced soft drinks made of crushed fruit,
herbs, or flowers. From around 1265, a popular drink known as
Dandelion & Burdock appeared in England, made from fermented
dandelion (Taraxacum official) and burdock (Arctium lappa) roots, and is
naturally carbonated.

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

11
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.

Soda fountains vs. bottled sodas

The drinking of either natural or artificial mineral water was considered a
healthy practice. The American pharmacists selling mineral waters began
to add herbs and chemicals to unflavored mineral water. They used birch
bark (see birch beer), dandelion, sarsaparilla, fruit extracts, and other
substances. Flavorings were also added to improve the taste. Pharmacies
with soda fountains became a popular part of American culture. Many

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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.

Soft drink bottling industry

Over 1,500 U.S. patents were filed for a cork, cap, or lid for the
carbonated drink bottle tops during the early days of the bottling industry.
Carbonated drink bottles are under great pressure from the gas. Inventors
were trying to find the best way to prevent the carbon dioxide or bubbles
from escaping. In 1892, the "Crown Cork Bottle Seal" was patented by
William Painter, a Baltimore machine shop operator. It was the first very
successful method of keeping the bubbles in the bottle.

Automatic production of glass bottles

In 1899, the first patent was issued for a glass-blowing machine for the
automatic production of glass bottles. Earlier glass bottles had all been
hand-blown. Four years later, the new bottle-blowing machine was in
operation. It was first operated by the inventor, Michael Owens, an
employee of Libby Glass Company. Within a few years, glass bottle
production increased from 1,400 bottles a day to about 58,000 bottles a
day.

Home-Packs and vending machines

During the 1920s, the first "Home-Packs" were invented. "Home-Packs"
are the familiar six-pack cartons made from cardboard. Automatic
vending machines also began to appear in the 1920s.

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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.

Soft drinks can be made at home by mixing either syrup or dry

ingredients with carbonated water. Carbonated water is made using a
home carbonation system or by dropping dry ice into water. Syrups are
commercially sold by companies such as Soda-Club.

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.

Soft drink packaging:

Research suggests a statistically significant inverse relationship between
consumption of carbonated beverages and bone mineral density in young
girls, which places them at increased risk of suffering fractures in the
future. One hypothesis to explain this relationship is that the phosphoric
acid contained in some soft drinks (colas) displaces calcium from the
bones, lowering bone density of the skeleton and leading to weakened
bones, or osteoporosis. However, calcium metabolism studies by Dr.
Robert Heaney suggested that the net effect of carbonated soft drinks,
(including colas, which use phosphoric acid as the acid lent) on calcium
excretion in urine was negligible.

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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
15
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.

A similar CSE report in August 2006 prompted many state

governments have issued a ban of the sale of soft drinks in schools.
Kerala issued a complete ban on the sale or manufacture of soft drinks
altogether. (These were later struck down in court.) In return, the soft

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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.

The UK-based Central Science Laboratory, commissioned by

Coke, found its products met EU standards in 2006. Coke and the
University of Michigan commissioned an independent study of its
bottling plants by The Energy and Resources Institute (TERI), which
reported in 2008 no unsafe chemicals in the water supply used.

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.

The company actually produces concentrate for Coca-Cola, which

is then sold to various Coca-Cola bottlers throughout the world. The
bottlers, who hold territorially-exclusive contracts with the company,
produce finished product in cans and bottles from the concentrate in
combination with filtered water and sweeteners. The bottlers then sell,
distribute and merchandise Coca-Cola in cans and bottles to retail stores
and vending machines.

The Coca-Cola Company has on occasion introduced other cola

drinks under the Coke brand name. The most famous of these is Diet
Coke, which has become a major diet cola but others exist, such as
Cherry Coke, Coke Zero, and Vanilla Coke. The Coca-Cola Company
owns and markets other soft drinks that do not carry the Coca-Cola
branding, such as Sprite, Fanta, and others. The actual production and
distribution of Coca-Cola follows a franchising model. The Coca-Cola
Company only produces a syrup concentrate, which it sells to various
bottlers throughout the world who hold Coca-Cola franchises for one or
more geographical areas. The bottlers produce the final drink by mixing
the syrup with filtered water and sugar (or artificial sweeteners) and fill it
into cans and bottles, which the bottlers then sell and distribute to retail
stores, vending machines, restaurants and food service distributors. The
bottlers are normally also responsible for all advertisement and other
sales initiatives within their areas.

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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.

Hindustan Coca-Cola Beverages Private Limited is

an Indian subsidiary of the US based Coca-Cola Company. The
company-owned Bottling arm of the Indian Operations, Hindustan Coca-
Cola Beverages Private Limited is responsible for the manufacture, sale
and distribution of beverages across the country. 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. It is the
world’s largest selling soft drink since 1886. The Coca-Cola Company
returned to India in 1993 after a gap of 16 years giving new Thums up to
the Indian Soft Drink Market and took over the ownership of the nation's
top soft-drink brands and bottling network.

GENERATIONS IN COCA COLA

1886-1892
Atlanta beginning
It was 1886, and in New York Harbor, workers were constructing
the Statue of Liberty. Eight hundred miles away, another great American
symbol was about to be unveiled. Like many people who change history,
John Pemberton, an Atlanta pharmacist, was inspired by simple curiosity.

20
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.

Unfortunately for Pemberton, he died in 1888 without realizing

the success of the beverage he had created. Over the course of three
years, 1888-1891, Atlanta businessman Asia Griggs Candler secured
rights to the business for a total of about $2,300. Candler would become
the Company's first president, and the first to bring real vision to the
business and the brand.

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.

21
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."

The Company also decided to create a distinctive bottle shape to

assure people they were actually getting a real Coca-Cola. The Root
Glass Company of Terre Haute, Indiana, won a contest to design a bottle
that could be recognized in the dark. In 1916, they began manufacturing
the famous contour bottle. The contour bottle, which remains the
signature shape of Coca-Cola today, was chosen for its attractive
appearance, original design and the fact that, even in the dark, you could
identify the genuine article. As the country roared into the new century,
The Coca-Cola Company grew rapidly, moving into Canada, Panama,
Cuba, Puerto Rico, France, and other countries and U.S. territories. In
1900, there were two bottlers of Coca-Cola; by 1920, there would be
about 1,000.

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
22
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

Coca cola enjoyed in 163 countries worldwide. It introduced can in

1960. In 1981 Roberto c. Goizueta became chairman and CEO of the
coca cola company

After 70 years of success with one brand, Coca-Cola®, the

Company decided to expand with new flavors: Fanta®, originally
developed in the 1940s and introduced in the 1950s; Sprite® followed in
1961, with TAB® in 1963 and Fresca® in 1966. In 1960, The Coca-Cola
Company acquired The Minute Maid Company, adding an entirely new
line of business -- juices -- to the Company.

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

New markets and brands

24
 In 1993 pet bottles are introduced. Coca cola enjoyed in 200
countries worldwide. The 1990s were a time of continued growth for The
Coca-Cola Company.

The Company's long association with sports was strengthened

during this decade, with ongoing support of the Olympic Games, FIFA
World Cup™ football (soccer), Rugby World Cup and the National
Basketball Association. Coca-Cola classic became the Official Soft Drink
of NASCAR racing, connecting the brand with one of the world's fastest
growing and most popular spectator sports. And 1993 saw the
introduction of the popular "Always Coca-Cola" advertising campaign,
and the world met the lovable Coca-Cola Polar Bear for the first time.
New markets opened up as Coca-Cola products were sold in East
Germany in 1990 and returned to India in 1993. New beverages joined
the Company's line-up, including PowerAde® sports drink, Qoo®
children's fruit drink and Dasani bottled water.

Coca cola now

In 1886, Coca-Cola® brought refreshment to patrons of a small
Atlanta pharmacy. Now well into its second century, the Company's goal
is to provide magic every time someone drinks one of its more than 400
brands. Coca-Cola has fans from Boston to Budapest to Bahrain, drinking
brands such as Ambasa, Vegitabeta and Frescolita. In the remotest
comers of the globe, you can still find Coca-Cola. Coca-Cola is
committed to local markets, paying attention to what people from
different cultures and backgrounds like to drink, and where and how they
want to drink it. With its bottling partners, the Company reaches out to
the local communities it serves, believing that Coca-Cola exists to benefit
and refresh everyone it touches.

25
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.

CURRENT MARKET POSITION

There has been much controversy and debate on the market
share standings between the two companies in the Indian
subcontinent and a substantial and a consolidated figure has been
unavailable for reference. This is mainly because both companies had
approached different market research companies for making a study
about the market share standings. Pepsi Co had approached IMRB
while Coca- Cola had entrusted this responsibility on ORG.
According to the survey done by IMRB Pepsi’s market share was
found to have increased from 47% to 49% while according to the
study conducted by ORG Coca- Colas market share was claimed to
be 59%.

FACTORS AFFECTING BUSINESS

• Seasonality: Seasonality is one of the most important factors
that affect the soft drink business. Seasonality is primarily
influenced either by the weather, or by holidays and religious
26
 festivals. Within the Group, soft drink business has different
seasonal cycles throughout the year.
• Service frequency: This is another factor that affects the
business. Service frequency is the time gap between visiting a
particular outlet again. Service frequency directly affects the
rotation time which in turn affects the value of business.

• Demand pattern for the market: Every product has a

different demand pattern and affects the business.

• 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.

• Disposable Income: Disposable Income of the consumers

also affects the business of the soft drink players. A high
disposable income of the consumers ensures a high demand for the
products in the market.

• Demographic Profile: Demographic profile of consumer also

affects the business and needs to be considered.

• Competitor’s Policy: The policies of the competitors also

affect the working of the business of other companies.

Hindustan Coca Cola, Guntur - Presentation Transcript

CII Water Management Award -2008 beyond the Fence Hindustan Coca-
Cola Beverages Private Limited Athmakuru, Guntur, Andhra Pradesh.

27
Company Profile
Coca‐Cola has the highest brand value with an ThumsUp is the #1 Colaes
timated $66 billion in 2008

• Invested more than US$1 Billion in India

• Fanta is the Orange
• Employs over 6,500 people directly in India E l 6 500 l
ditailiIdi
• Provides indirect employment to more than
• Sprite is the Clear Lime 1,50,000 people indirectly
• Labor Intensive distribution network which has Labor
Intensive distribution network which has
• Limca is the Cloudy Lemon is the Cloudy Lemon
multiplier effect on employment & earning opportunities
• Impact Agriculture by procuring Sugar, Coffee,
• Maaza is the Juice Drink Mango and Orange. Mango and
Orange
• Positive impact on industries like Glass, Plastics,
• Kinleyis the Retail Water
• Resin, Sugar Processing, Automobiles etc.

Coca Cola Athmakur Operations Located in Guntur District, 20

KmfromthePlant is spread in a 40 acre area Vijayawada city and 25 Km
from Guntursurrounded by lush green paddy fields.CityTwo production li
nes of 600 bottles per minute capacity The Plant became and one Swing
Line of 110 operational in 1999. bottles per minute capacity bottles per
minutecapacityLocation of the Plantprovides direct The Plant services ab
out 12 million people in 3 employmentto about 250 employmenttoabout2

28
50districts of Andhra Pradesh Krishna, Gunturand people, including 30 P
rakasham through 171 distributors and 40000 physically challenged.outle
ts supported by 350 vehicles.

The Way we manufacture Beverage Raw Water Treatment

CARBON FILTER SAND FILTER CLARIFIER Sand Filter Carbon
FilterReverseOsmosisConventional Chemical coagulationUV filterLead
Lag Activated 1µ Filter 3 µ Filter5 µ Filter Carbon Filters Syrup
Preparation Syrup Preparation Beverage Filling Beverage Filling
Inspection at Prewash, Post wash & Filled Glass Bottle
Beverage preparation.

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.

The Court Complexes 25 km from Guntur city Located 6 km from

the Coca- Cola Plant Mangalagiri Court Complex is with a huge RCC
roof Rain Water from the roof and from the ground has area of over one
acre. been going waste Though Mangalgiri is a water surplus location, the
Local ground water table has been going down area around the court
complex has been facing year after year and bore well yields drastically
water shortage during summer months. Dropped in the last few years
before the project.
29
Water Conservation Project - I Mangalagiri Court Complex Rain Water
Harvesting Project Water collection recharge system One acre roof top
area of the Court Complex Recharge pits for 2000 KL/yr recharge
Planning & Execution Roof top collection & recharge system Ground
water augmentation – recharging just near the bore well Proper draining
systems from rooftop Gradient channels and piping for complete run- off
of water to recharge pits Community Involvement & partnership Court
Office and Magistrate’s office Lawyers Association Local Gram
Panchayati Residents Association around the Court A few local NGOs
around the area Sustainability & Community Empowerment System to
maintain the structure annually y y Ownership is transferred to the court
administration.

• 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)

Water Conservation Project-II Restoration of Water Bodies,

Nidumukkala Environmental Impact.

• Quality and quantity of the water for drinking and Q y q y g

domestic purpose is improved.
• Increased the storage capacity of ponds due to desalting activity
and strength of tank bunds.
• Availability of water for agricultural purposes is increased
30
• Erosion of fertile soil from the area is prevented Social Impact
• Quality time is available to families since water availability in the
ir wells is better.
• Agriculture income is expected to increase due to Agriculture
income is expected to increase due to better water availability
• Livestock income is expected to go up due to better water availab
ility.
Water Conservation Project - II Restoration of Water Bodies,
Nidumukkala Project Sustainability The local community has
contributed One-third of the cost by way of man and machinery and
has vowed to maintain the project in the long term The Company is
committed to maintain the project free of cost for three years The
Gram Panchayat and Mandal Panchayat have agreed y g to
undertake periodic repairs Community Empowerment Village
Committee has been empowered to execute the project with the
local NGO Nilagiri Foundation From planning to execution, the
village committee was at the helm of activities.

The project led to increased agricultural and livestock income,

income besides better water availability Gender Sensitivity
Womenfolk are relieved because their time spent for fetching water
can now be used more productively. Better agriculture income led
to better household income for the families.

Water Conservation Project - III Connecting restored water

bodies to NS Canal g Community Involvement

31
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

2.1. Nidukummala Village Committee

2. Nidumukkala Gram Panchayati
3. Thadikonda Mandalam Praja Parishadd
4. Andhra Pradesh Ground Water Dept
5. Andhra Pradesh Irrigation Department

Water Conservation Project –III Connecting restored water bodies to

NSC analog Social Impact Environmental Impact Farming lands are
receiving more water during.

• Income from agriculture is expected to go up from the current seaso

n.
• Increased water availability is increasing the greenery in the village,
beside s the farming

ORGANIGATION
STRUCTURE

32
 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:

• You meet their needs.

• They are aware that you meet their needs.

• They are motivated to buy from you.

• They are motivated to keep buying from you.

33
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.

Sell the Benefits

Customers won’t buy from you if they can’t receive benefits from doing
so. Customers always ask: “what’s in it for me?” when deciding whether
to buy. For example, when a customer buys an 8mmdrill bit, they are not
really interested in buying just a drill bit. More importantly, they are
interested in buying the ability to drill 8mm holes. Customers are also
interested in buying different levels of quality, capability (e.g. some drill
bits can only drill timber whereas some can drill bricks and concrete)
and price.

When producing goods or services, make sure that you

provide customers with more benefits than your competitors. When
pricing, make sure that customers are getting good value (in view of the
Benefits and the price) and you are making a good profit.

Items to consider

• Advertising.

• Product range and mix of products.

• Price points.

• How products and services are sourced.

• Website.

• Brochure.

• Promotions.

• Events.

34
The Marketing Process

1. Research your Market Environment

2. Develop and Implement your Marketing Plan
3. Review and Improve

1. Research your Market Environment

Research your industry and your competitors and establish who

your target customers (or target market) are for your goods or services.
Only once you know:

• 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?

2. Develop and Implement your Marketing Plan

Marketing covers much more than just advertising goods or

services. When developing your Marketing Plan, consider how you will
use the elements of your marketing mix to attract customers, meet their
needs and keep them coming back for more. The elements of the
Marketing Mix are the four Ps:

Product, Price, Promotion, Place (distribution) Product

To your customer, your product is all of the features, advantages and

benefits that they can enjoy from buying your goods or services (like the
previous example about buying an 8mm drill bit). Your Product is not
only the goods or services that your business offers but also includes the
people within your business and the service they give the packaging of
35
the product or service, and the processes that you have to make buying
easier and more enjoyable. The product element is the customer’s entire
experience of dealing with your business from the Quality of customer
service that you give to the image, environment and facilities of your
business premises.

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:

Advertising - where you pay for your message to be sent to your

target customers through newspaper, radio, television, magazine,
outdoor signage, web sites and telephone directories.

Publicity comes from sending media releases to print and

broadcasting media, giving interviews to the media and from favorable
word of mouth. From these activities, information reaches your target
customers through articles that are published in newspapers, magazines
and television shows at no charge.

Sales Promotions are short-term non-routine incentives that a

business offers to encourage purchase of products or services which
include coupons, competitions and contests.
36
Personal Selling is the use of personal presentations and meetings
to sell goods or services. Effective personal selling requires the use of
good interpersonal and communication skills, excellent product/service
knowledge and the ability to sell the benefits of the goods or services to
the prospective customer.

• Direct Marketing includes sending letters, emails, pamphlets and

brochures to individual target customers. Often followed by personal
selling or tale marketing, direct marketing activities.

3. Review and Improve

After you have implemented your marketing plan, determine how well it
has increased your sales and profits (review) and make any necessary
improvements (improve). If your marketing plan is written down, it will
be easier for you to see how your plan has performed and where
improvements can be made. Where possible, establish goals and
benchmarks so that you can identify more clearly how well your plan
has worked and where improvements are necessary.

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.

Physical distribution (or place) is one of the four elements of the

marketing mix. An organization or set of organizations (go-betweens)
involved in the process of making a product or service available for use
or consumption by a consumer or business user. The other three parts of
the marketing mix are product, pricing, and promotion.

37
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:

• Distributor, who sells to retailers,

• Retailer (also called dealer or reseller), who sells to end
customers

38
• 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
39
 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.

Monitoring and managing channels

In much the same way that the organization's own sales and distribution
activities need to be monitored and managed, so will those of the
distribution chain. In practice, many organizations use a mix of different
channels; in particular, they may complement a direct sales force, calling
on the larger accounts, with agents, covering the smaller customers and
prospects. These channels show marketing strategies of an organization.

40
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.

Also Known As: Merchant

Independent Retailer:
An independent retailer is one who builds his/her business from the
ground up. From the business planning stage to opening day, the
independent retail owner does it all. He/she may hire consultants, staff
and others to assist in the business endeavor. The opportunities are
endless.

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.

Retailing includes all the activities involved in selling goods and

services directly to final consumers for personal, non-business use. A
retailer or retail store is any business enterprise whose sales volume
comes primarily from retailing.

Retailing consists of the sale of goods or merchandise from a

fixed location, such as a department store, boutique or kiosk, or by mail,
in small or individual lots for direct consumption by the purchaser.[1]
41
Retailing may include subordinated services, such as delivery.
Purchasers may be individuals or businesses. In commerce, a "retailer"
buys goods or products in large quantities from manufacturers or
importers, either directly or through a wholesaler, and then sells smaller
quantities to the end-user.

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).

Types of retail outlets

A marketplace is a location where goods and services are exchanged.
The traditional market square is a city square where traders set up stalls
and buyers browse the merchandise. This kind of market is very old, and
countless such markets are still in operation around the whole world.

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.

Retail is usually classified by type of products as follows:

• Food products
• Soft goods - clothing, apparel, and other fabrics.
• Hard goods ("hard line retailers") - appliances,
electronics, furniture, sporting goods, etc.

42
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";

• Discount stores - tend to offer a wide array of products and

services, but they compete mainly on price;

• General merchandise store- a hybrid between a department

store and discount store;

• Warehouse store - low-cost, often high-quantity goods piled

on pallets or steel shelves; warehouse clubs charge a membership fee;

• Variety store or "dollar store" - extremely low-cost goods,

with limited selection;

• 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:

• General store - a store which sells most goods needed,

typically in a rural area;

• Convenience store - a small store often with extended hours,

stocking everyday or roadside items;
• Big-box stores encompass larger department, discount, general
merchandise, and warehouse stores.

Retailing process

43
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?

• Are new merchants and replenishment buyers armed with best

practice process maps to ensure they can more quickly deliver the
results of a seasoned employee?
• Are you measuring performance insuring consistent use of best
practices across the enterprise?
If you answered ‘No’ to any of these questions, you have found an
opportunity to achieve Process Excellence and drive cost savings and
revenue growth without lengthy and potentially risky system change
efforts.

44
 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.

Process Excellence for the Long Term

Process Excellence is a tool retailers can use to drive
gains while minimizing risk. It focuses on people and ensures you are
driving the maximum benefit from the team and tools. It is a journey
that never ends. As teams’ transition and new technology is introduced –
the Process Excellence effort can be re-energized. And, as teams
become familiar with the activities surrounding Process Excellence and

46
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.

Levels of service: Conventional retail stores typically increase their

services and raise their prices to cover the costs. These higher costs
provide an opportunity for new store forms to offer lower prices and less
service. New store types meet widely different consumer preferences for
service levels and specific services. Retailers can position themselves as
offering one of the four levels of following services.

Self–service: Self – service is the cornerstone of all discounts

operations. Many customers are willing to carry out their own locate –
compare – select process to save money.

Self–selection: Customers find their own goods, although they can

ask for assistance.

Limited service: These retailers carry more shopping goods, and

customers need more information and assistance. The stores also offer
services (such as credit and merchandise – return privileges).

Full service: Salespeople are ready to assist in every phase of the

locate-compare-select process. Customers who like to be waited on
prefer this type of store. The high staffing cost, along with the higher
47
proportion of specially goods and slower-moving items and the many
services, results in high-cost retailing. By combining these different
service levels with different assortment breadths, one can distinguish the
four broad positioning strategies available to retailers,

Corporate Retailing: Although many retail stores are

independently owned, an increasing number are part of some form of
corporate retailing. Corporate retail organizations achieve economies of
scale, greater purchasing power, wider brand recognition, and better-
trained employees.

Marketing Decisions: In the past retailers held customers by

offering convenient location, special or unique assortments of goods,
greater or better services than competitors, and store credit cards. Today,
national brands are found in department stores, in their own shops, in
merchandise outlets, and in off-price discount stores.

In their drive for volume, national – brand manufacturers have

placed their branded goods everywhere. The result is that retail – store
assortments have grown more alike. Customers have become smarter
shoppers. They do not want to pay more for identical brands, especially
when service differences have diminished; nor do they need credit from
a particular store, because bank credit cards are almost universally
accepted.

Target market: A retailer’s most important decision concerns the

target market. Until the target market is defined and profiled, the retailer
cannot make consistent decision on product assortment, store décor,
advertising messages and media, price, and service levels.

48
 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.

Services and store atmosphere: Retailers must also decide on the

services mix to offer customers:
• Pre purchase services include accepting telephone and mail orders,
advertising, window and interior display, fitting rooms, shopping hours,
fashion shows, trade – INS.
• Post purchase services include shipping and delivery, gift-
wrapping, adjustments and returns, alterations and tailoring,
installations, engraving.
• Ancillary services include general information; check cashing,
parking, restaurants, repairs, interior decorating, credit, rest rooms, and
baby-attendant service.
The services mix is a key tool for differentiating one store from another,
so is atmosphere. Atmosphere is another element in the store arsenal.
Every store has a physical lay out that makes it hard or easy to move
around.

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
49
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.

1. Number of people passing by on an average day.

2. Percentage who entered the store.
50
 3. Percentage of those entering who buy.
4. Average amount spent per sale.

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 Marketing in India

Number of retailers
India has sometimes been called a nation of shopkeepers. This
epithet has its roots in the huge number of retail enterprises in India,
which totaled over 12 million n 2003. About 78% of these are small
family businesses utilizing only household labor. Even among retail
enterprises that employ hired workers, the bulk of them use less than
three workers. India’s retail sector appears backward not only by the
standards of industrialized countries but also in comparison with several
51
other emerging markets in Asia and elsewhere. There are only 14
companies that run department stores and two with hypermarkets. While
the number of businesses operating supermarkets is higher (385 in
2003), most of these had only one outlet. The number of companies with
supermarket chains was less than 10.

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
52
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

The chi-square is one of the most popular statistics because it is easy to

calculate and interpret. There are two kinds of chi-square tests. The first
is called a one-way analysis, and the second is called a two-way analysis.

53
The purpose of both is to determine whether the observed frequencies
(counts) markedly differ from the frequencies that we would expect by
chance.

The observed cell frequencies are organized in rows and columns

like a spreadsheet. This table of observed cell frequencies is called a
contingency table, and the chi-square test if part of a contingency table
analysis.

The chi-square statistic is the sum of the contributions from each of

the individual cells. Every cell in a table contributes something to the
overall chi-square statistic. If a given cell differs markedly from the
expected frequency, then the contribution of that cell to the overall chi-
square is large. If a cell is close to the expected frequency for that cell,
then the contribution of that cell to the overall chi-square is low. A large
chi-square statistic indicates that somewhere in the table, the observed
frequencies differ markedly from the expected frequencies. It does not
tell which cell (or cells) are causing the high chi-square...only that they
are there. When a chi-square is high, you must visually examine the table
to determine which cell(s) are responsible.

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.

Using the chi-square statistic and its associated degrees of freedom,

the software reports the probability that the differences between the
observed and expected frequencies occurred by chance. Generally, a
probability of .05 or less is considered to be a significant difference.

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.

Use caution when interpreting the chi-square statistic if any of the

expected cell frequencies are less than five. Also, use caution when the
total for all cells is less than 50.

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.

Materials which are collected and analysed by qualitative

researchers in order to provide answers to the client's brief. In qualitative
market research, data has traditionally taken the form of interview records
(tapes and transcripts of interviews and group discussions) but
increasingly includes other materials such as observations or relevant
cultural material such as advertising, magazines, films and so on. The
term 'data' is often disliked by qualitative market researchers since it has
highly quantitative research connotations; terms such as findings or
research materials may be used instead.

From the questionnaire we are following the data and interpretation

and the data with graphical representation by the charts and circles.

56
1. Which company drinks are available in the shop?
a) Pepsi b) coke c) Both

s.no Available in No of Percentage

shop respondents
1 Pepsi 0 0%

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.

2. What are the coke brands available in the shop?

58
a) Thumps up b) maaza c) sprite d) coke e) all drinks

s.no Available in No of Percentage

shop respondents

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.

3. Are you aware of credit schemes of the company?

60
 a) Yes b) No

s.no particulars No of Percentage

respondents
1 Yes 70 64%

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.

4. Are you aware of the incentives schemes of the company?

62
 a) Yes b) No

s.no particulars No of Percentage

respondents

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.

5. Satisfied with stock maintenance of coke brands?

64
 a) Yes b) No

s.no particulars No of Percentage

respondents

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:

From the above information we can understand that 64% of

respondents chosen ‘yes’ option. From these we can understand that
retailers satisfied with stock availability. Remaining 36% of the retailers
chosen ‘no’ option. Retail outlets are long distance from distributor’s
goo down. From this we can understand that respondents showing lesser
sales that’s why company stock providing alternate days are weekly
twice.

6. Satisfied with replenishment time of the company?

66
 a) Yes b) No

s.no particulars No of Percentage

respondents

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.

7. Company is offering good credit polices?

68
 a) Yes b) No

s.no particulars No of Percentage

respondents

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.

8. I feel happy with discounts of company?

70
 a) Yes b) No

s.no particulars No of Percentage

respondents

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:

From the above information we can understand that 36% of respondents

chosen ‘yes’ option. From this we can understand that company offering
good discounts to retailers and who increases the sales that one get the
good discount from Coke Company. And Remaining 64% of respondents
chosen ‘no’ option because they do not increases a sales percentage of
coke company that’s why company not providing any discounts to
retailer.

9. I feel difficulty with maintaining optimum stock?

72
 a) Yes b) No

s.no particulars No of Percentage

respondents

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

s.no particulars No of Percentage

respondents

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:

From the above information we can understand that 54% of respondents

chosen ‘yes’ option. And because those retailers is not satisfied with the
replenishment time of the coke company. And remaining 46% of the
respondents chosen ‘no’ option. And because those retailers getting good
replenishment. From this we can understand that company is not
providing better replenishment time to the retailers.

11. Are you satisfied with credit methods of the company?

76
 a) Yes b) No

s.no particulars No of Percentage

respondents

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:

From the above information we can understand that 32% of respondents

chosen ‘yes’ option. And remaining 68% of the retailers chosen ‘no’
option. From this we can understand that majority of retailer’s shows
more sales to the company. Then company offering good credit methods
to the retailers.

12.What percentage discounts the company is providing?

78
a) 0-10% b) 11-20% c) 21-30% d) more then31%

s.no Discount range No of Respondents percentage

1 0-10% 60 55%

2 11-20% 20 18%

3 21-30% 30 27%

4 More than 30% 0 0

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.

13.Are you satisfied with discount percentage?

a) Yes b) No
80
 s.no particulars No of Percentage
respondents

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

s.no particulars No of Percentage

respondents

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.

Particulars Yes No Total expected

value
Urban 40(38) 20(22) 60

Rural 30(32) 20(18) 50

Total observed 70 40 110

values
Total expected 70 40 110
value

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

NULL HYPOTHESIS (H0):

There is no significant difference on rating for retailer satisfaction on
geographical background and promotional activity on discounts by
retailers in both rural & urban areas.

particulars 0-10% 11-20% 21-30% More than Total

31% expected value
Urban 40(38.18) 10(13) 20(19.09) 0 70.27

Rural 20(21.83) 10(7) 10(10.9) 0 39.73

Total observed 60 20 30 0 110

values
Total expected 60 20 30 0 110
values

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

NULL HYPOTHESIS (H0):

There is no significant difference on rating for promotional activity
of stock maintenance and geographical background by retailers in both
rural & urban areas.

Particulars Yes No Total expected

value
Urban 30(28.64) 15(16.36) 45

Rural 40(41.37) 25(23.63) 65

Total observed 70 40 110

values
Total expected 70.01 39.99 110
value

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

• The study reveals that majority of the retailers in Guntur district

was preferred coke brands.
• The study elicits that majority of the retailers are maintaining
optimum product availability.
• The study reveals that Coke Company is providing good awareness
about the credit schemes
• The study elicits that retailer aware of the incentives of the coke
company.
• The study elicits that majority of the retailers are satisfied with
stock availability.
• The study reveals that company is not maintaining good
replenishment time period.
• The study elicits that company is providing better credit policies to
the retailers of Guntur district.
• The study reveals that majority of the retailers are not satisfied with
discount percentage offered by company.
• The study reveals that majority of the retailers are not satisfied by
the replenishment time followed by the company
• The study reveals that majority of the retailers are getting lower
discount percentage from Coke Company.
• The study reveals that majority of the respondents are getting good
promotional schemes from Coke Company.
• The study reveals that relation between geographical area &
promotional activity on both rural and urban areas from Coke
Company.

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

• The company is performing a detail demand survey at regular

interval to know about the unique needs and requirements of the
retailer.
• It is suggested that the company should develop a proper feedback
mechanism process in terms of identifying and implementing the
retailer suggestions.
• The company should focus of lunching more flavors and varieties
of soft drinks to get more profits.
• It is recommended that the company should improve promotional
activities in terms developing the brand awareness among the rural
retailers in Guntur district.
• It is recommended that the company should keep a eagle eye on the
distributors because in some cases their a chance of cheating the
rural retailers due to this good will of the company may be
damaged.
• A strong watch should be kept on distributors also, because in
some cases they are found to be cheating the retailers and affecting
the goodwill of the COMPANY BRAND.

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

From the study we conclude that majority of the retailers in

Guntur rural & urban areas are satisfied with the most of the company’s
retailer’s schemes like discount rates, credit policies, incentive schemes
etc.

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.

So it is better to the company to develop effective feedback

systems in terms of identifying the rural retailer problems and company
has to develop an effective mechanism for solving the retailer problems
quickly. So that gains good brand equity in the market.

91