Professional Documents
Culture Documents
Retailers Satisfaction in COCA COLA
Retailers Satisfaction in COCA COLA
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 costumers 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.
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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 1 st preference to COCA COLA.
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 management. To know how retailers are succeeded in the business organization. To know how the retailers time utilizing in the business organization. coca cola beverages private limited. To know how the process going on the retailers management in the Hindustan To define the
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.
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. Some of the retailers refused to give the information thats why Taken very Small sample size.
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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.
Sampling types: Sampling technique: In this study the respondents sells through
Convenience sampling.
Sample Size: Retailers 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.
Scope
- Contains an executive summary and data on value, volume and/or segmentation - Provides textual analysis of the industrys 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 markets 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
coke
or
fizzy drink)
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
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drinking mineral waters could cure many diseases. Early scientists who studied mineral waters included Jbiribn Hayyn, 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
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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.
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.
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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. 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 worlds 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.
is
an Indian subsidiary of the US based Coca-Cola Company. The company-owned Bottling arm of the Indian Operations, Hindustan CocaCola Beverages Private Limited is responsible for the manufacture, sale and distribution of beverages across the country. Coca-Cola India is among the countrys 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 worlds 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.
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.
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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.
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.
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.
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.
Seasonality:
that affect the soft drink business. Seasonality is primarily influenced either by the weather, or by holidays and religious
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festivals. Within the Group, soft drink business has different seasonal cycles throughout the year.
Service frequency:
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.
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:
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.
Competitors Policy:
Company Profile
CocaCola has the highest brand value with an ThumsUp is the #1 Cola estimated $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
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
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
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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. The Way we manufacture Beverage Raw Water Treatment CARBON FILTER SAND FILTER CLARIFIER Sand Filter Carbon FilterReverseOsmosisConventional Chemical coagulationUV filterLead Lag Activated 1 Filter Inspection at 3 Filter5 Filter Post wash Carbon & Filled Filters Syrup Preparation Syrup Preparation Beverage Prewash, Beverage preparation. Filling Beverage Filling Glass Bottle
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.
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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 Magistrates 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)
activity
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.
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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 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
lands are
Income from agriculture is expected to go up from the current seaso Increased water availability is increasing the greenery in the village, besides the farming
ORGANIGATION STRUCTURE
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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. If you dont achieve these outcomes, customers wont buy from you and you will go out of business. It wont 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. Product range and mix of products. Price points. How products and services are sourced.
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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 the product or service, and the processes that you have to make buying easier and more enjoyable. The product element is the customers 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 markups 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
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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.
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.
or consumption by a consumer or business user. The other three parts of the marketing mix are product, pricing, and promotion.
Channels
A number of alternate 'channels' of distribution may be available:
Retailer
customers
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
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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 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
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.
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. 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. 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.
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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).
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
Retailing process
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.
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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 reengineering; 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
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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, nonstore 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.
Selfservice:
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.
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:
locate-compare-select process. Customers who like to be waited on prefer this type of store. The high staffing cost, along with the higher
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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 bettertrained employees.
Marketing Decisions:
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:
target market. Until the target market is defined and profiled, the retailer cannot make consistent decision on product assortment, store dcor, advertising messages and media, price, and service levels.
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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.
advertising, window and interior display, fitting rooms, shopping hours, fashion shows, trade INS. Post purchase services include shipping and delivery, giftadjustments and returns, alterations and tailoring,
wrapping,
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
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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. 1. Number of people passing by on an average day. 2. Percentage who entered the store.
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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.
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
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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. The formula for calculating chi-square = (o-e) O E = = observed values Expected values
2
/e
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.
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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 chisquare 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 chi54
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 chisquare, 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.
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1.
Which company drinks are available in the shop? a) Pepsi b) coke c) Both
s.no 1 2 3
No of respondents 0 80 30
80 70 60 50 40 30 20 10 0 0 peps i
80
30
avalibility
coke
both
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peps i
cok e
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.
a) Thumps up b) maaza
s.no 1 2 3 4 5
No of respondents 0 0 0 0 110
Percentage 0% 0% 0% 0% 100%
110
avalibility
all drinks
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pecentag e, 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.
70 60 50 40 30 20 10 0 y es
70
40 credit schem s
no
61
no 36%
yes no
ye s 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 dont have awareness of the credit schemes of Coke Company.
80 70 60 50 40 30 20 10 0
80
30
incentives
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.
a) Yes
b) No
s.no
particulars
No of respondents 70 40
Percentage
1 2
Yes No
64% 36%
70 60 50 40 30 20 10 0
70
40 s tock m aintain
yes
no
65
3 6%
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 distributors goo down. From this we can understand that respondents showing lesser sales thats why company stock providing alternate days are weekly twice.
6.
a) Yes
b) No
s.no
particulars
No of respondents 50 60
Percentage
1 2
Yes No
46% 54%
60 58 56 54 52 50 48 46 44 y es 50
60
relishm ent
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.
b) No No of respondents 75 Percentage
Yes
68%
No
35
32%
80 70 60 50 40 30 20 10 0 yes
75
35
g ood cr policies
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 dont have increased sales percentage of Coke Company.
a) Yes s.no
Yes
36%
No
70
64%
70 60 50 40 30 20 10 0 yes no 40
70
dis counts
71
36%
64%
yes no
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 thats why company not providing any discounts to retailer.
a) Yes
b) No
s.no
particulars
No of respondents 60
Percentage
Yes
55%
No
50
45%
60 58 56 54 52 50 48 46 44 yes
60
50
m aintenance
no
73
4% 5
5% 5
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 distributors outlet.
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10. Company
a) Yes s.no
Yes
54%
No
50
46%
60 58 56 54 52 50 48 46 44 y es
60
50
replenishm ent
no
75
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.
a) Yes
b) No
s.no 1
particulars Yes
No of respondents 35
Percentage 32%
No
75
68%
80 70 60 50 40 30 20 10 0 yes 35
7 5
g ood cr m ethod
no
77
3 2%
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 retailers shows more sales to the company. Then company offering good credit methods to the retailers.
a) 0-10% s.no 1 2 3 4
c) 21-30%
No of Respondents 60 20 30 0
60 50 40 30 20 10 0 0-10
60
3 0 20 discount rang e
79
0 27%
0-10% 20 -11% 21 -30 m than 30% ore
18%
55%
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.
s.no
particulars
No of respondents 40
Percentage
Yes
36%
No
70
64%
70 60 50 40 30 20 10 0 yes no 40
70
s fingdis atis
81
36%
64%
yes no
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.
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14.
Are you satisfied promotional schemes of the a) Yes s.no particulars b) No No of respondents 75 Percentage
company?
Yes
68%
No
35
32%
80 70 60 50 40 30 20 10 0 yes
75
35
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.
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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.
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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.
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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.
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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.
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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.
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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.
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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 companys retailers 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 retailers 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.
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