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"Market Survey To Find The Share of Coca-Cola": Project Report
"Market Survey To Find The Share of Coca-Cola": Project Report
PROJECT REPORT
On
Market Survey To Find The Share Of
Coca-Cola
LUDHIANA BEVERAGES
PRIVATE LIMITED
Submitted To
Submitted by
Lect. Rajvinder Kaur
Faisal Noor
BBA 4th Sem.
8140732
0007
DECLARATION
I here declare that the survey entitled, Market survey to find the Share
of Coca
Cola in Jalandhar that no part of this work has been submitted for any
other
degree of any other University. I also undertake that my work is purely
academic and
no part has been copied or taken from anywhere.
Faisal Noor
(81407320007)
PREFACE
Todays competitive age, the person who gets the fastest information
and uses it, win. Information is very important resources just
like other physical resources such as men, material, machinery
and money. The right information provided to the right time can
choose right persons for the right job. Information plays a very
significant role in decision making to as it provides alternatives
from which a choice can be made.
TABLE OF CONTENTS
S.NO
TOPICS
PAGES
5-14
Introduction to
FMCG Industry in
India
Company Profile
(Ludhiana
Beverages Private
Limited)
15-24
Objectives Of study
25
26-28
Research
Methodology
Data Interpretation
Findings
35-36
Limitations
37-38
Suggestions
39-40
Conclusion
41-42
10
Bibliography
43
11
Annexure
44-46
29-34
INTRODUCTIO
N
6
INTRODUCTION
Coca-Cola, the product that has given the world its best-known taste was born in
Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the worlds leading
manufacturer, marketer and distributor of non-alcoholic beverage concentrates
and syrups, used to produce nearly 400 beverage brands. It sells beverage
concentrates and syrups to bottling and canning operators, distributors, fountain
retailers and fountain wholesalers. The Companys beverage product comprises
of bottled and canned soft drinks as well as concentrates, syrups and not-readyto-drink powder products. In addition to this, it also produces and markets sports
drinks, tea and coffee. The Coca-Cola Company began building its global network
in the 1920s. Now operating in more than 200 countries and producing nearly
400 brands, the Coca-Cola system has successfully applied a simple formula on a
global scale: Provide a moment of refreshment for a small amount of
money- a billion times a day.
The Coca-Cola Company and its network of bottlers comprise the most
sophisticated and pervasive production and distribution system in the world.
More than anything, that system is dedicated to people working long and hard to
sell the products manufactured by the Company. This unique worldwide system
has made The Coca-Cola Company the worlds premier soft-drink enterprise.
From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than any
other consumer product, has brought pleasure to thirsty consumers around the
globe. For more than 115 years, Coca-Cola has created a special moment of
pleasure for hundreds of millions of people every day.
layoffs every time the economy starts to dip. A person may put off buying a car
but he will not put off having his dinner.
Unlike other economy sectors, FMCG share float in a steady manner irrespective
of global market dip, because they generally satisfy rather fundamental, as
opposed to luxurious needs. The FMCG sector, which is growing at the rate of 9%
is the fourth largest sector in the Indian Economy and is worth Rs.93000 crores.
The main contributor, making up 32% of the sector, is the South Indian region. It
is predicted that in the year 2010, the FMCG sector will be worth Rs.143000
crores. The sector being one of the biggest sectors of the Indian Economy
provides up to 4 million jobs.
The FMCG sector consists of the following categories:
Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics and
Toiletries, Deodorants and Perfumes, Paper products (Tissues, Diapers,
Sanitary products) and Shoe care; the major players being; Hindustan
Lever Limited, Godrej Soaps, Colgate, Marico, Dabur and Procter &
Gamble.
Spirits and Tobacco; the major players being; ITC, Godfrey, Philips and
UB
10
BEVERAGES
Alcoholic
Non-Alcoholic
Carbonated
Cola
Non-Carbonated
Non-Cola
Non-Cola
11
suggestions Drink added to inform passersby that the new beverage was for
soda fountain refreshment.
By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year,
Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red
has been a distinctive color associated with the soft drink ever since. For his
efforts, Dr. Pemberton grossed $50 and spent $73.96 on advertising. Dr.
Pemberton never realized the potential of the beverage he created. He gradually
sold portions of his business to various partners and, just prior to his death in
1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur
from Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights
and acquire complete ownership and control of the Coca-Cola business. Within
four years, his merchandising flair had helped expand consumption of Coca-Cola
to every state and territory after which he liquidated his pharmaceutical business
and focused his full attention on the soft drink. With his brother, John S. Candler,
John Pembertons former partner Frank Robinson and two other associates, Mr.
Candler formed a Georgia corporation named the Coca-Cola Company. The
trademark Coca-Cola, used in the marketplace since 1886, was registered in
the United States Patent Office on January 31, 1893.
The business continued to grow, and in 1894, the first syrup manufacturing plant
outside Atlanta was opened in Dallas, Texas. Others were opened in Chicago,
Illinois, and Los Angeles, California, the following year. In 1895, three years after
The Coca-Cola Companys incorporation, Mr. Candler announced in his annual
report to share owners that Coca-Cola is now drunk in every state and territory
in the United States.
As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A
new building erected in 1898 was the first headquarters building devoted
exclusively to the production of syrup and the management of the business. In
the year 1919, the Coca-Cola Company was sold to a group of investors for $25
million. Robert W. Woodruff became the President of the Company in the year
1923 and his more than sixty years of leadership took the business to
unsurpassed heights of commercial success, making Coca-Cola one of the most
recognized and valued brands around the world.
12
VALUES
Coca-Cola is guided by shared values that both the employees as individuals and
the Company will live by; the values being:
13
INTEGRITY: Be real
MISSION
14
PEOPLE: Being a great place to work where people are inspired to be the
best they can be.
Formula
The exact formula of Coca-Cola is a famous trade secret. The original copy of the
formula is held in SunTrust Bank's main vault in Atlanta. Its predecessor, the Trust
Company, was the underwriter for the Coca-Cola Company's initial public offering
in 1919. A popular myth states that only two executives have access to the
formula, with each executive having only half the formula. The truth is that while
Coca-Cola does have a rule restricting access to only two executives, each knows
the entire formula and others, in addition to the prescribed duo, have known the
formulation process.
15
16
COMPANY
PROFILE
17
Coca-Cola Company acquired soft drink brands like Thumps Up, Gold spot, Limca,
Maaza, which were floated by Parle, as these products had achieved a strong
consumer base and formed a strong brand image in Indian market during the reentry of Coca-Cola in 1993.Thus these products became a part of range of
products of the Coca-Cola Company.
Ludhiana Beverage Private Limited previously known as Ludhiana
Bottling Company was established in 1966 in Textile colony Ludhiana
by joint efforts of Mr. Kailash Goenka and Mr. Radhey Shyam Poder. This
plant was the first franchise of Parle in Punjab. The plant started its
with a 66 BPM funky line with a single prime product Gold Spot. The
annual production was only 3.35 lacks cases. Sales were 2.7 lacks cases
and turnover was 27 lacks. Distribution was done with the help of 8
vehicles (6 three wheelers and 2 trucks).
The plant shifted to its new venue 185 GT Road, Ludhiana in 1972 with the
introduction of the new machinery (CEM) From America. Production capacity was
increased to 132 BPM. In 1973, Limca and in 1977 Thums Up were introduced
with the exit of Coke from India. In 1988, Maaza was introduced. Yearly
production was increased to 7 lacks cases and sales to 6.5 lacks cases. 12 more
vehicles were added for distribution with a total of 20 vehicles (14 three wheelers
and 6 trucks).
Ludhiana Bottling Company got the Gold medal for best quality in India and silver
medal in sales.
In 1994, the legend and soft drink giant Coca Cola took over parley and Ludhiana
beverages Limited is the third franchise of Coca Cola in Punjab. With the
introduction of new technology in plant and implementing policies of Coca Cola
system and Ludhiana Beverages Limited have come a long way in proving a
name for itself. It has 600 BPM aerated line. Production is 4.3 million years with
30000 cases per day during peak season. Sales are 4.2 million cases with a
turnover of 50 crores.
It is graded number 1 plant by Coca Cola India, which is utilizing its resources to
its maximum with minimum wastage.
18
Think local, act local, is the mantra that Coca-Cola follows, with punch lines like
Life ho to aisi for Urban India and Thanda Matlab Coca-Cola for Rural India.
This resulted in a 37% growth rate in rural India visa-vie 24% growth seen in
urban India. Between 2001 and 2003, the per capita consumption of cold drinks
doubled due to the launch of the new packaging of 200 ml returnable glass
bottles which were made available at a price of Rs.5 per bottle. This new market
accounted for over 80% of Indias new Coca-Cola drinkers. At Coca-Cola, they
have a long standing belief that everyone who touches their business should
benefit, thereby inducing them to uphold these values, enabling the Company to
achieve success, recognition and loyalty worldwide.
As of 2008,Coca Cola is the leading beverage industry and has 24 bottling
operations of its own and 25 bottling operations owned by its franchisees.
19
MISSION
To create consumer products, services and communications, customer service
and bottling system strategies, processes and tools in order to create competitive
advantage and deliver superior value to:
QUALITY POLICY
To ensure customer delight, we commit to quality in our thoughts, deeds and
actions by continually improving our processesEvery time.
Chairman &
Managing Director
20
CEO
Vice President
Production
Vice President
(Sales &
Marketing)
General Manager
General Manager
(Marketing)
Sale Manager
Channel Executive
Market Developer
Field Executive
Salesman
21
Water is received and it passes through the water treatment plant, further
passing through the sand filter and the activated carbon filter, so as to
attain pure cleansed water.
In the syrup room, the concentrate received is blended with the sugar
syrup.
Once both the water and the final syrup are ready, they are both mixed
together and sent to the carbonator section where Carbon Dioxide is
added to the mixture to form the final product.
22
This step does not take place in the PET bottle line as the bottles once used are
disposed.
The product is finally filled in the bottles, crowned (in case of RGB)/
capped (in case of PET bottles), labeled and cased in order to be sent into
the warehouse for distribution.
DISTRIBUTION NETWORK
LBPL has a wide and well-managed network of salesmen appointed for taking up
the responsibility of distribution of products to diverse parts of the cities. The
distribution channels are constructed in such a way that the demand of
customers is fulfilled at the right place and the right time when it is needed by
them.
A typical distribution chain at LBPL would be:
Production --- Plant Warehouse --- Depot Warehouse --- Distribution
Warehouse --- Retail Stock --- Retail Shelf --- Consumer
The customers of the Company are divided into different categories and different
routes, and every salesman is assigned to one particular route, which is to be
followed by him on a daily basis. A detailed and well-organized distribution
system contributes to the efficiency of the salesmen. It also leads to low costs,
higher sales and higher efficiency thereby leading to higher profits to the firm.
DISTRIBUTION ROUTES
The various routes formulated by LBPL for distribution of products are as follows:
23
payments being made by them after a certain period of time i.e. either a
month of half a month.
Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.
etc.
General: Under this route, all the outlets that come in a particular area
or an area along with its neighboring areas are catered to. The
consumption period is not taken into consideration in this particular
route.
DISTRIBUTION SYSTEM
24
PRODUCTS
The Coca-Cola Company offers a wide range of products to the customers
including beverages, fruit juices and bottled mineral water. The Company is
always looking to innovate and come up with, either complete new products or
new ways to bottle or pack the existing drinks. The Coca-Cola Company has a
wide range of products out of which the following products are marketed by LBPL:
25
PACKAGING DETAILS
Maaza: 200 ml and 250 ml Returnable Glass Bottle; 500+100 ml free and
1litre+200 ml PET bottles and the newly introduced 200 ml Tetra Pack
Minute Maid Pulpy Orange: 400 ml, 1 litre PET bottles and 200ml Tetra
pack
26
PROJECT
MARKET SURVEY TO FIND THE SHARE OF COCA COLA
OBJECTIVE OF STUDY
Consumption of soft drinks has increased tremendously in India. Every age group
likes it, and has now become a necessary household item. In field of marketing
the company conducts many surveys from time to time. This feedback is
necessary for any organization.
The main objective of the study lies in understanding the organization structure
and studying and understanding the consumers perception, opinion and to find
out the percentage share of Coca Cola in the market. To understand the various
marketing strategies being implemented in order to give the product the required
marketing push and to recognize the prospective consumers and their opinion in
order to develop and market the product in a better way in the near future. The
findings of the activity have been drawn out in form of graphs and suggestions
have been offered there from.
To understand the organization structure.
To know about the various marketing strategies being implemented.
To know the major player and their respective share in the market.
To ensure the availability of the product in the market.
To study the distribution network.
27
RESEARCH
METHODOLO
GY
28
RESEARCH
Research is a movement from unknown to known. It is actually a
voyage of discovery. Research may be defined asSystematized effort to gain any branch of knowledge.
In simple words the search for knowledge through objective and
systematic method of finding solution to a problem is research.
RESEARCH METHODOLOGY
Research methodology is a careful investigation or inquiry in a
systematic method and finding solution to problem in a research. It
comprises of defining and redefining problems, formulating hypothesis
or suggested solutions, collecting and evaluating data, making
deductions and reaching conclusions and at last carefully testing the
conclusion to determine whether they fit us formulating hypothesis.
Questionnaire Method
This is the method of data collection in which the data is collected with
the help of questionnaire. A questionnaire consist of number of
questions, used to given to the respondents who write down their
replies in the space provided for that. The questionnaires are mainly
consisting of choice or close ended, but few open- ended questions are
also asked.
30
DATA ANALYSIS
AND
INTERPRETATIO
N
31
DATA INTERPRETATION
1. Decision maker age group of retailers (in years).
Sr.No.
Percentage
1.
2.
3.
4.
20-30
30-40
40-50
50 & above
(%)
24
37
29
10
Interpretation
24% decision maker belongs to 20-30 age group
37% decision maker belongs to 30-40 age group
29% decision maker belong to 40-50 age groups and
10% decision maker belongs to 50 & above age group.
32
Channel
Grocery
Convenience
E&D-1
E&D-2
Percentage (%)
8
63
15
14
Interpretation
Convenience store accounts for high channel percentage i.e. 63%.
33
Category(outlet)
Silver
Gold
Diamond
Percentage
51
30
19
Interpretation
Silver category outlets are those, which are involved in selling
200-499 cases a year. Silver category outlets bagged the highest
percentage of 51%.
34
Sr.No.
1.
2.
3.
4.
5.
6.
SGA Type
4 Caser
7 Caser
9 Caser
11 Caser
13 Caser
Other
Percentage (%)
8
54
13
0
1
24
Coca Cola uses various promotion strategies to enhance the interest of the
retailers.
SGA (Sales Generating Asset) is one of the promotion techniques used to
enhance the interest of the retailers.
Interpretation
Promotion Tool
35
Signage
Warm Display Rack
Shelf Display
Outside Crates
Percentage (%)
17
15
30
38
Interpretation
Outside crates holds a majority of market share i.e. 38%
Shelf display holds a market share of 30%
Signage holds a market share of 17%.
36
FINDINGS
FINDINGS
Coke products are having a highest percentage of market shares.
Coke products are the most demanding in the market. Coke
37
crates
form
the
highest
percentage
of
promotional
38
LIMITATIONS
39
The sample size of the project is 200 retailers and the study was
limited to Jalandhar city only.
40
SUGGESTION
S
41
SUGGESTIONS
The prices of can are very high according to customers; the prices
should be reduced in order to cater the lower segment of
customers.
The imported cans are quite high in number in the market.
Therefore various strategies to be implemented to increase the
availability of cans in the market.
Schemes are to be provided by the company from time to time in
supermarket to enhance the sales. Example: - On buy of 2-ltr coke
you will get a discount of Rs.5.
More attention is to be paid by the company to the complaint of
retailers.
Availability of Kinley water is there in the market but it is quite less
in comparison to Bisleri, Aquafina and other local brands. Therefore
company should provide such schemes to enhance the sales.
During off-season, the company should provide additional schemes
to enhance the sales and increase their volume of profits.
During peak season, the company should ensure that there should
be smooth supply of coke products in the market.
The company should take care of supply of all the flavors in all the
pack sizes.
42
CONCLUSION
43
Conclusion
Consumption of soft drinks has increased tremendously in India. Every age group
likes it, and has now become a necessary household item. In field of marketing
the company conducts many surveys from time to time. This feedback is
necessary for any organization.
44
BIBLIOGRAPHY
http://www.cybernoon.com
Case Folio: Coca-Cola, PepsiCo and the Indian Soft Drink Beverage
Market (Sep. 2009)
http://news.bbc.co.uk
http://www.thecoca-colacompany.com
http://www.coca-cola.com
http://www.ko.com
http://www.hoovers.com
http://www.google.com
http://www.wikipedia.org
45
ANNEXURES
QUESTIONNAIRE
(Information provided by you will be kept confidential and use for research purpose only)
a.
20-30
b. 30-40
c. 40-50
2. WHAT IS THE CHANNEL/TYPE?
a. GROCERY
b. CONVENIENCE
c. E&D-1
d. E&D-2
3. Percentage of category of outlets on the basis of volume
a. SILVER
b. DIAMOND
c. GOLD
4. Status Of SGA Type installed in the market (in caser)
46
a. 4
b. 7
c. 9
d. 11
e. 13
f. OTHERS
PRODUCT
COKE
PEPSI
RGB
MOBILE
PET
WATER
JUICE
CAN
47
BISLERI
FRUITY
SODA
Total
Percentage
48